# China Supplier Audit Checklist for Factory Visits > Source: https://netray.co/tools/china-supplier-audit-checklist > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer A six-part on-site audit checklist for Chinese suppliers: legal status, quality, production, labor and EHS, IP protection and subcontracting. ## Category quality ## Region China ## Industry Manufacturing ## Audience - Supplier quality engineer - Buyer - Sourcing manager - Auditor ## Tool **Kind:** checklist **Scoring Note:** Count ticked items per group and overall. Any untick on a critical item is a finding to record, even when the overall percentage looks acceptable. Record evidence (photo, document number, sample) next to each finding. **Groups:** #### Legal status and capacity **Items:** **Text:** Business license is current and the scope of business covers the products you buy **Critical:** true **Text:** Legal entity name and unified social credit code match the contract and the fapiao issuer **Critical:** true **Text:** Factory address visited is the address on the license and the contract **Critical:** true Owned versus rented premises and lease term are documented Number of employees, shifts and line count match what the supplier declared in the questionnaire Capacity claimed is credible against equipment count and observed utilisation No sign of unrelated products or other customers' branded goods that suggest a trading company posing as a factory #### Quality management system **Items:** **Text:** ISO 9001 certificate valid, issued by an accredited body, with scope covering your product **Critical:** true Industry certificates in force where required (IATF 16949, ISO 13485, AS9100, UL) **Text:** Documented incoming inspection with records of rejected lots **Critical:** true **Text:** In-process inspection points and control plan exist at the line **Critical:** true Final inspection uses a sampling plan (for example ANSI/ASQ Z1.4) with signed records **Text:** Gauges and test equipment are calibrated with stickers and certificates in date **Critical:** true Nonconforming material is tagged and segregated, with a clear disposition process **Text:** Lot and batch traceability is demonstrated from finished goods back to raw material **Critical:** true Corrective action process (8D or equivalent) with closed examples #### Production and equipment **Items:** Equipment list matches what is on the floor and is maintained with a PM schedule **Text:** Work instructions are posted at stations and match the current revision **Critical:** true **Text:** Engineering change control exists and the line runs the approved drawing revision **Critical:** true First article approval is done and recorded for new part numbers or tooling changes Materials are stored with FIFO, labelling and humidity or ESD control where needed Tooling and molds are tagged, stored and show ownership marking if you own them Packing and shipping process protects the product and uses the agreed labels #### Labor, safety and environment **Items:** **Text:** No evidence of underage workers; age records are checked for a sample of staff **Critical:** true **Text:** Working hours and overtime records are consistent with local law and your code of conduct **Critical:** true Wage records and social insurance payments are available for review **Text:** Fire exits are unlocked and clear, extinguishers in date, evacuation plan posted **Critical:** true Machine guarding, protective equipment and chemical storage meet basic safety practice **Text:** Environmental permits (for example discharge permits) are valid where the process requires them **Critical:** true Dormitory and canteen conditions, if provided, are safe and hygienic #### IP, data and subcontracting **Items:** **Text:** Signed NDA or confidentiality terms are in place and staff access to drawings is controlled **Critical:** true Your drawings and tooling are not used for other customers' orders **Text:** Subcontractors are declared; critical processes are not outsourced without your approval **Critical:** true Sub-supplier list and approved sources for critical materials are documented Restricted substance compliance (RoHS, REACH) is supported by declarations and test reports Business continuity: backup supplier or stock policy for critical materials exists ## Content **Intro:** A supplier audit in China works best when it is evidence-based and consistent between visits and auditors. This checklist covers the six areas buyers and supplier quality engineers most often get wrong, from trading companies posing as factories to unrecorded subcontracting. **Sections:** #### How to run the audit **Body:** Send the checklist and document request list a week before the visit so the supplier can prepare records. On the day, walk the process in order: receiving, warehouse, production, inspection, packing. Ask to see live records, not only prepared files, and take a sample of lot numbers to trace backward. Tick items you verify, note evidence and mark critical items you could not verify as findings. Export the result to PDF or Excel and send findings to the supplier with a due date for corrective action. #### What is behind the sections **Body:** The structure follows a typical second-party audit: legal identity, quality system (ISO 9001 clause themes such as control of nonconforming output and monitoring resources), process control, social and safety compliance, and supply chain risk. It does not replace a formal certification audit and it does not quote standard text. For regulated industries add the customer-specific requirements, such as IATF 16949 customer-specific rules or AS9100 flow-down clauses. #### Reading the result **Body:** Do not average everything into one number. A supplier at 85% overall with an open fire-exit or child labour finding is not acceptable. Use the critical items as a gate, then use the percentage by group to decide the type of follow up. Low quality-system scores point to a development plan, low IP scores point to contract and access controls, and low legal scores point to a different supplier altogether. **Bullets:** - All critical items ticked: eligible for approval, subject to any non-critical actions - One to three critical misses: conditional approval with a dated corrective plan - More than three critical misses: do not approve until re-audited #### Common audit mistakes **Body:** Frequent errors are auditing the showroom instead of the production floor, announcing the date so far in advance that the factory is staged, relying on a translator provided by the supplier, and failing to follow up. Also confirm who owns the audit record in your ERP. Store audit status, date and next due date on the supplier master so purchasing is blocked or warned when approval lapses. **Cta:** If audit status and expiry dates are tracked in spreadsheets, Netray can help link supplier approval status to purchasing in your ERP so expired suppliers are flagged automatically. **Faq:** #### How often should I audit a China supplier? **Answer:** Frequency should follow risk. New suppliers are audited before approval. Critical or high-spend suppliers are commonly re-audited yearly, lower-risk suppliers every two or three years, and any supplier with repeated quality escapes sooner. Document the interval in your supplier management procedure. #### How do I tell if the supplier is a trading company? **Answer:** Check that the business license scope includes manufacturing, the visited site has production equipment, raw material storage and routing records, and the factory name matches the license and fapiao issuer. Trading companies often cannot show process records or tooling. #### Should the audit be announced or unannounced? **Answer:** Initial qualification audits are normally announced so the right people and records are available. For ongoing monitoring, consider short-notice or unannounced follow up visits for high-risk suppliers, particularly for labor and subcontracting topics, subject to contract terms. #### Can I use this for a third-party audit company? **Answer:** Yes, you can give it to a third-party inspection firm as the scope of work and request a completed copy with photos. Make sure the auditor is qualified for your industry and that you still review the critical findings yourself. ## Search terms china supplier audit checklist, china factory audit checklist, supplier audit form china, china vendor qualification audit, factory audit checklist template, supplier on-site audit china, china supplier due diligence checklist, second party audit checklist --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json