Distinguishing manufacturers: Check license + Verify invoice (Source: SilkWay): Golden Rule: Business scope includes manufacturing (Source: SilkWay); Core: 13% VAT special invoice issued as a general taxpayer (Source: XILINK); Note: Certifications must be in the manufacturer’s name (Source: OmniSol).
I.
Business License Scope
Manufacturing: Business scope includes production/manufacturing (Source: SilkWay); Trading: Sales/wholesale only = Trader (Source: SilkWay); Verification: Check license number at gsxt.gov.cn (Source: milasourcing); Processing: Distinction between processing and manufacturing (Source: bo-asia); Legal: Legal boundaries of business scope (Source: bo-asia)—License: Manufacturing keywords + Number check + Processing distinction (Three-point check).
II.
Invoice Types
13%: 13% VAT special invoice (general taxpayer status) (Source: XILINK); 3%: 3% ordinary invoice (small-scale taxpayer status) (Source: ChineseCheck); Tax Rebate: Export tax rebates require special invoices (Source: XILINK); Confirmation: Ask in writing about the invoice type (Source: ChineseCheck); Consistency: Invoice company name must match (Source: milasourcing)—Invoice: Special invoice + Tax rebate eligibility + Consistency (Three-point verification).
III. On-site Visit
Welcome: Manufacturer enthusiastically agrees to the visit (Source: ChineseCheck); Pickup: Airport/station transfer arranged (Source: ChineseCheck); Address: Factory address matches registration (Source: ChineseCheck); Evasion: Traders stall or avoid visits (Source: ChineseCheck); Photos: Providing only photos instead of a live video tour = Middleman (Source: milasourcing)—Visit: Enthusiasm + Address + Live Video (Three signals).
IV.
Technical Q&A
Direct: Manufacturer answers directly based on production knowledge (Source: NewBuyingAgent); Vague: Trader gives vague answers and needs to check with the factory (Source: NewBuyingAgent); Depth: Probing with in-depth technical questions (Source: terrace); Parameters: Product specifications and manufacturing processes (Source: terrace); Escort: Tour guide answers technical questions (Source: ChineseCheck)—Q&A: Directness + Depth + Escort (Three indicators).
V.
Product Range
Extremely Wide: Extremely broad product categories = Trader (Source: terrace); Focus: Genuine factories focus on specific categories (Source: terrace); Electronics: Electronics, apparel, kitchenware, and toys combined = Trading (Source: terrace); Multiple Factories: Sourcing from multiple factories for resale (Source: terrace); Website: Mixed product categories on the website (Source: Zignify)—Range: Focused vs. Mixed (One criterion).
VI. Certification and Payment
Entity Name: Manufacturer name on CE/UL/TÜV certificates (Source: OmniSol); Third Party: Clarify the third party named on the certificate (Source: OmniSol); Subcontracting: Directly ask if subcontracting is involved (Source: OmniSol); Prepayment: 100% prepayment to a personal account = Red Flag (Source: Mars); Refusal to Share License: Refusal to provide a copy of the business license (Source: Mars)—Certification: Entity Name + Subcontracting + Prepayment (Three Warning Signs).
VII.
Procurement Recommendations
First, check the business license (business scope); second, verify the invoice (13% special VAT invoice); third, arrange a site visit (live-streamed production line tour); fourth, inquire about technical details (ask in-depth questions);
fifth, validate certifications (manufacturer’s name)—Verification: License + Invoice + Site Visit (Three-Point Closed-Loop Check).
