Before you pay a Chinese supplier: a 12-point checklist for Gulf importers
Most sourcing problems start with a payment sent too early. Twelve checks to run first.
Key points
- Check the company's business licence and its 18-character Unified Social Credit Code.
- Only pay a company bank account in the same name as the licence.
- Approve a sample, then keep it as the standard the order is judged against.
- Agree the Incoterm, inspection and documents in writing before the deposit.
A good price on a trade-fair stand or a sourcing website is where the work starts, not where it ends. Most of the problems Gulf importers run into (wrong quality, late shipments, a supplier who stops replying) could have been caught before the first payment. Run these twelve checks before you send a deposit.
Is the company real?
- Ask for the business licence. Every registered Chinese company has an 18-character Unified Social Credit Code. Check it on China's National Enterprise Credit Information Publicity System, and make sure the company name, address and business scope match what you were told.
- Factory or trading company? Both can be fine, but you should know which one you are dealing with. A trading company's licence will not usually list manufacturing in its scope.
- See the factory. In person if you can, otherwise by live video. Ask to see the production line for your product, not just the showroom.
Is the money safe?
- Pay the company, not a person. The bank account name should match the company on the licence. A request to pay a personal account, or a "sister company", is a reason to stop.
- Agree the payment split. Many orders are paid as a deposit, with the balance due after inspection or against shipping documents. Get the split and its conditions in writing.
- Confirm bank details by phone. If the supplier emails new bank details, call them on a number you already have before paying. Changed-details fraud is common.
Is the product right?
- Approve a sample and keep it. The approved, signed sample becomes the standard the order is checked against.
- Write a specification. Materials, sizes, colours (with codes), packaging, labels and Arabic text where needed. Vague orders get vague results.
- Book a pre-shipment inspection. An independent inspector checks the goods in the factory before the balance is paid and before anything ships.
Will it clear customs?
- Agree the Incoterm. EXW, FOB and CIF (defined by the International Chamber of Commerce's Incoterms rules) decide who pays for what, and who carries the risk, at each stage. FOB is a common starting point for Gulf importers using their own forwarder.
- Check the documents you'll need. A commercial invoice, packing list, bill of lading and certificate of origin as a minimum. Some products also need conformity certificates for the UAE or Saudi Arabia. Ask your clearing agent before you order, not after it lands.
- Check duty and your licence. Confirm the product's HS code and duty rate with your clearing agent, and make sure your trade licence covers importing that product.
The checklist in one table
| # | Check | Done? |
|---|---|---|
| 1 | Business licence and credit code verified | ☐ |
| 2 | Factory or trader confirmed | ☐ |
| 3 | Factory seen in person or on live video | ☐ |
| 4 | Bank account name matches the licence | ☐ |
| 5 | Payment split agreed in writing | ☐ |
| 6 | Bank details confirmed by phone | ☐ |
| 7 | Sample approved and kept | ☐ |
| 8 | Written specification signed off | ☐ |
| 9 | Pre-shipment inspection booked | ☐ |
| 10 | Incoterm agreed | ☐ |
| 11 | Import documents confirmed with clearing agent | ☐ |
| 12 | HS code, duty and trade licence checked | ☐ |
Planning a buying trip? See our guide to the spring 2027 Canton Fair.