The focus of the investigation of suppliers is to examine their supply capabilities, that is, the reliability of their product quality, the reliability of normal supply, the reliability of after-sales service, and the reliability of their financial credit. Generally, it includes:
(1) qualifications, business scope, production capacity and technical level;
(2) business status, operating ability and future development prospects;
(3) asset amount and asset structure and financial status;
(4) business policy, means, style and business ethics record;
(5) financing position in the money market (credit rating) and relationship with banks;
(6) historical record of annual turnover and purchase and sales channels;
(7) business dealings with domestic enterprises;
(8) development history, organizational structure, background and ability of company leaders;
(9) export motivation, the distance between the supply place and my country;
(10) whether the country (region) has a preferential tariff agreement with my country.
Tips
About the supplier’s agent identity
In addition to investigating the supplier’s creditworthiness, importers should also investigate and confirm their identities. If the investigation finds that the other party is the agent of a certain brand of product, they should pay attention to the following:
1. Find out the other party’s agent identity;
2. Verify the agent’s agency power and the validity period of the agent;
3. If necessary, the importer can require that the other party’s agency status and the true principal’s situation be clearly stated in the import contract and provide corresponding guarantees.
In short, when investigating, importers must have sufficient assurance of the overseas seller’s true identity, funds, and credit status, and should not rush for success. In my country’s import trade practice, there are often incidents of being defrauded of payment or advance payment due to unclear understanding of the other party’s identity and hasty transactions with them.