10 Questions to Ask Before Choosing Any Overseas Manufacturer

Sourcing from overseas can slash production costs and give your business access to specialized capabilities—but it also comes with serious risks. And in today’s climate, those risks are growing.

With President Trump aiming to bring manufacturing back to the U.S., his proposed 10% universal tariff on all imports—and an aggressive 245% tariff on goods from China—could drastically inflate costs for businesses relying on foreign suppliers.

Now more than ever, it’s essential to ask the right questions before choosing an overseas manufacturer. A single misstep can lead to missed deadlines, poor quality, customs issues, or devastating cost overruns.

In this article, you’ll discover the 10 most important questions to ask that will help you:

• Avoid unreliable partners
• Prepare for trade-related disruptions
• Protect your intellectual property
• And ensure your sourcing strategy is future-proof

Let’s get into the details—your bottom line depends on it.

What to Ask Before You Sign: The Smart Manufacturer Vetting Checklist

Before entering any partnership with an overseas manufacturer, asking the right questions could mean the difference between success and regret. This checklist isn’t just about due diligence—it’s your roadmap to sourcing smarter, reducing risk, and staying competitive in a changing global market.

1. What Is Your Manufacturing Capacity and Scalability?

Start with the basics: can this manufacturer meet your current needs—and scale with you as you grow?

Ask specific questions like:

• How many units can you produce weekly/monthly?
• What’s your turnaround time for increasing production?
• Have you worked with clients that scaled rapidly?

A factory that’s too small may cause bottlenecks, and one that’s too big might not take your business seriously. You need a partner that’s just right—for today and tomorrow.

Tip: Look for facilities with flexible production lines or multiple factory locations that can adjust output without delays.

2. Can You Provide References or Case Studies From Previous Clients?

A trustworthy supplier should have nothing to hide.

Ask:

• Can you share contact details of past clients?
• Do you have testimonials or case studies for similar products?
• Have you worked with companies in my country or industry?

References help validate their track record—and if they hesitate, it could be a red flag. Reputable manufacturers are proud to showcase their work and relationships.

3. Are You the Factory or a Middleman/Trading Company?

Many suppliers on sourcing platforms aren’t actual manufacturers—they’re middlemen.

Trading companies often:

• Mark up prices significantly
• Lack transparency
• Offer vague answers on quality and timelines

To verify:

• Ask for business licenses and registration documents
• Request a live video tour of the factory
• Ask who signs the contract and who owns the production equipment

Working directly with the factory gives you more control, better pricing, and faster problem resolution.

4. What Certifications and Quality Standards Do You Follow?

Certifications show that a manufacturer follows international best practices. Depending on your industry, these may be mandatory—not optional.

Ask:

• Are you ISO 9001 certified?
• Do you meet BSCI or Sedex compliance standards?
• Can you produce CE/FCC/RoHS/FDA compliant goods?

If they don’t know what these mean—or can’t provide documentation—you’re taking a big risk. Always verify their claims.

Real-world stat: Products lacking proper certification are a top reason for rejected shipments at ports, according to the International Trade Administration.

5. What Is Your MOQ (Minimum Order Quantity)?

MOQ determines how much you must order to start production. It varies by:

• Product type
• Customization level
• Raw material availability

Ask:

• What is the MOQ per item, color, or SKU?
• Can I order a small test batch?
• Are there ways to reduce MOQs for new customers?

Many factories offer flexible MOQs if they believe in the long-term potential of your business.

6. Can You Share a Sample of Your Work?

Before you commit to full production, ask for a sample—or even better, a prototype using your design.

Use this to evaluate:

• Material quality
• Workmanship and attention to detail
• Packaging and labeling standards
• Accuracy to your specifications

This also tests how they handle revisions and feedback.

Rule of thumb: If they cut corners on a sample, they’ll cut corners in mass production.

7. What Is Your Quality Control Process?

A great manufacturer doesn’t just produce—they also inspect. Every step of production should include quality control (QC).

Ask:

• What stages include QC: pre-production, during, or post-production?
• Are inspections manual, automated, or both?
• Can I hire a third-party auditor to inspect goods before shipment?

8. How Do You Handle Delays or Defective Products?

No manufacturer is perfect. What matters is how they respond when things go wrong.

Ask:

• What’s your process for resolving defects?
• Do you offer refunds, rework, or replacements?
• What penalties apply if delivery dates are missed?

Put these policies in writing before you sign anything.

Key tip: Define defect types (minor, major, critical) and acceptable thresholds in your contract.

9. Do You Understand Tariffs, Duties, and Import Regulations in My Market?

Overseas production savings can vanish if you’re hit with unexpected tariffs or penalties.

Ask:

• What HS (Harmonized System) code do you classify my product under?
• Have you exported this type of product to my country?
• Can you help with export documents like CO, invoices, and packing lists?

Incorrect classification can mean unexpected duties. For example, importing Bluetooth speakers under “electronics” vs. “audio accessories” can double your costs if misclassified.

Use these resources:

• U.S. HTS‍
• EU TARIC‍
• Work with a certified customs broker to verify everything.

Your manufacturer doesn’t need to be a tariff expert—but they should know enough to avoid costly errors.

10. Do You Protect Intellectual Property (IP)?

IP theft is a serious concern, especially in regions where enforcement is weak.

To protect yourself:

• Ask if they’ve signed NDAs or NNN agreements (Non-Use, Non-Disclosure, Non-Circumvention)
• Register trademarks and designs in the supplier’s country
• Avoid sharing full product specs until after contracts are signed

Pro tip: Use watermarked files or partial blueprints during early discussions.

If a supplier can’t—or won’t—agree to protect your IP, walk away.

11. What Are Your Payment Terms and Trade Assurances?

You should never have to pay 100% upfront.

Common terms include:

• 30% deposit, 70% before shipment
• Letter of credit for large orders
• Escrow via platforms

Ask:

• Can payment be made in installments tied to production milestones?
• What happens if production is delayed or goods are defective?
• Do you offer discounts for recurring orders?

Also check if they participate in trade assurance programs for added protection.

Conclusion: Ask First, Regret Never

Choosing an overseas manufacturer is more than a procurement decision—it’s a long-term strategic move that can directly impact your product quality, brand reputation, and bottom line. Asking the right questions upfront helps you identify red flags, uncover hidden costs, and build stronger, more transparent relationships with your suppliers. Whether it's verifying their production capacity, clarifying payment terms, or ensuring your intellectual property is protected, due diligence is your best defense against costly mistakes.

Remember, it’s not just about price—it’s about reliability, communication, and alignment with your long-term goals. The manufacturers who value transparency and accountability will appreciate your questions and see you as a serious, prepared partner.

Your sourcing success starts with smarter questions.

If you're ready to simplify the process and reduce risks, try SourceReady—an AI-powered platform that matches you with verified overseas manufacturers based on your exact needs, with built-in tools for vetting, tracking, and collaborating in real time.

FAQ

1. How do I estimate import duties on products?

Use the Harmonized Tariff Schedule for your country. The HS code your manufacturer uses will determine the duty rate. Double-check with a customs broker.

2. What’s the difference between an NDA and an NNN agreement?

An NDA only covers confidentiality. An NNN agreement—common in China—adds protections against idea theft and circumvention.

3. How early should I start contacting manufacturers before my planned product launch?

Ideally, you should start the vetting and sampling process at least 4–6 months before launch. This allows time for research, negotiations, prototype development, revisions, and shipping logistics without rushing production.