China's chestnut export sector mixes genuine source factories with thin trading shells that re-broker other people's stock. The price difference between them is small; the risk difference is enormous — food safety, documentation, and season allocation all live with the actual processor. Here is how to tell them apart in a week of due diligence.

Factory vs Trading Company

Both are legitimate, but you should know which you're dealing with. A source factory controls sorting, grading, cold storage, and the export documents from one site; a trader coordinates between growers and processors, adding a margin and a link that can fail during peak season allocation. Ask directly — and verify the answer below.

The 12-Point Checklist

  1. Business license scope includes processing (not just "trade")
  2. Export registration with GACC (customs) for the product category
  3. BRCGS/IFS/HACCP certificates — check the auditor directory, PDFs are easy to fake
  4. Physical address verifiable on maps; factory photos with identifiable equipment
  5. Cold storage capacity stated in tons, consistent with quoted volumes
  6. Lot traceability demo: give them a lot code and ask them to walk it back
  7. References: 2 importers in your own market, contactable
  8. Spec sheets with defect/mold/wormhole tolerances, in writing
  9. COA from ISO 17025 lab for the current crop, not last season's
  10. Phytosanitary history: redacted copies of recent shipments
  11. Payment terms that show skin in the game (e.g. balance against B/L, not 100% prepay)
  12. Who answers technical questions — a salesperson or someone who can discuss moisture ratios

Red Flags

  • Prices 15%+ below market with no structural explanation
  • "Factory" photos that reverse-image-search to stock libraries
  • Certificates that list a different company name than the contract signer
  • Cannot produce a phytosanitary copy because "confidential"

The Sample Protocol

Order a paid sample lot (10-20kg via courier) before contracting: check size distribution against the claimed grade, cut 200 nuts and count defects, and run your own moisture test (fresh export chestnuts ship at 48-55%). The sample costs you freight; skipping it can cost a container.

Want to run this checklist against us? Request our document pack — certificates, COA, traceability demo included.

Frequently Asked Questions

Can I audit a Chinese chestnut factory remotely?

Largely yes: video walkthroughs with live Q&A, certificate directory verification, reference calls, and the sample protocol cover 80% of what an on-site audit catches.

What moisture should fresh export chestnuts have?

48-55% is the normal shipping range. Below 45% risks kernel shrinkage; above 58% accelerates mold in transit.

Is 100% prepayment normal?

No. Standard is a deposit (20-30%) with balance against documents (B/L copy). Demands for full prepayment from a new supplier are a red flag.