Due diligence & scams
Questions to Ask Before Signing a Contract with a Thai Supplier
Most sourcing problems in Thailand don't happen at the factory floor — they happen in the contract, or the lack of one. A vague agreement on payment terms, quality specs, or who pa
Most sourcing problems in Thailand don't happen at the factory floor — they happen in the contract, or the lack of one. A vague agreement on payment terms, quality specs, or who pays for rework can turn a promising deal into a costly dispute months later. Before you sign anything with a Thai supplier, whether you're buying Thai snacks wholesale, Thai sauces and seasonings, Thai body lotion, or other goods, there's a short list of questions that separates a professional relationship from an expensive lesson. This guide walks through what to ask, why it matters, and how experienced importers protect themselves on paper, not just on trust.
Who exactly are you contracting with?
Thai company names on invoices and on official registration documents don't always match, and some suppliers operate through trading entities rather than the actual manufacturer. Ask for the supplier's registered company name and tax ID, and check it against Thailand's Department of Business Development (DBD) records if you want an independent check. If you're buying Thai food and beverage suppliers' products that require export documentation, confirm which entity will actually appear on the invoice, packing list and certificate of origin — mismatches here can delay customs clearance at your end even if the product itself is fine.
What exactly is being sold — specs, not just samples
A sample batch and a production batch are not always identical. Before signing, get the contract to reference a written specification sheet: ingredients or materials, weight or volume, packaging format, shelf life, and any claims on labeling. For categories like Thai sauces and seasonings or Thai body lotion, where formulation and labeling can affect import compliance in your destination market, ask whether the supplier can provide an ingredient list or safety data sheet, and whether that paperwork is supplied per order or per product line. Don't assume — ask, and get the answer in writing.
Payment terms: when does money move, and what triggers it?
Deposit-on-order and balance-on-shipment is common, but the percentages and trigger points vary a lot between suppliers. Ask: what percentage is due upfront, what happens if production is delayed, and is the balance paid before or after you've seen shipping documents or inspection results. Also ask which currency the contract is priced in and who absorbs exchange rate movement between order and payment. None of this needs to be adversarial — it's standard commercial diligence, and a supplier used to exporting will expect the question.
What happens if the goods don't match the agreed spec?
This is the question many first-time importers skip, and the one that matters most. Ask how non-conforming goods are handled: is there a right to reject, a discount, or a rework arrangement, and who pays for the inspection that determines whether goods are conforming in the first place. If you plan to use a third-party inspection before shipment, say so in the contract, not as an afterthought. For higher-value or regulated categories, this clause is worth more than any verbal reassurance about quality.
Shipping terms, responsibility, and documentation
Confirm the Incoterm (FOB, EXW, CIF, etc.) in writing, since it determines who arranges and pays for freight, insurance and export clearance. Ask who prepares the commercial invoice, packing list, and certificate of origin, and how long after production those documents are ready. If your product category needs specific paperwork — for example certain Thai food and beverage suppliers' exports require health certificates — ask the supplier directly whether they've provided this documentation before, rather than assuming every supplier handles it the same way. Always check current requirements with customs or your customs broker at destination, since rules vary by country and can change.
Minimum order quantities, lead times, and what's negotiable
Quantities, pricing tiers and production lead times differ by product and by order size, so treat any number a supplier quotes early in conversation as a starting point for discussion, not a fixed rule. Ask how lead time is affected by order size, by raw material availability, and by seasonal demand — this matters particularly for Thai snacks wholesale orders timed around retail seasons. If you're sourcing through a platform or sourcing agency such as ThaiNex rather than contracting directly with a factory, ask who is legally the counterparty on the contract: the platform, or the underlying supplier, and how disputes are handled in that structure.
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FAQ
Frequently asked questions
Do I need a contract in Thai, English, or both?
A bilingual contract (Thai and English) is common practice and reduces the risk of disagreement over translation later. If only one language version is signed, specify in the contract which version governs in case of a conflict.
Is a verbal agreement with a Thai supplier enforceable?
Possibly, but proving its terms is difficult if a dispute arises. Put key terms — price, quantity, spec, payment schedule, delivery date — in writing even for small first orders.
Should I use a sourcing agent or contract directly with the factory?
Both are workable depending on your experience and order size. Going direct can reduce costs but puts more due diligence on you; working with an agent or platform can add a layer of support but means checking who is contractually responsible if something goes wrong.
What's the biggest mistake importers make before signing?
Treating the first quote and sample as the final word on price and quality, without confirming either in a written specification and clear payment/inspection terms tied to the contract.
Prepared by the Import Thai team for informational purposes. Some links may lead to referred partners.
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