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China Manufacturing Agreement (EN-中文)

China Manufacturing Agreement (EN/中文)

Your Manufacturing Agreement is the playbook for production in China. It turns quotes into binding obligations-price, AQL, timelines, penalties, tooling ownership, labeling, and corrective actions-so launches ship on time and pass compliance.

Updated October 29, 2025 • Pair with your NNN Agreement for pre-production protection.

What a China Manufacturing Agreement covers

  • Scope & specifications (drawings, BOM, color/finish, packaging, manuals-via Exhibits).

  • Pricing & payment (currency, deposit/balance triggers, surcharge rules, cost-down/commodity clauses).

  • Incoterms & logistics (FOB/EXW/DDP, hand-over point, cartons, palletization, booking windows).

  • Quality plan (AQL levels, defect classes, inline/final inspections, rework obligations)

  • Timeline (EVT/DVT/PVT gates, lab test booking, golden sample lock, ship window, penalties for delay).

  • Tooling & IP (ownership, storage, access, preventive maintenance, non-use/non-sell, scrap with proof).

  • Change control (ECR/ECN process, sign-off trail, effectivity date, stock disposition).

  • Compliance & labeling (EN 71/ASTM F963/62115, chemical limits, markings, tracking labels, DoC/CPC).

  • Social & security (BSCI/SMETA/SCAN/CTPAT if required by your customers).

  • Remedies & penalties (reject/rework/replace, chargebacks, liquidated damages, warranty terms).

  • Governing law & venue (bilingual; CN law/venue common for enforcement).

Why a PO isn't enough: PO-only vs. Manufacturing Agreement

Pricing models & Incoterms (pick the right combo)

Tip: Align Incoterms with your sourcing region and retailer booking windows.

Quality plan, AQL & CAPA

Defect classes & sampling

Controls to put in the contract

  • Inline + final inspections with measurement sheets and photo logs.

  • Golden sample + color standard (Pantone/Lab) and texture chips locked before mass run.

  • CAPA (root cause, fix owner, due date, verification run).

  • Hold & disposition rules for non-conforming stock; who pays rework and re-inspection.

Tooling & IP (protect your molds and code)

  • Ownership stays with buyer; unique ID engraved; listed in an Exhibit with photos.

  • Storage & maintenance log; access on request; no third-party use without consent.

  • Non-use/non-sell of overruns/rejects; scrap procedure with dated proof when EOL.

  • Firmware/App code escrow or delivery at milestones; avoid lock-in via proprietary tools.

  • Pre-production is covered by your NNN Agreement.

Tip: If you want solid terms to protect your tooling, check our Free Tooling Agreement.

Samples & timeline

  • EVT → DVT → PVT gates with entry/exit criteria.

  • Lab testing plan booked at DVT (EN 71/ASTM/62115/EMC/chemicals).

  • Golden sample lock and first article (FAI) sign-off pre-mass run.

  • Ship window with liquidated damages for late hand-over (grace days optional).

Compliance, labeling & documents

  • Markings and statements (CE/UKCA, age grade, warnings, tracking labels, battery marks).

  • Technical File / CPC / DoC responsibilities and retention.

  • Packaging legal text areas, barcode specs, Amazon SIOC/ISTA (if applicable).

  • Ethical/social/security audits as required by customers (BSCI/SMETA/SCAN/CTPAT).

How to use the agreement (7-step workflow)

  • Quote - align specs pack & RFQ; freeze assumptions.

  • Draft — fill bilingual template; attach Exhibits (specs, BOM, QC plan, tooling list, packaging, schedule).

  • Negotiate — clause-by-clause; agree penalties and AQL.

  • Sign & chop — legal rep signature + red company chop (verify license).

  • Kickoff - EVT build plan, material ordering, lab booking calendar.

  • Control - inspections + CAPA; change control via ECN forms.

  • Close - shipment docs, test reports, and tooling inventory updated.

Need region/factory guidance? Ask about our sourcing atlas and vetted maker list.

Download the bilingual Manufacturing Agreement

Turn quotes into enforceable production terms-price, AQL, timelines, penalties, and tooling ownership—so you ship on time.

FAQs

What law/venue should I pick?

Do I still need an NNN?

What AQL should I use?

Can I ship if a few tests are pending?

What if a line change is needed mid-run?

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