Factory audit

1、 TEMU factory inspection background

1.1 What is TEMU factory inspection

TEMU factory inspection is a full chain supply chain compliance audit conducted by Pinduoduo cross-border platform TEMU for its own supply factories, OEM/ODM contract factories, and warehousing supporting enterprises. It is carried out by third-party notary firms such as SGS, BV, and Intertek, and is simultaneously audited according to TEMU supplier code of conduct, local labor/fire/environmental regulations in the country where the factory is located, European and American DSA digital service laws, and target market product safety regulations.

TEMU factory inspection is divided into two major sections: social responsibility CSR factory inspection (SMETA 4 pillars are universal standards)+product quality and safety special factory inspection, implementing three audit modes: notification/semi notification/surprise no notification; Once the factory seriously violates regulations, it will be punished by binding the supplier's store (removing goods, freezing payment, and banning the store), and there is a joint accountability mechanism. The compliance control is much stronger than that of ordinary cross-border platforms.

1.2 Two core audit criteria

The internal guidelines of TEMU platform include the TEMU Supplier Business Code of Conduct, TEMU Product Safety Technical Specification, Supply Chain Anti Fraud and Anti Bribery Management Specification; Mandatory requirement for suppliers to complete SMETA (SEDEX) 4 pillar audit report filing, with high-risk categories such as ready to wear, electronics, and toys requiring annual re evaluation.

Local+export target country regulations

Factory location: local labor laws, fire safety, environmental protection, safety supervision, and foreign labor management regulations (standards vary in China/Vietnam/Thailand/Indonesia/Bangladesh and other countries);

Export markets: Mandatory product regulations such as CPSC in the United States, CE/REACH/RoHS in the European Union, UKCA in the United Kingdom, EN71 for toys, and flammable standards for textiles.

2、 TEMU Factory Verification Six Core Verification Modules (Platform Exclusive Red Line)

Module 1: Verification of Enterprise Basic Qualification Documents (First Check upon Entry, with Subject Consistency as the Core)

Business license, tax registration, factory leasing contract, registered address and actual production address must be completely matched, and remote affiliation and qualification sharing are prohibited (the platform focuses on cracking down on multiple stores sharing the same factory report);

Fire acceptance certificate, annual fire inspection report, and building safety certificate; Chemical/electroplating plant supporting environmental impact assessment, pollutant discharge permit, and quarterly monitoring records of wastewater and waste gas;

Special equipment annual inspection certificate (forklift, boiler, air compressor), electrician/welder special operation personnel qualification certificate;

Full set of files for foreign workers (overseas factories): legal work visa, labor bureau filing, medical examination report;

Complete set of product compliance certification (TEMU exclusive focus): White list institutions such as CE, FCC, CPC, REACH, RoHS, and textile 16CFR1610 issue testing reports, and the report model, actual photos, and BOM list must be consistent with the factory's physical products. Non platform white list laboratory reports are directly invalid;

Previous SMETA factory inspection reports, closed-loop rectification materials, and records of past platform inspections and penalties.

Module 2: Labor and Human Rights Compliance Verification (SMETA Core, with the highest number of veto red lines)

2.1 Zero tolerance for serious violations (direct audit failure, termination of supply)

Child labor: below the legal minimum age for entry into the workplace (15/16 years old in most countries);

Forced labor: confiscation of ID cards, collection of entry deposits, restriction of employee departure, prison labor;

Serious salary violations: lower than the local minimum wage, long-term wage arrears, and incorrect calculation of overtime pay;

Discrimination/corporal punishment: verbal abuse, corporal punishment, gender/nationality/religious discrimination, suppression of employee complaints;

Serious exceeding of working hours: Exceeding the local statutory monthly/weekly overtime limit, without fixed rest days.

2.2 Key points for verification of the entire employment process

Control of underage workers: Young workers aged 15-18 are prohibited from night shifts, chemical and stamping high-risk positions, overtime is prohibited, and must be separately registered and undergo a semi annual physical examination;

Labor Contract: Sign a bilingual contract (for overseas factories) within 30 days of employment, clearly indicating the terms of working hours, salary, overtime, and vacation;

Working hour standards: Strictly follow the legal working hours of the country where the factory is located (such as monthly overtime in Vietnam ≤ 30h, weekly overtime in Cambodia ≤ 10h, and monthly overtime in Singapore ≤ 72h), and retain employee voluntary signature forms for all overtime, prohibiting management from forcing overtime;

Salary and benefits: Salary will be paid by bank transfer on a fixed date every month, and salary slips, attendance records, and bank statements will be retained for 12 consecutive months; Full payment of social security, implementation of paid annual leave, maternity leave, and statutory holidays;

Association and complaint mechanism: Do not obstruct employees from forming trade unions; Establish bilingual anonymous complaint boxes and hotlines, keep a complete record of complaint handling, and prohibit retaliation against complaining employees.

Module 3: Occupational Health and Safety&Fire Protection Verification (on-site high-frequency deduction)

3.1 Workshop production safety

Stamping, injection molding, and cutting equipment are fully covered with safety protection and emergency stop buttons, and LOTO locking and tagging are implemented for equipment maintenance;

Corresponding labor protection equipment shall be provided for dust, noise, and chemical positions, with a complete collection ledger and annual occupational health examinations;

Standardized first aid stations and certified first aid personnel shall be established in the factory area. All work-related injuries shall be registered within 24 hours, and high-risk industries shall be reported to the local safety supervision simultaneously.

3.2 Mandatory Fire Protection Standards (TEMU Audit Strict)

The two-way safety exits on each floor are open outward, and are not locked throughout the working hours. There are no cargo or forklift blockages in the evacuation routes;

Fire extinguishers and hydrants are inspected monthly, emergency lights and smoke detectors are powered on 24 hours a day, and multi-layer factories and clothing workshops are equipped with mandatory sprinkler systems;

At least one factory wide fire drill shall be conducted every six months, with attendance records, on-site photos, and drill summaries retained;

It is strictly prohibited to produce, store, and dormitory in a three in one factory. Flammable fabrics and ink should be stored separately in isolated warehouses.

3.3 Control of Hazardous Chemicals

Ink, glue, and cleaning agents are equipped with bilingual MSDS in their respective regions; Independent ventilated warehouse for hazardous chemicals, leak proof trays, and double person double lock management;

Waste solvents and heavy metal hazardous waste should be handed over to official certification agencies for recycling, and complete recycling receipts should be kept. It is prohibited to dump them without authorization.

Module 4: Environmental Compliance Verification (adapted to EU DSA environmental control)

Wastewater: Water washing, dyeing, chemical workshop supporting sewage treatment equipment, daily operation records are complete, and direct discharge into rivers is strictly prohibited;

Exhaust gas: collection and purification of spraying, welding, and printing exhaust gases, with no unorganized and pungent exhaust gas drifting away;

Solid waste classification: Domestic waste, general industrial waste, and hazardous waste are stored separately in three zones, and the inventory records are traceable;

Hazardous Substance Control (TEMU Exclusive): Strictly implement REACH high concern substances, RoHS heavy metals, textile azo bans, establish a raw material chemical storage testing ledger, and prohibit the use of excessive raw materials;

Cooperate with the platform's ESG low-carbon verification, calculate the energy consumption of water and electricity in the factory area, and keep records of energy-saving renovations.

Module 5: Special Verification of Product Quality System (Different from Ordinary BSCI Factory Inspection, TEMU Core Bonus Points)

System documents: equipped with ISO9001 quality manual, local language SOP operation instructions for the entire process, and TEMU exclusive incoming material inspection specifications;

Full chain quality inspection and control

IQC incoming materials: Qualification review of fabric, electronic components, and auxiliary material suppliers, sampling records for each batch of incoming materials, and isolation and rejection of non-conforming materials;

IPQC process: Regular inspections of the production line, separate zoning registration for defective and reworked products, and a complete rework process;

OQC finished products: 100% random inspection at the factory, testing each item for size, function, and safety, and retaining samples for 3 months;

Instrument calibration: third-party calibration of calipers, tensile testers, and electrical testing equipment every year, with certificates archived;

Complete traceability system: raw material batches, production teams, orders, and shipment packaging are bound one by one to meet product recall and customs traceability requirements;

Subcontracting control: Outsourced printing, electroplating, and washing subcontractors must simultaneously pass TEMU's equivalent factory inspection standards, and unqualified underground workshops are prohibited from subcontracting.

Module 6: Counter terrorism Security&Business Ethics&Intellectual Property Verification (Platform Zero Tolerance for Fraud)

6.1 Warehouse Counter Terrorism (Mandatory for Own Warehouses)

The factory area is fully enclosed with walls, with full monitoring coverage and video retention for at least 90 days, with no blind spots for monitoring;

Physical separation of employees, visitors, and freight vehicles, unpacking inspection and real name registration of trucks;

A dedicated person will be present throughout the container loading process, and a unified high security anti-counterfeiting seal will be used. The seal number ledger will be permanently retained.

6.2 Business Ethics Red Line (Falsification Directly Blades Factories)

Any forged attendance, salary, fire safety, or testing reports will be directly listed on TEMU's global supply chain blacklist, resulting in permanent termination of cooperation;

Prohibit bribery and gift giving to auditors, platform procurement, and public officials. Factories must establish a written anti bribery system;

Prohibition of false production records, false reporting of production capacity, and fraudulent use of other factory qualifications for supply.

6.3 Intellectual Property Special Project

OEM IP brands must provide a complete brand authorization chain, and production is prohibited without authorization;

Establish a counterfeiting control process in the workshop, and uniformly destroy scrap materials and scrapped products to prevent external infringement.

3、 TEMU complete factory audit process (1-2 days, surprise audit without prior notice)

First meeting: The auditor informed SMETA about the four pillar standards, TEMU exclusive product compliance requirements, and the punishment rules for data falsification;

Complete document review (4-8 hours) synchronized verification of personnel salary, fire and environmental protection, product testing and certification, subcontractor files, and the complete set of accounts for the past 12 months; Extra verification of foreign labor and bilingual documents in overseas factories;

Key points of on-site inspection covering the entire factory: workshop fire protection, hazardous chemical warehouse, sewage treatment station, quality inspection laboratory, finished product warehouse, employee dormitory, chemical raw material warehouse, with full process photography and evidence collection;

15% -20% of frontline employees will be randomly selected for one-on-one anonymous interviews (core risk process), and management personnel will be isolated throughout the entire process; Employees prioritize verbal salary, overtime, and safety issues over paper documents;

At the last meeting, serious discrepancies, major discrepancies, and minor discrepancies were classified, and the deadline for rectification was clearly defined; There is a veto issue with the red line, and the review was determined to have failed on the spot. TEMU procurement and corresponding supply sellers will be notified simultaneously;

Report upload and filing: After the audit is completed, a third party will synchronize the SMETA report to the SEDEX system and TEMU supplier backend. Without a valid report, it cannot be updated or replenished.

4、 TEMU factory inspection result grading and corresponding punishment mechanism

Passed smoothly (no/minor non-compliance) without the need for re examination. The SMETA report is valid for 12 months, and the factory's normal supply and new product launch are not restricted.

Submit complete rectification evidence, comparison photos before and after, and update the ledger within 30-45 days for conditional approval (mainly non-compliance); The online document review loop of the platform restricts the listing of new products during this period, and only inventory can be found.

Review failed (serious red line issue)

The factory suspends all TEMU orders and prohibits production and supply;

Bind the supplier to remove all goods from the shelves and freeze the payment for the goods;

You can reapply for review after 3-6 months; Repeatedly unqualified products will permanently blacklist the factory entity, and associated stores will be permanently banned.

High risk category special unqualified children's toys, rechargeable electronics, and maternal and child products with invalid testing reports/excessive harmful substances will be directly removed from the entire category and fined with a tiered deposit.

5、 TEMU factory inspection high-frequency failure deduction points

Product testing reports are not issued by platform whitelist institutions, the model does not match the actual product, and the report is expired;

Falsification of attendance and salary data, inconsistency between employee interview hours and wages and the ledger;

Blockage of fire exits, lack of sprinkler systems, and insufficient frequency of fire drills;

Weekly/monthly overtime exceeds the statutory limit of the locality, and no employee voluntarily signs for overtime;

The sewage treatment equipment in the chemical/washing plant is idle and there is no complete water quality monitoring ledger;

Qualification affiliation, multiple stores sharing the same factory inspection report, triggering platform joint verification;

Children's products lack mandatory CPC and EN71 certifications, and their materials exceed heavy metal/ortho benzene standards.

6、 The core differences between TEMU factory inspection and local factory inspection in Southeast Asian countries

Standard basis: Adopt SMETA 4 pillars uniformly, without mandatory local specialties in each country (such as Better Work in Bangladesh, SNI in Indonesia, HALAL in Malaysia), but must comply with local regulations in the country where the processing plant is located;

The highest weight of product control: ordinary Southeast Asian customers focus on labor fire protection, while TEMU has added a large number of product safety, hazardous substances, and certification audits;

Punishment mechanism: Unique factory+seller collaboration, factory violations directly penalize store funds and goods;

Report requirements: SEDEX online filing is required, and paper reports are not recognized;

Audit format: The proportion of surprise audits without notification is higher, and there is a strict investigation into the falsification of information. The punishment for falsification far exceeds that of ordinary European and American customers.

7、 Summary

TEMU factory inspection is a four-dimensional comprehensive audit of social responsibility, product safety, environmental protection and fire protection, and intellectual property. It is different from traditional BSCI and brand factory inspection. Its biggest feature is the rigid requirements for product certification, zero tolerance for qualification affiliation, and two-way accountability between factory and seller. Key points for preparing TEMU factory inspections in domestic and foreign factories: ① Apply for whitelist laboratory product testing reports in advance to ensure consistency between the actual product and the report; ② Strictly abide by the local regulations on labor hours and wages, and keep accurate personnel records throughout the process; ③ Improve fire and sewage treatment hardware and operation records; ④ Eliminate qualification sharing and report fraud, pass the audit in one go, and stably connect with TEMU's long-term supply orders.