Establishing Physical Tooling Ownership in Chinese Manufacturing Supply Contracts
Physical tooling ownership in China requires separate bilingual agreements, itemized VAT fapiao, permanent stamped asset plates, and verified shop-floor custody.
Mold Base Asset Tagging
Meaning
Physical attachment of durable, traceable markers to the primary steel frame of a manufacturing tool establishes clear ownership and assists in lifecycle tracking. In export manufacturing, mold base asset tagging involves affixing metal plates with unique barcodes or serial numbers to the mold. This practice protects the buyer’s proprietary assets while they are located inside a Chinese supplier’s factory.
Legal Protection
Affixing these tags prevents the factory from listing the customer’s tooling as its own asset on its balance sheet. Under Chinese law, if a supplier faces bankruptcy, untagged molds can be seized by creditors or court bailiffs. Solid evidence of ownership through mold base asset tagging allows the foreign brand to reclaim the molds quickly during a factory shutdown.
Technical Execution
The asset plates are made of stainless steel or brass to withstand high temperatures and chemical exposure during the molding process. They are screwed or welded onto the mold base in a highly visible location that does not interfere with the movement of the press. Each tag contains the name of the owner and the tool number.
Audit Protocol
Procurement teams carry out regular on-site audits to verify that the tags remain intact and legible. Photographs of the tagged mold base are uploaded to the supply chain management system to maintain an updated registry. If a tag is damaged or removed, the supplier must replace it immediately according to the terms of the tooling agreement.
This continuous verification reduces the risk of the mold being transferred to unauthorized subcontracting factories without the buyer’s consent. Furthermore, digital records of the tags assist in coordinating maintenance schedules and tracking the overall shot count of the tooling.