Why do EU customers demand on-site audits of Indian suppliers?
Because the audit right is how the EU customer discharges its own due diligence duty. It is a legal requirement passed down by contract, not a commercial expression of distrust, and refusing it puts the customer in breach rather than merely inconvenienced.
What has to be done
- Have verifiable records ready on working hours, overtime, occupational safety, wages and age of workers, at the site the customer buys from.
- Operate a grievance mechanism and keep the case records; the customer will ask to see how complaints were handled.
- Prepare for on-site audits and for unannounced ones; the audit right is how the EU customer discharges a statutory duty, not a show of distrust.
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- Read date
- 2026-08-26
- Address
- /in/questions/supplier-audit-rights
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