Checking that this code is genuine and still works is called IEC code verification. This verification is used to verify the legitimacy of a business in relation to international trade before you enter into a contractual agreement or make a payment to the business. This informative piece provides a detailed overview of the verification, the importance of the verification and the time and effort involved in performing the verification.
What Is IEC Code Verification?
The 10-digit Import Export Code (IEC) is issued to businesses by the Directorate General of Foreign Trade in India upon application for the business’s right to import/export goods and services in/from India. To verify the IEC code is to ascertain the authenticity of the code and its active status and its correct association with the business name.
The majority of exporters will carry out an IEC code check the instant they receive a business inquiry, as the verification takes only a couple of minutes and confirms the entity the exporter is planning to do business with clears international trade. If this is your first time carrying out verification of the code, it is essential to first obtain knowledge of the import export code and the international trade code registration process.
Why IEC Code Verification Matters for Exporters and Importers
Foregoing this verification can lead to a loss of time, money, and faith, particularly when you are working with an entirely new business partner. It is important to conduct this verification because it:
- Confirms that the business is registered to conduct international business.
- Protects against fraud for unknown buyers or sellers.
- Helps to facilitate the clearing of customs by preventing invalid or misaligned codes.
- Builds a level of trust to allow for signing of contracts and payments made before delivery.
- important for the smooth operation of shipping and banking documents.
- Is a part of the necessary due diligence for large purchases.
An example of this would be if you were to place an import order for a large shipment of goods from a new overseas supplier. Verifying their registration is just as important as getting your Export Documentation Process right, since one wrong step on either side can hold up the entire shipment before it even leaves the port.
How to Complete IEC Code Verification Online (Step-by-Step)
The verification of IEC codes online is convenient, as this service is completely free of cost. Moreover, there’s no need to create an account to conduct the verification. Here’s how:
- Visit the DGFT’s official website
- Navigate to “IEC Profile Management.”
- Type in the IEC number or the name of the business.
- Click send and results will be provided in no time.
- Verify that the business name, address, and status match.
- Verification of IEC Code by Name
If you have a business name but don’t have an IEC number, you can conduct an IEC code verification by name. This option is useful when potential suppliers provide you their business name only.
IEC Code from DGFT: Why the Official Source Matters
The best way is to get your IEC code from DGFT itself as this is the official government record. Other sites and third-parties may provide you with stale data or incorrect information. Always check the DGFT portal before you confirm any export-import partnership agreements.
Common Issues During an IEC Code Check
Although this process is fairly straightforward, there are common problems that may arise when checking the IEC code check:
- The IEC Number is entered incorrectly or is incomplete.
- The registered name of the business is entered with minor spelling errors.
- The website is unreachable due to heavy load on the server.
- Confusing the Manual IEC codes with PAN based IEC codes.
- Status is not checked when the IEC shows “Inactive” or “Suspended.”
In case you face such an issue, try searching with the exact registered name of the business. Alternatively, you can try searching with the IEC number.
Practical Tips for Exporters and Importers
- The registered status of a potential business partner must be checked before executing contracts.
- For verification purposes, take a snapshot of the registration status.
- The registered status should be checked again in case business partner’s status has changed.
- The verified status of the business partner must be compared with the registered name of the business on shipping and taxation documents.
Good registration status checking and documentation habits earn trust with business partners. If you are planning a shipment, it is prudent to review your export finance options, as sufficient export financing resources are not a last-minute scramble.
Repeating the Process Correctly
The name-based IEC verification code is the best way to confirm that the business is a real and registered entity. This can also be done by searching directly on the government portal.
For businesses that trade frequently, it’s worth bookmarking the DGFT portal so pulling your IEC code from DGFT becomes part of your standard onboarding checklist, right alongside checking a new partner’s details by name upfront.
Conclusion
Always remember that the IEC code is a detail. Your business is easy to protect against shipment delays, regulatory compliance challenges and fraud. You can check your IEC code verification by name or online through the government portal. One quick check today can save you a bigger headache later. Every time you are looking to develop a new business partnership, make this part of your operating procedures.
FAQs:
1. Why should I verify IEC code?
Before doing business with a new partner, it is good to check if their IEC is genuine, active and actually registered with the DGFT. This one step can save you from dealing with a fake or invalid registration down the line.
2. How to check IEC code by name?
If you don’t have the IEC number, you can simply search the business name directly on the DGFT portal. No need for the actual code; the system will pull up the registration information.
3. iec code verification online free?
Yes. IEC code verification online is free to run and does not require an account.
4. My IEC code from DGFT is showing inactive. What do I do?
An inactive status generally indicates the registration has expired. You will need to renew or reactivate it before you can use it for any import/export activity.
5. How often should I run IEC code verification?
For example, it’s a good idea to check before you start a new trade relationship and periodically for partners you’ve been working with for a while.
