IEC Code - EXIM INTELL

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.

Continue Reading →

Any business owner who intends to initiate Exporting or Importing the product they are already engage in must obtain an IEC registration. This requirement is mandated by law. The DGFT is the entity that is responsible for issuing the Export-import license. Which is one of the essential criteria for beginning the Export-Import activity. It’s not uncommon for the person doing the exporting or the importing to have many company outlets. The question of whether or not to acquire more IECs arises periodically.

When a business or user applies for an IEC, they will receive a unique registration number consisting of ten digits; this number will be link to the user’s Permanent Account Number (PAN) card. The information of which will be submit to the DGFT. Because the application includes the applicant’s PAN card information, this is to be expected.

If a person has filed for more than one IEC using the same PAN. Then that person must cancel the second registration since only one roll will be considered genuine. If that person has applied for numerous or more than one IEC, they must cancel the second registration. In addition, the law stipulates that only one IEC code can be issued with a single PAN. If several IECs are allocate to a single PAN, the PAN in question must be deactivate automatically.

Its Outcomes

It is implied that if an entrepreneur wants to start a new Export or Import Business registered with another pan. He is required to obtain another IEC code or a new IEC code for this firm. It is because the PAN is distinct from the old or former business he possessed or owned in this instance. When anything like this happens, the company’s owner is required to obtain more than one IEC, and having a different PAN should be the only factor to determine whether or not they need additional IECs.

As a result, the report concludes that commercial entities are permit to use a single IEC registration for numerous businesses. Provided that both commercial organizations share the same PAN. If each enterprise maintains its PAN, the entrepreneur must get multiple IEC registrations for each firm.

IEC Code registration

The following is an outline of the essential steps involve in the registration of IEC:

A copy of the PAN card belonging to an individual, firm, or company.
Need one photocopy of the individual’s Aadhaar card, voter identification card, or self-passport.
Cancelled cheque copies from active bank accounts belonging to individuals, companies, or businesses
A Copy Of The Premise’s Lease Agreement Or The Most Recent Month’s Electric Bill
This package includes a self-addressed envelope for sending the IEC certificate through registered mail.

Benefits of Export-Import license Registration

Expansion of Business

IEC can assist in expanding your enterprises by helping you bring your services or products to a global audience.

Availing Several Benefits

The procedure of Exporting and Importing goods is easier for businesses that have their products registered with the IEC. As the Export Promotion Council, DGFT, Customs, and other government agencies develop different schemes that are advantageous for these dealers in Exporting and Importing commodities. And it ought to be necessary to comply with the IEC registration requirements.

Life Time Validity

Registration of an Export-Import Code is a form of documentation that is permanent and valid for one’s entire life. Maintenance of the Import Export Code in the form of filing updates or renewing it is unnecessary.

No Annual Maintenance

After obtaining the IEC code, you must pay an annual maintenance charge to keep it active. Submitting the code or its renewal throughout any fiscal year does not necessitate payment of a maintenance fee under any circumstances.

Reducing the Risk of Illegal Exports or Imports

Getting rid of illegal transportation or fraudulent exports and imports is more accessible by using the Export-Import Code. The registration of an Export-Import Code is a centralised registration that assists the authorities in better supervising and managing the transaction as part of cross-border trade. It is accomplished through the use of an Export Import Code.

No Further Compliance

The IEC does not mandate compliance, such as submitting a return. Once assigned, it is unnecessary to follow any processes to retain its validity. There are no such requirements. There is no obligation to file any returns with the DGFT with any transactions involving exports.

Benefits of Schemes

The Export and Import industry can significantly benefit from utilising the Export-Import license code. A business entity registered under the Export-Import license code would be eligible to receive any benefits or subsidies announced by the Customs, the Export Promotion Council, or any other many authorities. After the exporters have filed their LUT under GST, they are exempt from paying taxes on whatever exports they do. If the exports are accomplished through the payment of taxes, the exporter is eligible to make claims for refunds of the amount of taxes paid.

Export Incentive

The government encourages exporting goods and services because it believes that doing so will result in an influx of foreign currency and, in turn, stimulate the economy. For the government to encourage businesses to engage in exporting, it has initiated several different programmes and offered tax rebates or financial incentives to exporters.

Surrender of IEC

If a holder of an IEC Code decides he does not want to use the numbers given to him, he can tell the authority responsible for issuing the IEC and surrender those numbers. When the issuing officer receives such an intimation, they must annul the document immediately and electronically send it to the DGFT and the customs authorities.

Exploring global markets

The registration of the IEC Code will be of the utmost importance and provide your company with the best benefit possible. Because of this, you will be able to reach out to a more significant number of countries and broaden the scope of your global reach. In addition to that, it will significantly speed up your development. It makes many opportunities available to your organization and you personally.

Conclusion

Exim Intell provides qualified guidance and certification to interested entrepreneurs so they can launch their EXIM business in India. Additionally, they assist with first international trade to increase your self-confidence and practical experience. If you’re looking for the best export consultant service, contact Exim Intell today And Call us at +91 79903 52486 for further details.