How to Verify an Indian Supplier: 15-Point Due Diligence Checklist

Supplier verification is where most international buyers lose money in India. A polished website, a quick WhatsApp reply and a competitive quote are not verification — they are marketing. This article gives you a practical 15-point due-diligence checklist that we use at Blueroute Exim before onboarding any supplier.

Why verification matters

India has thousands of genuine manufacturers and merchant exporters. It also has intermediaries who claim to be manufacturers, virtual offices that claim to be factories, and "suppliers" who disappear after receiving an advance. Verification is the difference between a smooth shipment and a six-month dispute.

The 15-point verification checklist

### 1. Legal name and registered address Ask for the company's legal name and registered address. Cross-check against the MCA (Ministry of Corporate Affairs) portal for companies / LLPs. For proprietorships, ask for the proprietor's PAN and address proof.

### 2. PAN and GST Ask for the PAN and GST certificate. Verify the GSTIN on the GST portal — it shows the legal name, trade name and registered address.

### 3. IEC (Import Export Code) Verify the IEC on the DGFT portal. The IEC must match the legal name of the supplier. A missing IEC is a deal-breaker for export.

### 4. MSME / Udyam registration Ask for the Udyam Registration Certificate. This confirms the entity is registered as an MSME and shows the manufacturing / service code.

### 5. Factory address vs registered address Registered and factory addresses often differ. Ask for both. Check the factory address on Google Maps — satellite view can reveal whether the address is a factory or a residential building.

### 6. Capacity and product range Ask for the installed capacity, monthly output and product range. Compare with the order size you intend to place. A 50-ton/month factory quoting you 1,000 ton/month should raise questions.

### 7. Quality certifications Ask for ISO 9001, FSSAI, GMP, HACCP, AYUSH, BIS or any product-specific certification. Verify the certificate with the issuing body — fake certificates exist.

### 8. References from past shipments Ask for references (without expecting buyer names). A serious supplier can share category, destination port and shipped volume. Be cautious of suppliers who claim to export to "every country".

### 9. Sample and counter-sample Request a sample. For repeat orders, request a counter-sample produced to your spec. Compare the sample to the bulk production — they must match.

### 10. Lab test reports Ask for COA / lab test reports from a NABL-accredited or ISO 17025 lab. Old reports (>6 months) are not valid for current lots.

### 11. Membership of Export Promotion Councils Verify RCMC membership with the relevant council (APEDA, Spices Board, CHEMEXCIL, FIEO). Membership is not a quality guarantee but indicates basic export orientation.

### 12. Bank reference Ask for a bank reference letter. The supplier's bank can confirm account vintage and standing. Be cautious of suppliers who refuse.

### 13. Sample shipping documents Ask for a redacted BL / shipping bill from a past shipment. This confirms the supplier has actually shipped under their IEC.

### 14. Online footprint Check the company's LinkedIn (employees, vintage), website (technical depth, not generic), and trade portal listings (IndiaMART, TradeIndia — but these are listings, not verifications).

### 15. Personal visit or video walkthrough If you cannot visit personally, ask for a live video walkthrough of the factory. See the production line, raw material store, finished goods store and the lab (if applicable). Pre-recorded videos do not count.

Red flags

• Refusing to share IEC, GST, MSME copies.
• Refusing to share bank details for advance payment through a normal bank transfer.
• Insisting on payment to a personal account or a third-party company.
• Pushing crypto or hawala-based payment — these are illegal in India for trade settlement.
• Quoting unusually low prices (below raw-material cost).
• Refusing to provide samples or asking for unrealistic sample charges.
• Refusing pre-shipment inspection.
• No physical factory — only a "marketing office".
• Pressure to ship before payment or document confirmation.
• "Manufacturer" who cannot show production when asked.

How a merchant exporter reduces verification burden

A merchant exporter like Blueroute Exim does the verification above on the buyer's behalf. The buyer has one counterparty (the merchant exporter) instead of multiple unknown manufacturers. The merchant exporter's IEC, GST and MSME are the buyer's verification.

That said, the buyer should still verify the merchant exporter using the same checklist — IEC, GST, MSME, references, bank account.

How to handle disputes

• Document everything in writing (email, not WhatsApp).
• Have a basic supply agreement specifying product, price, payment, lead time, inspection, dispute resolution and governing law.
• For advances, use a milestone structure tied to verifiable events (sample approval, production completion, PSI pass).
• For substantial orders, consider a Letter of Credit.

FAQ

**Q: Can I verify an Indian supplier online?** A: Partially. IEC, GST, MSME and MCA can be verified online. But factory capacity, samples and lab reports require direct engagement. A merchant exporter simplifies this.

**Q: Is IndiaMART / TradeIndia verification enough?** A: No. These are listings, not verifications. Use them to find suppliers, but verify independently before ordering.

**Q: Should I pay an advance to a new supplier?** A: A small advance against a Proforma Invoice is standard, but tie it to a milestone (sample approval, production start). For larger orders, use LC or escrow-style milestones.

**Q: How can a buyer confirm a supplier actually shipped in the past?** A: Ask for a redacted BL or shipping bill copy. The BL shows the shipper's name, port and date — enough to confirm past export activity.

Key Takeaways

• 15-point verification covers legal, financial, operational and quality dimensions.
• IEC, GST and MSME can be verified online; factory capacity and samples require direct engagement.
• Watch for refusals, pressure tactics, crypto/hawala requests and below-cost pricing.
• A merchant exporter reduces verification burden — but the buyer should still verify the merchant exporter.
• Document everything in writing and use milestones for advances.

Blueroute Exim (Surat, Gujarat) shares IEC, GST, MSME and references on request, and coordinates supplier verification on the buyer's behalf.