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What is EAN code? Know its uses and importance

European Article Number (EAN) or GTIN-13 is a standardized barcode that is used in Europe and in many other countries globally. Learn more about EAN in this blog.
What is EAN code
In today's globalized trade environment, the use of barcodes, especially European Article Numbers (EAN), has become essential for businesses. These unique identifiers streamline inventory management, ensure compliance with international trade regulations, and simplify product listings on e-commerce platforms. For Indian exporters, understanding and utilizing EAN codes is crucial to avoid shipment errors and inventory mismatches, both of which can hamper international growth. This blog post will explore what EAN codes are, why they matter, how to obtain them, and the documentation needed for compliance.

What is EAN?

The European Article Number (EAN) is a labeling system that provides individual identification for retail products in the European market. This system assigns a unique number to each product, ensuring it cannot be duplicated or misused for other items. In 2009, EAN was replaced by the 13-digit Global Trade Item Number (GTIN), expanding its use beyond Europe.
There are two types of EAN:

● An 8-digit code used for small products with limited space for labeling
● A 13-digit code used for standard retail products for all other countries

What is EAN Code?

An EAN code is a barcode that encodes an article number. It was originally created for European Article Numbers but since 2009, EAN codes have been used to encode Global Trade Item Numbers (GTINs), which are now recognized globally. These codes can appear as one-dimensional barcodes or in newer two-dimensional formats, such as data matrix codes, to ensure efficient tracking and identification.

Importance of EAN code

Here are some reasons why GTIN and EAN codes are essential:

Enhanced inventory management: The EAN or GTIN number streamline tracking of products in the supply channel from the manufacturer to the retailer. This helps businesses order products in the right quantities so that they do not run out of stock or order excessive amounts they cannot sell.

Quick and precise product identification: When a product is scanned, EAN facilitates the quick and efficient identification of the product, providing details such as price, description, and stock quantity.

Minimized errors: The use of unique identifiers for each product significantly reduces the likelihood of human error in inventory management and order fulfilment. This leads to cost savings, time efficiency, and improved customer satisfaction by minimizing incorrect orders.

Improved traceability: In cases of product recalls or quality issues, EAN numbers allow companies to swiftly identify and locate affected products, helping to prevent consumer harm and reduce the financial impact of recalls.

Structure of 13-digit EAN:

GS1 prefix: It consists of the first three digits that identify the GS1 member organization, which the manufacturer has joined.

Manufacturer code: This varies in length and is uniquely assigned to each manufacturer by the numbering authority. All products made by a specific company share the same manufacturer code.

Product code: The product code is also unique and varies in length, and is assigned solely by the manufacturer.

Check digit: The check digit is the last number in a barcode that verifies if it was scanned correctly. It is calculated using a mathematical formula to create a check sum.

How to obtain EAN code?

EAN codes are issued by GS1 on their website. GS1 holds all the rights and patents to GTIN barcodes. If you want to export multiple products, you must obtain an equal number of EAN codes. The following steps provide an overview of the process of obtaining an EAN:

Step 1

Register with GS1 India to obtain an EAN or GTIN. Provide the necessary business documents like PAN card, copy of balance sheet, and GST, among others, and pay the registration fee. You can choose the number of EAN codes required. The registration process usually takes about 7-10 working days.

Step 2

Depending on your needs, you can buy a company prefix allowing you to generate multiple GTINs or a single GTIN for individual products. This ensures proper global identification for your products across various markets.

Step 3

Once you have the EAN codes, assign them to your products by linking each code to specific product details, such as name, description, and dimensions.

Documents required to obtain EAN Code

The following are some of the documents required for EAN code applications:

• Applicant company’s PAN card or the proprietor’s PAN card for a proprietorship firm.
• Copy of balance sheet.
• Request for barcode allotment in a letter on company letterhead.
• Proof of status of the applicant company using GST/VAT registration certificate, Registrars of Company (ROC) certificate or Memorandum of Association (MOA), wherever applicable.
• A copy of a cancelled cheque from the company.5

Conclusion

EAN codes are crucial for businesses as they enable proper product identification, enhance inventory management, and ensure compliance with international standards. These codes facilitate smoother transactions and better market visibility, allowing companies to compete effectively in the global marketplace. Understanding and using EAN codes is especially important for e-commerce exporters, as these codes ensure smooth product listings on e-commerce platforms. For more support on how to obtain EAN codes or other aspects of e-commerce exports, Indian exporters can leverage the tools and services provided by e-commerce export programs like Amazon Global Selling.

Amazon Global Selling: Easy e-commerce exports and hassle-free shipping

If you are a business owner and you want to sell your products to the world, Amazon Global Selling enables you to list and sell ‘Made in India’ products on 18 Amazon global marketplaces. As an e-commerce export program, Amazon Global Selling provides support and guidance at every step of your export journey, connecting you to Amazon’s Service Provider Network for tailored compliance, payments, and logistics support.

Registered sellers can choose to ship their products by themselves through Merchant Fulfilled Network (MFN) or they can opt for Fulfillment by Amazon (FBA) and outsource order fulfillment to Amazon including packing, storage, delivery, and returns. Amazon Global Selling simplifies the process of international shipping to the world, helping businesses navigate customs and reach a vast audience.

Frequently Asked Questions

How to get EAN?
You can obtain an EAN code on the website of GS1. To apply, fill out the application form and submit documents that include details about your business, PAN and GST, among others.
Do I need to get different EAN codes for different products?
Yes, you need different EAN codes for different variations of products.
Can EAN number be used outside of Europe?
Yes, EAN numbers can be used outside of Europe, as they have been integrated into the global framework of product identification through the Global Trade Item Number (GTIN) system. This means that products labeled with EAN codes can be easily scanned and identified in markets worldwide, facilitating smoother transactions and inventory management across borders.
Published on January 31, 2022.

Sources:
1. https://www.gs1india.org/blog/ean-13-the-barcode-number/
2. https://priceshape.com/blog/the-importance-of-ean-numbers-in-the-e-commerce-business
3. https://www.gs1india.org/blog/ean-13-the-barcode-number/.
4. https://www.gs1india.org/blog/power-of-barcodes-for-amazon-marketplace/
x`5. https://www.gs1india.org/content/register-for-barcodes/.
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