Import/Export License - Definition & Meaning
What is Import/Export License?
Import/Export License are the permissions or licenses required for doing business with companies / organizations which are present in other countries. i.e.to import international goods within your country or the export local goods to international markets, you need import or export license.
Import license is a license that permits a merchant to acquire a predefined amount of specific products amid a predetermined period (typically one year). Import licenses are utilized (1) as method for confining outpouring of outside cash to enhance a nation's equalization of instalments position; (2) to control section of unsafe things, for example, explosives, guns, and certain substances; or (3) to shield the domestic business from foreign rivalry.
Export License is a export control permit/document issued by an government or the appointed agency to screen the export of sensitive innovations, (for example, propelled PC chips, encryption-decoding programming), denied materials (drugs, genetically altered plants), unsafe materials (explosives, radioactive substances), vital materials (uranium, progressed compounds), or products hard to find in the home business sector (foodstuffs, crude materials).
In India import and export is governed by the Foreign Trade (Development & Regulation) Act of 1992 and Export Import (EXIM) Policy.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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