Import Export License Is Essential For Global Trade

Import export license is an essential tool used by countries to manage their economies.

If you export or import goods or services you know that you need some kind of permission or a license to do your business legitimately. An import export license is essential for businesses engaged in the import and export of goods.

Some people may suggest that a license may not be necessary if one is engaged in the import export business for a temporary period, e.g. traders taking part in international exhibitions. But this is not so and against trade regulations. You must have an import export license if you are importing or exporting goods.

The export of many goods are under the respective country's government control. Goods such as military or paramilitary goods, technology, artworks, plants and animals, medicines and chemicals when exported many times require a valid export license.

In the same way there is import control on certain goods like firearms, plants and animals, foods, medicines, textiles and chemicals, and a import license is required to import these goods.

As such it is mandatory to have an import export license if one is engaged in this particular business. However there may be exceptions depending on the potential use of a product or service or the country in question but such exceptions are very rare.

Keep in mind that it is a criminal offense in most countries, to import and export goods that are controlled without an import export license.

You may still ask as to why it is a good idea to have an import export license or what benefits accrue from it.

In the first place it is legally required to have a license and the second thing is that it helps you to avoid transport and processing delays that may arise due to custom regulations in case the person concerned does not have a valid license to import or export.

In many cases such a license may also indirectly improve your finances, as you will not be required to pay the goods clearance taxes applicable in many countries. Certain countries promote trading schemes such as 'preferences' and 'tariff quotas'. These are focused on boosting trade of domestic products and so sometimes taxes are reduced on such products.

If you want to take advantage of such schemes you must have necessary documentation in the form of an import export license.

It is a good idea to have a license to do import export business also to take advantage of price opportunities. International trade regulations are very strict and many products are tightly regulated by their respective governments.

Importing or exporting goods without proper licenses or documents will result in significant penalties and such goods are seized by customs and revenue authorities.

Trading in certain goods e.g. high technology items or weapons, to countries under sanction without proper license is also unlawful and they invite stringent criminal action against the trading companies thus engaged.

Lat updated January 21, 2009

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