Why DGFT Export Import License Important
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For companies doing business internationally in India, the Import-Export Code (IEC) licence and the Directorate General of Foreign Trade (DGFT) licence are essential. This explains their significance:
1. Legal Requirement for Import/Export:
Mandatory for Most:The majority of companies in India that import or export goods are required to obtain an IEC code from the DGFT. It is a basic legal necessity. In general, import/export operations are illegal without it.
Legal Framework: The main government agency in charge of creating and carrying out international trade policy is the DGFT. One important tool for controlling and promoting this trade is the IEC.
2. Facilitates Trade:
Identification and Tracking: The IEC serves as a unique identification number for your business in the global trade arena. It allows customs authorities and other agencies to easily identify and track your shipments.
Streamlined Customs Clearance: Having an IEC simplifies customs clearance procedures. It helps expedite the movement of goods across borders, reducing delays and costs.
Access to Benefits: Several export promotion schemes and incentives offered by the government require an IEC. Without it, you cannot avail yourself of these benefits, which can significantly boost your export competitiveness.
3. Enables Business Expansion:
Global Reach: The IEC allows you to expand your business beyond domestic borders and tap into international markets. It opens up new avenues for growth and revenue generation.
Increased Market Share: By exporting your products or services, you can access a much larger customer base and increase your market share.
Diversification: Engaging in import/export can diversify your business operations and reduce reliance on the domestic market.
4. Enhances Credibility:
Professionalism: Having an IEC gives your company legitimacy. It demonstrates that you are an authorised and law-abiding company conducting business internationally.
Trust and Confidence: International buyers and suppliers are more likely to trust businesses that have an IEC, as it indicates adherence to regulations and established trade practices.