An import license is a document issued by a national government approving the importation of specific products into its territory. These licenses are considered as the non-tariff barriers in trade especially when the goods of foreign countries are discriminated in order to provide protection to the domestic countries from foreign competition.
Each license indicates the volume of imports permitted and the total volume permitted which should not be exceeded. These licenses can be sold to the companies at a competitive price or a simple fee. However, it is contended that this assignment technique gives motivations to political campaigning and remuneration. The legislature may put certain limitations on what is imported just as the quantity of imported merchandise and ventures. For instance, in the event that a business wants to import agricultural items, for example, vegetables, at that point the administration might be worried about the effect of such importations of the local market and thus force restrictions.
