Is IEC the Same As a Trade License?

IEC, which stands for Import Export Code, is a 10-digit unique identification number issued by the Directorate General of Foreign Trade (DGFT), a government agency under the Ministry of Commerce and Industry, Government of India. The primary purpose of an IEC is to enable businesses to engage in cross-border trade activities, both import and export. A trade license is a local permit issued by the municipal corporation or a similar local authority that allows businesses to carry out their specific trade activities within a defined geographical jurisdiction. The trade license ensures that businesses adhere to local regulations and safety standards. IEC and a trade license serve distinct purposes and are issued by different authorities for different aspects of business operations. While an IEC is essential for international trade, a trade license is necessary to operate a business locally and comply with local regulations and safety standards