Discuss the relevance of IEC Number. What is Export License ? Explain canalization feature.

IEC (Importer-Exporter Code) number is a unique 10 digit code issued by the Directorate General of Foreign Trade, Ministry of Commerce, Government of India to Indian companies. No import/export can be done without the IEC number. An export license is a document issued by the appropriate licensing agency after which an exporter is allowed to transport his product in a foreign market. Canalization feature in Export License ensures import of certain goods only by designated agencies for example Gold in bulk can be imported by specific banks or designated agencies only.