When Is a Company Required to Have an Import License?

Not every activity of bringing goods in from abroad requires the same import license. The type of license needed depends on the company's status, the intended use of the goods, and the category of goods itself. This article summarizes the general conditions that make a company need an import license.

API-U and API-P: Two Different Pathways

In general, the Importer Identification Number is divided into two main types:

• API-U (General Importer Identification Number) — for companies importing goods for trading purposes (not used themselves as production materials).
• API-P (Producer Importer Identification Number) — for companies importing goods as raw materials, supporting materials, or capital goods for their own production needs.

Choosing the wrong type of API can affect import compliance, and even risk creating obstacles during the customs process.

Conditions That Make an Import License Mandatory

• The company routinely brings in goods from abroad for resale in the domestic market.
• A manufacturing company imports raw materials or components that are unavailable or insufficient from domestic suppliers.
• The imported goods fall under a category requiring additional import permits beyond the API, for example related to safety standards, health, or controlled goods categories.

Additional Import Permits That Are Often Overlooked

Besides the API, a number of goods categories require additional permits or recommendations from the relevant technical ministries/agencies before the import process can proceed. Companies that only arrange the API without checking these additional permit requirements risk having their goods held at customs.

Summary

A company's import license needs are determined by a combination of its business status (producer or not) and the category of goods being imported. Ensuring the correct type of license from the start helps avoid obstacles in the customs process.