RESTRICTED  
  
G/LIC/M/56  
 
27 July 2023 
(23-5143) Page: 1/19 
Committee on Import Licensing    
 
MINUTES OF THE MEETING HELD ON 23 MAY 2023 
CHAIRPERSON: MR LOH JIA JIE  (SINGAPORE ) 
The Committee on Import Licensing held its fifty -seventh  meeting on 23 May 2023 under the  
chairpersonship of Mr LOH Jia Jie  (Singapore ). The  agenda proposed for the meeting was circulated 
in document s WTO/AIR/LIC/ 16 and WTO/AIR/LI C/16/Corr.1 . 
 
 
Table of Contents  
1   MEMBERS' COMPLIANCE WITH NOTIFICATION OBLIGATIONS: DEVELOPMENTS 
SINCE THE LAST MEETING  ................................ ................................ ..............................  2 
2   WRITTEN QUESTIONS AND REPLIES FROM MEMBERS ON SPECIFIC TRADE 
CONCERNS (G/LIC/W/51/REV.7)  ................................ ................................ ...................  3 
2.1   Document  G/LIC/Q/ARG/22  ................................ ................................ .........................  3 
2.2   Document  G/LIC/Q/IDN/50  ................................ ................................ ..........................  3 
2.3   Documents  G/LIC/Q/PHL/10 and G/LIC/Q/PHL/11  ................................ ..........................  4 
3   NOTIFICATIONS  ................................ ................................ ................................ .........  5 
3.1   Notifications under Article  1.4(a), Artic le 5.1-5.4 and Article  8.2(b) of the Agreement  .........  5 
3.2   Notifications under Article  7.3 of the Ag reement  ................................ .............................  7 
4   ANGOLA: IMPORT LICENSING REQUIREMENTS – STATEMENT BY THE  
EUROPEAN UNION  ................................ ................................ ................................ ..........  7 
5   DOMINICAN REPUBLIC: NEW IMPORT LICENSING SYSTEM – STATEMENT BY  
THE EUROPEAN UNION  ................................ ................................ ................................ ... 8 
6   EGYPT: IMPORT LICENSING REQUIREMENTS FOR CERTAIN AGRICULTURAL  
AND PROCESSED PRODUCTS – STATEMENT BY THE EUROPEAN UNION  ..........................  8 
7   INDIA: IMPORTATION OF PNEUMATIC TYRES – STATEMENTS BY THE 
EUROPEAN  UNION, INDONESIA, CHINESE TAIPEI  AND THAILAND  ................................ . 9 
8   INDONESIA: COMMODITY BALANCING MECHANISM – STATEMENT BY THE 
EUROPEAN  UNION AND JAPAN  ................................ ................................ .....................  12 
9   INDONESIA: IMPORT LICENSING REGIME FOR CERTAIN TEXTILE PRODUCTS – 
STATEMENTS BY THE EUROPEAN UNION AND JAPAN  ................................ ....................  13 
10   INDONESIA: COMPULSORY REGISTRATION BY IMPORT ERS OF STEEL  
PRODUCTS – STATEMENT BY JAPAN ................................ ................................ ..............  14 
11   INDONESIA: IMPORT RESTRICTION ON AIR CONDITIONERS – STATEMENT  
BY JAPAN  ................................ ................................ ................................ ......................  15 
12   THAILAND: IM PORTATION OF WHEAT FEED – STATEMENT BY THE  
EUROPEAN UNION  ................................ ................................ ................................ ........  15 
13   IMPROVING TRANSPARENCY IN NOTI FICATION PROCEDURES OF THE  
AGREEMENT – REPORT BY THE CHAIRPERSON  ................................ ..............................  16 G/LIC/M/56  
 
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  13.1   Establishment of an Online Notification Portal  ................................ .............................  16 
13.2   Inclusion of Import Licensing in the Tra de Concerns Database  ................................ ...... 17 
13.3   eAgenda  ................................ ................................ ................................ ................  18 
14   IMPROVING THE FUNCTIONING OF THE COMMITTEE ON IMPORT LICENSING  ....... 18 
15   DATE OF THE NEXT MEETING  ................................ ................................ .................  19 
16   OTHER BUSINESS  ................................ ................................ ................................ ... 19 
17   ELECTION OF THE CHAIRPERSON  ................................ ................................ ...........  19 
 
 
_______________  
 
 
The Chairperson  proposed  the adoption of  the agenda for this meeting , contained in 
document s WTO/AIR/LIC/1 6 and WTO/AIR/LIC/ 16/Corr.1 . No items were raised under Other 
Business.  
The agenda was adopted . 
1  MEMBERS' COMPLIANCE WITH NOTIFICATION OBLIGATIONS: DEVELOPMENTS SINCE 
THE LAST MEETING  
1.1.  The Chairperson  stated that he had been informed by the Secretariat that, to date, a total of 
130 notifications had been received under various provisions of the Import Licensing Agreement 
since the Committee's previous meeting, 128 of which had been listed in the Airgra m for 
consideration at that day's meeting. In addition , two N/3 notifications had been received by the 
Secretariat  after the Airgram had closed and  before the meeting . These notifications  would be 
reviewed at the Committee's next meeting.  
1.2.  The Chairperson  noted that 103 notifications under Articles  1.4(a), 8.2(b) and 5.1 -5.4 had 
been submitted  since the Committee 's previous  meeting , 101 of these notifications had been  
submitted using the revised N/2 notification  form contained in document  G/LIC/28 to notify new 
import licensing regulations or changes thereof.  He remind ed delegations that Members were 
required  to notify their import licensing regulations and changes to th ose regulations within 60  days 
of their publication.  
1.3.  Twenty -seven  N/3 notifications had been  submitted under Article  7.3 of the Agreement since 
the Committee 's previous  meeting. The Chairperson  thanked all those Members that had provided 
notifications for their efforts and dedication.  In addition, he recall ed that submitting replies to the 
annual questionnaire before 30  September each year was an annual obligation for all Members. As of 
that day's meeting , only seven  Members had submitted their replies to the questionnaire for 2023, 
and only 34 for the year  2022. He further noted that 21 Members had never  submitted a reply to 
the questionnaire  and that 13 Members had never  submitted any notification under the Import 
Licensing  Agreement since joining the WTO. He encourage d those  Membe rs to notify and to contact 
the Secretariat for technical assistance.  
1.4.  The Chairperson  noted that Members in the Committee and the Secretariat ha d undertaken , 
and were going to  undertake , several initiatives to improve the record of notification compliance.  
For example , from 2 5 to 27 September  2023, the Secretariat was going to hold an in-person  capacity 
building workshop on import licensing and notification  requirements  in Geneva . This activity was 
directed to capital -based officials of Members entitled to technical assistance. The purpose of the 
workshop was to enhance participants' understanding of import licensing procedures and 
notifications and to train them in fulfilling the d ifferent types of notification requirements under the 
Agreement. The Secretariat was also going to  offer participants the possibility of technical assistance 
with the preparation of outstanding import licensing notifications, as a follow up after the works hop. 
1.5.  The Chairperson  stated that, while  the Secretariat was always available to engage in this type 
of activity , he was also  seeking guidance from Members in the Committee on how to ensure 
Members' full compliance with their notification obligations under the Agreement.  G/LIC/M/56  
 
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  1.6.  The Committee took note . 
2  WRITTEN QUESTIONS AND REPLIES FROM MEMBERS ON SPECIFIC TRADE  CONCERNS  
(G/LIC/W/51/REV.7)  
2.1  Document  G/LIC/Q/ARG/22  
2.1.  The representative of the United States  said that since it had been  introduced in October 2022, 
Argentina's new non -automatic import licensing regime ha d impeded imports and ha d been carried 
out in a non -transparent mann er. There had already  been serious concerns with a lack of 
transparency and predictability in Argentina's import licensing system, which had previously  been 
raised in this Committee and the new system ha d deepened these issues.  This import licenc ing 
requir ement ha d been particularly difficult for US exporters of consumer -oriented  products. 
Exporters of other agricultural commodities and consumer goods had also been affected, as well as 
Argentina's importers. She recalled that her delegation had submitted de tailed questions on the 
issue, and they hoped that those questions would  lead to clarity on Argentina's current import 
licensing regulations and how they were being implemented in a manner consistent with the 
Agreement on Import Licensing  Procedures . She c oncluded by noting that her delegation would 
appreciate Argentina reviewing the new approach it ha d adopted for its import licensing system, 
including consideration of changes that had been recommended.  
2.2.  The representative of the European Union  stated that her delegation share d the concerns and 
support ed all the questions raised by the United States . The European Union was  interested in 
getting replies to the questions raised by the United States  and wanted to better understand the 
replacement of the comprehensive import monitoring system with the new import licensing system 
called SIRA.  
2.3.  The representative of Australia  expressed support for the question s raised by the United States  
and interest in this issue. She said that her delegation would ha ve appreciate d greater transparency 
and clarification from Argentina on these measures, including, what plans Argentina might have had 
to gradually relax or remove them to ensure that they had the least disruptive effect on trade . 
2.4.  The representative of the  United Kingdom  expressed her delegation’s interest in the issue 
raised by the United States and other delegations  relating to Argentina's import licensing system. 
She said that UK businesses were still reporting difficulties in getting goods onto the Arge ntinian 
market. The issues relate d particularly to the fact that the process for approving import licences was 
very unpredictable. This unpredictability ha d a detrimental impact on UK businesses and their ability 
to deliver on their obligations to customer s on the Argentinian market . 
2.5.  The representative of Canada  voiced his delegation’s support for the questions that the United 
States ha d posed, and the comments made by other Members regarding  Argentina's import system. 
Canada  welcome d further clarity and transparency from Argentina about  its import measures in 
order to enhance predictability and minimize disruption for traders.  
2.6.  The representative of Argentina  thanked the United States for their questions in document 
G/LIC/Q/ARG/22  and responded that  her delegation had taken note of the questions  and their C apital 
was working hard to provide written responses as soon as possible.  
2.2  Document  G/LIC/Q/IDN/ 50 
2.7.  The representative of the United States  drew Members' attention to the written questions  they 
had posed  to Indonesia. In these questions her delegation  was seeking more information from 
Indonesia across a variety of sectors, including certain agricultural products, ICT products, footwear 
and other  products on significant delays , as well as a reduction in volumes  that importers had 
reported in receiving import licences . The United States also sought to understand how Indonesia 
choose commodities for licensing, as well as what processes were used for im port approval of 
commodities that had not been subject to a commodity balance. Her delegation looked forward to 
the responses from Indonesia and would  continue to engage  on this issue.  
2.8.  The representative of Indonesia  said that his delegation had addressed the concerns expressed 
by the United States in their statements at the April and October 2022 meetings of the Committee G/LIC/M/56  
 
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  as well as in their written answers contained in document G/LIC/Q/IDN/49 . With regard to the 
Commodity Balance  Mechanism , he said that  the regulation was under review and his authorities 
were still  coordinating amongst several agencies, whether it was relevant to notify it to this 
Committee, as well as  working on the  answer s to the US questions contained in  document 
G/LIC/Q/IDN/50. He recalled that the Commodity Balance  Mechanism  aimed at creating and 
facilitat ing a better business environment and the free flow of goods. It was a policy evaluation tool 
used by the Government for transparency  and was based on  accurate data. Furthermore, the 
Commodity Balance Mechanism did not represent  an additional burden in Indonesia's import regime, 
as it capture d and provide d complete , detailed , transparent and accurate data  for businesses . 
It aimed at support ing certainty  in doing business  and transparency and forecasting for business 
development.  
2.3  Document s G/LIC/Q/PHL/10  and G/LIC/Q/PHL/11  
2.9.  The representative of the United States  said that her delegation recognized recent 
recommendations and proposals that had been made in the Philippines to increase imports in effort s 
to address the urgent food security challenges p osed by rising inflation.  Nevertheless, her delegation 
continued to be concerned by the Philippines' Department of Agriculture's administration and 
management of sanitary and phytosanitary import clearances.  In that respect, her delegation 
continue d to rai se concerns in this Committee  and the Committee on Agriculture , as well as in 
bilateral meetings , and they had been  disappointed that the Department of Agriculture ha d not 
addressed their concerns . She said that her delegation would welcome responses to their questions 
as soon as possible.  
2.10.   She also emphasize d her delegation's  concern that SPSICs and their corresponding validity 
periods seem ed to be administered in a discretionary manner and not to the extent necessary to 
protect plant, animal, and human hea lth as stated in the Philippine s' regulations.  For example, 
importers continue d to report that the Department of Agriculture would  not issue SPSICs for specific 
commodities during certain periods of time without any justification, including in February 202 3 for 
whole chicken. The lack of justification and transparency was a serious concern for the United States, 
as it continue d to result in negative impacts on trade.  She said that t he United States remain ed 
available to work  with their Philippine s' counterparts to identify trade facilitati ng approaches to 
address this issue. In the interim, her delegation  asked  the Philippines to consider the following 
requests  and that they : 
1. Notified new or revised SPSIC  measures to the Committee on Import Licensing, including the 
Department of Agriculture's Administrative Order No.  6, Series of 2022;  
2. Provide d at least a 60 -day period for stakeholder comment after notifying new or revised 
SPSIC measures;  
3. Paused implementation of Administrative Order No.  6 until interested stakeholders had had 
an opportunity to comment, and comments had been  taken into consideration;  
4. Provide d the science and risk -based evidence for SPSIC requirements, including validity 
periods;  
5. Ensure d that the evaluation of applications for SPSICs were based on SPS considerations, and 
notified importers of the SPS requirements in a timely manner; and  
6. Commit ted to work with trading partners to establish risk -based validity periods that remove d 
unnecessary barriers and enable d trade to consistently flow in a predictable manner.  
2.11.   The representative of  the Philippines  said that her capital was  actually finali zing response s to 
these questions, and her delegation  should have been able to circulate them within the week.  
2.12.   The Chairperson  concluded by encourag ing all Members to follow the procedures established 
in document  G/LIC/4 , and to make good use of the C ommittee 's formal  meetings in order to clarify 
any issue regarding other Members' im port licensing  notifications . 
2.13.   The Committee took note  of the questions and replies,  and the statements made.  G/LIC/M/56  
 
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  3  NOTIFICATIONS  
3.1  Notifications under Article  1.4(a) , Article  5.1-5.4 and Article  8.2(b) of the Agreement  
3.1.  The Chairperson  informed Members that 103 N/1 and N/2 notifications, submitted by 
11 Members, had been  listed on the agenda for the Committee's consideration at th e meeting. He 
stated  that Members had notified new regimes and had continued to make great efforts to provid e 
missing information on existing regimes using the notification form contained in document  G/LIC/28 . 
He thanked all those Members that had made efforts to improve the transparency of their respective 
import licensing regimes. Due to the large number of notificat ions on the agenda, and with a view 
to making the review process more efficient, he said that he would not read out the document 
symbol of each notification one by one . Instead, he proposed that the Committee review the 
notifications  in groups , following a  sequence by notifying Member. He noted that this approach d id 
not prevent any Member from raising questions regarding any particular notification under review.  
3.2.  The following  notifications under Article  5.1-5.4, Article  1.4(a), and Article  8.2(b) of the 
Agreement were reviewed by the Committee:  Argentina (G/LIC/N/2/ARG/28/Add.1 4/Rev.1  and 
G/LIC/N/2/ARG/28/Add. 15); Cambodia ( G/LIC/N/2/KHM/1 -15); Dominican Republic  
(G/LIC/N/2/DOM/ 2 and G/LIC/N/2/DOM/3 ); European Union ( G/LIC/N/2/EU/19 -23); Republic of 
Korea ( G/LIC/N/2/KOR/49 -55); Kyrgyz Republic ( G/LIC/N/2/KGZ/1 -7); Macao, China 
(G/LIC/N/2/MAC/4 -8); Myanmar ( G/LIC/N/2/MMR/ 8); Philippines ( G/LIC/N/2/PHL/141 -193); 
Chinese Taipei ( G/LIC/N/2/TPKM/18 -20); and Ukraine ( G/LIC/N/2/UKR/22 -24). 
3.3.  The representative of Ukraine  reaffirmed her delegation’s strong commitment to fundamental 
WTO rules, in particular transparency. Despite the war unleashed by the Russian Federation against 
Ukraine more than 15 months ago, Ukraine had continue d to notify Members o f the adopted 
measures related to import licensing  procedures and ensure d that such measures were regularly 
reviewed.  Under this agenda item, she inform ed Members that the Government of Ukraine, by its 
Resolution No. 472 of 12 May 2023, had cancel led export  licensing for a number of agricultur al 
products , for which procedures had been  introduced in 2022 to prevent or relieve critical shortage 
of products essential for the exporting countr y, and to protect essential security interests under 
martial law.  These products include d cattle  meat, frozen cattle mea t, poultry meat, meat and edible 
meat offal, eggs, rye, oats, and millet.  
3.4.  She also noted the eff ective implementation of licensing procedures , and regulatory policy 
reform s were among the priorities of the Ukrainian Government in support of business es at that 
time. In early 2023, the Government of Ukraine had adopted amendments to the action plan for the 
regulation and improvement of the business climate, which provide d for the cancellation of a number 
of licences and permits including those regulating the  import and export of goods.  She informed the 
Committee that i t was expected that relevant Government resolutions  would  be adopted in the 
course of  2023 and that  Ukraine would  do its best to ensure the transparency of measures taken 
under the martial law.  She noted that w hile the Russian Federation continue d its war of aggression 
and demonstrate d a blatant disregard of international law and rule -based international order, her 
delegation reiterate d their sincere gratitude to those Members who stood  with Ukraine and call ed on 
other WTO Members to make every effort to end Russia's ability to wage devastating war s and 
undermine the multilateral trading system.  
3.5.  The representative of Canada  thanked Ukraine for the update and to their commitment to 
fulfilling the responsibilities of th e Committee amidst a full -scale illegal, unjustifiable and unprovoked 
invasion. His delegation  appreciate d how difficult it must have been to continue to adhere to import 
licensing transparency requirements in this context.  He said that t he Russian invasion of Ukraine, in 
addition to reaping an horrific humanitarian toll, continue d to be a major driver of global food and 
energy insecurity. Although global p rices of food and fertilizer s had decreased from their peaks, they 
remain ed high by historical standards. Russia's higher than expect ed exports had contributed to 
some decline in cereal prices, but they d id not erase the damage done to global food security  by the 
war. Instead, they clearly confirm ed that sanctions did not prevent Russian food from reaching world 
markets. Canada, with its allies, had imposed sanctions to weaken Russia's ability to finance its 
invasion of Ukraine. Sanctions target ed Russian l eaders and other supporters and were meant to 
reduce the regime capacity to wage war. The global community was taking great care to ensure that 
measures against Russia d id not have unintended consequences.  He added that i t was, without a 
question, Russia's  ongoing invasion that ha d significantly disrupted global supply chains  and created 
uncertainty in international trade. His delegation commended Ukrainian efforts to continue to deliver G/LIC/M/56  
 
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  food and other products to international markets and once again call ed for Russia to immediately 
cease its illegal, hostile and cynical war against Ukraine . 
3.6.  The representative of the Russian Federation  said that there were parts of the statements of 
Ukraine and Canada that had fallen  outside the mandate of the Committee and remind ed Members 
of the terms of reference of the Committee on Import Licensing. Article 4 of the Agreement of Import 
Licensing procedures provide d that " The Committee … shall meet as necessary for the purpose of 
affording Members the opportunity of consulting on any matters  relating to the operation of this 
Agreement or the furtherance of its objectives". He underscore d that consideration of matters of 
global original security concerns, UN Charter enforcement or co mpliance did not fall under the 
mandate of the Committee . 
3.7.  The representative of the European Union  praised Ukraine for submit ting its notification in full 
compliance with its import licensing transparency obligations , despite the Russian war and its 
conseq uences, including on food security and supply chain disruptions.  She said that this clearly 
demonstrate d Ukraine's strong commitment to the work of this Committee and to the WTO work in 
general. The European Union condemn ed in the strongest possible term s the Russian Federation ’s 
unprovoked and unjustified war on Ukraine, as well as the illegal attempted annexation  of some 
regions of Ukraine.  She added that this aggression deeply violate d international law and undermine d 
international security and stability . Her delegation called on the Russian Federation to immediately 
end its act of aggression, to withdraw its troops from Ukraine and to fully respect Ukraine's territorial 
integrity, sovereignty,  and independence within its internationally recogni zed boarde r. The European 
Union stood  firmly with Ukraine and its people, for as long as it took. 
3.8.  The representative of the United States  thanked Ukraine for its continued notifications, 
updating this Committee of it s import licensing procedures. She said that her delegation condemn ed 
Russia's illegal, unjustifiable,  and unprovoked war, disregard for the charter of the United Nations 
and indifference to the impacts that its war was having on Ukrainian people.  Russia's actions also 
undermined  WTO fundamental principles and values, including other Members' shared notion of 
fairness and openness. Meanwhile, Ukraine continue d to participate actively in WTO Committees and 
bodies, despite the unimaginable conditions that they  faced at home. Her delegation  commend ed 
Ukraine's commitments to this organization  and once again ask ed Russia to stop its illegal war in 
Ukraine.  
3.9.  The representative of Australia  thank ed Ukraine for their present and past engagement in this 
Committee incl uding  through  submission of notifications. She said that Russia's invasion of Ukraine 
was a gross violation of international law, including the Charter of the United Nations and the 
principles and values of the WTO. Aside from the terrible damage and loss of life in Ukraine, Russia's 
war was propelling a global crisis in food security and inflating already high prices of food and inputs. 
She added that Russia's war was preventing  Ukrainians from accessing their farmlands and export 
systems. These actions, c ombined with the destruction of infrastructure and disruption to the Black 
Sea Grain Initiative were limiting Ukraine's capability to produce and export food to the world . 
3.10.   The representative of the United Kingdom  expressed her delegation’s full support for the 
intervention of Ukraine and highlighted Ukraine’s  continuing efforts to provide transparency of 
measures and to facilitat e trade, in line with its WTO obligations in the most difficult of 
circumstances . She s aid that Russia's assault was an unprovoked, premeditated,  and barbaric attack 
against a sovereign democratic state. The U nited Kingdom  and its international partners stood  united 
in condemning the Russian Government 's reprehensible actions. She said that the United Kingdom 
would  continue to support Ukraine  in the face of this assault o n their sovereignty and territorial 
integrity.  
3.11.   The representative of the Republic of Korea  joined other s in commending Ukraine for its 
continued efforts in recording its notifications , and strongly condemn ed Russia's invasion of Ukraine, 
as a violation of the principles of the UN Charter. He said that Ukraine's sovereignty, territorial 
integrit y and independence had to  be respected . 
3.12.   The representative of Japan  echoe d previous statements in support of Ukraine and also 
expressed appreciat ion for  Ukraine's efforts on notification s as well as compliance with the Import 
Licensing Agreement , despite t he current difficult situation.  Japan strongly condemn ed Russia's 
aggression against Ukraine, which was the source of global food insecurity. Japan strongly urge d G/LIC/M/56  
 
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  Russia once again to immediately stop its aggression and withdraw its forces from the territo ry of 
Ukraine, with in its internationally recogni zed border. He said that Japan would  also continue to work 
firmly on imposing sanctions against Russia and provide support to Ukraine in cooperation with the 
international community . 
3.13.   The representative of Moldova  also thanked Ukraine for their update in th e Committee and 
for the notifications, despite the challenges linked to the war initiated by Russia on their territory.  
Moldova voice d its support along  with the European Union  and other Members who had spoken 
before , and condemn ed Russia's war against Ukraine, a war that had cause d destruction and 
suffering in Ukraine  on a daily basis. The economic and social repercussions of this war had been  
strongly  felt in and around Ukrain e, including in Moldova. Despite all difficulties, Moldova would  
remain  in solidar ity with Ukraine and the Ukrainian people and would  continue to call upon Russia 
to stop this aggression immediately and unconditionally.  
3.14.   The representative of the Russian Fe deration  said that once again delegation s that had taken 
the floor had done so beyond the mandate of the Committee. In this regard, he asked relevant 
delegations to stop wasting delegates’ time on this issue. He noted that one of the aims of these 
interven tions was to justify measures that these Members had introduced in clear violation of basic 
WTO commitments and that had  had consequences for world trade and the world economy. He said 
that such consequences could have been avoided if the WTO Members who h ad just taken the floor 
would have not  breached basic WTO obligations. All additional costs due to unilateral measures had 
been passed on to global consumers, resulting in growing global price levels. He concluded by saying 
that considering that  the Commit tee was going to debate ways to improve its functioning, under 
item 14 , a suggestion to increase the efficiency of the Committee would be that Members refrain ed 
from raising issues that were clearly in violati on of the mandate of the Committee . 
3.15.   The Committ ee took note  of the notifications and statements made.  
3.2  Notifications under Article  7.3 of the Agreement  
3.16.   The Chairperson  noted that  25 notifications had been listed for the Committee's consideration. 
Albania and Panama  had submitted two additional  N/3 notifications after the Airgram had been 
issued , and these would be reviewed at the Committee's subsequent meeting.1 
3.17.   The following notifications under Article  7.3 were reviewed by the Committee:  Albania 
(G/LIC/N/3/ALB/12 ); Austra lia (G/LIC/N/3 /AUS/15 ); Canada ( G/LIC/N/3/CAN/21 ); Colombia 
(G/LIC/N/3/COL/16 ); Costa Rica ( G/LIC/N/3/CRI/19 ); El Salvador ( G/LIC/N/3/SLV/5 ); The Gambia 
(G/LIC/N/3/GMB/5 ); Honduras ( G/LIC/N/3/HND/14 ); Hong Kong, China ( G/LIC/N/3/HKG/26 ); India 
(G/LIC/N/3/IND/22 ); Japan ( G/LIC/N/3/JPN/21 ); the Republic of  Korea, ( G/LIC/N/3/KOR/15 ); 
Kyrgyz Republic ( G/LIC/N/3/KGZ/3  and G/LIC/N/3/KGZ/3/Corr.1 ); Macao, China 
(G/LIC/N/3/MAC/25 ); Mauritius ( G/LIC/N/3/MUS/12 ); New Zealand ( G/LIC/N/3/NZL/9 ); Nicaragua 
(G/LIC/N/3/NIC/14 ); the Philippines ( G/LIC/N/3/PHL/15  and G/LIC/N/3/PHL/15/Rev.1 ); Singapore 
(G/LIC/N/3/SGP/18 ); Switzerland ( G/LIC/N/3/CHE/18 ); Chinese Taipei ( G/LIC/N/3/TPKM/13 ); 
Tunisia ( G/LIC/N/3/TUN/7 ); and Uruguay ( G/LIC/N/3/URY/16 ). 
3.18.   The Committee took note  of the notifications.  
4  ANGOLA: IMPORT LICENSING REQUIREMENTS – STATEMENT BY THE EUROPEAN UNION  
4.1.  The representative of the European Union  stated that her delegation remained deeply 
concerned over Presidential Decree No. 23/19 aiming to protect domestic industries in a manner 
that was not compatible with WTO rules. She reminded Angola that these concerns had already been 
raised in previous W TO meetings since 2019, notably during meetings of the Council for Trade in 
Goods, the Committee on Market Access, the Committee on Agriculture, as well at this Committee 
in October 2021.  To date , Angola had not provide d any substantive repl ies or explanat ions on how 
they intend ed to bring this Decree into the remit of WTO legality.  Irrespective of the Decree's  
illegality with WTO rules, the E uropean Union reiterate d the need for Angola to provide the clearest 
picture on the process regarding this Decree, a nd any changes they wishe d to introduce and in which 
areas.  Once more her delegation  strongly urge d Angola to review the relevant measures in order to 
 
1 Albania ( circulation of document pending ); Panama ( G/LIC/N/3/PAN/14 ). G/LIC/M/56  
 
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  ensure compliance with WTO rules.  She further noted that concerning the specific remit of this 
Committee,  the Decree did not provide information on how these restrictions were being  
implemented. Notably it was unclear if licenses were used to manage these restrictions. Therefore, 
the European Union  request ed Angola to clarify this question and remind ed Angola  of their 
obligation s under the Import Licensing Agreement to notify the measure, should licenses have been 
involved in the implementation of this Presidential Decree.  She concluded by saying that, d epending 
on Angola's engagement on this file, the E uropea n Union  might have  further decide d on which 
approach to take to ensure an adequate protection of its trade interests.  
4.2.  The representative of the United States  thanked the European Union for continuing to raise 
their concerns with Angola's Decree No. 23/19  and regret ted that such concerns had not yet been 
resolved.  She recalled that during the October 2022 meeting  of the Committee , the representative 
of Angola  had stated that Angola was working to become a compe titive player in the global market, 
and not only an importer.  She said that it was their  understanding that the Decree g ave priority to 
goods produced in Angola by requiring that importers demonstrate d that they either c ould not find 
a product domestically  or had signed a contract for future domestic purchases. She noted that t hese 
measures ha d the potential to distort trade.  She then requested that A ngola further  elaborate on 
the documentation that an importer could submit to satisfy the Decree or explain how these 
requirements were aligned with the WTO Agreement on Import Licensing Procedures.  She reiterate d 
her delegation's previous statements , noting th e importance of having a legal and regulatory 
framework in place that ensure d an environment free of tr ade obstacles in the medium and long  
term.  She concluded by urging Angola to either repeal or revise this Decree to address Members' 
concerns and to ensure that this Decree was in compliance with WTO rules and obligations.  
4.3.  The representative of Angola  was not able to take the floor via the Interprefy platform due to 
technical issues.  
4.4.  The Committee took note  of the statements made.  
5  DOMINICAN REPUBLIC: NEW IMPORT LICENSING SYSTEM – STATEMENT BY THE 
EUROPEAN UNION  
5.1.  The representative of the European Union  thanked the Dominican Republic for the bilateral 
contacts which had clarified the situation regarding the bilateral quota for milk powders. She 
reiterated, however, the European Union's concerns about the legislation setting up a new system 
of import licen ces for agricultural products in the Dominican Republic. She noted that t he very broad 
scope of the changes, covering several hundred  tariff lines, could  have led to an increase of the 
administrative burden for exporters.  In parallel to automatic licences,  the new legislation provide d 
for non -automatic licencing, including for products that were not covered by tariff -rate quotas.  
Furthermore, the proposed non -automatic licencing system for products not covered by tariff -rate 
quotas, introduce d uncertainties  about the criteria for granting import licences, and could have posed 
an impediment to trade.  She reiterate d that WTO Members had recognized the need to minimize the 
incidence and complexity of import formalities as well as decrease and simplify import 
documentation requirements.  She, therefore , asked the Dominican Republic about its concrete plans 
and precise timing for implementation so that EU operators could  take the necessary measures.  
5.2.  The re presentative of the Dominican Republic  thanked the European Union for their comments 
on the Dominican Republic 's new import licensing legislation. She said that these were very valuable 
comments and that the European Union was an important trading partner for the Dominican 
Republic. For these reasons her delegation  and her capital were willing to continue address ing the 
concerns raised on this matter bilaterally.  
5.3.  The Committee took note  of the statements made.  
6  EGYPT: IMPORT LICENSING REQUIREMENTS FOR CERTAIN AGRICULTURAL  AND 
PROCESSED PRODUCTS – STATEMENT BY THE EUROPEAN UNION  
6.1.  The representative of the European Union  stated that her delegation remain ed concerned about 
a number of measures implemented by Egypt, namely the quantitative restrictions for imports of 
meat and poultry, as well as the import measures for seed potatoes , which had been  announced in 
2021 ( and notified under G/SPS/N/EGY/119 ).  G/LIC/M/56  
 
- 9 - 
 
  6.2.  Regarding the  import restrictions for meat and poultry (ducklings and canned meat) , the 
European Union reiterate d that the system of import permits under Prime Minister's Decree  
No. 2080/2018 and Prime Minister's Decision No. 222/2018 was incon sistent with Article XI of the 
GATT, as well as with several provisions of the Agreement on Import Licensing Procedures.  
Furthermore, Egypt ha d not yet notified the se two decrees to the WTO.  She noted that , as her 
delegation had mentioned on previous occas ions, the system of granting import permits lack ed 
transparency. The procedures of the committees and the calendars of their meetings were not 
publicly shared. Rejections of import permits were communicated orally, without any possibility of 
appeal. There were no rules  under both acts  stipulating under which conditions import permits were 
approved.  The European Union  urged Egypt to stop applying quantitative restrictions on imports of 
meat and p oultry originating in the European Union , in compliance with WTO law.  
6.3.  The European Union was also concerned by Egypt's new measures for the import of seed 
potatoes notified to the WTO under the SPS Agreement. While exchanges were on -going with Egypt 
on the se issues, she restated that  the introduction of a pre -clearance system in the form of field 
visits in the E uropean Union  by Egyptian inspectors was burdensome, costly and lack ed proper 
justification. As her delegation had explained in the past, EU Member States had efficient and 
effective national plant protection organi zations, which could  have certified  that exports compl ied 
with importing country requirements in accordance with international standards, notably the 
International Plant Protection Conventi on (IPPC) and related international standards.  Finally, she 
stated that her delegation welcome d that Egypt had suspended the requirement on the application 
of field inspections. However, the European Union  was asking Egypt to permanently remove these 
field inspection requirements. The E uropean Union continue d to be ready to further engage with 
Egypt to discuss any concerns in this respect.   
6.4.  The representative of Egypt  said that her delegation had been keen to respond to questions 
raised by all WTO Members interested in this topic, both bilaterally and before  the Committee , 
through written replies submitted in a number of documents that had already  been referred to in 
document G/LIC/W/51/Rev.8 . She then proceeded to highlight a number of specific points.  
6.5.  On the imports of meat and poultry, she reiterate d that th ese decrees did not constitute 
quantitative restrictions  and that her delegation had explained that the main purpose of th ese 
decrees was to ensure that imports of such products did not introduce any diseases and met the 
required standards and the requirements stipulated by the relevant authorities. Requests for import 
permits were assessed taking into account the epidemiological situation of the exporting country 
and the import permit s were given  on that basis . The procedures of the committee s and the timing 
of the replies to import requests  had been clarified in the replies submitted by Egypt in document 
G/LIC/Q/EGY/4 , which ha d been circulated  in response to the additional questions by the European 
Union.  
6.6.  She stated that regarding the imports of seed potatoes, the mechanism notified under the SPS 
Agreement was not targeted to restrict any imports, so it was not inconsistent with Article XI of the 
GATT 1994. In a number of bilateral meetings, Egypt had explained that this mechanism had b een 
instituted to avoid the inspection in potato seeds and in order to have a reliable traceability system. 
She thank ed the European Union  for referring to the bilateral exchanges that had been taking place 
for a couple of months  and noted that the issue o f traceability ha d been the subject of a bilateral 
meeting in March 2023 with a number of EU Member States , which had led to a better understanding 
of the concerns of both parties, including those related to field inspection visits which had been 
postponed . Finally, she noted that the mechanism ha d not obstructed imports , considering that  
imports of potato seeds  had increased from approximately 135,000 tons before the introduction of 
the mechanism to almost 140,000 tons  after the introduction of the mechani sm. She concluded by 
stress ing that Egypt was ready to continue the bilateral exchanges with the European Union  and to 
reply to any further questions in this respect.  
6.7.  The Committee took note  of the statements made.  
7  INDIA: IMPORTATION OF PNEUMATIC TYRES – STATEMENTS BY THE  
EUROPEAN  UNION, INDONESIA , CHINESE TAIPEI  AND THAILAND  
7.1.  The representative of the European Union  reiterated the concerns her delegation ha d been 
raising before the Committee since 2020 regarding the licensing regime for importation of pneumatic G/LIC/M/56  
 
- 10 - 
 
  tyres for motor cars, buses, lorries, motor scooters and motorcycles , introduced by India under 
Notification No.  12/2015 -2020 on "Amendment in Import Policy of Tyres" of 12 June 2020.  She said 
that t his issue ha d become a long -standing one and it was very worrying that despite being raised 
on multiple occasions in this and other WTO bodies , including the Market Access Committee, the 
TRIMs Committee  and the TBT Committee, there ha d been n o progress towards a possible resolution.  
The European Union continue d to be concerned about the effect of this measure on the import of 
tyres, which ha d become highly restricted since June 2020. Only a limited number of licenses had 
been granted to EU tyr e manufacturers and these licenses  were limited in duration, quantity,  and 
type of tyres. Moreover , no licenses had yet, after two years, been granted for the importation of  
bus and truck tyres. She said that t his was a blatant discrimination towards EU bu s and tyre 
manufacturers.  The European Union  urged India to reconsider and eliminate any implicit or explicit 
quantitative or other restrictions (e.g., end -user principle) on the import of replacement tyres that 
could be contrary to WTO requirements.  
7.2.  The r epresentative of Indonesia  said that his delegation objected to India's policy on the 
importation of pneumatic tyres, considering that they had not received any adequate solution to the 
limitation of imported tyres. He noted that exports of Indonesian tyre products to India were still 
restricted. Indonesia underst ood that the government of India ha d amend ed its tyre import policy 
from "free" to "restricted". Furthermore, his delegation was of the view that India's import policy 
had become increasingly stringent, considering that  every container containing imported t yres that 
were sent to India need ed to be sampled for customs purposes, in orde r to fulfil provisions related 
to warehouse registration where imported t yres products  were stored.  Indonesia was aware that, as 
part of its restrictive policy on  tyre import s, India ha d required importers to make separate 
statements via e -mail regarding i mport restrictions for certain types and size categories of t yres that 
could  be produced domestically in India. Indonesia was of the view that the restriction on tyre 
imports based on types and sizes was a form of quantitative restriction which was prohibi ted under 
the GATT and under the WTO Import Licensing Agreement.  Indonesia also considered  that the 
restriction on imports of tyres was discriminatory, as it applied selectively only to a number of 
WTO Members who had the potential to become a threat to In dian domestic t yre manufacturers. 
Such policy then had the potential to undermin e the WTO principle of non-discrimination.  Finally, he 
urged India to immediately review the policy, to ensure compliance with India's commitment under 
the WTO Import Licensing  Agreement, as well as the WTO principles of transparency and non-
discrimination.   
7.3.  The representative of Thailand  reiterated the concern his delegation had  raised numerous times 
at past meetings of this Committee, the Committee on Market Access, and the Council for Trade in 
Goods , regarding India's import policies on tyres , which still had considerable negative impact not 
only on Thailand but also on other trading partners.  He noted that i n 2022, the exports of car tyre s 
from Thailand to India had declined by 57% in volume term, as compared to 2021 and by a 
staggering 71% as compared  to 2019 , before this measure had been  implemented. The first three 
months of 2023 had also seen a continued sharp drop in the exports of ty res from Thailand to India 
by 67% as compared to the same period in 2022 and by 79% as compared to the first three months 
of 2019. This contrast ed with the 21% growth rate of Thailand's exports of tyres to all other 
countries.  He further noted that in 2022  India's total imports of car tyres from the whole world had 
declined by 40% and India's imports of tyres for transport vehicles and trucks had declined  by 32%.  
Looking at these figures, his delegation asked India h ow far import figures would hav e to decline 
until India stop ped implementing this measure . He also said that regrettably his delegation had not 
yet receive d any response from India regarding the request for information they had  made since 
October 2022 . He noted that this request for information w as very straightforward and, therefore, 
should not have taken too long to respond. Nevertheless, he reiterate d his delegation's  request that 
India provide the following information : (i) the administration of the restrictions, including the time 
frame or pe riod for processing application s; (ii) the import licenses granted to Thailand over the 
recent period;  and (iii) the distribution of such licenses among supplying countries.  
7.4.  The representative of Chinese Taipei  register ed once again h er delegation's concerns regarding 
India's licensing regime on the importation of pneumatic tyres. The Indian Notification amended 
certain pneumatic tyre import regulations from "Free" to "Restricted", introducing  measures that 
significantly impede d Members'  access to India's market.  According to the Indian Ministry of 
Commerce and Industry, from 2020 to 2022, India's tyre imports from Chinese Taipei  sharply 
declined  by 50% as compared to 2019. Chinese Taipei's  exporters had already faced trade barrier s 
upon entering the Indian market for tyres, and clearly, this was not a problem for Chinese Taipei  
alone. This measure had restricted access for tyre products to the Indian market, resulting in G/LIC/M/56  
 
- 11 - 
 
  significant adverse impact on trade.  She said that her delegation continue d to question how the 
licensing measures taken by India and its practices could be  consistent with the WTO rules on 
quantitative restrictions. As a Member of the WTO, Chinese Taipei  reiterate d that India had to comply 
with its obligations under the  WTO Agreement on Import Licensing Procedures. She, therefore,  urged 
India to review its practices and ensure that all applications for import licences for tyres that were 
in full compliance with standards be granted without hindrance or undue delay. She add ed that  India 
was required to publish complete information on import license applications to ensure transparency 
and understanding by  foreign manufacturers of the criteria for license approval  as well as provide 
detailed reasons in case of  license denials.  She concluded by calling on India to terminate any import 
license that constitute d a distortion or restriction to trade. Her delegation  hoped that  India would  
engage in good -faith discussions with concerned Members with a view to resolving the issue in a 
timely, non -discriminatory, predictable,  and constructive manner.  
7.5.  The representative of Japan  said that his delegation support ed the statements made by other 
delegations and expresse d Japan's  ongoing concern about the continued occurrence of cases in which 
the quantity approved by India's authority was limited to less than the quantity applied for by 
Japanese companies, without any reasons provided.  Having received no response from India, Japan 
asked once again that India provide detailed explanations on: (i) what had been the reasons for 
limiting the approved quantity; and (ii) what were the rationale and criteria to decide whether India 
would  grant an import li cense or limit the approved quantity, and in which laws and regulations were 
such rationale and criteria provided. Considering that  India had mentioned at the previous  
Committee meeting that questions would be conveyed to their capital, his delegation  requested India 
to provide them with the results of the relevant communications with their capital.  He further recalled 
that I ndia had explained that this measure had been  implemented in accordance with the Import 
Licensing Agreement, including the timeframe for granting licenses. He, therefore, request ed that 
India elaborate more specifically  on how WTO  consistency was ensured in the measure and in its 
implementation.  
7.6.  The representative of the  United  States  stated that her delegation support ed Member's 
concerns regarding India's lack of transparency and timeliness regarding  import licensing  procedures 
for tyres.  She also request ed that India review and respond to all pending applications in a timely 
manner.  
7.7.  The representative of India recalled that Notification No. 12/2015 -2020 of 12 June 2020, 
imposed licensing conditions on import of new pneumatic tyres, based on  a decision taken in 
consultation with all concerned stakeholders in view of quality, safety,  and environment issues.  He 
said that this measure , taken by the relevant authorities on the import of tyres , should not have 
been seen as a barrier, as it did not target  imports from any specific  country but was applicable to 
all WTO Members on a non -discri minatory basis. The measures taken on tyres were WTO compliant 
as mandated under Article 5.2 of the Agreement on Import Licensing Procedures and their reporting 
complied with Article 7.3.  He clarified that India had laid down specific criteria to evaluate import 
licensing applications. The  non-automatic licensing requirements for the grant ing of permission s to 
import tyres were administered in a manner consistent with the rules of the WTO Agreement on 
Import Licensing procedures, including the time frames for grant ing of import licenses. Th ese licenses 
were being administered in a fair and equitable manner. A number of licences had been granted 
after approval by the competent authority.  
7.8.  Regarding the "Pneumatic Tyres and Tubes for Automotive Vehicle (Quality Control) Order 
(QCO) 2009", 669 tyre sizes had been  exempted from the application of the provisions of this Order  
and import s by the original equipment manufacturers  were permitted . This exemption list had been  
recently revised in January 2023 and 600 tyre sizes were exempted under the QCO.  
7.9.  He then responded s pecifically to questions raised by Members:  
- Regarding Indonesia 's questions on the process, a response ha d already been provided at 
previous meetings of this Committee and other WTO bodies ; 
- Regarding  Chinese Taipei 's questions , he said that his delegation had shared the number of 
licenses issued last year, when there ha d been only a very small number of reject ions on 
account of procedural issues ; 
- In responding to the  European Union, 40 applications had been approved until 31  March 2023, 
covering more than 378,000 tyres ; G/LIC/M/56  
 
- 12 - 
 
  - Regarding the questions raised by  Thailand, he said that his authorities had reviewed the 
applications. He noted that applicants may file applications from multiple source countries with 
the same application. In this respect he said that the total number of licenses approved where 
Thailand was one of the countries mentioned was 273 since the inception of the measure.  
- Regarding the questions from Japan and comments from the United States , he said that his 
delegation would be reverting  to them.  
7.10.   He concluded by saying that his delegation would also reach out bilaterally to discuss the data 
with the Members who had raised concern s. 
7.11.   The Committee took note  of the statements made.  
8  INDONESIA: COMMODITY BALANC ING MECHANISM – STATEMENT BY THE  
EUROPEAN  UNION  AND JAPAN  
8.1.  The representative of the European Union  said that at the last meeting of th e Committee, the 
European Union had noted that Indonesia had started implementing the Commodity Balance 
Mechanism  introduc ed through Minister of Trade Regulations 19/2021 and 20/2021. This established 
a new centrali zed system for issuing import (and export) licenses, under which import licenses would 
only be granted if domestic demand could not be met by domestic supply, with  an expanding scope 
of application. She said that the European Union welcomed efforts to ensure a coordinated and 
streamlined approach of the management of import and export licenses. However, the mechanism 
also raised concerns that it might have resulted in further restrictions to trade flows, raising 
questions as to the compliance of this initiative with Indonesia's WTO obligations, to the extent it 
might have amounted to an import/export restriction.  The lack of clarity on the actual 
implementation of th e Commodity Balance  Mechanism , including on its scope and timelines for the 
application to different groups of products, present ed additional challenges for economic operators 
in terms of legal certainty and predictability.  Accordingly, she reiterate d its request to Indonesia for 
clarifications as to the practical functioning of the Commodity Balance Mechanism  and its scheduled 
implementation  and in relation  to the concerned products.  
8.2.  The representative of Japan  said that u nder the Commodity Balance Mechanism , an SPI (Import 
Permit) was required before the import of the subject products, and export and import permits were 
issued through the "National Commodity Balance System (SNAS -NK)", based on the supply -demand 
balance of the subject products , deter mined by the government in advance. The previous system of 
import application and approval had ceased to operate in December 2022. However, in 
January  2023, some delays and glitches in the operation of the SNAS -NK, such as delays in the 
issuance of import permits,  had taken place , which had caused serious confusion.  He noted that, in  
the case of steel products, since December of last year, serious system failures such as the inability 
to accept import applications had occurred , with inventories running out and local industries facing 
the risk of non -operation of their production lines. In addition, the imports of other  products , 
including air conditioners and textiles , continue d to be hampered by the unpredictability of the 
number  and timing of approvals, an d the significantly small number  of approvals compared to the 
applications.  
8.3.  He recalled that at  the April 2023 meeting  of the Council for Trade in Goods , Indonesia had 
stated that it did not intend to impede imports by WTO Members under this system. Howeve r, 
regardless of Indonesia's intention, the Commodity Balance Mechanism  had had trade restrictive 
effects on imports and was therefore likely to violate Article XI:1 of the GATT 1994 and other 
provisions. In addition, the specific formula for calculating t he commodity balance and the specific 
method for determining the approved import volume were not specified in the law, which was 
inconsistent with the obligation to publish trade rules as stipulated in Article X of the GATT  1994. 
He added that his delegati on was concerned that this system could violate the Import Licensing 
Agreement, given that its actual operation had  caused significant obstacles to import licensing. 
His delegation called for the situation to be remedied as soon as possible.  
8.4.  The representative of the Republic of Korea  said that his delegation shared the concerns 
expressed by the European Union and Japan regarding Indonesia's Commodity Balance Mechanism.  
He noted that it had been reported that Korean  exporters face d challenges such as undue delays in 
the issuance of licenses and a reduced  number of approved import  licenses , which had been brought 
about by the Commodity Balance Mechanism.  In particular, his delegation  was of the view  that G/LIC/M/56  
 
- 13 - 
 
  Indonesia's import restrictions, which were based on its own projection of domestic supply and 
demand, undermine d the transparency of the mechanism itself.  Accordingly, he request ed that 
Indonesia enhance the transparency and improve the functioning of the mechanism so that it would  
not constitut e an unnecessary obstacle to trade.  He concluded by saying that his delegation 
remained  ready to deepen their engagement with Indonesia to fully resolve this matter.  
8.5.  The representative of the United States  said that her delegation was also concerned with 
Indonesia's commodity balance policies, as she had stated earlier, under Agenda Item 2.  
Her delegation looked forward to Indonesia's response to their questions and hope d to work with 
them to ensure that this policy did not create an unnecessary barrier to trade.  
8.6.  The representative of Indonesia  responded by thanking the European Union; Japan; the 
Republic of Korea; and the United States for their continued interest in Indonesia's Commodity 
Balance Mechanism. He stated that the Commodity Balance Mechanism  aimed at creating and 
facilitat ing a better business environment , certainty in doing business, and free flow of goods. It was 
a policy evaluation tool used by the Government for transparency purposes and based on accurate 
data, which was  implemented by relevant ministries/institutions. Therefore , the Commodity Balance 
Mechanism  did not constitute an additional burden in Indonesia's import regime. Indonesia believe d 
that the policy would have  result ed in expedited import licensing procedures, thanks  to the 
prioritization  of the  simplification  and transparency principles in the Commodity Balance  Mechanism . 
Finally, the Commodity Balance Mechanism  would have  provide d complete, detailed, transparent 
and accurate data for relevant ministries. For businesses, it aim ed at support ing certainty in doing 
business, transparency, an d forecasting for business development.  
8.7.  The Committee took note  of the statements made.  
9  INDONESIA: IMPORT LICENSING REGIME FOR CERTAIN TEXTILE PRODUCTS – 
STATEMENTS BY  THE EUROPEAN UNION AND JAPAN  
9.1.  The representative of the European Union  said that her delegation understood that textile 
products would also be subject to the Commodity Balance Mechanism,  established under 
Government Regulation No. 5/2021 and Ministry of Trade Regulations Nos. 19/2021, 20/2021 and 
25/2022 . This mechanism, howe ver, had not  yet been applied to textiles, thus creating uncertainty 
for economic operators as to the requirements that were actually in place. At the same time, the 
European Union noted that Indonesia had introduced additional requirements for the issuing  of 
import licences for textiles, and that these were only issued for partial quantities with a need for 
operators to renew the applications throughout the year. This resulted in lack of predictability and 
create d additional cumbersome procedures for expor ters, with negative impacts on business 
operations and trade flows. She asked Indonesia to clarify the current import regime for finished 
textiles. She also said that her delegation w as grateful to receive further details on the expected 
timeline and arran gements for the application of the Commodity Balance Mechanism  to textile 
products.  
9.2.  The representative of Japan  sated that Indonesia had substantially prohibited the importation 
of certain textile products for retail sales by strengthening the import regis tration and approval 
system provided in Minister of Trade Order No. 77 of 2019. Since then, world exports of textile 
products to Indonesia had dropped sharply. Indeed, global exports to Indonesia in 2020 had fallen 
to approximately one -tenth of what they had been in 2019. Exports of carpet products classified 
under HS57 had been hit particularly hard. While the new Minister of Trade Order No. 20 of 2021 
had seemingly replaced the previous Ministerial Order, it had not altered the system in terms of 
substanc e and had not changed the system's trade restrictive effects.  Moreover, Indonesia had 
implemented safeguard measures against the importation of carpet products classified under HS57 
in February 2021. He said that i n their investigation, the Indonesian auth orities had determined the 
increase of imports arbitrarily by setting the period of investigation from 2017 to 2019, immediately 
prior to the sharp reduction resulting from the import registration and approval system. These 
measures appl ied extremely high -level tariffs of around 150 -200% when converted to ad valorem  
duties. Japan , therefore , consider ed that these measures did not fulfil the requirements for safeguard 
measures, especially the one stating that safeguards should be applied only to the extent n ecessary. 
He noted Indonesia's reply at the May 2023 Safeguard Committee meeting , that it had complie d 
with the WTO rules in a transparent manner , however it did not respond appropriately to the 
concerns expressed by his delegation . G/LIC/M/56  
 
- 14 - 
 
  9.3.  In addition, his delega tion understood that textile products were also subject to the Commodity 
Balance Mechanism , which he had addressed under the previous agenda item. He asked Indonesia 
to clarify whether carpets and other textile floor coverings classified under HS57 were subject not 
only to  safeguard measures but also to the Commodity Balance Mechanism . In any case, his 
delegation  urged Indonesia to eliminate both the Commodity Balance Mechanism  and the safeguard 
measures on carpet products as soon as possible because they overlapped  and had serious import 
restricting effects.  
9.4.  The representative of Indonesia  responded that u nder the current regulation, the application 
for import approval of texti le products was done electronically. After all the required documents had 
been complete d and correctly submitted, the import approval was processed within a relatively short 
timeframe , in line with the Import Licensing Agreement.  Regarding the  implementati on of the 
Commodity Balance  Mechanism , Indonesia believe d that this policy would  result in expedited import 
licensing procedures. This was due mainly  to the prioritization of simplification and transparency 
principles within the Commodity Balance  Mechanism . Regarding the implementation of safeguard 
measures on carpet products, he said that these issues would be more relevant to other committee s. 
9.5.  The Committee took note  of the statements made.  
10  INDONESIA: COMPULSORY REGISTRATION BY IMPORTERS OF STEEL PRODUCTS  – 
STATEMENT BY JAPAN  
10.1.   The representative of Japan  said that his delegation remained concerned by Indonesia's 
import licensing measure on steel products based on Indonesia's Minister of Trade Order No. 20 of 
2021. They continued to find cases where Indonesi an authorities issued a substantially smaller 
amount  of import licenses for steel products than the amount  of licenses importers had applied for 
regardless of the types of licenses concerned. He noted that this was inconsistent with Article 3.2 of 
the Import Licensing Agreement and Article XI:1 of the GATT 1994. He then recalled that at the 
previous meeting of  the Committee, Indonesia had explained that the objective of this measure was 
to protect public health and safety by ensuring the importation of safe products based on a thorough 
application of technical standards. However, his delegation could not unders tand why Indonesia 
needed to reduce the amount  of licenses in order to ensure public health and safety. He also asked 
Indonesia to explain how such technical standards could serve as the rationale for a reduction in the 
number of import licenses, as oppose d to the elimination of harmful products. At the same time, he 
stated that his delegation  expect ed Indonesia to provide details on where and how this rationale was 
stipulated in the regulations.  In addition, as discussed under  the agenda item on the Commod ity 
Balance Mechanism, he noted that the delays and glitches in the operation of the SNAS -NK had 
caused serious confusion, which ha d brought about delays in the issuance of import permits. Serious 
system failures, including the continuous inability to acce pt import applications, had resulted in 
inventories running out and local industries facing the risk of non -operation of their production lines. 
He concluded by urging Indonesia to substantially reform or abolish this mechanism as early as 
possible.  
10.2.   The re presentative of the European Union  said that her delegation shared the concerns 
expressed by Japan.  Notably, the European Union  was concerned that this measure appear ed to be 
inconsistent with Article XI of the GATT  1994, as well as Article 3 of the Agreem ent on Import 
Licensing Procedures.  In light of these inconsistencies with WTO obligations, and of its restrictive 
impact on trade in steel products, the EU urge d Indonesia to re -evaluate the measure at stake and 
bring it in conformity with WTO rules – namely by issuing licenses for steel products automatically, 
without delays, and without limiting the quantities applied for by the importers.  
10.3.   The representative of the United States  said that her delegation also shared Japan's concerns 
about Indonesia's impo rt licensing requirements for steel products, including registration and pre -
shipment inspection requirements that had the potential to restrict trade in this important area.  The 
United States encourage d Indonesia to ensure that it issue d import licenses a utomatically, without 
delays, and without limiting the quantities applied for by importers.  
10.4.   The representative of Indonesia  said that, as they had stated at the previous meeting of the 
Committee,  the main aim of the regulation was to ensure that all steel products that were placed in 
the Indonesian market compl ied with health and safety standards, specifications, and qualifications 
related to the use of steel products.  He also stated  that this policy was carried out in accordance G/LIC/M/56  
 
- 15 - 
 
  with the WTO prin ciples of transparen cy and non -discriminat ion, as set out in the Import Licensing 
Agreement, and was not intended to restrict imports.  Regarding the Commodity Balance  Mechanism , 
he said that Indonesia believe d that this policy would  result in expedited import licensing procedures . 
This was mainly due  to the prioritization of simplification and transparency principles within the 
Commodity Balance  Mechanism . On the import verification measure, he said that this only  involve d 
document check ing to verify the co nformity of imported goods with the import documents from the 
countries  of origin . He emphasize d that import verification did not restrict trade and was aimed at 
ensur ing health and safety as well as preserving the environment.  
10.5.   The Committee took note  of the statements made.  
11  INDONESIA: IMPORT RESTRICTION ON AIR CONDITIONERS – STATEMENT BY JAPAN  
11.1.   The representative of Japan  said that his delegation remained concerned by Indonesia's 
import restriction s on air conditioners , based on  Minister of Trade Order  No. 20 of 2021. Japan 
recognize d the continuous improvement in the level of quotas, however, h aving said that, the 
rationale behind, and criteria for, limiting the import quotas was still unclear . Japan was concerned 
that these were  inconsistent with Arti cle 3.2 of the Import Licensing Agreement, Article XI:1 of the 
GATT  1994, and Article 2.1 of the TRIMs. Japan expect ed this measure to be operated in a manner 
that did not constitute an import restriction and was sufficiently transparent with regard to the  
relevant criteria and procedures. He also noted that Japan had submitted a written questionnaire 
through the TRIMs Committee in September 2021 but regrettably this had not received any response 
yet. His delegation, therefore, expect ed to receive Indonesia 's written answers as soon as possible.  
He noted i n addition that, as discussed under  the agenda item on the Commodity Balance 
Mechanism, the imports of air conditioners continue d to be hampered by the instability and 
unpredictability of the volume  and tim ing of approvals, as well as  the significantly small volume  of 
approvals as compared to the applications.  He said that the C ommodity Balancing Mechanism  had 
trade restrictive effects on imports and , therefore , likely violate d GATT Article XI:1 and other 
provisions. In addition, the specific formula for calculating the commodity balance and the specific 
method for determining the approved import volume were not specified in the law, which was 
inconsistent with the obligation to publish trade ru les as stipulated in GATT Article X. He concluded 
by stating that his delegation was also concerned that this system could violate the Import Licensing 
Agreement, given that actual operations had caused significant obstacles to import licensing  and 
called  for the situation to be remedied as soon as possible.  
11.2.   The representative of the Republic of Korea  said that his delegation share d the concerns 
expressed by Japan regarding Indonesia's import restriction on air conditioners.  They believed that 
the implement ation of the measure appear ed to be inconsistent with WTO rules, particularly  
Article 3.2 of the Import Licensing Agreement, Article XI.1 of the GATT 1994, thereby creating an 
unnecessary obstacle to trade.  His delegation requested Indonesia to improve it s measures in a 
manner that upheld  its relevant commitments and ensure d the smooth flow of trade, without overly 
restricting the approv al of import quantity  as compared to the applications submitted by exporters.  
Furthermore, he request ed that Indonesia pr ovide relevant information, including the criteria and 
rationale for approving import licences . 
11.3.   The representative of Indonesia  referred to the statement delivered by his delegation at the 
previous meeting  of the Committee , when they  had stated that  the regulation aimed at improv ing 
the licensing regime as well as  ensur ing surveillance of the importation of the product.  He explained 
that u nder the current regulation, the application for import approval was done electronically  and if 
the submitted doc uments were complete and correct, the import approval would  be processed within 
a relatively short timeframe  and in line with the Import Licensing Agreement.  He stated that 
Indonesia believe d that there were no restrictions on the import ation of air condit ioners,  and they  
stood  ready to engage with Japan and the Republic of Korea  on this issue . 
11.4.   The Committee took note  of the statements made.  
12  THAILAND: IMPORTATION OF WHEAT FEED – STATEMENT BY THE EUROPEAN UNION  
12.1.   The representative of the European Union  urged  Thailand, as they had done at previous 
meetings of the Committee, to notify under the Import Licensing Agreement and as quantitative 
restriction s the import licensing requirements for feed wheat, including the derogations granted in G/LIC/M/56  
 
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  response to changes in the market situation.  She also reiterated her delegation's long-standing 
concerns about  the import procedures for feed wheat, including the local corn purchase requirement, 
introduced by Thailand in late 2016. She noted that t hese had been in place for mor e than six years , 
although they had been presented as of "temporary nature"  and had remain ed in place despite the 
increase in average domestic corn prices over the last years.  She argued that the system not only 
raised questions of WTO compatibility but al so of transparency in decision making.  Referring to 
Thailand's reply  to justify the delay in the review process , citing a hike in the price of raw materials 
for animal feed in the global market, climate change and geopolitical tensions, she observe d that 
the Corn Policy and Management Board continue d to meet regularly. She added that the European 
Union asked for an update about the plans of Thai land's  Government to discontinue the measure  
and referred to the  detailed points raised by her delegation at the previous  meeting of the Committee 
on Import Licensing , held on 7 October 2022. She concluded by  urging Thailand to address the 
concerns her delegation had been expressing over the past couple of years . 
12.2.   The representative of Thailand  said that his delegation  had taken good note of the concerns 
raised by the European Union  and re -affirm ed Thailand's  commitments to WTO obligations . 
He further  referred to his delegation's  statements at previous  meetings of the Committee on Market 
Access and Committee on Import Licensing and reiterate d that the review of the feed wheat import 
measure was still ongoing and that consultations with relevant stakeholders on this important crop 
were still in progress.  
12.3.   The Committee took note  of the statements made.  
13  IMPROVING TRANSPARENCY IN NOTIFICATION PROCEDURES OF THE AGREEMENT – 
REPORT BY THE CHAIRPERSON  
13.1.   The Chairperson  recalled that improving transparency was an important focus of the 
Committee's work.  He stated t hat since its last formal meeting, the Committee had held one informal 
meeting on 14 March 2023, to advance work on transparency issues. A summary of key issues 
discussed at that informal meeting of the Committee had been  circulated to delegation s on  
16 March 2023 ( ICN/LIC/1/Add.1 ). At the present meeting, the Chairperson reported and invited 
delegations to comment on the following transparency related issues: (1) establishment of an Online 
Notification Portal and Database; (2) inclusion of Import Licensing Specific Trade Concerns in the 
WTO-wide Trade Concerns Database; (3) Implementation of the e -Agenda.  
13.1  Establishment of an Online Notification Portal  
13.2.   The Chairperson  recalled that at the informal meeting of the Committee held on   
14 March 2023, the Secretariat had introduced a new IT tool consisting of an Online Notification 
Portal and a n Import Licensing Database. The new online portal was developed with the aim to 
facilitate Members' drafting and submission of N /2 and N /3 notif ications , building o n the existing 
Import Licensing Website/D atabase. In response to questions by delegations, the Secretariat 
clarified that the portal would be part of and linked to the WTO -wide notification portal, as a single 
window for Members who nee ded to notify. The Secretariat  also explained that different levels of 
access to the portal and authority to draft, edit or submit notifications would be available, thus 
facilitating the allocation of different roles to Geneva -based delegates  and capital -based officials . 
Moreover, Members would be able to communicate and exchange draft notifications and comments 
with the Secretariat via the portal.  
13.3.   Shortly after th is meeting, a pilot version of the portal, which the Secretariat had worked on 
together with the IT Division, was made available to delegations for testing . Concurrently, the 
Secretariat would  continue to work behind the scenes to upload Members' past notifications into the 
portal. If everything went well with the testing and uploading of past not ifications, a live and 
functioning version of the portal would be made available to Members after the  summer. The 
Secretariat had also prepared guidelines on the portal, which would be  circulated to delegations 
shortly after the meeting and was working on developing a video guide on how to access and use 
the portal. The Secretariat would  offer trainings on the portal, including at the Import Licensing 
Workshop in September 2023 as well to any individual delegations who require d it. 
13.4.   The Secretariat  made a brief presentation on the Online Notification Portal, including its 
principal features and the next steps ahead in its development  and launch.  G/LIC/M/56  
 
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  13.5.   The representative of the European Union  thanked the Secretariat for the work in this area 
and said that her delegation fully supported the digitali zation of the work of the Committee, including 
the introduction of the Online Notification Portal and Database.  She suggested the introduction of 
an alert system in the database, as it existed for the S PS and TBT E -ping platform, where each time 
a notification was filed, Members could receive an alert . She also asked if the  Secretariat could 
prepare  further training materials for Geneva -based delegates as well capital -based officials and if 
such training  material could be made available online.  Finally, she said that it would be important to 
make sure that all this work was conducted in coordination with the work done at the level of the 
Council for Trade in Goods  on transparency and improving the functio ning of subsidiary bodies and  
referred to  the EU communication in the  CTG on transparency and improving the functioning of 
committees.  
13.6.   The representative of the United States  said that her delegation was very interested in the 
digitali zation of procedures and praised all the work  that had been done on the Online Notification 
Portal. She said that her delegation had a question regarding the uploading of notifications and the 
testing phase. They were wondering whether, after the Secretariat had uploaded Members' existing 
notifications, Members would be asked  to verify the uploade d information against the submitted 
notifications or whether the Secretariat would conduct the verificatio n, as this would be difficult for 
Members.  
13.7.   The representative of India thanked the Secretariat for the work they had done on this 
platform. He recalle d that in the paper they had submitted to the General Council on the 
improvement of the work of WTO bodies, his delegation had encouraged the use of automation tools 
and, therefore, they looked forward to using the new system and to providing more feedback  during 
the testing phase.  
13.8.   A representative of the Secretariat  addressed the questions raised by Members. Regarding 
the possibility of introducing an alert system in the database, he said that this option could be 
explored with the IT Division and that it was in principle feasible. On training, he said that the 
Secretariat would soon circulate a PDF guide on the new online portal and that they would consider 
further training tools, including training sessions for delegations. Training material could also be  
made available online. Regarding the issue of information in the database, he said that the 
Secretariat would insert the information into the database and provide the verification . Once the 
portal was launched, Members could do their own additional verification of the database  while using 
it, and let the Secretariat know if any information needed to be corrected or supplemented. He 
further noted that while the new portal would feed the information automatically into the database, 
the Secretariat would stil l verify it before it was made public in the database. Finally, he said that if 
after the introduction of the new portal the Secretariat still received a notification through email, 
due to a technical difficulty or because of choice, they would process with it in the traditional way 
and manually insert the information into the database.  
13.9.   The Committee took note  of the statements made.  
13.2  Inclusion of Import Licensing in the Trade Concerns Database  
13.10.   The Chairperson  recalled that  at the informal meeting held on 14 March 2023, several 
delegations had requested that the Secretariat explore the possibility of including specific trade 
concerns  (STCs)  raised in the Committee on Import Licensing into the WTO Trade Concerns 
Database, alo ngside the CMA-SPS-TBT Trade Concerns. He said that o ver the past few weeks, the 
Secretariat ha d worked together with the IT Division to update the Trade Concerns Database with 
all Import Licensing Trade Concerns that had been raised in the Committee since  1995. In addition 
to modifying the WTO Trade Concerns Database to include all import licensing trade concerns, the 
Secretariat ha d also uploaded all statements  by Members on each raised trade concern into the 
database. He further noted that the updated Trade Concerns Database, which the Secretariat was 
going to show to the Committee was not yet  "live". If the Committee agree d, he would  ask the 
Secretariat to make it "live" after the present  meeting. Thereafter , Members would be able to  review 
the information and contact the Secretariat if they want ed to make any changes.  Before giving the 
floor to Members for comments and questions, the Chairperson asked the Secretariat to make a 
brief presentation of the expanded Trade C oncerns Database.  G/LIC/M/56  
 
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  13.11.   The Secretariat  made a brief presentation of the Trade Concerns Database, which included 
import licensing trade concerns.  
13.12.   The representative of the Russian Federation  thanked the Secretariat for the excellent work 
on the Trade Concerns Database. He asked whether the different trade concerns that had been 
raised in more than one committee contained cross -references indicating that they had been raised 
in more than one committee. He also asked whether the database included trade concerns tha t had 
been raised under the " Other Business" item.  
13.13.   The representative of the European Union  said that it would have been a good idea to insert 
cross-references when a trade concern had been raised before in more than one committee, as this 
may relieve the pressure from some committee s and council s that saw many trade concerns being 
raised.  
13.14.   A representative of the Secretariat  said that currently the Trade Concerns Database did not 
contain cross -reference s for import licensing trade concerns and that if deleg ations so wished, they 
could be introduced. Regarding the trade concerns that were raised under " Other Business" he said 
that normally no substantive discussion took place under "Other Business " and for this reason trade 
concerns raised under " Other Busine ss" had not been included in the database.  
13.15.   The Committee took note  of the statements made.  
13.3  eAgenda  
13.16.   The Chairperson  said that the present  meeting  was the  third one of the Committee for which 
the e -Agenda ha d been operative. The objective of the e -Agenda was to facilitate the work of 
delegations and of the Secretariat in building the meeting agenda including adding items, making 
relevant documents directly available to participants in electronic form and sharing statements. 
He said that e xplanatory guidelines on the e -Agenda (in English, French and Spanish) had been  
prepared by the Secretariat and were  contained in document JOB/LIC/1  of 6 July 2022, which ha d 
been sent to delegations on several occasions. He recalled that, i n preparation for this formal 
meeting, the period for submission of agenda items through the eAgenda had opened on 24 April, 
approximately one month before the meeting. Members had had until 10 May to incorporate their 
specific trade concerns. Some Members had also used the traditional way and had sent their specific 
trade concerns by email to the Secretariat to be included into the Agenda. Once the meeting was 
over, Members had until 6 June to upload or update their statements on the eAgenda. The time -
period for submitting statements ha d been extended from on e week to two -weeks after the meeting, 
at the request of delegations.  
13.17.   The Committee took note . 
14  IMPROVING THE FUNCTIONING OF THE COMMITTEE ON IMPORT LICENSING  
14.1.   The Chairperson  recalled  that at the informal meeting held on 14 March 2023, he had  invited 
delegations to share their views on how to advance work in the Committee on the CTG's discussion 
on the improvement of the functioning of its subsidiary bodies. Several delegations intervened and  
made suggestions. These suggestions were compiled in a list, which the Chairperson  circulated 
together with a summary of key issues discussed at that informal meeting ( ICN/LIC/1/Add.1 ). 
To facilitate subsequent discussions in the Committee, the Chairperson  had also requested 
delegations to send their ideas and suggestions for improving the current functioning of the 
Committee in writing by 28 April  2023. Two delegations provided written inputs.  The Chairperson 
had subsequently  compiled all sugge stions made in an updated list, which had been circulated under 
his responsibility as Chairperson of the Committee as JOB/LIC/2  of 15 May 2023. He emphasize d 
that this list was a non -exhaustive compilation of issues proposed by Members on how to improve 
the functioning of the Committee.  The i ssues had been grouped with reference to the Secretariat's 
comparative matrix ( G/C/W/824/Rev.1 ) and following the structure proposed in the preliminary list 
of issues circulated by the Chairperson of the Council for Trade in Goods in document ICN/CTG/9 . 
The list was for discussion purposes and  was without prejudice to the position of Members in the 
discussions.  G/LIC/M/56  
 
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  14.2.   To facilitate  further  discussions  on this issue , the Chairperson  suggested that the Committe e 
switch to informal mode .  
14.3.   After the meeting had reverted to formal mode , the Chairperson  said that the Committee had 
held a detailed discussion of the issues contained in the list of suggestions from Members, which he 
had compiled under his responsibilit y as Chairperson. He noted that Members had acknowledged 
several initiatives already undertaken by the Committee and by the Secretariat and that more 
suggestions had been made. He said that he would summarize these discussions and update the list 
of issues  for discussion at a next meeting of the Committee.2 
14.4.   The Committee took note . 
15  DATE OF THE NEXT MEETING  
15.1.   The Chairperson  informed delegations that the Secretariat had reserved Tuesday , 
31 October  2023 as the date of the Committee's next formal meeting. He added that the final date 
would be confirmed well before the meeting itself, and that additional meetings may be convened 
as required.  
15.2.   The Committee so agreed . 
16  OTHER BUSINESS  
16.1.   No points were raised  under Other Business.  
17  ELECTION OF THE CHAIRPERSON  
17.1.   The Chairperson  recalled that the Chair of the Council for Trade in Goods (CTG) had  been 
consulting with Members regarding the appointment of the chairpersons for the subsidiary bodies, 
including the Commi ttee on Import Licensing. The slate of names of proposed Chairpersons was 
expected to be adopted soon.  The Chairperson, therefore,  propose d to proceed as follows: as soon 
as the CTG had agree d on the names of the proposed Chairpersons for its subsidiary bo dies, the 
Secretariat would  send an email to Members with the name of the proposed Chairperson for the 
Committee  on Import Licensing . If no objection was received within the timeframe indicated in the 
email, the candidate would  be deemed elected by the Com mittee. The Vice -Chairmanship of the 
Committee would  be proposed by the new Chair and be elected by the Committee through the same 
approach.  
17.2.   The Chairperson  noted that this was his last meeting as Chairperson of the Committee. 
He said that he had truly app reciated working with all the delegate s who had been very helpful, 
cooperative and constructive to the work of the Committee. He also thanked the Secretariat team 
for their capable work and with whom it had been a pleasure to work.  
__________  
 
2 A summary of the issues discussed in informal mode was prepared by the Chairperson under his 
responsibility and circulated to delegations in document ICN/LIC/2/Add.1  of 27 June 20 23.