WORLD TRADE
ORGANIZATIONG/LIC/N/3/ECU/1/Add.1
G/LIC/Q/ECU/2
17 October 2002
(02-5651)
Committee on Import Licensing Original:  Spanish
NOTIFICATION OF REPLIES TO THE QUESTIONNAIRE ON IMPORT LICENSING
PROCEDURES UNDER ARTICLE 7.3 OF THE AGREEMENT1
Replies from ECUADOR to questions posed by the UNITED STATES2
The following communication, dated 26 September 2002, has been received from the
Permanent Mission of Ecuador.
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Please be informed that Ecuador is particularly keen to comply with its obligation to notify
the WTO concerning its laws, regulations and other administrative procedures related to import
licences and permits.  The National Government is deploying a major institutional effort to this end.
The Central Bank of Ecuador, which grants approval in the documentos únicos de importación
(import licences), is working on a procedure for the on-line processing of data through banks nation-
wide and directly via the Internet that takes no more than five minutes per operation.  Work is also
under way on a joint project with the institutions involved in foreign trade transactions, aimed at
automating formalities and information transfers.  It will come on stream over the next few months
and will dispense with documentary formalities and enable economic agents to complete the entire
import procedure in a matter of minutes by electronic means.
Accordingly, the Foreign Trade and Invest ment Council (COMEX) has ordered that a
comprehensive review be made of the products currently subject to import licensing.  This will be
completed in the months ahead.
To comply fully with its WTO notification obligations in all spheres, Ecuador will be
requesting the necessary technical assistance from the Organisation.
With reference to the questions posed by the United States regarding the notifications
required by the Committee on Import Licensing, I am enclosing herewith the replies formulated by
the Ministry of Agriculture and Livestock.
                                                     
 1G/LIC/N/3/ECU/1.
 2G/LIC/Q/ECU/1.G/LIC/N/3/ ECU/1/Add.1
G/LIC/Q/ECU/2
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Question:  Ecuador indicates that the products subject to licensing are those which are dangerous to
human or animal health, arms and ammunition, and products which have an adverse environmental
impact.  Could Ecuador specify the products subject to prior authorization and list the items covered by
tariff-rate quotas?
Reply:
Items covered by tariff-rate quotas:
Whole turkeys, poultry cuts and offal, wheat (all headings, for human consumption only), barley, flint
maize, sorghum, malt, not roasted, wheat starch, maize (corn) starch, soya oilcake, oilcake of colza,milk powder, glucose, glucose containing fructose and glucose syrup
Question: Could Ecuador cite the la w or the regulation under which licensing is maintained?  Can the
Government abolish the licensing sy stem without legislative approv al?  Ecuador has not answered
questions 6. I-XI of the Questionnaire .  It has not provided informa tion on its tariff-rate quota items.
Could the Member comment on this?
Reply:
Replies to questions 6(I)-6(XI) of the Questionnaire on Import Licensing Procedures3:
Reply 6(I):  Information on the allocation of quotas and formalities for filing applications for licences is
published through Inter-Ministerial Agreements in  the Official Register, for public information.
Reply 6(II):  The total size of each quota is allocated, as appropriate, on a yearly basis.
Reply 6(III):  Tariff quota goods are basically allocat ed to traditional importers, with a margin for new
importers.  There is no general rule to allocate quotas exclusively to domestic producers of like goods,
though this may sometimes occur.  The main criterion for allocation to traditional importers is that in-
quota imports are wholly used as raw materials for the importers' own consumption and not for
speculation purposes.  Unused allocations are not added to quotas for the succeeding period, as thiswould be tantamount to allocating an annual volume in excess of the negotiated volume, thus failing to
strictly abide by the commitment undertaken.  Moreov er, tariff quotas are not cumulative, as specified in
the Modalities for the Establishment of Binding Co mmitments in Agriculture.  The names of importers
to whom licences have been allotted have not b een made known to governments and export promotion
bodies of exporting countries, basically because this was not requested and all importers already havetheir own suppliers.
Reply 6(IV):  No deadline is established, because as these are allocated to enterprises or natural persons
requiring the product(s), the enterprises and persons concerned file their applications as soon as the
information and the modalities regarding the allocati on of each quota appear in the Official Register.
Reply 6(V):  Once the information and the modalities for the allocation of each quota have been
published in the Official Register, the speed with  which applications are processed depends on the
length of time needed for the intern al processing of import documents;  this usually takes three to five
working days.
                                                     
3 See document G/LIC/3, Annex, for the Questionnaire.G/LIC/N/3/ ECU/1/Add.1
G/LIC/Q/ECU/2
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Reply 6(VI):  The period of importation begins imme diately, although the date may vary depending on
how long it takes for the importer to  complete the corresponding proce dures with the other institutions
involved.
Reply 6(VII):  This depends on the nature of the product.  The relevant bodies are the Ministry of
Agriculture and Livestock, in the case of an agricult ural product, and the Ministry of Public Health, in
the case of an agricultural product for human consumption;   in all cases, the Central Bank is in charge of
administrative and statistical registration and cont rol and Customs is responsible for border control.
Reply 6(VIII):  The method of allocation may vary depending on factors such as the quota volume and
the number of enterprises or persons involved, but the most frequently used method is that of traditional
importers.
Replies 6(IX), (X), (XI):  None of the cases described in these questions applies to Ecuador.
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