RESTRICTED
WORLD TRADE G/LIC/Q/IND/3
20January 1997
ORGANIZATION(97-0184)
Original: English Committee onImport Licensing
NOTIFICATION OFREPLIES TOTHE QUESTIONNAIRE ONIMPORT LICENSING
PROCEDURES UNDER ARTICLE 7.3OFTHE AGREEMENT1
Replies ofINDIA toQuestions from theUNITED STATES2
Thefollowing communication, dated 5August 1996, hasbeenreceived from thePermanent
Mission ofIndia.
_______________
Question
Withreference toquestion 8on"Procedures", inwhatcases would Indianotprovide reasons forrefusal
ofanapplication? Dotheyhavetherightofappeal? Towhom?
Reply
Inaccordance withparagraph 2ofSection 9oftheForeign Trade (Development andRegulation)
Act1992, theDirector General ofForeign Trade (DGFT) oranofficer authorized byhimmayrefuse
togrant orrenew alicence toimport orexport onanapplication, afterrecording inwriting hisreasons
forsucharefusal. Anappeal against therefusal maybemade totheCentral Government, where the
decision ortheorder hasbeenmade bytheDGFT, ortotheAdjudicating Authority authorized by
theDGFT inother cases. Theprovisions forappeal andrevision ofanydecision ororder aresetout
inSection 15ofthesaidAct.
Question
Withreference toquestion 9on"Eligibility ofImporters toApply forLicence", please explain
whoiseligible toapply foranimport licence.
Reply
Allpersons whoimport orintend toimport, forpurposes other thanforstock andsale,and
holdanImporter-Exporter Code (IEC) Number areeligible toapply foranimport licence. (Refer
toSection 7oftheForeign Trade (Development andRegulation) Act,1992). Noimport orexport
shallbemade byanyperson notgranted anIECNumber unless specifically exempted under anyother
provision ofthePolicy. Thepolicy provisions andprocedures forthegrant oftheIECNumber are
given inparagraphs 7to12AofVolume IoftheHandbook ofProcedures.
1G/LIC/N/3/IND/1.
2SeeUnderstanding reached bytheCommittee onImport Licensing (G/LIC/M/4, paragraphs 5,6,9and10).G/LIC/Q/IND/3
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Question
With reference totheSpecial Import Licence (SIL):
(i) whoiseligible?
(ii) whatspecific requirements mustbemetinorder toobtain aSIL? Aretheserestrictions
applied tothetypeofimports thatmeetthese requirements?
(iii) when were these measures instituted?
(iv) whatisthestated use/purpose?
Theeligibility forSpecial Import Licences isasfollows:
(a) Export Houses, Trading Houses, StarTrading Houses andSuper StarTrading Houses.
(b) Exporters oftelecommunication andelectronic goods andservices.
(c) Export Oriented Units andUnits intheExport Processing Zones which haveacquired theISO
9000(Series)orIS/ISO9000(Series)oranyothersimilarinternationallyrecognizedcertification
ofquality asmaybenotified bytheGovernment ofIndia from timetotime.
(d) Manufacturers orprocessors thathaveacquired thequality status ofISO9000(Series) orany
other similar internationally recognized certification ofquality asmaybenotified bythe
Government ofIndia from timetotime.
(e) Manufacturers andsuppliers ofgoods thatqualify asdeemed exports.
Thedetails ofthepolicy andprocedures foreachoftheabove categories ofeligibility forthe
grant ofSpecial Import Licences aregiven inparagraphs 108,122,132B, 142and153oftheExport
andImportPolicy,1April1992-31March1997(incorporatingamendmentsmadeupto25March1996),
andinVolume Ioftheaccompanying Handbook ofProcedures. Theholders ofSpecial Import Licences
areeligible fortheimport ofitems listed inAppendix XXXV ofVolume IoftheHandbook of
Procedures. Thedescription oftheproducts which canbeimported against Special Import Licences
isasindicated incolumns 3to5ofthebook "ITC (HS)Classifications ofExport andImport Items"
published andnotified bytheDGFT.
TheSpecial Import Licence System wasinstituted in1992. Thescope hasbeenprogressively
enlarged sincethenwiththeobjective, interalia,ofimparting simplicity, transparency andautomaticity
intheimport policy provisions andtowards theelimination orminimization oflicensing andother
discretionary controls.
Question
While thismeasure (SIL) hasbeennotified forsome items totheBOPCommittee, India's10/95
Publication oftheExport andImport Policy 1992-97 (aligned onITC(HS) Classification) shows a
number oflicensing restrictions thatdonotinvoke theconsumer goods/BOP justification. These
restrictions permit imports onlyagainst specific import licences orinaccordance withaPublic Notice
issued forthispurpose.
(i) What aretheWTO justifications forthese barriers? India's1994 response totheGATT
Questionnaire onImport Licensing Procedures notes thatimport restrictions areemployed forBOP,
safety, security, environment, employment andthelikereasons. The1995 response omits thelast
twojustifications. What haschanged intheinterim?G/LIC/Q/IND/3
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Reply
Refer tothenotification mentioned inthereply toQuestion 6above.
Question
(ii) Whoiseligible toimport goods under these aswellastheBOP-justified restrictions, i.e.what
isthedefinition of"eligible persons, firms andinstitutions" thatareeligible toapply foranimport
licence?
Reply
Goods inrespect ofwhich thepolicy isthattheymaybeimported against afreely transferable
Special Import Licence shallbeimported onlyagainst suchlicences andnototherwise, unless their
importispermittedunderanyotherschemeorlicenceorpermissionasprovidedinthepolicy.Eligibility
hasbeenelaborated inthereplies toQuestions 10and11.
Question
(iii) What happens afteraneligible entity applies foranimport licence, BOP-justified ornot?
Reply
Refer toreplies toQuestions 1and9.
Question
(iv) When werethese restrictions implemented andwhen weretheyfirstnotified totheGATT and
WTO?
Reply
Therestrictions onimports havebeenmaintained inindependent India under theImports and
Exports (Control) Act,1947, which hasbeen replaced bytheForeign Trade (Development and
Regulation) Act,1992 andtheRules enunciated thereunder. Therestrictions onimports havebeen
reviewed periodically andannounced through theExport andImport Policy inMarch every yearor
through Public Notices issued inthisbehalf. India hasconsulted regularly withtheCONTRACTING
PARTIES onitsbalance-of-payments restrictions, initially under Article XII,andsince 1960, under
Article XVIII:B ofGATT. Refer alsotothereply toQuestion 6.