WORLD TRADE  
ORGANIZATION  G/LIC/N/3/BDI/21 
7 November 2001 
 (01-5465) 
Committee on Import Licensing Original:   French 
  
 
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES
2 
 
Notification under Article 7.3 of the  
Agreement on Import Licensing Procedures  
 
BURUNDI 
 
  
 The following notification, dated 12 Octobe r 2001, has been received from the Permanent 
Mission of the Republic of Burundi. 
 
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Outline of systems
 
 
1. There are two principal categories of import licence: 
   - Ordinary import licences involving foreign exchange payment, and   - licences not involving foreign exchange payment.  
 A licence involving foreign exchange payment me ans that the currency is allocated through 
the official banking system.  A licence not involving foreign exchange payment means that the currency used comes from sources outside the official banking channels.  Purpose and coverage of licensing
 
 
2. Ordinary licences cover items known as eligib le goods (i.e., basic goods) and all imports for 
which the banks are prepared to allocate foreign currency.   Licences not involving foreign exchange paymen t cover all imported goods that do not fall 
within the above category, namely those paid for in currency from sources outside the official banking 
channels. 
 3. There are no restrictions in terms of the countries of origin of the goods.  Most of Burundi's imports are from Western Europe, followed by Sout h-East Asia, Japan, China, South Korea and the 
Gulf States, on the one hand, and North America and eastern and southern Africa, on the other.  The 
amount of imports from other regions remains negligible. 
 4. Since currency reserves are very limited, a fin ite list of basic goods has been drawn up.  It 
should be specified that the move to liberalize import transactions led to the establishment, on 1 July 2000, of an exchange system using a singl e rate of exchange arrived at on the basis of a 
                                                     
 
1 This document G/LIC/N/3/BDI/2 cancels and re places document G/LIC/N/3/BUR/2, which was 
circulated with the wrong symbol. 
2 See document G/LIC/3, Annex, for the questionnaire. G/LIC/N/3/BDI/2 
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currency auction market.  This market was initia lly opened to the commercial banks, which are now 
responsible for validating import licences. Currenc y thus acquired by the commercial banks is 
allocated for imports of the aforementioned eligib le goods.  Other imports are covered either by 
foreign exchange held by the banks outside the cu rrency auction market or by currency from sources 
outside the official banking system.  As menti oned above, in the latter case goods are imported under 
licences not involving foreign exchange payment. 
 5. Legislative Order No. 11/37 of 6 March 1962 on Exchange Control and Foreign Trade forms 
the basis of Burundi's exchange system.  Licensing is not prescribed by law.  In principle, all goods can be imported, with the exception of prohibited g oods.  Given the structural shortage of foreign 
exchange in our countries, however, the Central Bank  has discretionary power to establish priorities, 
if it deems appropriate and in agreement with it s partners, in the selection of goods subject to 
licensing.  As the basic text is a legislative order and Burundi has a parliament, the licensing system 
could not be abolished wit hout legislative approval. 
 
Procedures
 
 6. Strictly speaking, there are no quantitative or value restrictions on imported goods.  The only restriction concerns quality and quantity control and price comparison between imports of a given 
value by an approved inspection agency.  The rest riction also applies to large orders, which are 
subject to international calls for tender. 
 
I. No quotas restricting quantities by country of origin are imposed when import licences are granted.  II. Annual import estimates are drawn up, but there is no annual import quota system. 
  
III. There are no such restrictions.  Control meas ures are designed to ensure  that licences issued 
are actually used for imports.  The Central Bank does not communicate the names of importers to 
whom licences have been issued to the governme nts and export protection bodies of the exporting 
countries.  This is perhaps an issue that could be settled by the Chamber of Commerce and Industry. 
 
IV. See above. 
 V. The processing of licensing applications current ly lies within the exclusive purview of the 
commercial banks. Where the requis ite conditions are fulfilled, the length of time for processing is 
generally very short. 
 
VI. A credit document (in the event of payment by  letter of credit) must be issued within a 
maximum period of one month from the date of valida tion of a licence.  Past that deadline, the licence 
must be cancelled.  VII. See under V above.  Once licences have been validated by the commercial banks, copies for 
the Central Bank are forwarded to it for checking. 
  VIII. As mentioned above, a list of basic goods covered by currency handled through the foreign 
exchange auction market has been drawn up.  Ther e is no guideline for the allocation of quotas among 
importers of such goods.  There are practically no rest rictions as long as foreign currency is available.  
Allocation is determined by the forces of supply a nd demand.  New importers are placed on the same 
footing as existing importers.  Applications are examined on receipt.  IX. Such arrangements do not exist in Burundi.   
X. See under IX above.  G/LIC/N/3/BDI/2 
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 XI. No, the granting of import licences for certain goods is not subject to the condition that the goods should be re-exported.  7.(a) Application for import licensing must be ma de in advance of actual importation and is in 
effect a declaration of intent to import.  Th e granting of the licence is an authorization to 
import.  Where a licence has been granted and pa yment is to be made by letter of credit, a 
credit document must be issued by the importer within one month at most following validation of the licence.  Otherwise, the licence becomes invalid.  If a credit document is issued within the prescribed d eadline, the licence is valid fo r six months.  The deadline may 
be extended.  As mentioned above, the licence is  granted prior to impor t, and importers are 
liable to severe penalties if application is made  once the merchandise is already at the border. 
 (b) No, all licences are subject to prior examination,  in order to ascertain whether all the requisite 
documents are attached, whether the goods involved are eligible, and so forth.  
 
(c) No.  (d) Authority to issue licences or reject app lications rests with the commercial banks.  The 
Central Bank reserves a right of control. 
 
8. A licence may not be refused where the applican t is a duly authorized importer;  the requisite 
documents have been submitted;  the f.o.b. prices or  freight rates are not visibly overcharged;  the 
goods involved are not prohibited for import;  and the foreign currency required is available.  In the 
event of refusal to issue a licence, the applicant is informed of the reasons for the decision.  All right 
of appeal is forfeited if the applicant fails to make the required corrections. 
 
Eligibility of importers to apply for licence
 
 9. All individuals, firms and ins titutions are eligible to apply for licences, provided that they 
justify their status as traders recognized by the Ministry of Trade and Industry.  Burundi has a list of licensed importers. 
 
Documentational and other require ments for application for licence
 
 10. Applications for licences must be properly completed and contain the following details in 
particular: 
 
 - Names and addresses of the importer and the supplier;  - code number of the importer;  - country of origin and shipment of the goods;  - place of shipment and mode of transport of the goods;  - payment terms and currency used in the transaction; 
 - customs tariff heading number and statistical amount of the goods;  
 - detailed description of the goods;  - f.o.b. and freight value of the goods. 
  Applications must include: 
 
 - Certificate of insurance fro m a local insurance company; 
 - pro-forma invoice of the f.o.b value of the goods (ten copies);  - pro-forma freight invoice (six copies). 
 
11. The final documents required upon actual importation are the following: G/LIC/N/3/BDI/2 
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 - Final invoice of the supplier;  - final invoice of the carrier;  - packing list;  - certificate of origin; 
 - certificate of inspection by an agency responsible for quantity and 
quality control and price comparison,  approved by the Central Bank. 
 12. An administrative charge on f.o.b. value, covering inspection agency fees in particular, is levied on every validated licence. 
 
13. The lodging of a deposit in advance of impor t licensing validation is no longer required. 
 Conditions of licensing
 
 
14. Licences are granted for a period of six mont hs.  The validity of a licence may be extended 
for a non-renewable period of three months.  15. There is no penalty for non-utilization of a licence, which is simply cancelled insofar as its 
validity has expired.  In the event of partial use, cancellation affects the portion of goods that have not 
yet been imported. 
 
16. Licences may not be transferred.  17. There are generally no quantitative restricti ons.  The conditions required for import licensing 
validation are described above. 
 
Other procedural requirements
 
 18. No.  19. In principle, foreign exchange is automatically provided by the banking authorities where a 
licence has been duly validated, the merchandise covered is not prohibited for import and the 
necessary currency is available.  A licence is require d to obtain foreign exchange for imports through 
the official banking channels.  The availability of  foreign currency is a recurring problem in our 
countries.  On the other hand, every effort is made to ensure that Burundi always has a ready supply at 
least of basic goods, and licences are issued accord ingly.  Foreign currency is not remitted to 
importers in cash.  Transfers are made from the importer's bank to the supplier's bank once the 
following steps have been completed:   - In the event of payment by letter of credit, when a credit document has been duly 
issued by the importer, confirmed by  the supplier's bank and recognized as 
irrevocable by the latter; 
 
 - in the event of payment following importation, when the final documents (supplier's 
and carrier's final invoices, packing list, certificate of origin, certificate from an 
inspection agency) certifying that the mercha ndise has actually been dispatched have 
reached the importer. 
  
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