RESTRICTED
WORLD TRADE G/LIC/Q/IND/2
21January 1997
ORGANIZATION(97-0206)
Original: English Committee onImport Licensing
NOTIFICATION OFREPLIES TOTHE QUESTIONNAIRE ONIMPORT LICENSING
PROCEDURES UNDER ARTICLE 7.3OFTHE AGREEMENT1
Replies ofINDIA toQuestions from theEUROPEAN COMMUNITIES2
Thefollowing communication, dated 5August 1996, hasbeenreceived from thePermanent
Mission ofIndia.
_______________
Question
India hasindicated thatitems appearing intheNegative List(other thanthose imports which
areprohibited orcanalised) maybeimported against Specific Licences orinaccordance withthePublic
Notice issued forthispurpose (page 6,under VIII). HowaresuchSpecific Licences issued, andwhat
istheallocation method used? Arethere general rules towhich these Notices refer?
Reply
Applications forimport ofrestricted items areinvited bytheDirector General ofForeign Trade
(DGFT), Ministry ofCommerce, Government ofIndia, intheformat prescribed inAppendix VIIof
Volume IoftheHandbook ofProcedures thataccompanies theExport andImport Policy, 1April 1992
to31March 1997 (incorporating amendments made upto25March 1996). Animport licence may
begranted bytheDGFT oranyother licensing authority authorised byhiminthisbehalf. Thelicensing
authority maytaketheassistance andadvice ofaSpecial Licensing Committee which isheaded by
theDGFT andconsists ofrepresentatives oftechnical authorities andDepartment(s) withadministrative
responsibility fortheitemunder consideration. Applications forthegranting ofimport licences are
considered onmerit. General rules, where applicable, areprescribed inaPublic Notice.
Question
IfIndia enacts aSafeguards Legislation, bywhich legislation willthepossible quota resulting
from thesafeguards measure begoverned?
./.
1G/LIC/N/3/IND/1.
2SeeUnderstanding reached bytheCommittee onImport Licensing (G/LIC/M/4, paragraphs 5,6,9and10).G/LIC/Q/IND/2
Page2
Reply
India doesnotmaintain quota restrictions under theexisting policy provisions. Theissuewill
beaddressed attheappropriate time.
Question
Inthecaseofautomaticlicensing,whymustanimporterobtainanimportlicencebeforeshipment
ofthegoods from theoverseas country (page 7,under 7)?Isthisrequirement inconformity with
Article 2(2)(a)(ii) oftheWTO Agreement, which provides thatapplication forlicences maybesubmitted
onanyworking dayprior tothecustoms clearance ofthegoods?
- Inthecaseofautomatic licensing, arelicences granted immediately, within tenworking days,
ormore?
Reply
Ithasgenerally beenprescribed thatanimporter mustobtain animport licence before shipment
ofthegoods fromtheoverseas country. However, ingenuine cases, goods shipped before theissue
ofanimport licence butafterthesubmission oftheconnected import application canbeallowed to
becleared bytheCustoms. Inthecaseofimports ofrestricted items subject toautomatic licensing,
thelicence issued shallbedeemed tobevalid forgoods shipped before theissueofanimport licence
provided customs dutyhasnotbeenpaidandthegoods havenotbeencleared, ashasbeenprovided,
forinstance, inparagraphs 43and43AoftheExport andImport Policy fortheprocedure forapplication
under theExport Promotion Capital Goods Scheme. Thisruleisinconformity withArticle 2(2)(a)(ii)
oftheWTO Agreement onImport Licensing Procedures. Applications forimports ofrestricted items
subject toautomatic licensing areconsidered within tenworking days, orasadministratively feasible.
Question
India hasindicated thatimports ofsecond-hand goods andmachinery arepermitted freely by
actual users (page 2,under 6.I). How isthisruleimplemented? What are"actual users"? What is
theregime forother importers?
Reply
Thepolicy andprocedures regarding theimport ofsecond-hand goods andsecond-hand capital
goods aregiven inparagraphs 25and29oftheExport andImport Policy readalong withparagraphs 27,
41and41AofVolume IoftheHandbook ofProcedures. "Actual users" have been defined in
paragraphs 7(3), 7(4)and7(5)ofthePolicy.