WORLD TRADE WT/TC/NOTIF/LIC/1
15October 1996
ORGANIZATION(96-4343)
Original: English
TECHNICAL COOPERATION HANDBOOK ONNOTIFICATION REQUIREMENTS
Agreement onImport Licensing Procedures
1. Thissection oftheHandbook onNotification Requirements covers thenotification obligations
under theAgreement onImport Licensing Procedures (LIC). Itconsists ofthefollowing fiveparts:
PartI: Overview ofnotification requirements
PartII: Listing ofthenotification obligations
PartIII: Document(s) concerning guidelines andformats
PartIV: "Mock" examples ofnotifications
PartV: TextoftheAgreement
2. Foracceding countries, thedeadlines forthesubmission oftheirnotifications willbegoverned
bytheirrespective Protocols ofAccession.
Note: TheHandbook onNotification Requirements doesnotconstitute alegalinterpretation of
thenotification obligations under therespective Agreement(s). Ithasbeen prepared bythe
Secretariat toassist Members incomplying withtheirnotification obligations.LIC-I -Page1
LIC-I
AGREEMENT ONIMPORT LICENSING
PROCEDURES
OVERVIEW OFNOTIFICATION OBLIGATIONSLIC-I -Page2
AGREEMENT ONIMPORT LICENSING PROCEDURES
Article 1.4(a)1
Members arerequired tonotify theCommittee onImport Licensing thesources inwhich the
information concerning import licensing procedures arepublished, andtomake copies ofthese
publications available totheSecretariat.
Incases where thepublications arenotinaWTO official language, Members shallprovide,
together withsuchpublications, asummary ofthenotification inoneoftheWTO languages. Other
Members mayaskforafulltranslation iftheysowish, orseekanyadditional information onabilateral
basis. Anyissues thatcannot besolved onabilateral basis maybebrought totheattention ofthe
Committee.
Members which wereParties totheTokyo Round Code shalldecide forthemselves whether
thenotifications theyhavemade inthisrespect under theTokyo Round Code shallremain valid, and
whether onlychanges thathaveoccurred since should benotified, ornewfullnotifications should be
made.
TheCommittee, atitsmeeting on12October 1995, established adeadline of12January 1996
forthefirstnotification under thisprovision from current Members.
Article 7.31
Members arerequired tocomplete, by30September eachyear, thequestionnaire onimport
licensing procedures (seeG/LIC/3, Annex).
Thequestionnaire covers import licensing andsimilar administrative procedures (which are
understood toinclude technical visas, surveillance systems, minimum price arrangements andother
administrative reviews). Members arerequired toprovide information relating topurposes andcoverage
oflicensing, laws, regulations andadministrative orders under which licensing ismaintained, procedures
forapplication andgranting licences under restrictive andnon-restrictive systems, allocation ofquotas,
period forprocessing ofapplications, licence validity, administrative bodies tobeapproached,
documentation requirements forapplication, eligibility ofimporters toapply forlicence, conditions
oflicensing andforeign exchange formalities.
Members shalldecide forthemselves whether thereplies provided previously under theGATT
1947 procedures shallremain valid under theWTO Agreement, andwhether onlychanges thathave
occurred since should benotified, ornewfullnotifications should bemade.
1Asconcerns notifications submitted under Articles 1.4(a) and8.2(b)forcirculation asdocuments,
theCommittee agreed thatdelegations, where possible, would alsoprovide copies oftheirnotifications
ondiskettes, preferably inWordperfect 5.2.Asregards replies totheQuestionnaire onImport Licensing
Procedures, delegations would indicate where changes havebeenmade withregard totheirprevious
notifications.LIC-I -Page3
Article 8.2(b)2
Members arerequired toinform theCommittee ofanychanges intheirlawsandregulations
relevant totheAgreement andintheadministration ofsuchlawsandregulations.
Thefirstnotification under Article 8.2(b) byMembers which were notParties totheTokyo
Round Code shallcontain thefulltextofrelevant lawsandregulations ineffect onentry intoforce
oftheWTO Agreement fortheMember concerned.
IncaseswherethelegislationisnotinaWTOofficiallanguage,Membersshallprovide,together
withsuchlegislation, asummary ofthenotification inoneoftheWTO languages. Other Members
mayaskforafulltranslation iftheysowish, orseekanyadditional information onabilateral basis.
Anyissues thatcannot besolved onabilateral basismaybebrought totheattention oftheCommittee.
Members which wereParties totheTokyo Round Code shalldecide forthemselves whether
theirfullnotification oflegislation made under theTokyo Round Code shallremain valid under the
WTO Agreement, andwhether onlychanges thathaveoccurred since should benotified, ornewfull
notifications should bemade.
TheCommittee, atitsmeeting on12October 1995, established adeadline of12January 1996
forthefirstnotification under thisprovision from current Members.
Article 5.1-5.4
Members which institute licensing procedures orchanges inthese procedures arerequired to
notify theCommittee ofsuchwithin 60daysofpublication. Such notifications shall include the
information listed inArt.5.2 (i.e., listofproducts subject tolicensing; contact point forinformation
oneligibility; administrative bodies forsubmission ofapplications; dateandname ofpublication where
licensing procedures arepublished; indication whether theprocedure isautomatic ornon-automatic
according tothedefinitions inArticles 2and3;inthecaseofautomatic licensing, theiradministrative
purpose; inthecaseofnon-automatic licensing, indication ofthemeasure being implemented through
thelicensing procedure; expected duration ofthelicensing procedure ifthiscanbeestimated withsome
probability, andifnot,reason whythisinformation cannot beprovided). Members arerequired to
notify theCommittee ofthepublications inwhich therelevant information ispublished.
Article 5.5
AnyMember which considers thatanother Member hasnotnotified theinstitution ofalicensing
procedure orchanges therein inaccordance withArticle 5.1-5.3, maybring thematter totheattention
ofsuchother Member, andifnotification isnotmade promptly thereafter, suchMember mayitself
notify thelicensing procedure orthechanges therein.
Footnote 5toArticle 2.2
Footnote 5toArticle 2.2enables developing countries which were notparties totheTokyo
Round Code todelay, upon notification totheCommittee, theapplication oftheprovisions of
Art.2.2(a)(ii) and(a)(iii) linked toautomatic licensing foraperiod oftwoyears.
2Asconcerns notifications submitted under Articles 1.4(a) and8.2(b)forcirculation asdocuments,
theCommittee agreed thatdelegations, where possible, would alsoprovide copies oftheirnotifications
ondiskettes, preferably inWordperfect 5.2.Asregards replies totheQuestionnaire onImport Licensing
Procedures, delegations would indicate where changes havebeenmade withregard totheirprevious
notifications.LIC-II -Page1
LIC-II
AGREEMENT ONIMPORT LICENSING
PROCEDURES
NOTIFICATION OBLIGATIONSLIC-II -Page2
AGREEMENT ONIMPORT LICENSING PROCEDURES
NOTIFICATION OBLIGATIONS
Item Notification requirement Type ofmeasure Periodicity Format Members notifying ToWhom
1. Agreement onImport
Licensing Procedures,
Art.1.4(a)Names ofpublications in
which rules andinformation
relevant totheILP
Agreement arepublished;
copies ofpublicationsFirst notification
upon becoming a
WTO Member;
changes adhocNO WTO Members WTO
Secretariat
2. Agreement onImport
Licensing Procedures,
Art.5.1-5.4New import licensing
procedures orchanges
thereto; publications
containing relevant
informationWithin 60days of
publicationArticle 5.2 WTO Members -adhoc Committee on
Import
Licensing
3. Agreement onImport
Licensing Procedures,
Art.5.5(reverse
notification)Non-notified import
licensing procedures or
changes theretoAdhoc NO WTO Members -adhoc Committee on
Import
Licensing
4. Agreement onImport
Licensing Procedures,
Art.7.3Replies toquestionnaire on
import licensing proceduresAnnual, by
30SeptemberG/LIC/3, Annex WTO Members Committee on
Import
Licensing
5. Agreement onImport
Licensing Procedures,
Art.8.2(b)Laws/regulations and
administrative procedures
andchanges theretoFulltextofrelevant
legislation upon
becoming aWTO
Member; changes
adhocNO WTO Members Committee on
Import
Licensing
6. Agreement onImport
Licensing Procedures,
Art.2.2(footnote 5)Deferred application ofthe
provisions ofArticles
2.2(a)(ii) and(iii)Once upon entry
intoforce ofthe
WTO Agreement for
theMemberNO Developing country
Members notparties tothe
Tokyo Round Code; adhocCommittee on
Import
LicensingLIC-III -Page 1
LIC-III
DOCUMENT(S)
G/LIC/3RESTRICTED
WORLD TRADE G/LIC/3
7November 1995
ORGANIZATION(95-3441)
WTO Committee onImport Licensing
PROCEDURES FOR NOTIFICATION AND REVIEW
UNDER THE AGREEMENT ONIMPORT LICENSING PROCEDURES
Note bytheSecretariat
Atitsmeeting on12October 1995, theCommittee onImport Licensing agreed toapply the
following procedures fornotification andreview under theAgreement onImport Licensing Procedures.
_______________
(1) Notifications under Article 1.4(a)1
- Members shallnotify theCommittee thesources inwhich theinformation concerning import
licensing procedures arepublished, andshall make copies ofthese publications available tothe
Secretariat.
- Members which wereParties totheTokyo Round Code shalldecide forthemselves whether
thenotifications theyhavemade inthisrespect under theTokyo Round Code shallremain valid, and
whether onlychanges thathaveoccurred since should benotified, ornewfullnotifications should be
made.
- Members which were notParties totheTokyo Round Code shallmake fullnotifications.
- Notifications bycurrent Members shallbemade by12January 1996.2
- Incases where thepublications arenotinaWTO official language, Members shallprovide,
together withsuchpublications, asummary ofthenotification inoneoftheWTO languages. Other
Members mayaskforafulltranslation iftheysowish, orseekanyadditional information onabilateral
basis. Anyissues thatcannot besolved onabilateral basis maybebrought totheattention ofthe
Committee.
Copies ofpublications received shallbekeptintheSecretariat forconsultation byinterested
delegations. Members shallbeinformed periodically bytheSecretariat ofthenotifications received.
1Asconcerns notifications submitted forcirculation asdocuments, theCommittee agreed thatdelegations,
where possible, would alsoprovide copies oftheir notifications ondiskettes, preferably inWordPerfect 5.2.
AsregardsrepliestotheQuestionnaireonImportLicensingProcedures,delegationswouldindicatewherechanges
have been made withregard totheir previous notifications.
2Informal consultations shallbeconducted bytheChairman regarding atime-limit fornotifications forfuture
Members.G/LIC/3
Page2
(2) Procedures forReview under Article 7.1
- TheCommittee shallreview onceevery twoyears theimplementation andoperation ofthe
Agreement onthebasis ofafactual report prepared bytheSecretariat.
(3) Notifications under Article 7.33
- Members shallcomplete theQuestionnaire onImport Licensing Procedures by30September
eachyear(seeAnnex).4
- Members shall decide forthemselves whether thereplies provided previously under the
GATT 1947procedures shallremain validunder theWTO Agreement, andwhether onlychanges that
haveoccurred since should benotified, ornewfullnotifications should bemade.
(4) Notifications under Article 8.2(b)3
- Thefirstnotification under Article 8.2(b) byMembers which werenotParties totheTokyo
Round Code shallcontain thefulltextofrelevant lawsandregulations ineffect onentry intoforce
oftheWTO Agreement fortheMember concerned.
- Members which wereParties totheTokyo Round Code shalldecide forthemselves whether
theirfullnotifications oflegislation made under theTokyo Round Code should remain valid under
theWTO Agreement, andwhether onlychanges thathaveoccurred since should benotified, ornew
fullnotifications should bemade.
- Notifications bycurrent Members shallbemade by12January 1996.5
- IncaseswherethelegislationisnotinaWTOofficiallanguage,Membersshallprovide,together
withsuchlegislation ,asummary ofthenotification inoneoftheWTO languages. Other Members
mayaskforafulltranslation iftheysowish, orseekanyadditional information onabilateral basis.
Anyissues thatcannot besolved onabilateral basismaybebrought totheattention oftheCommittee.
Copies oflegislation received shallbekeptintheSecretariat forconsultation byinterested
delegations, andMembers shallbeinformed periodically bytheSecretariat ofthenotifications received.
3Asconcerns notifications submitted forcirculation asdocuments, theCommittee agreed thatdelegations,
where possible, would alsoprovide copies oftheir notifications ondiskettes, preferably inWordPerfect 5.2.
AsregardsrepliestotheQuestionnaireonImportLicensingProcedures,delegationswouldindicatewherechanges
have been made withregard totheir previous notifications.
4Originally circulated asGATT 1947 document L/3515, andsubsequently revised bytheWTO Committee
onImport Licensing atitsmeeting on12October 1995 andissued asdocument G/LIC/2.
5Informal consultations shallbeconducted bytheChairman regarding atime-limit fornotifications forfuture
Members.G/LIC/3
Page3
ANNEX6
QUESTIONNAIRE ONIMPORT LICENSING PROCEDURES
Thepresent questionnaire isdesigned toelicit information onimport licensing andsimilar
administrative procedures7maintained inandapplied tothecustoms territories towhich GATT 1994
applies. Ifdifferent procedures ormethods oflicensing orsimilar administrative procedures areapplied
todifferent categories ofproducts, todifferent countries ofsupply ortodifferent modes ofimportation,
theyshould beseparately described inrespect ofeachquestion asrelevant.
Outline ofSystems
1. Giveabriefdescription ofeachlicensing system asawhole and,withrespect toeach, reply
tothefollowing questions asrelevant, placing allofthematerial withrespect toagiven system in
sequence together, andusing cross references asappropriate when elements which havealready been
described arealsopresent inanother system.
Purposes andCoverage ofLicensing
2. Identify eachlicensing system maintained andstatewhatproducts, appropriately grouped, are
covered.
3. Thesystem applies togoods originating inandcoming from which countries?
4. Isthelicensing intended torestrict thequantity orvalue ofimports, andifnot,whatareits
purposes? Have alternative methods ofaccomplishing thepurposes beenconsidered andifsowhich?
Whyhavetheynotbeenadopted?
5. Citethelaw,regulation and/or administrative order under which thelicensing ismaintained.
Isthelicensing statutorily required? Does thelegislation leave designation ofproducts tobesubjected
tolicensing toadministrative discretion? Isitpossible forthegovernment (ortheexecutive branch)
toabolish thesystem without legislative approval?
Procedures
6. Forproducts under restriction astothequantity orvalue ofimports (whether applicable globally
ortoalimited number ofcountries orwhether established bilaterally orunilaterally):
I. Isinformation published, andwhere, concerning allocation ofquotas andformalities offiling
applications forlicences? Ifnot,howisitbrought totheattention ofpossible importers? Of
governments andexport promotion bodies ofexporting countries andtheirtraderepresentatives?
Istheoverall amount published? Theamount allocated togoods from eachcountry? The
maximum amount allocated toeachimporter? Howtorequest anyexceptions orderogations
from thelicensing requirement?
II. Howisthesizeofthequotas determined: onayearly, six-monthly orquarterly basis? Are
there cases where thesizeofquota isdetermined onayearly basis butlicences areissued for
6Thetextreproduced below isidentical tothatindocument G/LIC/2.
7Similar procedures areunderstood toinclude technical visas, surveillance systems, minimum price
arrangements, andother administrative reviews effected asaprior condition forentry ofimports.G/LIC/3
Page4
imports onasix-monthly orquarterly basis? Inthelatter case, isitnecessary forimporters
toapply forfresh licence onasix-monthly orquarterly basis?
III. Arelicences allotted forcertain goods partly oronlytodomestic producers oflikegoods?
What stepsaretaken toensure thatlicences allocated areactually usedforimports? Areunused
allocations added toquotas forasucceeding period? Arethenames ofimporters towhom
licences havebeenallocated made known togovernments andexport promotion bodies of
exporting countries uponrequest? Ifnot,forwhatreason? (Indicate products towhich replies
relate.)
IV. From thetimeofannouncing theopening ofquotas, asindicated inIabove, whatistheperiod
oftimeallowed forthesubmission ofapplications forlicences?
V. What aretheminimum andmaximum lengths oftimeforprocessing applications?
VI. Howmuch timeremains, ataminimum, between thegranting oflicences andthedateofopening
oftheperiod ofimportation?
VII. Isconsideration oflicence applications effected byasingle administrative organ? Ormust
theapplication bepassed ontoother organs forvisa,noteorapproval? Ifso,which? Does
theimporter havetoapproach more thanoneadministrative organ?
VIII. Ifthedemand forlicences cannot befullysatisfied, onwhatbasisistheallocation toapplicants
made? Firstcome, firstserved? Pastperformance? Isthereamaximum amount tobeallocated
perapplicant and,ifso,onwhat basis isitdetermined? What provision ismade fornew
importers? Areapplications examined simultaneously oronreceipt?
IX. Inthecaseofbilateral quotas orexport restraint arrangements where export permits areissued
byexporting countries, areimport licences alsorequired? Ifso,arelicences issued
automatically?
X. Incases where imports areallowed onthebasis ofexport permits only, howistheimporting
country informed oftheeffect given bytheexporting countries totheunderstanding between
thetwocountries?
XI. Arethere products forwhich licences areissued oncondition thatgoods should beexported
andnotsoldinthedomestic market?
7. Where thereisnoquantitative limitonimportation ofaproduct oronimports fromaparticular
country:
(a) Howfarinadvance ofimportation mustapplication foralicence bemade? Canlicences
beobtained within ashorter time-limit orforgoods arriving attheportwithout alicence
(forexample, owing toinadvertency)?
(b) Canalicence begranted immediately onrequest?
(c) Arethereanylimitations astotheperiod oftheyearduring which application forlicence
and/or importation maybemade? Ifso,explain.
(d) Isconsideration oflicence applications effected byasingle administrative organ? Or
must theapplication bepassed ontoother organs forvisa,noteorapproval? Ifso,
which? Does theimporter havetoapproach more thanoneadministrative organ?G/LIC/3
Page5
8. Under what circumstances mayanapplication foralicence berefused other thanfailure to
meettheordinary criteria? Arethereasons foranyrefusal given totheapplicant? Have applicants
arightofappeal intheevent ofrefusal toissue alicence and,ifso,towhatbodies andunder what
procedures?
Eligibility ofImporters toApply forLicence
9. Areallpersons, firms andinstitutions eligible toapply forlicences:
(a) under restrictive licensing systems?
(b) under non-restrictive systems?
Ifnot,isthere asystem ofregistration ofpersons orfirms permitted toengage inimportation? What
persons orfirms areeligible? Isthere aregistration fee? Isthere apublished listofauthorized
importers?
Documentational andOther Requirements forApplication forLicence
10. What information isrequired inapplications? Submit asample form. What documents isthe
importer required tosupply withtheapplication?
11. What documents arerequired upon actual importation?
12. Isthere anylicensing feeoradministrative charge? Ifso,what istheamount ofthefeeor
charge?
13. Isthere anydeposit oradvance payment requirement associated withtheissue oflicences?
Ifso,statetheamount orrate,whether itisrefundable, theperiod ofretention andthepurpose of
therequirement.
Conditions ofLicensing
14. What istheperiod ofvalidity ofalicence? Canthevalidity ofalicence beextended? How?
15. Isthere anypenalty forthenon-utilization ofalicence oraportion ofalicence?
16. Arelicences transferable between importers? Ifso,areanylimitations orconditions attached
tosuchtransfer?
17. Areanyother conditions attached totheissue ofalicence:
(a) forproducts subject toquantitative restriction?
(b) forproducts notsubject toquantitative restriction?
Other Procedural Requirements
18. Arethere anyother administrative procedures, apart from import licensing andsimilar
administrative procedures, required prior toimportation?
19. Isforeign exchange automatically provided bythebanking authorities forgoods tobeimported?
Isalicence required asacondition toobtaining foreign exchange? Isforeign exchange always available
tocover licences issued? What formalities must befulfilled forobtaining theforeign exchange?LIC-IV -Page1
LIC-IV
AGREEMENT ONIMPORT LICENSING
PROCEDURES
EXAMPLESLIC-IV -Page2
EXAMPLE OFNOTIFICATION UNDER FOOTNOTE 5TOARTICLE 2.2
Inaccordance withfootnote 5toArticle 2.2oftheAgreement onImport Licensing Procedures,
[name ofcountry] wishes todelay theapplication oftheprovisions ofArticle 2.2(a)(ii) and(a)(iii)
bynotmore thantwoyears.LIC-IV -Page3
EXAMPLE OFNOTIFICATION UNDER ARTICLES 1.4(a) AND 8.2(b)
Ihavethehonour tonotify thatrulesandallinformation relating toimport licensing procedures
applicable in[name ofcountry] arepublished intheImport Licensing Bulletin andtheGovernment
Gazette of[name ofcountry].
AcopyeachofImport Permits Act(1995), Administrative Order (No.001)establishing the
listofgoods subject toautomatic andnon-automatic licensing, andGuidelines forImporters onHow
toObtain Import Licences andPermits aresubmitted herewith.LIC-IV -Page4
REPLIES TOTHE QUESTIONNAIRE ONIMPORT LICENSING PROCEDURES
NOTIFICATION UNDER ARTICLE 7.3OFTHE AGREEMENT
ONIMPORT LICENSING PROCEDURES
[NAME OFCOUNTRY]
Outline ofSystem
1. Import licensing system isregulated byDecree No....,andRegulation No....establishing
thelistofgoods subject toimport licensing. Thelicensing system isadministered bytheDepartment
ofTrade.
Purposes andCoverage ofLicensing
2. Importsof[products]aresubjecttoautomaticlicensingand[products]tonon-automaticlicensing.
3. Thesystem applies togoods originating inandcoming from allcountries.
4. Automatic import licensing isforstatistical purposes. Non-automatic import licensing isfor
thepurpose ofadministering import restrictions maintained pursuant to...
5. Thelicensing system isnotastatutory requirement. Authority exists tosuspend thesystem
whenever itisdetermined thatsuchaction isappropriate. Notice ofsuchaction ispublished inthe
Government Gazette.
Procedures
6. Forproducts under restriction:
I. Information relating toquotas, formalities offiling applications forlicences, exceptions and
derogations ispublished intheGovernment Gazette.
II. Quotas aredetermined onanannual basis.
III. Licences areallotted toimporters regardless ofwhether theyareproducers oflikeproducts.
Regulations require thatlicensees must utilize aspecified percentage oflicences issued and
mustsurrender unused amounts which arethenreallocated toother eligible importers. Unused
allocations arenotadded toquotas forthenextyear. Thelistofimporters towhom licences
havebeenallocated ispublished intheGovernment Gazette.
IV. From thetimeofannouncing theopening ofquotas, aperiod ofatleast30daysisallowed
forthesubmission ofapplications forlicences.
V. Applications forlicences areprocessed within 2-3weeks.
VI. Import Licences aregranted atleast30daysprior tothedateofopening oftheperiod of
importation.
VII. Licence applications areconsidered byoneadministrative body.
VIII. Licences areissued mainly onthebasisofpastperformance. Aportion ofthequota isallocated
tonewimporters. Applications areexamined onreceipt.
IX. There arenobilateral quotas orexport restraint arrangements. Export permits fromexporting
countries arenotrequired.
X. Export permits from exporting countries arenotrequired.LIC-IV -Page5
XI. Nolicences areissued oncondition thatgoods should beexported andnotsoldinthedomestic
market.
7. Where thereisnoquantitative limitonimportation ofaproduct oronimports fromaparticular
country:
(a) Application foralicence mustbemade atleastoneweek inadvance ofimportation. Licences
canbeobtained within ashorter time-limit orforgoods arriving attheportwithout alicence.
(b) Under certain circumstances, alicence canbegranted immediately onrequest.
(c) There arenolimitations astotheperiod oftheyearduring which application forlicence and/or
importation maybemade.
(d) Animporter hastoapproach onlyoneadministrative organ inconnection withanapplication.
8. None. Thereasons foranyrefusal aregiven totheapplicant inwriting. Intheevent ofrefusal
toissue alicence, theapplicant hasarightofappeal tothe...
Eligibility ofImporters toApply forLicence
9. Allpersons, firms andinstitutions areeligible toapply forlicences.
Documentational andOther Requirements forApplication forLicence
10. Asample application formisavailable forreference intheSecretariat. Animporter isrequired
tosubmit thefollowing documents withtheapplication: ...
11. Upon actual importation, animporter isrequired tosubmit theapproved import licence or
acopythereof.
12. There isnolicensing feeoradministrative charge.
13. There isnodeposit oradvance payment requirement associated withtheissuance oflicences.
Conditions ofLicensing
14. Alicence isvalid foroneyearfrom thedateofissue. Thevalidity canbeextended ifthe
applicant sorequests.
15. There isnopenalty forthenon-utilization ofalicence oraportion ofit.
16. Licences arenottransferable between importers.
17. There arenoconditions attached totheissuance ofalicence.
Other Procedural Requirements
18. There arenoother administrative procedures, apart from import licensing required prior to
importation.
19. Foreign exchange isautomatically provided bythebanking authorities forgoods tobeimported.LIC-V -Page1
LIC-V
AGREEMENT ONIMPORT LICENSING
PROCEDURES
TEXT OFTHE AGREEMENTLIC-V -Page2
AGREEMENT ONIMPORT LICENSING PROCEDURES
Members,
Having regard totheMultilateral Trade Negotiations;
Desiring tofurther theobjectives ofGATT 1994;
Taking intoaccount theparticular trade, development andfinancial needs ofdeveloping country
Members;
Recognizing theusefulness ofautomatic import licensing forcertain purposes andthatsuch
licensing should notbeusedtorestrict trade;
Recognizingthatimportlicensingmaybeemployedtoadministermeasuressuchasthoseadopted
pursuant totherelevant provisions ofGATT 1994;
Recognizing theprovisions ofGATT 1994 astheyapply toimport licensing procedures;
Desiring toensure thatimport licensing procedures arenotutilized inamanner contrary to
theprinciples andobligations ofGATT 1994;
Recognizing thattheflowofinternational trade could beimpeded bytheinappropriate useof
import licensing procedures;
Convinced thatimport licensing, particularly non-automatic import licensing, should be
implemented inatransparent andpredictable manner;
Recognizing thatnon-automatic licensing procedures should benomore administratively
burdensome thanabsolutely necessary toadminister therelevant measure;
Desiring tosimplify, andbring transparency to,theadministrative procedures andpractices
usedininternational trade, andtoensure thefairandequitable application andadministration ofsuch
procedures andpractices;
Desiring toprovide foraconsultative mechanism andthespeedy, effective andequitable
resolution ofdisputes arising under thisAgreement;
Hereby agree asfollows:
Article 1
General Provisions
1. Forthepurpose ofthisAgreement, import licensing isdefined asadministrative procedures1
usedfortheoperation ofimport licensing regimes requiring thesubmission ofanapplication orother
documentation (other thanthatrequired forcustoms purposes) totherelevant administrative body as
aprior condition forimportation intothecustoms territory oftheimporting Member.
2. Members shallensure thattheadministrative procedures usedtoimplement import licensing
regimesareinconformitywiththerelevantprovisionsofGATT1994includingitsannexesandprotocols,
1Those procedures referred toas"licensing" aswellasother similar administrative procedures.LIC-V -Page3
asinterpreted bythisAgreement, withaviewtopreventing trade distortions thatmayarisefrom an
inappropriate operation ofthose procedures, taking intoaccount theeconomic development purposes
andfinancial andtrade needs ofdeveloping country Members.2
3. Therulesforimport licensing procedures shallbeneutral inapplication andadministered in
afairandequitable manner.
4. (a) Therulesandallinformation concerning procedures forthesubmission ofapplications,
including theeligibility ofpersons, firms andinstitutions tomake suchapplications, theadministrative
body(ies) tobeapproached, andthelistsofproducts subject tothelicensing requirement shallbe
published, inthesources notified totheCommittee onImport Licensing provided forinArticle 4
(referred tointhisAgreement as"theCommittee"), insuchamanner astoenable governments3and
traderstobecomeacquaintedwiththem.Suchpublicationshalltakeplace,wheneverpracticable,21days
prior totheeffective dateoftherequirement butinallevents notlaterthansucheffective date. Any
exception, derogations orchanges inorfrom therulesconcerning licensing procedures orthelistof
products subject toimport licensing shallalsobepublished inthesame manner andwithin thesame
timeperiods asspecified above. Copies ofthese publications shall alsobemade available tothe
Secretariat.
(b) Members which wishtomake comments inwriting shallbeprovided theopportunity
todiscuss thesecomments uponrequest. Theconcerned Member shallgivedueconsideration tothese
comments andresults ofdiscussion.
5. Application forms and,where applicable, renewal forms shallbeassimple aspossible. Such
documentsandinformationasareconsideredstrictlynecessaryfortheproperfunctioningofthelicensing
regime mayberequired onapplication.
6. Applicationproceduresand,whereapplicable,renewalproceduresshallbeassimpleaspossible.
Applicants shallbeallowed areasonable period forthesubmission oflicence applications. Where
thereisaclosing date,thisperiod should beatleast21dayswithprovision forextension incircumstances
where insufficient applications havebeenreceived within thisperiod. Applicants shallhavetoapproach
onlyoneadministrative body inconnection withanapplication. Where itisstrictly indispensable to
approach more thanoneadministrative body, applicants shallnotneedtoapproach more thanthree
administrative bodies.
7. Noapplication shallberefused forminor documentation errors which donotalterbasic data
contained therein. Nopenalty greater thannecessary toserve merely asawarning shallbeimposed
inrespect ofanyomission ormistake indocumentation orprocedures which isobviously made without
fraudulent intent orgross negligence.
8. Licensed imports shallnotberefused forminor variations invalue, quantity orweight from
theamount designated onthelicence duetodifferences occurring during shipment, differences incidental
tobulkloading andother minor differences consistent withnormal commercial practice.
9. Theforeign exchange necessary topayforlicensed imports shallbemade available tolicence
holders onthesame basis astoimporters ofgoods notrequiring import licences.
10. With regard tosecurity exceptions, theprovisions ofArticle XXIofGATT 1994 apply.
2Nothing inthisAgreement shallbetaken asimplying thatthebasis, scope orduration ofameasure
being implemented byalicensing procedure issubject toquestion under thisAgreement.
3Forthepurpose ofthisAgreement, theterm"governments" isdeemed toinclude thecompetent
authorities oftheEuropean Communities.LIC-V -Page4
11. Theprovisions ofthisAgreement shall notrequire anyMember todisclose confidential
information which would impede lawenforcement orotherwise becontrary tothepublic interest or
would prejudice thelegitimate commercial interests ofparticular enterprises, public orprivate.
Article 2
Automatic Import Licensing4
1. Automatic import licensing isdefined asimport licensing where approval oftheapplication
isgranted inallcases, andwhich isinaccordance withtherequirements ofparagraph 2(a).
2. Thefollowing provisions5,inaddition tothose inparagraphs 1through 11ofArticle 1and
paragraph 1ofthisArticle, shallapply toautomatic import licensing procedures:
(a) automatic licensing procedures shallnotbeadministered insuchamanner astohave
restricting effects onimports subject toautomatic licensing. Automatic licensing
procedures shallbedeemed tohavetrade-restricting effects unless, interalia:
(i) anyperson, firmorinstitution which fulfils thelegal requirements ofthe
importingMemberforengaginginimportoperationsinvolvingproductssubject
toautomatic licensing isequally eligible toapply forandtoobtain import
licences;
(ii) applications forlicences maybesubmitted onanyworking dayprior tothe
customs clearance ofthegoods;
(iii) applications forlicences when submitted inappropriate andcomplete formare
approved immediately onreceipt, totheextent administratively feasible, but
within amaximum of10working days;
(b) Members recognize thatautomatic import licensing maybenecessary whenever other
appropriateproceduresarenotavailable.Automaticimportlicensingmaybemaintained
aslongasthecircumstances which gaverisetoitsintroduction prevail andaslong
asitsunderlying administrative purposes cannot beachieved inamore appropriate
way.
Article 3
Non-Automatic Import Licensing
1. Thefollowing provisions, inaddition tothose inparagraphs 1through 11ofArticle 1,shall
apply tonon-automatic import licensing procedures. Non-automatic import licensing procedures are
defined asimport licensing notfalling within thedefinition contained inparagraph 1ofArticle 2.
4Those import licensing procedures requiring asecurity which havenorestrictive effects onimports
aretobeconsidered asfalling within thescope ofparagraphs 1and2.
5Adeveloping country Member, other thanadeveloping country Member which wasaParty to
theAgreement onImport Licensing Procedures doneon12April 1979, which hasspecific difficulties
withtherequirements ofsubparagraphs (a)(ii) and(a)(iii) may, upon notification totheCommittee,
delay theapplication ofthese subparagraphs bynotmore thantwoyears from thedateofentry into
force oftheWTO Agreement forsuchMember.LIC-V -Page5
2. Non-automaticlicensingshallnothavetrade-restrictiveor-distortiveeffectsonimportsadditional
tothosecausedbytheimpositionoftherestriction.Non-automaticlicensingproceduresshallcorrespond
inscope andduration tothemeasure theyareusedtoimplement, andshallbenomore administratively
burdensome thanabsolutely necessary toadminister themeasure.
3. Inthecaseoflicensing requirements forpurposes other thantheimplementation ofquantitative
restrictions, Members shallpublish sufficient information forother Members andtraders toknow the
basis forgranting and/or allocating licences.
4. Where aMember provides thepossibility forpersons, firms orinstitutions torequest exceptions
orderogations fromalicensing requirement, itshallinclude thisfactintheinformation published under
paragraph 4ofArticle 1aswellasinformation onhowtomake sucharequest and,totheextent possible,
anindication ofthecircumstances under which requests would beconsidered.
5. (a) Members shallprovide, upontherequest ofanyMember having aninterest inthetrade
intheproduct concerned, allrelevant information concerning:
(i) theadministration oftherestrictions;
(ii) theimport licences granted overarecent period;
(iii) thedistribution ofsuchlicences among supplying countries;
(iv) where practicable, import statistics (i.e.value and/or volume) withrespect
totheproductssubjecttoimportlicensing.DevelopingcountryMemberswould
notbeexpected totakeadditional administrative orfinancial burdens onthis
account;
(b) Members administering quotas bymeans oflicensing shallpublish theoverall amount
ofquotas tobeapplied byquantity and/or value, theopening andclosing datesofquotas,
andanychange thereof, within thetimeperiods specified inparagraph 4ofArticle 1
andinsuchamanner astoenable governments andtraders tobecome acquainted with
them;
(c) inthecaseofquotas allocated among supplying countries, theMember applying the
restrictions shallpromptly inform allother Members having aninterest insupplying
theproduct concerned oftheshares inthequota currently allocated, byquantity or
value, tothevarious supplying countries andshallpublish thisinformation within the
timeperiods specified inparagraph 4ofArticle 1andinsuchamanner astoenable
governments andtraders tobecome acquainted withthem;
(d) where situations arisewhich make itnecessary toprovide foranearly opening date
ofquotas, theinformation referred toinparagraph 4ofArticle 1should bepublished
within thetime-periods specified inparagraph 4ofArticle 1andinsuchamanner
astoenable governments andtraders tobecome acquainted withthem;
(e) anyperson, firmorinstitution which fulfils thelegalandadministrative requirements
oftheimporting Member shallbeequally eligible toapply andtobeconsidered for
alicence. Ifthelicence application isnotapproved, theapplicant shall, onrequest,
begiven thereason therefor andshallhavearightofappeal orreview inaccordance
withthedomestic legislation orprocedures oftheimporting Member;
(f) theperiodforprocessingapplicationsshall,exceptwhennotpossibleforreasonsoutside
thecontrol oftheMember, notbelonger than30daysifapplications areconsidered
asandwhen received, i.e.onafirst-come first-served basis, andnolonger than60days
ifallapplications areconsidered simultaneously. Inthelatter case, theperiod forLIC-V -Page6
processing applications shallbeconsidered tobegin onthedayfollowing theclosing
dateoftheannounced application period;
(g) theperiod oflicence validity shallbeofreasonable duration andnotbesoshort as
topreclude imports. Theperiod oflicence validity shallnotpreclude imports from
distant sources, except inspecial cases where imports arenecessary tomeetunforeseen
short-term requirements;
(h) when administering quotas, Members shallnotprevent importation frombeing effected
inaccordance withtheissued licences, andshallnotdiscourage thefullutilization of
quotas;
(i) when issuing licences, Members shall takeintoaccount thedesirability ofissuing
licences forproducts ineconomic quantities;
(j) inallocating licences, theMember should consider theimport performance ofthe
applicant. Inthisregard, consideration should begiven astowhether licences issued
toapplicants inthepasthavebeenfullyutilized during arecent representative period.
Incases where licences havenotbeenfullyutilized, theMember shallexamine the
reasons forthisandtakethesereasons intoconsideration when allocating newlicences.
Consideration shallalsobegiven toensuring areasonable distribution oflicences to
newimporters, taking intoaccount thedesirability ofissuing licences forproducts in
economic quantities. Inthisregard, special consideration should begiven tothose
importers importing products originating indeveloping country Members and,in
particular, theleast-developed country Members;
(k) inthecaseofquotas administered through licences which arenotallocated among
supplying countries, licence holders6shallbefreetochoose thesources ofimports.
Inthecaseofquotas allocated among supplying countries, thelicence shallclearly
stipulate thecountry orcountries;
(l) inapplying paragraph 8ofArticle 1,compensating adjustments maybemade infuture
licence allocations where imports exceeded aprevious licence level.
Article 4
Institutions
There ishereby established aCommittee onImport Licensing composed ofrepresentatives
fromeachoftheMembers. TheCommittee shallelectitsownChairman andVice-Chairman andshall
meetasnecessary forthepurpose ofaffording Members theopportunity ofconsulting onanymatters
relating totheoperation ofthisAgreement orthefurtherance ofitsobjectives.
Article 5
Notification
1. Members which institute licensing procedures orchanges inthese procedures shallnotify the
Committee ofsuchwithin 60daysofpublication.
6Sometimes referred toas"quota holders".LIC-V -Page7
2. Notifications oftheinstitution ofimport licensing procedures shall include thefollowing
information:
(a) listofproducts subject tolicensing procedures;
(b) contact point forinformation oneligibility;
(c) administrative body(ies) forsubmission ofapplications;
(d) dateandname ofpublication where licensing procedures arepublished;
(e) indication ofwhether thelicensing procedure isautomatic ornon-automatic according
todefinitions contained inArticles 2and3;
(f) inthecaseofautomatic import licensing procedures, theiradministrative purpose;
(g) inthecaseofnon-automatic import licensing procedures, indication ofthemeasure
being implemented through thelicensing procedure; and
(h) expected duration ofthelicensing procedure ifthiscanbeestimated withsome
probability, andifnot,reason whythisinformation cannot beprovided.
3. Notifications ofchanges inimport licensing procedures shallindicate theelements mentioned
above, ifchanges insuchoccur.
4. Members shallnotify theCommittee ofthepublication(s) inwhich theinformation required
inparagraph 4ofArticle 1willbepublished.
5. Anyinterested Member which considers thatanother Member hasnotnotified theinstitution
ofalicensing procedure orchanges therein inaccordance withtheprovisions ofparagraphs 1through 3
maybring thematter totheattention ofsuchother Member. Ifnotification isnotmade promptly
thereafter, suchMember mayitself notify thelicensing procedure orchanges therein, including all
relevant andavailable information.
Article 6
Consultation andDispute Settlement
Consultations andthesettlement ofdisputes withrespect toanymatter affecting theoperation
ofthisAgreement shallbesubject totheprovisions ofArticles XXII andXXIII ofGATT 1994, as
elaborated andapplied bytheDispute Settlement Understanding.
Article 7
Review
1. TheCommittee shallreview asnecessary, butatleastonceevery twoyears, theimplementation
andoperation ofthisAgreement, taking intoaccount theobjectives thereof, andtherights andobligations
contained therein.
2. Asabasis fortheCommittee review, theSecretariat shallprepare afactual report based on
information provided under Article 5,responses totheannual questionnaire onimport licensingLIC-V -Page8
procedures7andother relevant reliable information which isavailable toit.Thisreport shallprovide
asynopsis oftheaforementioned information, inparticular indicating anychanges ordevelopments
during theperiod under review, andincluding anyother information asagreed bytheCommittee.
3. Membersundertaketocompletetheannualquestionnaireonimportlicensingprocedurespromptly
andinfull.
4. TheCommittee shallinform theCouncil forTrade inGoods ofdevelopments during theperiod
covered bysuchreviews.
Article 8
Final Provisions
Reservations
1. Reservations maynotbeentered inrespect ofanyoftheprovisions ofthisAgreement without
theconsent oftheother Members.
Domestic Legislation
2. (a) Each Member shallensure, notlaterthanthedateofentry intoforce oftheWTO
Agreement forit,theconformity ofitslaws, regulations andadministrative procedures
withtheprovisions ofthisAgreement.
(b) Each Member shallinform theCommittee ofanychanges initslawsandregulations
relevant tothisAgreement andintheadministration ofsuchlawsandregulations.
7Originally circulated asGATT 1947 document L/3515 of23March 1971.