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26 November  2021 
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JOINT INITIATIVE ON SERVICES DOMESTIC REGULATION  
 
 
REFERENCE PAPER ON SERVICES DOMESTIC REGULATION  
 
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  REFERENCE PAPER ON SERVICES DOMESTIC REGULATION  
SECTION I  
1. Members have agreed to the disciplines on Services Domestic Regulation in this Reference Paper 
("disciplines") with the objective of elaborating upon the provisions of the General Agreement 
on Trade in Services ("Agreement"),  pursuant to paragraph 4 of Art icle VI of the Agreement.1 
2. Members recognize the difficulties which may be faced by service suppliers, particularly those 
of developing country Members, in complying with measures relating to licensing requirements 
and procedures, qualification requiremen ts and procedures, and technical standards of other 
Members and in particular, the specific difficulties which may be faced by service suppliers from 
least-developed country Members.  
3. Members recognize the right to regulate, and to introduce new regulations , on the supply of 
services within their territories in order to meet their policy objectives.  
4. Members further recognize the existence of asymmetries with respect to the degree of 
development of services regulations in different countries, especially in th e case of developing 
and least -developed country Members.  
5. The disciplines shall not be construed to prescribe or impose any particular regulatory provisions 
regarding their implementation.  
6. The disciplines shall not be construed as diminishing any obligations of Members under the 
Agreement.  
Sectoral Coverage  and Scheduling Modalities  
 
7. Members shall inscribe the disciplines in Section II in their Schedules as additional commitments 
under Article XVIII of the Agreement. Members may choose to inscribe  the alternative 
disciplines in Section III for their commitments in financial services.  
 
8. The disciplines inscribed pursuant to paragraph 7 of this Section apply where specific 
commitments are undertaken.  In addition, Members are encouraged to inscribe in their 
Schedules additional sectors to which the disciplines apply.  
 
9. Members may exclude the discipline set out in paragraph 22 (d) of Section II and 
paragraph  19 (d) of Section III from the additional com mitments scheduled under paragraph 7 
of this Section.  
Development  
Transitional Periods for Developing Country Members  
10. A developing country Member may designate specific disciplines for implementation on a date 
after a transitional period of no longer than 7 years following the entry into force of these 
disciplines.  The scope of the designation may be limited to individual  services sectors or 
subsectors. The transitional periods shall be inscribed in the respective Schedules of specific 
commitments. A developing country Member requiring an extended transitional period for 
implementation shall submit a request in accordance with relevant procedures.2 Members shall 
give sympathetic consideration to granting such requests, taking into account the specific 
circumstances of the Member submitting the request.  
 
 
1 Members recognize that further disciplines may be developed pursuant to paragraph 4 of Article VI of 
the Agreement.  
2 Relevant procedures include requests for a Waiver in accordance with paragraph 3 (b) of Article IX of 
the Marrakesh Agreement, or invocat ion of Article XXI of the GATS.  INF/SDR /2 
 
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  Participation of Least -Developed Country Members  
11. Least -developed country Members shall inscribe the disciplines pursuant to paragraph 7 of this 
Section  in their Schedules of specific commitments , no later than 6 months in advance of their 
graduation from least -developed country status.  Least -developed country Members may, at 
that time, designate transitional periods pursuant to paragraph 10 of this Section. Least -
developed country Memb ers are nonetheless encouraged to apply these disciplines before their 
graduation, to the extent consistent with their individual implementation capacity.  
Technical Assistance and Capacity Building  
 
12. Developed and developing country Members, in a position t o do so, are encouraged to provide 
specific technical assistance and capacity building to developing and in particular least -
developed country Members, upon their request and on mutually agreed terms and conditions, 
aimed , inter alia , at: 
(a) developing and strengthening institutional and regulatory capacities to regulate the 
supply of services and to implement these disciplines, especially provisions and sectors 
to which transitional periods apply;  
(b) assisting service suppliers of developing and  in particular least -developed country 
Members to meet the relevant requirements and procedures in export markets;  
(c) facilitating the establishment of technical standards and facilitating participation of 
developing and in particular least -developed country Members facing resource 
constraints in the relevant international organizations; and  
(d) assisting, through public or private bodies and relevant international organizations, 
service suppliers of developing and in particular least -developed country Members in 
building their supply capacity and in complying with domestic regulation.  
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  SECTION II – DISCIPLINES ON SERVICES DOMESTIC REGULATION  
Scope of the Disciplines  
1. These disciplines apply to measures by Members relating to licensing requirements and 
procedures, qualification requirements and procedures, and technical standards affecting trade 
in services.  
 
2. These disciplines do not apply to any terms, limitations, conditions, or qualifications set out in 
a Member’s Schedule pursuant to Articles XVI or XVII of the Agreement.  
 
3. For the purpose of these disciplines, "authorization" means the permission to supply a service, 
resulting from a procedure to which an applicant must adhere in order to demonstrate 
compliance with licensing requirements, qualification requi rements, or technical standards.  
Submission of Applications  
4. Each Member shall, to the extent practicable, avoid requiring an applicant to approach more 
than one competent authority for each application for authorization. If a service is within the 
jurisdic tion of multiple competent authorities, multiple applications for authorization may be 
required.  
Application Timeframes  
5. If a Member requires authorization for the supply of a service, it shall ensure that its competent 
authorities to the extent practicable permit submission of an application at any time throughout 
the year.3 If a specific time period for applying exists, t he Member shall ensure that the 
competent authorities allow a reasonable period for the submission of an application.  
Electronic Applications and Acceptance of Copies  
6. If a Member requires authorization for the supply of a service, it shall ensure that its competent 
authorities:  
(a) taking into account their competing priorities and resource constraints, endeavour to 
accept applications in electronic format; and  
(b) accept copies of documents, that are authenticated in accordance with the Member’s 
domestic laws and regulations, in place of original documents, unless the competent 
authorities require original documents to protect the integrity of the authorization 
process.  
Processing of Applications  
7. If a Member requires authorization for the supply of a service, it sh all ensure that its competent 
authorities:  
(a) to the extent practicable, provide an indicative timeframe for processing of an 
application;  
(b) at the request of the applicant, provide without undue delay information concerning the 
status of the application;  
(c) to the extent practicable, ascertain without undue delay the completeness of an 
application for processing under the Member’s domestic laws and regulations;  
 
3 Competent a uthorities are not required  to start considering applications  outside of their  official working 
hours and working days.  INF/SDR /2 
 
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  (d) if they consider an application complete for processing under the Member’s domestic 
laws and regulation s,4 within a reasonable period of time after the submission of the 
application ensure that:  
(i) the processing of the application is completed; and  
(ii) the applicant is informed of the decision concerning the application,5 to the 
extent possible in writing;6 
(e) if they consider an application incomplete for processing under the Member’s domestic 
laws and regulations, within a reasonable period of time, to the extent practicable:  
(i) inform the applicant that the application is in complete;  
(ii) at the request of the applicant, identify the additional information required to 
complete the application, or otherwise provide guidance on why the application 
is considered incomplete; and  
(iii) provide the applicant with the opportunity7 to provide  the additional information 
that is required to complete the application;  
however, if none of the above is practicable, and the application is rejected due to 
incompleteness, ensure that they so inform the applicant within a reasonable period of 
time; and  
(f) if an application is rejected, to the extent possible, either upon their own initiative or 
upon request of the applicant, inform the applicant of the reasons for rejection and, if 
applicable, the procedures for resubmission of an application; an applicant  should not 
be prevented from submitting another application8 solely on the basis of a previously 
rejected application.  
8. The competent authorities of a Member shall ensure that authorization, once granted, enters 
into effect without undue delay, subject to applicable terms and conditions.9 
Fees  
9. Each Member shall ensure that the authorization fees10 charged by its competent authorities 
are reasonable, transparent, based on authority set out in a measure, and do not in themselves 
restrict the suppl y of the relevant service.  
Assessment of Qualifications  
10. If a Member requires an examination for authorization for the supply of a service, that Member 
shall ensure that its competent authorities schedule such an examination at reasonably frequent 
intervals  and provide a reasonable period of time to enable applicants to request to take the 
examination . Having regard to the cost, administrative burden, and the integrity of the 
procedures involved, Members are encouraged to accept requests in electronic format  to take 
 
4 Competent authorities may require that all information is submitted in a specified format  to consider it 
"complete for processing".  
5 Competent authorities may meet this requirement by informing an applicant in advance in writing, 
including through a published measure , that lack of response after a specified period of time from the date of 
submission of an application indicates acceptance of the application or rejection of the application.  
6 "In writing" may include in electronic form.  
7 Such opportunity does not require a competent authority to provide extensions of deadlines.  
8 Competent authorities may require that the content of such an application has been revised.  
9 Competent authorities are not responsible for delays due to reasons outside their competence.  
10 Authori zation fees do not include fees for the use of natural res ources, payments for auction, 
tendering or other non -discriminatory means of awarding concessions, or mandated contributions to universal 
service provision.  INF/SDR/ 2 
 
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  such examinations, and to consider, to the extent practicable, the use of electronic means in 
other aspects of examination processes.  
Recognition  
11. Where professional bodies of Members are mutually interested in establishing dialogues on 
issues relating to recognition of professional qualifications, licensing or registration, the relevant 
Members should consider supporting the dialogue of those bodies where requested and 
appropriate.  
Independence  
12. If a Member adopts or maintains measures re lating to the authorization for the supply of a 
service, the Member shall ensure that its competent authorities reach and administer their 
decisions in a manner independent from any supplier of the service for which authorization is 
required.11  
Publication and Information available  
13. If a Member requires authorization for the supply of a service, further to Article III of the 
Agreement, the Member shall promptly publish ,12 or otherwise make publicly available in 
writing, the information necessary f or service suppliers or persons seeking to supply a service 
to comply with the requirements and procedures for obtaining, maintaining, amending and 
renewing such authorization. Such information shall include, inter alia , where it exists:  
(a) the requirements a nd procedures;   
(b) contact information of relevant competent authorities;   
(c) fees;  
(d) technical standards;   
(e) procedures for appeal or review of decisions concerning applications;   
(f) procedures for monitoring or enforcing compliance with the terms and conditions of 
licenses or qualifications;   
(g) opportunities for public involvement, such as through hearings or comments; and  
(h) indicative timeframes for processing of an application.   
Opportunity to Comment and Information before Entry into Force  
14. To the extent  practicable and in a manner consistent with its legal system for adopting 
measures, each Member13 shall publish in advance:  
(a) its laws and regulations of general application it proposes to adopt in relation to matters 
falling within the scope of paragraph  1 of this Section; or  
 
11 For greater certainty, this provision does not mandate a particular administrative structure ; it refers 
to the decision -making process and administering of decisions.  
12 For purposes of these disciplines, "publish" means to include in an official publication, such as an 
official journal, or on an official website.  Members are encouraged to consolid ate electronic publications into a 
single portal.  
13 Paragraphs 14 to 17 of this Section recognize that Members have different systems to consult 
interested persons and other Members  on certain measures before their adoption , and that the alternatives set 
out in paragraph 14 of this Section reflect different legal systems.  INF/SDR /2 
 
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  (b) documents that provide sufficient details about such a possible new law or regulation to 
allow interested persons and other Members to assess whether and how their interests 
might be significantly affected.   
15. To the extent practicable an d in a manner consistent with its legal system for adopting 
measures, each Member is encouraged to apply paragraph 14 of this Section to procedures and 
administrative rulings of general application it proposes to adopt in relation to matters falling 
within the scope of paragraph 1 of this Section.  
16. To the extent practicable and in a manner consistent with its legal syste m for adopting 
measures, each Member shall provide interested persons and other Members a reasonable 
opportunity to comment on such proposed measures or documents published  under 
paragraphs  14 or 15 of this Section.  
17. To the extent practicable and in a mann er consistent with its legal system for adopting 
measures, each Member  shall consider comments received under paragraph 1 6 of this 
Section.14  
18. In publishing a law or regulation referred to in paragraph 1 4 (a) of this Section, or in advance 
of such publicat ion, to the extent practicable and in a manner consistent with its legal system 
for adopting measures, a Member is encouraged to explain the purpose and rationale of the law 
or regulation.  
19. Each Member shall, to the extent practicable, endeavour to allow r easonable time between 
publication of the text of a law or regulation referred to in paragraph 1 4 (a) of this Section and 
the date on which service suppliers must comply with the law or regulation.  
Enquiry Points  
20. Each Member shall maintain or establish app ropriate mechanisms for responding to enquiries 
from service suppliers or persons seeking to supply a service regarding the  measures referred 
to in paragraph 1 of this Section.15 A Member may choose to address such enquiries through 
either the enquiry and contact points established under Articles III and IV of the Agreement or 
any other mechanisms as appropriate.  
Technical Standards  
21. Each Member shall encourage its competent authorities, when adopting technical standards, to 
adopt technical standards develop ed through open and transparent processes, and shall 
encourage any body, including relevant international organizations ,16 designated to develop 
technical standards to use open and transparent processes.  
Development of Measures  
22. If a Member adopts or maintains measures relating to  the authorization  for the supply of a 
service, the Member shall ensure that:  
(a) such measures are based on objective and transparent criteria;17 
(b) the procedures are impartial, and that the procedures are adequate for applicants to 
demonstrate whether they meet the requirements, if such requirements exist;  
 
14 This provision is without prejudice to the final decision of a Member that adopts or maintains any 
measure for authori zation for the supply of a service.  
15 It is understood that resource  constraints may be a factor in determining whether a mechanism for 
responding to enquiries is appropriate.  
16 The term "relevant international organizations" refers to international bodies whose membership is 
open to the relevant bodies of at least all Members of the WTO.  
17 Such criteria may include, inter alia , competence  and the  ability to supply a service, including to do so 
in a manner consistent with a Member’s regulatory requirements, such as health a nd environmental  
requirements.  Competent authorities may assess the weight to be given to e ach criterion.  INF/SDR/ 2 
 
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  (c) the procedures do not in themselves  unjustifiably prevent the fulfilment of requirements; 
and  
(d) such measures do not discriminate between men and women .18 
  
 
18 Differential treatment that is reasonable and objecti ve, and aims to achieve a legitimate purpose, and 
adoption by Members of temporary special measures aimed at accelerating de facto equality  between men and 
women , shall not be considered discrimination for the purposes of this provision.  INF/SDR /2 
 
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  SECTION III - ALTERNATIVE DISCIPLINES ON SERVICES DOMESTIC  
REGULATION FOR  FINANCIAL SERVICES  
Scope  
1. These disciplines apply to measures by Members relating to licensing requirements and 
procedures, and qualification requirements and procedures affecting trade in financial services, 
as defined in the GATS Annex on Financial Services.  
 
2. These disciplines  do not apply to any terms, limitations, conditions, or qualifications set out in 
a Member’s Schedule pursuant to Articles XVI or XVII of the Agreement.  
 
3. For the purpose of these disciplines, "authori zation" means the permission to supply a service, 
resultin g from a procedure to which an applicant must adhere in order to demonstrate 
compliance with licensing requirements, or qualification requirements.  
Application Timeframes  
4. If a Member requires authori zation for the supply of a service, it shall ensure that its competent 
authorities to the extent practicable permit submission of an application at any time throughout 
the year.19 If a specific time period for applying exists, the Member shall ensure that t he 
competent authorities allow a reasonable period for the submission of an application.  
 
Electronic Applications and Acceptance of Copies  
5. If a Member requires authori zation for the supply of a service, it shall ensure that its competent 
authorities:  
(a) taking into account their competing priorities and resource constraints, endeavour to 
accept applications in electronic format; and  
(b) accept copies of documents, that are authenticated in accordance with the Member’s 
domestic law s and regulations , in place of ori ginal documents, unless the competent 
authorities require original documents to protect the integrity of the authori zation 
process.  
Processing of Applications  
6. If a Member requires authori zation for the supply of a service, it shall ensure that its competen t 
authorities:  
(a) to the extent practicable, provide an indicative timeframe for processing of an 
application;  
(b) at the request of the applicant, provide without undue delay information concerning the 
status of the application;  
(c) to the extent practicable, ascertain without undue delay the completeness of an 
application for processing under the Member’s domestic laws and regulations;  
(d) if they consider an application complete for processing under the Member’s domestic 
laws and regulations ,20 within a reasonable period of time after the submission of the 
application ensure that:  
(i) the processing of the application is completed; and  
 
19 Competent a uthorities are not required  to start considering applications  outside of their  official 
working hours and working days.  
20 Competent authorities may require that all information is submitted in a specified format to consider 
it "complete for pro cessing".  INF/SDR/ 2 
 
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(ii) the applicant is informed of the decision concerning the application,21 to the 
extent possible in writing;22 
(e) if they consider an application incomplete for processing under the Member’s domestic 
laws and regulations, within a reasonable period of time, to the extent practicable:  
(i) inform the applicant that the application is in complete;  
(ii) at the request of the applicant , identify the additional information required to 
complete the application , or otherwise provide guidance on why the application 
is considered incomplete; and  
(iii) provide the applicant with the opportunity23 to provide  the additional information 
that is required to complete the application;  
however, if none of the above is practicable, and the application is rejected due to 
incompleteness, ensure that they so inform the applicant within a reasonable period of 
time; and  
(f) if an application is rejected, to the extent practicable, either upon their own initiative or 
upon request of the applicant, inform the applicant of the reasons for rejection and, if 
applicable, the procedures for resubmission of an application ; an applicant should not 
be prevented from submitting another application24 solely on the basis that an 
application had been previously rejected.  
7. The competent authorities of a Member shall ensure that authori zation, once granted, enters 
into effect without undue delay, subject to applicable terms and conditions.25 
Fees  
8. Each Member shall ensure that its competent authorities, with respect to authori zation fees26 
they charge, provide applicants with a schedule of fees or information on how fee amounts are 
determined . 
Assessment of Qualifications  
9. If a Member requires an examination for authori zation for the supply of a service, that Member 
shall ensure that its competent authorities schedule such an examination at reasonably frequent 
intervals and provid e a reasonable period of time to enable applicants to request to take the 
examination . Having regard to the cost, administrative burden, and the integrity of the 
procedures involved, Members are encouraged to accept requests in electronic format to take 
such examinations, and to consider, to the extent practicable, the use of electronic means in 
other aspects of examination processes.  
Independence  
10. If a Member adopts or maintains measure s relating to the authori zation for the supply of a 
service, the Member shall ensure that its competent authorit ies reach and administer their 
 
21 Competent authorities may meet this requirement by informing an applicant in advance in writing, 
including through a published measure , that lack of response after a specified period of time from the date of 
submission of an application indicat es acceptance  of the application  or rejection of the application.  
22 "In writing" may include in electronic form.  
23 Such opportunity does not require a competent authority to provide extensions  of deadlines . 
24 Competent authorities may require that the content of such an application has been revised.  
25 Competent authorities are not responsible for delays due to reasons outside their competence.  
26 Authori zation fees do not include fees for the use of natural res ources, payments for auction, 
tendering or other non -discriminatory means of awarding concessions, or mandated contributions to universal 
service provision.  INF/SDR /2 
 
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  decisions in a manner independent from any supplier of the service for which authorization is 
required.27  
Publication and Information available  
11. If a Member requires authori zation for the supply of a service, further to Article III of the 
Agreement and paragraphs 6 and 8  of this Section , the Member shall promptly publish ,28 or 
otherwise make publicly available in writing the information necessary for service suppliers or 
persons seeking to supply a service to comply with the requirements and procedures for 
obtaining, maintaining, amending and renewing such authori zation. Suc h information shall 
include, inter alia , where it exists:  
(a) the requirements and procedures;  
(b) contact information of relevant competent authorities;   
(c) procedures for appeal or review of decisions concerning applications;   
(d) procedures for monitoring or enforcing  compliance with the terms and conditions of 
licenses or qualifications;  and 
(e) opportunities for public involvement, such as through hearings or comments . 
Opportunity to Comment and Information before Entry into Force  
12. To the extent  practicable and in a manner consistent with its legal system for adopting 
measures, each Member29 shall publish in advance:  
(a) its laws and regulations of general application it proposes to adopt in relation to matters 
falling within the scope of paragraph  1 of this Section ; or 
(b) documents that provide sufficient details about such a possible new law or regulation to 
allow interested persons and other Members to assess whether and how their interests 
might be significantly affected.   
13. To the extent practicable and in a manner consist ent with its legal system for adopting 
measures , each Member is encouraged to apply paragraph 1 2 of this Section  to procedures and 
administrative rulings of general application it proposes to adopt in relation to matters falling 
within the scope of paragra ph 1.  
14. To the extent practicable and in a manner consistent with its legal system for adopting 
measures , each Member shall provide interested persons and other Members a reasonable 
opportunity to comment on such proposed measures or documents published  under 
paragraph s 12 or 13 of this Section .  
15. To the extent practicable and in a manner consistent with its legal system for adopting 
measures , each Member  shall consider comments received under paragraph 1 4 of this 
Section .30  
16. In publishing a law or regulation referred to in paragraph 1 2 (a) of this Section , or in advance 
of such publication, to the extent practicable and in a manner consistent with its legal system 
 
27 For greater certainty, this provision does not mandate a particular administrative structure ; it refers 
to the decision -making process and administering of decisions.  
28 For purposes of these disciplines, "publish" means to include in an official publication, such as an 
official journal, or on an official website.  Members are encouraged to consolidate electronic publications into a 
single portal.  
29 Paragraphs 12 to 15 of this Section  recognize that Members have different systems to consult 
interest ed persons and other Members  on certain measures before the ir adopt ion, and that the alternatives set 
out in paragraph 12 of this Section  reflect different legal systems.  
30 This provision is without prejudice to the final decision of a Member that adopts or maintains any 
measure for authori zation for the supply of a service.  INF/SDR/ 2 
 
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  for adopting measures, a Member is encouraged to explain the purpose and rationale of the law 
or regulation.  
17. Each Member shall, to the extent practicable, endeavour to allow reasonable time between 
publication of the text of a law or regulation referred to in paragraph 1 2 (a) of this Section  and 
the date on which service suppliers must comply with the law or regulation.  
Enquiry Points  
18. Each Member shall maintain or establish appropriate mechanisms for responding to enquiries 
from service suppliers or persons seeking to supply a service regarding the  measures referred 
to in paragraph 1  of this Section .31 A Member may choose to address such enquiries through 
either the enquiry and contact points established under Articles III and IV of the Agreement or 
any other mechanisms as appropriate.  
Development of Measures  
19. If a Member adopts or maintai ns measures relating to  the authori zation for the supply of a 
service, the Member shall ensure that:  
(a) such measures are based on objective and transparent criteria;32 
(b) the procedures are impartial, and that the procedures are adequate for applicants to 
demonstrate whether they meet the requirements, if such requirements exist;  
(c) the procedures do not in themselves unjustifiably prevent fulfilment of requirements ; 
and 
(d) such measures do not discriminate between men and women .33 
__________  
 
31 It is understood that resource constraints may be a factor in determining whether a mechanism for 
responding to enquiries is appropriate.  
32 Such criteria may include, inter al ia, competence and the ability to supply a service, including to do so 
in a manner consistent with a Member’s regulatory requirements . Competent authorities may assess the 
weight to be given to e ach criterion . 
33 Differential treatment that is reasonable and objective, and aims to achieve a legitimate purpose, and 
adoption by Members of temporary special measures aimed at accelerating de facto equality between men and 
women, shall not be considered discrimination for the purposes of this provision.