S/WPDR/W/61  
 
26 November 2018  
(18-7438) Page: 1/6 
Working Party on Domestic Regulation  Original: English  
 
COMMUNICATION FROM I NDIA  
GATS ARTICLE VI:4 - DISCIPLINES FOR SUPP LY OF A SERVICE THRO UGH THE PRESENCE OF A 
NATURAL PERSON OF A MEMBER IN THE TERRIT ORY OF ANOTHER MEMBE R 
 
 
The following communication, dated 22 November  2018, from the delegation of India is being 
circulated to the Members of the Working Party on Domestic Regulation.  
 
 
 
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  GATS ARTICLE VI:4 - DISCIPLINES FOR SUPP LY OF A SERVICE THRO UGH THE PRES ENCE 
OF A NATURAL PERSON OF A MEMBER IN THE T ERRITORY OF ANOTHER MEMBER  
DRAFT  FOR DISCUSSION  
I INTRODUCTION  
1. Pursuant to Article VI:4 of the GATS, Members have agreed to the following disciplines on 
domestic regulation which apply only to domestic regulation for the supply of a service through the 
presence of a natural person of a Member in the territory of another Member.  
2. Members recognize the right to regulate, and to introduce new regulations, on the supply of 
services within their territories  in order to meet national policy objectives and, given asymmetries 
existing with respect to the degree of development of services regulations in different countries, 
the particular need of developing countries to exercise this right. These disciplines sho uld not be 
construed to prescribe or impose particular regulatory approaches or any particular regulatory 
provisions in domestic regulation.  
3. Members recognize the difficulties which may be faced by individual developing country 
Members and in particular  the least -developed country Members, in implementing disciplines on 
domestic regulation. Members also recognize the difficulties which may be faced by service 
suppliers, particularly those of least -developed country Members and developing country 
Members,  in complying with measures relating to licensing requirements and procedures, 
qualification requirements and procedures, and technical standards of other Members.  
II DEFINITIONS  
4. "Licensing requirements " are substantive requirements, other than qualificati on 
requirements, with which a natural person is required to comply in order to obtain, amend or 
renew authorization to supply a service.  
5. "Licensing procedures " are administrative or procedural rules that a natural  person , 
seeking authorization to supply a service, including the amendment or renewal of a licen ce, must 
adhere to in order to demonstrate compliance with licensing requirements.  
6. "Qualification requirements " are substantive requirements relating to the competenc e of a 
natural person in relation to the supply a service, and which are required to be demonstrated for 
the purpose of obtaining authorization to supply a service.  
7. "Qualification procedures " are administrative or procedural rules that a natural person 
must adhere to in order to demonstrate compliance with qualification requirements, for the 
purpose of obtaining authorization to supply a service.  
8. "Technical standards " are measures that lay down the characteristics of a service or the 
manner in which it is s upplied. Technical standards also include the procedures relating to the 
enforcement of such standards.  
III. GENERAL PROVISIONS  
9. These disciplines apply to measures by Members relating to licensing requirements and 
procedures, qualification requirements and  procedures, and technical standards affecting trade in 
services through presence of natural persons where specific commitments are undertaken. They 
do not apply to measures to the extent that they constitute limitations subject to scheduling under 
Article  XVI or XVII.  
10. Measures relating to licensing requirements and procedures, qualification requirements 
and procedures, and technical standards shall be based on objective and transparent criteria that S/WPDR/W/61  
 
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  are relevant to the supply of the services to which they apply, such as competence and ability to 
supply a service.  
11. Nothing in these disciplines prevents Members from exercising the right to introduce or 
maintain regulations in order to ensure provision of universal service, in a manner consistent with 
their obl igations and commitments under the GATS.  
IV. TRANSPARENCY  
12. Each Member shall publish promptly, through printed or electronic means, in one of the 
official languages of the WTO measures of general application relating to licensing requirements 
and procedures , qualification requirements and procedures, and technical standards, as well as 
detailed information regarding these measures. This information shall include, inter alia, where it 
exists:  
(a) contact information of relevant competent authorities;  
(b) applicable licensing requirements and criteria, terms and conditions of licences, and 
 licensing procedures and fees;  
(c) applicable qualification requirements, criteria and procedures for verification and 
 assessment of qualifications including fees;  
(d) applicab le technical standards;  
(e) procedures relating to appeals or reviews of applications;  
(f) procedures for monitoring, or enforcing compliance with the terms and conditions of 
 licences or qualifications;  
(g) where practicable, opportunities for public involvement, suc h as through hearings or 
 comment;  and 
(h) the indicative timeframe for processing of an application.  
Where publication is not practicable, such information shall be made otherwise publicly available.  
13. Each Member shall maintain or establish appropriate mechanisms for responding to 
enquiries from any service suppliers regarding any measures relating to licensing requirements 
and procedures, qualification requirements and procedures, and technical standards. Such 
enquiries may be addressed through the enqu iry and contact points established under Articles III 
and IV of the GATS or any other mechanisms as appropriate.  
14. To the extent practicable, and in a manner consistent with its legal system for adoption of 
measures, each Member shall endeavour to:  
(a) ensure that any measures of general application it proposes to adopt in relation to matters 
 falling within the scope of these disciplines are published in advance; and  
(b) provide reasonable opportunities for service suppliers to comment on such proposed 
 measures . 
15. The competent authority of a Member may consider the comments, as appropriate, and it 
is understood that the submission of comments does not oblige such authority to accept them, in 
whole or in part, or to provide any individualized or collectiv e response or reaction to the same.  
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  V. LICENSING AND QUALIF ICATION REQUIREMENTS  
16. Where a Member imposes licensing or qualification requirements for the supply of a 
service, it shall ensure that adequate procedures exist to enable an applicant to fulfill such 
requirements.  
17. In verifying and assessing qualifications and licensing requirements, the competent 
authority shall give due consideration to relevant professional experience of the applicant as a 
complement to educational qualifications. Where the comp etent authority considers that 
membership in a relevant professional association in the territory of another Member is indicative 
of the level of competence or extent of experience of the applicant, such membership shall also be 
given due consideration.  
18. Provided an applicant has presented all necessary supporting evidence of qualifications 
and licensing, the competent authority shall identify any deficiency and inform the applicant of 
requirements to meet the deficiency. Such requirements may include, inter alia, course work, 
examinations, training, and work experience. Where appropriate, each Member shall allow 
applicants to fulfill such requirements in the home, host or any third jurisdiction.  
19. Once qualification requirements and any applicable licensing re quirements have been 
fulfilled, each Member shall ensure that a service supplier is allowed to supply the service without 
undue delay, subject to the applicable terms and conditions.  
20. Each Member shall afford adequate opportunities and mechanisms to other M embers, 
especially developing country Members, to negotiate their accession to agreements or 
arrangements pertaining to recognition as referred to in Article VII :1 of the GATS. The Council for 
Trade in Services shall regularly monitor implementation of the se agreements or arrangements.  
VI. LICENSING AND QUALIF ICATION PROCEDURES  
21. Each Member shall ensure that licensing and qualification procedures are simple, 
reasonable and clear for applicants to demonstrate whether they meet the relevant licensing or 
qualification requirements.  
22. Each Member shall ensure that the licensing and qualification procedures used by, and the 
related decisions of, the competent authority are impartial with respect to all applicants.  
23. Each Member shall, to the extent practicable, avoid requiring an applicant to approach 
more than one competent authority per application for a licen ce or for qualification procedures. A 
Member may require multiple applications for such licen ce or qualification procedures, where a 
service is within the  jurisdiction of multiple competent authorities.  
24. An applicant should be permitted to submit an application at any time, except where 
licences are limited in numbers, including in public tendering. Where specific time periods for 
applications exist, an applicant shall be allowed a reasonable period for the submission of an 
application. The competent authority shall, to the extent practicable, initiate the processing of an 
application without undue delay. To the extent practicable, competing authorities of Members 
should endeavour to accept applications in electronic format which are authenticated in accordance 
with the Member’s domestic law, in  place of original documents, unless they require original 
documents to protect the integrity of the qualification and/ or licensing process.  
25. Where the competent authority considers that an application is incomplete and/or 
determines that it needs addition al information to reach a decision for the application to be 
considered complete, it shall, to the extent practicable, within a reasonable period of time:  
(a) inform the applicant ;  
(b) identify the additional information required t o complete the application ; and 
(c) provide the oppo rtunity to correct deficiencies;  S/WPDR/W/61  
 
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  where none of the above is practicable, and the application is rejected due to incompleteness, 
ensure that the applicant is informed within a reasonable period of time.  
26. Each Member shall, to the extent prac ticable, ensure that the processing of an application, 
including reaching a final decision, is completed within a reasonable timeframe from the 
submission of a complete application. Each Member shall endeavo ur to the extent practicable to 
provide an estima tion of the timeframe for processing of an application.  
27. If the competent authority rejects an application, it shall inform the applicant without 
undue delay, and to the extent practicable in writing. To the extent practicable, it should 
endeavour to inform  the applicant, either upon their own initiative or upon request, of the reasons 
for rejection of the application and where possible, any deficiencies that have been identified. It 
should inform the applicant of the timeframe and of the procedures for any available appeal 
against the decision. It should permit an applicant to resubmit an application in accordance with 
the relevant authority's established procedures, except where the relevant authority limits the 
number of licen ces or qualification determina tions. It shall permit an applicant to resubmit an 
application within reasonable time limits subject to fulfilment of prescribed requirements and 
procedures and availability and/or eligibility. An applicant should not be prevented from submitting 
another a pplication solely on the basis of a previously rejected application.  
28. The competent authority shall, to the extent  its domestic law  permits , accept 
authenticated copies in place of original documents.  
29. In the case of an application considered complete under domestic laws and regulations, 
within a reasonable period of time after the submission of the application, ensure that the 
processing of the application is completed, and that the applicant is informed of the decision 
concerning the application, and to the  extent possible in writing. In case of pending applications, 
the competent authorities of a Member shall at the request of the applicant, provide without undue 
delay information concerning the status of the application.  
30. Each Member shall ensure that a lic ence, once granted, enters into effect without undue 
delay in accordance with its terms and conditions. Each Member shall also ensure that, once 
qualification requirements and any applicable licensing requirements have been fulfilled, a service 
supplier is  allowed to supply the service without undue delay. This is without prejudice to the 
fulfilment of any requirements other than the applicable qualification and licensing requirements.  
31. Each Member shall ensure that application and processing fees related to licensing and 
qualification procedures are reasonable and transparent.  
32. Where examinations are required for qualification procedures, the competent authority of 
a Member shall schedul e such examinations at reasonably frequent intervals and provide a 
reasonable period of time to enable applicants to request to take the examination. Each Member 
shall, to the extent practicable, having regard to the cost and administrative burden involved , 
encourage the competent authorities to use electronic means for conducting such examinations 
and to provide opportunities for conducting such examinations from the home country of the 
applicant.  
VII. TECHNICAL STANDARDS  
33. Each Member shall encourage its c ompetent authorities, when adopting technical 
standards, to adopt technical standards developed through open and transparent processes, and 
shall encourage anybody designated to develop technical standards to use open and transparent 
processes . 
VIII.  TRANS ITION  
34. A developing country Member shall not be required to apply these disciplines for a period 
of [X] years from their date of entry into force. This period shall be applicable for a graduated LDC 
from the date of graduation from LDC status. Before the end of t his transitional time period, upon 
request by a developing country Member, the Council for Trade in Services may extend the time 
period to implement these disciplines.  S/WPDR/W/61  
 
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  35. Where circumstances allow for the phased introduction of new licensing requirements and 
procedures, qualification requirements and procedures, and technical standards, Members shall 
consider longer phase -in periods for such measures in service sectors and modes of supply of 
export interest to developing country Members.  
36. LDCs shall not  be required to apply these disciplines. LDCs are nonetheless encouraged to 
apply these disciplines, to the extent compatible with their special economic situation and their 
development, trade and financial needs.  
IX. DEVELOPMENT  
37. A Member may accord re duced administrative fees to service suppliers from developing 
country Members.  
38. Developed country Members, and to the extent possible other Members, shall provide 
technical assistance to developing country Members and in particular least -developed coun try 
Members (LDCs), upon their request and on mutually agreed terms and conditions. Technical 
assistance shall be aimed, inter alia at: 
(a) developing and strengthening institutional and regulatory capacities to regulate the supply 
of services and to implement these disciplines;  
(b) assisting developing country and in particular LDC service suppliers to meet the relevant 
requirements and procedures in export markets;  
(c) facilitating the establishment of technical standards and participation of develop ing country 
Members and in particular LDCs facing resource constraints in the relevant international 
organizations;  and 
(d) assisting through public or private bodies and relevant international organizations, service 
suppliers of developing country Members  in building their supply capacity and in complying 
with domestic regulation in their markets. Such assistance may also be provided directly to 
the respective service suppliers.  
X. INSTITUTIONAL PROVIS IONS  
39. The Council for Trade in Services shall establ ish a Committee on Domestic Regulation for 
Mode 4 to oversee the implementation of these disciplines as well as any further work under 
Article VI:4 of the GATS.  
40. The Council for Trade in Services shall, upon request from any Member, review the 
operation  of these disciplines and make recommendations as appropriate.  
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