G/LIC/Q/IND/25
17 March 2015
(15-1508)  Page: 1/2
Committee on Import Licensing  Original: English
 
 IMPORT LICENSING SYSTEM OF INDIA 
REPLIES BY INDIA TO THE QUESTIONS FROM THE EUROPEAN UNION 
The following communication, dated 11 March 2015, is being circulated at the request of the 
delegation of India. 
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India thanks the European Union for the questions on its Import Licensing System circulated in document G/LIC/Q/IND/23. 
 
1. India, in its notification describes the "main licensing system". Could India clarify 
whether other licensing systems are in place?  In particular, could India clarify whether 
the legislation leaves the designation of products to be subject to licensing to 
administrative discretion? Should it be th e case, could India submit further details?  
 Reply: In India, the import licensing is governed under the Foreign Trade (Development & 
Regulation) Act, 1992. Section 3 of this Act author izes the Central Government to make provision 
for prohibiting, restricting or otherwise regulating , the import or export of goods. However, the 
administrative discretion available in the matter is not absolute. Para 2.6 of the Foreign Trade Policy lays down the boundaries within which the discretion is to be applied while taking a measure 
to restrict imports. This Para 2.6 of the Foreign Trade Policy is aligned to Article XX of GATT and 
includes the grounds such as protection of public morals; protection of human, animal or plant life 
or health; conservation of exhaustible natural resources etc. 
 
2.  Could India provide the rationale for ma intaining import licensing for live animals, 
including fish and planting material?  
 
Reply: These measures are covered under GATT Article XX(b) as was notified by India in WTO 
document no. WT/BOP/N/24.  
 
3.  According to point 6.I of the notification , India maintains import quotas on products 
covered under ITC (HS) Code Nos. 25151100, 25151210, 25151220 and 25151290 (marble and similar stones). With reference to this measure, could India clarify the 
following issues?  
 
3(a) Could India reply to the questions und er point 6.III of the questionnaire with 
specific reference to the import quotas on marble and similar stones?  
[Point 6.III of questionnaire: Are licences a llotted for certain goods partly or only to 
domestic producers of like goods?  What steps are taken to ensure that licences allocated are actually used for imports?  Are unused allocations added to quotas for a succeeding period?  Are the names of importers  to whom licences have been allocated made known to 
governments and export promotion bodies of expo rting countries upon request?  If not, for 
what reason?  [Indicate products to which replies relate.] 
 
Reply: The first part of this question asks whether licenses are allocated for certain goods 
partly or only to domestic producers of like g oods. In this regard, it may be noted that under 
the import licensing regime of marble and similar stones, an eligible importer need not be a 
domestic producer of similar goods, but the license is granted to those who undertake 
further processing. G/LIC/Q/IND/25 
 
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Further, the utilization of license is monitored through a system of monthly return which the importers are required to file. The quotas are allocated on an annual basis and the unutilized quota is not added to the next year’s allocation. 
 
On the last part of question no. 6.III of the A nnual Questionnaire, it is to inform that the 
names of license holders can be made availa ble to the governments and export promotion 
bodies of the exporting countries, upon request. 
 3(b) As asked at the last Import Lice nsing Committee, we would welcome further 
clarifications on how the import of marble  and marble products would pose safety 
issues, and how such issues are handled with regards to India's domestic natural 
stone and stone processing industry.  
 
3(c) Similarly, could  India submit further clarificat ions on how the quantitative 
restrictions on importing marbles relate to security concerns, and how such concerns are handled with regard  to India's domestic industry? 
 
Reply : Marble and similar stones are restricted for imports to India due to reasons of 
"conserving exhaustible natural resources", which is covered under Article XX (g) of 
GATT 1994.  India allows import of these goods through specific import licenses in 
accordance with Policy notified for this. 
 On the issue of “how such concerns are handled with regard to India's domestic industry”, it 
may be noted that domestic marble mining is also subject to licensing and production 
control due to concerns of environmental safe ty, and judicial pronouncements by Indian 
Courts in this regard. 
 
3(d) Then, could India provide explanations on how environmental concerns relating to 
natural stone industry are handled in Indi a and with regard to imports and India's 
domestic industry?  
 
Reply : Marble mining in India is subject to licensing and production control due to safety of 
the environment and on grounds of related judi cial pronouncement. Apart from mining of 
stones, the cutting and further processing of marble blocks also have an additional adverse 
impact on environment requiring such activities to be regulated.  
 
There are various judicial pronouncements forbidding mining activity in reserve forests. 
These pronouncements are basically aimed at preserving ecologically sensitive areas as well as  to e ns ure that the re  is  no d is p lac e me nt of vulne rab le  p op ulatio ns  from min ing  p roje c t areas. In other words the domestic industry is also subjected to comparable environment 
norms. 
 3(e) In the end, India stated that the mi nimum import price is justified for quality 
reasons. In this respect, could India indicate what measures, if any, India has put 
in place with regards ensuring comme nsurate quality for India's domestic 
industry? 
 
Reply: The policy related to imports of Rough Marble Blocks for the financial year 2014-15 
has been revised and notified by Notification  No.99 dated 20.11.2014, a copy of which is 
available on http://www.dgft.gov.in/ .  The same may please be referred to, for further 
details. 
 
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