G/LIC/Q/ECU/4  
29 November 2013  
(13-6546)  Page: 1/4  
Committee on Import Licensing  Original: Spanish  
 
  REPLIES TO QUESTIONS FROM THE UNITED STATES CONCERNING  
RESOLUTIONS 102 OF THE FOREIGN TRADE COUNCIL (COMEX)  
AND 299-A OF THE MINISTRY OF AGRICULTURE, LIVESTOCK,  
AQUACULTURE AND FISHERIES (MAGAP) 
REPLIES FROM ECUADOR 
The following notification, dated 22 November 2013, is being circulated at the request of the 
delegation of Ecuador. 
 
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Document G/LIC/Q/ECU/3, of 9 August 2013, contains questions raised by the United States in the Committee on Import Licensing on th e import licences adopted by Ecuador through 
Resolutions 102 of the Council on Foreign Trad e and 299-A of the Ministry of Agriculture, 
Livestock, Aquaculture and Fisheries, published on 2 April and 31 July 2013, respectively. 
The replies to those questions are set out below: 
Article 3.2 of the ILA states that "n on-automatic licensing shall not have 
trade-restrictive or distortive effects on imports additional to those caused by the 
imposition of the restriction. Non-automa tic licensing procedures shall correspond 
in scope and duration to the measure they are used to implement and shall be no more 
administratively burdensome than absolutel y necessary to administer the measure".  
Question 1: Please identify the measure that the non-automatic licensing procedures 
set forth in Resolutions 102 and 299-A impl ement and explain how that measure is 
consistent with the GATT 1994. 
The non-automatic import licences adopted through Resolution 102 of the COMEX and applied 
under the procedure of MAGAP Resolution 299-A are used administratively in order to define and 
determine annual food balances in terms of production chains, as mandated by 
Ecuador's Constitution and taking into account the non-commercial concern of food security, which makes it necessary to maintain a balance between national production and imports in such a way as to meet food supply requirements on an ongo ing basis, by coordinating the country's resources 
with available supplies on the international market. 
The procedure for implementing non-automatic import licences is based on the provisions 
of Article 3 of the Agreement on Import Licensing Procedures, guaranteeing that the administrative 
mechanism is predictable, transparent and non-discriminatory. 
Question 2: How is the non-automatic licence requirement no more administratively 
burdensome than absolutely necessary to  administer the underlying measure? 
The non-automatic import licensing system entails no type of additional administrative burden 
for importers. In addition, this procedure is fully incorporated in the "Single Window" import system (Ecuapass) which forms part of the national trade facilitation policy, a system which guarantees the transparency and flexibil ity of administrative trade procedures. G/LIC/Q/ECU/4 
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  Resolution 299-A appears to provide that it is  necessary to regulate the procedures and 
impose requirements on the activities of importers in the country, including verifying 
the ethical suitability and responsibilities of  the business operators with respect to tax 
matters, labour, and commitments such bu sinesses have undertaken in Ecuador's 
various Advisory Councils regarding different agro-production chains. 
Question 3: What are the Ecuador Government 's procedures for verifying such ethical 
and other responsibilities of its importers? 
The procedures and requirements referred to  in the MAGAP Resolution, in its ninth 
preambular paragraph, are connected with the legal obligations provided for in the general Ecuadorian regulations to which business operat ions are subject; these are regulated by tax 
and labour laws and compliance is verified by the Internal Revenue Service and the 
Ministry of Labour Relations, respectively. 
Question 4: Are these responsibilities and th e procedures for verification published? 
If so, where? 
Yes, these responsibilities are published in Ecuador's Official Journal via the relevant laws, 
namely: the Law on the Internal Tax Regime and the laws related thereto; the Labour Code, the Organic Code of Production, Trade and Investment, among others. 
Question 5: What verification procedures, if  any, must domestic producers undergo to 
sell in Ecuador's market? 
Domestic producers are subject to the same legal obligations set out in the above-mentioned laws 
and regulations. 
Article 1 of Resolution 299-A appears to subject all importers – without exception – 
to the non-automatic licensing regime, and pr ovide that the licensing regime is based 
on whether such imports will "complement" national production's ability to satisfy 
internal domestic demand. Furthermore, Article 3 appears to require MAGAP 
to undertake a "technical analysis" in determ ining the volume of products that Ecuador 
will permit to be imported, and provide that such analysis will be based on (among other 
factors) an importer's purchase of domest ic products, domestic production, domestic 
demand and consumption. 
Question 6: Please explain the legal ba sis under the WTO for the use of these 
import licensing procedures, and the fact ors that apparently are applied in the 
"technical analysis" in determining the quan tity of imports that will be permitted. 
The non-automatic import licensing procedure described in MAGAP Resolution 299-A is based 
on Article 3 of the Agreement on Import Licens ing Procedures. The technical factors considered 
in preparing the technical reports for the administration of non-automatic licences are defined 
in Resolution 299-A and are geared to the analysis of food balances for products covered by the regime, on the basis of a transparent, predictable and non-discriminatory review. 
Question 7: How long will the "technical analysis" take? 
The technical analysis will take as short a time as possible, but no longer than two months, 
following expiry of the time-limit for the presentation  of import intentions on the part of importers. 
Question 8: Is the "technical analysis" conducted for individual requests to import? 
Or is it conducted to determine the overall quantity of imports th at will be permitted? 
The purpose of the technical analysis is to establish overall import quantities, which will result 
in the determination of individual values for each importer that has requested a licence, on 
the basis of growth in demand and domestic co nsumption, national food security objectives, 
the historical import record of applicants, etc. G/LIC/Q/ECU/4 
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  Question 9: Will the results and reasoning of  the "technical analysis" be published? 
The results of the entire technical analysis will be submitted for consideration to all stakeholders in 
the agricultural production chains covered by this regime, as is expressly stipulated in Article 5 of Resolution 299-A, and the licences will be published through official mass communication media, 
as stipulated in Article 6 of Resolution 299-A. 
It appears that the MAGAP will make its technical analysis available to domestic 
stakeholders through advisory councils, cons ultation boards and other consultative 
mechanisms to seek their recommendations on whether or not to authorize imports. 
Question 10: What role do these consultations play in the decision to authorize imports? 
The purpose of making the technical analyses available to the production chain stakeholders 
through advisory councils, consultation boards and other consultative mechanisms is to maintain 
absolute transparency in the administration of the regime, provide timely information 
for decision-making by the stakeholders and obta in recommendations from them, including from 
importers, as is clearly stated in Article 5 of Resolution 299-A. 
Question 11: Are importers required or is  it otherwise necessary for importers to 
disclose confidential information in this consultative process? 
No, importers are not obliged to disclose confiden tial information beyond the information they 
regularly provide, which is in the public domain. 
Question 12: Are domestic stakeholders subjec t to a consultative me chanism in order to 
allow domestic sales? 
Once the products described in MAGAP Resolution 299-A are produced or imported and enter 
the market, there is no restriction on their being marketed. 
Question 13: Is it possible th at, after the results of the "technical analysis", no imports 
would be permitted? 
No, Regulation 299-A does not provide for any possib ility of prohibition of imports during a given 
year. 
Question 14: The resolution seems to de ny, under any circumstances, the entry 
of imports into Ecuador in times of output of national production in order to avoid 
serious damage to domestic producers. How do es Ecuador define its "harvest period" for 
each item and how does Ecuador measure "serious damage" for each item? 
Ecuador is a developing country whose agricultural sector is dominated by small and medium-sized 
producers who depend on their productive activity for their survival: however, there are times 
when factors external to national production which have an influence on quality of products, such as enormous amounts of domestic support for production and export subsidies, make 
it necessary to count imports outside national harvest periods for these producers, in the case 
of products whose output is highly seasonal on account of seasonal cycles; and this situation is also reflected in a food security concern. This provision applies solely to plant products covered 
by the non-automatic licensing regime under Resolution 299-A, which does not provide 
for any restriction on imports of such products. G/LIC/Q/ECU/4 
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  Please explain the process by which licence s are granted and the relevant quantities 
determined. 
Question 15: Article 2 of Resolution 299-A appears to require importers to request 
an import licence from MAGAP during the mont h of October of a "given year", in order 
for them to be able to fulfil "their requir ements for the following year". Are domestic 
producers required to submit to a similar pr ocedure in order to market their products 
in Ecuador? If so, please describe these procedures in detail. If not, why not? 
Domestic producers are not subject to a similar procedure of "non-automatic import licensing" 
prior to domestic marketing; thus, import licensing applies only to imported products. 
Question 16: At the same time, Article 6 appears to provide that the allocation 
of licences will be announced in December, while Article 13 appears to provide that 
a licence is valid only for 90 days, and only  for a single shipment. Please explain how 
these requirements operate in practice. 
Article 6 of Resolution 299-A stipulates that licence authorizations are to be published 
in December of each year, before the initiation of the documentary procedure from January of the 
following year, whereby the formal import request will be made. At the same time, Article 13 provides that import licences shall be valid once they have been authorized, in accordance with the 
periods of validity permitted under the WTO Agreement on Import Licensing Procedures. 
Question 17: It appears that imports from the Andean Community are exempt from this 
licensing regime. Please explain the legal basis under the WTO for this exemption. 
Please explain, in addition, whether an d how imports from the Andean Community 
are considered in the "technical analysis" under Article 3 of Resolution 299-A. 
Andean intra-community trade is governed by the Andean regulations set forth in the 
Cartagena Agreement and the subsidiary supranational legislation, in accordance with WTO rules 
under the Enabling Clause, since a preferential  regime has been established in the shape 
of a free trade area.  
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