G/LIC/Q/ECU/3  
 
9 August 2013  
(13-4269)  Page: 1/3  
Committee on Import Licensing  Original: English  
 
 REPUBLIC OF ECUADOR IMPORT LICENSING REQUIREMENTS 
QUESTIONS FROM THE UNITED STATES 
 
The following notification, dated 6 August 2013, is being circulated at the request of the delegation 
of the United States.  
 
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 On 1 March 2013 and 14 June 2013, we understand that the government of Ecuador issued  two 
resolutions establishing new, non-automatic import licensing requirements ("Resolucion No. 102, 
Comite de Comercio Exterior" and, "Resolucion No. 299-A, La Subsecretaria de Comercializacion del Ministerio de Agricultura, Gandaderia , Acuacultura y Pesca" (MAGAP)).  These new 
non-automatic licensing requirements now apply to imports of a number of products from all WTO 
Members except the Andean Community.  While the United States notes Ecuador’s right to determine its own import licensing requirements, we have questions about these resolutions in 
light of Ecuador’s commitments to the WTO Agreement on Import Licensing Procedures.   
 Based on our knowledge of these resolutions, they contain new requirements which threaten to seriously impair trade by establishing a complicated and discretionary import permit system for 
the products named in Resolutions No. 102 and 299-A. We note, too, that the new requirements 
will impair the ability of companies with significant investment in Ecuador to import products that they need to conduct business in Ecuador.  In light of the stated desire of all WTO Members, 
reflected in the preamble of the Import Licensin g Agreement, "to simplify, and bring transparency 
to, the administrative procedures and practices used in international trade, and to ensure the fair and equitable application and administration of su ch procedures and practices," we respectfully 
request that the government of Ecuador: 
 (1) fully and promptly respond to our questions and concerns outlined below; and,   
(2) promptly publish any measures (including Resolutions No. 102 and 299-A) or changes in 
measures in accordance with Article 1.4 of the ILA so that governments and traders are able to become acquainted with them and provide comment s on them prior to their implementation, and 
notify such measures or changes to the Secretariat in accordance with Articles 1.4 and 5.  We ask 
Ecuador to take note of Article 5.2(g) of the ILA, which states that “in the case of non-automatic import licensing procedures, indication of the measure being implemented through the licensing 
procedure” “shall” be included in the notification.    
 Article 3.2 of the ILA states that “Non-automatic licensing shall not have trade-restrictive or distortive effects on imports additional to thos e caused by the imposition of the restriction. 
Non-automatic licensing procedures shall correspond in scope and duration to the measure they 
are used to implement, and shall be no more administratively burdensome than absolutely necessary to administer the measure.”  
 
 Please identify the measure that the non-automatic licensing procedures set forth in 
Resolutions 102 and 299-A implement, and explain how that measure is consistent with 
the GATT 1994. 
 G/LIC/Q/ECU/3 
 
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   How is the non-automatic license requirement no more administratively burdensome than 
absolutely necessary to administer the underlying measure? 
 Resolution 299-A appears to provide that it is necessary to regulate the procedures and impose 
requirements on the activities of importers in th e country, including verifying the ethical suitability 
and responsibilities of the business operators with respect to tax matters, labour, and commitments such businesses have undertaken in Ecuador’s various Advisory Councils regarding 
different agro production chains.   
 
 What are the Ecuador government’s procedures for verifying such ethical and other 
responsibilities of its importers?   
 Are these responsibilities and the procedures for verification published?  If so, where?   
 What verification procedures, if any, must domestic producers undergo to sell in Ecuador’s 
market? 
 
Article 1 of Resolution 299-A appears to subject all importers -- without exception—to the non-automatic licensing regime, and provide that th e 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 determining the volume of products that Ecuador w ill permit to be imported, and provide that such 
analysis will be based on (among other factors) an importer’s purchase of domestic products, 
domestic production, domestic demand and consumption. 
 
 Please explain the legal basis under the WTO for the use of these import licensing 
procedures, and the factors that apparently are applied in the “technical analysis” in 
determining the quantity of imports that will be permitted. 
 How long will the “technical analysis” take? 
 Is the “technical analysis” conducted for individual requests to import?  Or is it conducted 
to determine the overall quantity of imports that will be permitted? 
 Will the results and reasoning of the “technical analysis” be published? 
 
It appears that the MAGAP will make its technical analysis available to domestic stakeholders 
through advisory councils, consultation boards and other consultative mechanisms to seek their recommendations on whether or not to authorize imports.   
 
 What role do these consultations play in the decision to authorize imports?   
 Are importers required or is it otherwise necessary for importers to disclose 
confidential information in this consultative process?  
 Are domestic stakeholders subject to a consultative mechanism in order to allow 
domestic sales? 
 Is it possible that, after the results of the “technical analysis”, no imports would be 
permitted? 
o The resolution seems to deny, 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 does Ecuador define its “harvest period” for each item 
and how does Ecuador measure “serious damage” for each item?   
Please explain the process by which licenses are gr anted and the relevant quantities determined.  
  
 Article 2 of Resolution 299-A appears to require importers to request an import license 
from MAGAP during the month of October of a “given year,” in order for them to be able to 
fulfil “their requirements for the following year.”  Are domestic producers required to 
submit to a similar procedure in order to market  their products in Ecuador?  If so, please 
describe these procedures in detail.  If not, why not? 
 At the same time, Article 6 appears to provide that the allocation of licenses will be 
announced in December, while Article 13 appears to provide that a license is valid only for 90 days, and only for a single shipment.  Please explain how these requirements operate 
in practice.   
 G/LIC/Q/ECU/3 
 
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  It appears that imports from the Andean Community are exempt from this licensing regime.  
Please explain the legal basis under the WTO for th is exemption.  Please explain, in addition, 
whether and how imports from the Andean Community are considered in the “technical analysis” under Article 3 of Resolution No. 299-A.  
 
 
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