. /.   WORLD TRADE  
ORGANIZATION  G/LIC/Q/USA/2 
6 November 2006 
 (06-5346) 
Committee on Import Licensing Original:   English 
  
 
 
UNITED STATES' STEEL IMPORT MONITORING AND ANALYSIS SYSTEM
1 
 
Replies from the UNITED STATES to Questions from CHINA2 
 
 
 The following communication, dated 30 October 2006, is being circulated at the request of the delegation of the United States.  
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Replies from the United States to China concerning the 
 
United States Steel Import Monitoring and Analysis System   
 
1. In its notification under Article  5 contained in document G/LI C/N/2/USA/2 (21 June 2005), 
the United States stated that it intended to issu e a final rule before 30 September 2005. While in 
another notification under Article 7.3 contained in document G/LIC/N/3/USA/4 (25 April 2006), it is 
noted that the United States did not publish the final rule until 5 December 2005 and it was declared that there were no changes from the interim final rule. In view of the above information, we would appreciate if the United States could exp lain the reason for the delay. 
The issue of the interim final rule on 11 Ma rch 2005 fulfilled the domes tic legal requirements 
for extending the programme beyond its original 21 Ma rch 2005 expiration.  The effect of an interim 
final rule is essentially the same as that of a final rule;  however, the issuance of an interim final rule 
allows for an additional public comment period.  At  the time the interim final rule was issued, it was 
anticipated that a final rule addressing the comments received, could be issued by 30 September 2005.  
The slight delay in publication of the final rule  allowed the United States to fully address the 
additional comments raised by interested parties in  response to the interim final rule and provided 
increased transparency in the rule-making process. 
2. In both notifications, it is stated  that registered importing companies, their brokers, or their 
agents may apply for a steel import licence and the licensing procedure is automatic. Would the United States please confirm whether there are qualification requirements for being registered 
importing companies, their brokers, or their agents so as to be able to apply for a steel import 
license?  
The primary requirement to be a registered user  is the need for a US street address with a 
functional phone number and e-mail address;  applicants also need an EIN number or a customs 
identification number.  The primary means of communica ting with the applicants is by e-mail.  It is by 
e-mail that the license confirmations are distributed.  There is no charge to become a registered user. 
                                                     
 
1 G/LIC/N/2/USA/2 an d G/LIC/N/3/USA/4 
2 See Understanding on Procedures for th e Review of Notifications (G/LIC/4). G/LIC/Q/USA/2 
Page 2  
 
  3. In both notifications, it is stated that steel  import licences may be applied for up to 60 days 
prior to the expected date of importation. Would the United States please exp lain the reason behind 
the 60-day rule? 
The purpose of the SIMA system is to collect accurate and timely statistics about imports of 
steel into the United States.  If licenses are applied for far in advance of the importation, it is more 
likely that specific information concerning the shipme nt will change by the time of importation.  In 
particular, until the shipment is en route, numer ous changes can occur, including the dates of 
shipment.  To strike an appropriate balance be tween sound statistical record keeping and ease of 
application, it was determined that a period of 60 da ys prior to the expected date of entry would allow 
for sufficient time to obtain a license while minimizing th e potential for data changes.  In this regard, 
it is important to note that the license is needed only at the time of completing all United Stats 
Customs and Border Protection entry requirements, not  at the time of exportation or physical entry of 
the goods. 
4. Again in both notifications, it is stated that the licence is valid for 75 days. Would the United 
States please explain the reason behind the 75- day rule? Would the United States please also 
elaborate on how this 75-day rule works in practi ce? For example, if an importer fails to make 
importation within 75 days on the issuance of a licence, will it get punished? 
The license is valid for 75 days to allow for normal importing processes.  Since licenses can 
be filed for up to 60 days prior to the expected da te of importation, an additional 15 days were added 
to allow for completion of the entry summary pro cess and any possible changes to expected delivery 
times. 
There is no penalty to the applicant for failure to comply with the cancellation.  If the license 
is not used within the 75 days, the user is simply  asked to cancel the licen se.  When the licenses are 
reconciled, SIMA takes note of the licenses that have not been used.  After 75 days, the license is no longer valid and a new license would need to be obt ained for finalization of customs entry summary 
should the steel entry occur. 
5. Would the US please explain the legal status of a licence which has been issued for more than 
60 days but less than 75 days? Is it still possible fo r an importer to make importation under such a 
licence within this period? 
In all cases, a license is valid for 75 days.  The window for the expiration of the licenses was 
designed to allow the applicants flexibility  as to when they apply for the license. 
6. In the Article 7.3 notification, it is stated t hat the licence may be used only once. Would the 
United States please explain why it deems it necessary to have this requirement? 
The purpose of the licensing program is to collect  accurate statistical information about steel 
imports into the United States.  The most accurate way to collect this information is shipment by 
shipment.  A license which allows multiple entries is  difficult to reconcile.  The system was designed 
to place very little burden on users of the system.  The license application process is very straight 
forward and automatic – generally taking less than 10 minutes to complete.  There is no charge for the 
license. 
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