WORLD TRADE  
ORGANIZATION   
G/LIC/Q/IND/17 
5 October 2011 
 (11-4806) 
Committee on Import Licensing Original:   English 
  
 
 
IMPORT LICENSING SYSTEM OF INDIA 
 
Questions to INDIA from TURKEY 
 
 
 The following communication, dated 3 October 2011, is being circulated at the request of the delegation of Turkey.  
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 1.  With its reserves of 3.8 billion cubic meters (m
3) extractable marble, 2.7 billion m3 
extractable travertine and 995 million m3 granite Turkey has a great potential in terms of natural 
stones and approximately 40 % of the world's natural stone reserves.   
  As the leading export item of the mining sector and a major source of employment, the 
significance of the natural stone sector in the nation's economy is quite large.     In the marble sector there are 2.100 marble mines, 1.500 small and medium scale plants and 
7.500 workshops where nearly 250.000 individuals are employed.  Almost all of the production is 
being done by the private sector.  While the producti on of natural stone in Turkey in 2009 was nearly 
4 million m
3;  in 2010 almost 5 million m3 production was carried out and the processing facilities 
have a total plate production capacity of 6.5 million m3.  In 2009 Turkey ranked 3rd in the production 
of marble and travertine in the world.    Marble is exported either in blocks or cut a nd polished.  The export potential of the sector is 
developing rapidly parallel to investments.  In 2004-2010 Turkish exports of natural stone have 
increased by 154 per cent from 2.6 million tons to 6.6 million tons.  Export income increased by 152 per cent from 621 million dollars to 1.568 million dollars.  53 per cent of the 2010 natural stone 
exports consist of processed products.  
  In 8
th place just a few years ago in the world na tural stone exportation, the Turkish natural 
stone sector has risen to the 5th place in 2006.  Especially in the exports of marble and travertine, 
Turkey has left behind China, Italy and Spain in 20 09 and became the biggest exporter in the world.  
 2.  Turkey has substantial interest in trade with  India regarding natural stones.  India's share in 
Turkey's exports of natural stones has increased from 2.2 per cent in 2008 to 2.8 per cent in 2009 and 
2010.     Turkey's exports of products subjected to quota and import licensing regime by India 
amounted to 2.93 million tons (424.8 million $) in 20 09, and its exports to India on the same products 
amounted to 111 thousand tons (36.8 million $) in th e same year;  rendering Turkey's share in these 
products in Indian market 35 per cent. 
 G/LIC/Q/IND/17 
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    In line with this strong interest and due to  numerous reports from Ista nbul Mineral and Metals 
Exporters' Association and Turkis h exporters, Turkey closely follows India's import quota and 
licensing regime for marble and similar stones.     In its Replies to Questionnaire on Impor t Licensing Procedures (G/LIC/N/3/IND/12 dated 
27 September 2011), India explained that, in pursuan ce of its Foreign Trade Policy 2009-2014, certain 
restricted items may be imported only with a specific import license or in accordance with the 
applicable Public Notices/Policy Circulars.  These re stricted items include marble and similar stones 
among others.  In addition to the import licensing system, India also maintains an import quota on sandalwood, marble and similar stones. 
 
  India explained in the above-mentioned documen t that import restrictions are maintained on 
grounds of safety, security and the environment.     It is to our understanding that the latest Polic y Circular for the issue of Rough Marble Blocks 
is 36/2009-2014 dated 31 March 2010 applicable for import for the financial year 2010-2011. This 
Policy Circular supersedes earlier Policy Guidelines for the issue of import licenses for rough marble 
blocks and lays down criteria for eligibility, entitlement and "floor price".   3.  As a matter of fact, Turkey has serious c oncerns on many aspects of India' above-mentioned 
regime. First and foremost, Turkey expects from I ndia a WTO-justified rationale for the measures 
being implemented rather than a br oad reference to "safety, security and environment".  Turkey's 
other concerns that need to be addressed are relate d to the scope and operation of this import licensing 
regime including the quota allocation procedures.     Specific questions of Turkey on these aspect s have been brought up on many occasions with 
Indian officials, unfortunately to no avail.  
 4.  Hence, below are Turkey's questions rega rding India's import licensing and quota regime on 
marbles and similar stones:  (a) In its notification G/LIC/N/IND/12, India indicates that "[a]n import quota is being 
maintained on products covered under ITC (H S) Code Nos. 25151100, 25151210, 25151220 
and 25151290 (marble and similar stones)".  The Policy Circular 36/2009-2014 on the other 
hand covers only HS Code Nos. 25151100 and 25151210.  Are there other Policy Circulars regulating import of products under other 2 HS Codes, or are the products under HS Codes 25151220 and 25151290 excluded from the import quota and licensing regime? 
(b) Could India explain how the restriction on imports  of marble and similar stones will alleviate 
concerns regarding "safety, security or the environment"?  In what sense are the import 
licensing regime and import quota necessary for reasons of "safety, security or the environment"?  Could India provide Turkey w ith reliable scientific data that imports of 
marble do create risks for environment and/or th reaten human, animal or plant life or health? 
(c) Why is the eligibility of the units that may make  applications for import licenses restricted in 
the manner set out in Policy Circular 36/2009-2014?  Is it not the case that setting an 
eligibility criterion of 5 years long operation unfair for new operators? 
(d) Why does India impose a ceiling of 300.000 metric tons for the whole of the licensing year?  G/LIC/Q/IND/17 
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  (e) In its notification G/LIC/N/IND/12, India indicates there is no maximum limit to be allocated 
per applicant. However, in Policy Circular 36/ 2009-2014 it is stated that "eligible unit will be 
entitled for an import license on the basis of av erage indigenous sales turnover of processed 
marble slabs/tiles only, in the previous five financial years".  Moreover, the quantity so 
calculated will be further subject to overall ce iling based on the number of marble gang saw 
machines the unit has.  Could India explain this controversy? 
(f) In its notification G/LIC/N/IND/12, India indicat es that the applications are examined as soon 
as they are received.  We, thus, understand that the applications are examined on a first come 
first served basis.  Could India confirm that import licenses are provided on a first come first served basis?  Could India further explain whether the DGFT HQ is required to process 
applications for import licenses within a particular time period?  If so, could India please 
explain where such time periods are published? 
(g) Is the "floor price" a license fee? if so, how is the price determined? 
 
  
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