WORLD TRADE  
ORGANIZATION  G/LIC/Q/BRA/6 
27 October 2008 
 (08-5191) 
Committee on Import Licensing Original:   English 
  
BRAZIL’S
 NON-AUTOMATIC  IMPORT  LICENSING  PROCEDURES 
 
Replies from BRAZIL to questions by the UNITED STATES  
  
 The following communication, dated 21 October 2008, is being circulated at the request of 
the delegation of theBrazil.  
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 Replies by Brazil to the questions from the United States circulated under document 
G/LIC/Q/BRA/4:  
1. Our exporters have informed us that Braz il maintains a non-automatic import license 
system for imports of toys.  It appears that  this license requirement was implemented towards 
the end of 2005, shortly before Brazil’s safeguar d mechanism for toys was set to expire.  Has 
Brazil notified this non-automatic import li cense requirement concerning toys to the WTO 
Committee? 
 As mentioned in previous Brazilian notifica tions to the Committee of Import Licensing, the 
list of products subject to non-automatic import licensing can be found on the webpage of the 
Ministry of Development, Industry and Foreign Trad e. This information can also be found in the 
notifications pursuant to Articles 5, 1.4(a) and 8.2( b) that Brazil has just submitted to the Committee. 
The specific situation of toys, as a product subject to import licensing procedures, is mentioned in those lists.  
What provisions of Brazil's law establish and implement this requirement? 
 Current requirements related to the import li censing for toys are established in Directive 
SECEX No. 36/2007. Besides general rules applie d to non-automatic import licensing procedures, 
Directive SECEX no. 36/2007 contains specific provisions  for toys in paragraph 4 of its Article 10, 
and in item VI of its Annex B. 
 
2. In its recent questionnaire response, submi tted October 2007, Brazil indicated that non-
automatic import licenses are required for prod ucts which “may cause damage to human, plant 
or animal health; products capable of causing environmental damage; products classified as 
weapons or made for warlike purpose; products  subject to non-tariff quotas… and products 
subject to tariff quotas.”  Do all toys fall under one of these categories? If so, which? 
 In the answers to the questionnaire cited by th e US, Brazil states that the products subject to 
non-automatic import licensing are “in their majority ” products which may cause damage to health or 
the environment, products classified as weapons or products subject to quotas. Therefore, the 
elements mentioned in the question are part of a non-exhaustive list. 
 G/LIC/Q/BRA/6 
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   If not, what is the reason fo r the import license requirement? 
 
 Toys are subject to non-automatic import licensing procedures because there are technical regulations that they must comply with. Those t echnical regulations were notified to the Committee 
on Technical Barriers to Trade. 
 
3. The United States has been advised by our exporters that Brazil relies upon an 
unofficial reference price system to determine wh ether to issue an import license for toys.  
While these reference prices are apparently widely known in the industry, it does not appear 
that they have ever been published by the Government of Brazil.  Brazil’s most recent 
notification to the Committee does not include customs valuation as an authorized purpose for 
the application of import licensing requirements.   Does Brazil use such a system to allocate 
import licenses?   
Brazil does not use reference prices as a criterion to allocate import licenses. 
 What specific criteria does Brazil use for approving or denying import license 
applications for shipments of toys?  
 The criteria for approving or denying import licen se applications for shipment of toys are 
established in item VI of Annex B of Directive SECE X No. 36. It reads:  "The approval of import 
license applications for the shipment of toys  depends on the compliance with the following 
requirements, in addition with those contained in Title 1 of this Directive:  (a) to indicate, in the field 
‘complementary information’ of the licensing form, the number of the certification contract, signed by 
the importer and the certification body accredited by INMETRO;  and (b) to submit the Certificate of Conformity regarding the shipment of toys being imported, confirming the certification and 
performing of the tests in accordance with INMETRO;  (b)(1) the Certificate of Conformity is valid to 
only a single import license application”. 
 
 Are import license applications for toys  not approved by Brazil in cases where the 
invoice value of the import falls below a reference price? 
 
 The invoice value of the import is not a parameter for the allocation of import licenses.  4. We note that in its most recent Questionnaire on Import Licensing Procedures 
(G/LIC/N/3/BRA/6), Brazil stated that the processin g time for applications is in accordance with 
Articles 2 and 3 of the Agreement. However,  our exporters continue to experience long 
processing delays, with several cases regularly exp eriencing delays in excess of 90 days.  Please 
provide the maximum length of time for proces sing of an application for a license for the 
importation of toys. 
 The maximum length of time is 60 days, in accordance with Article 3.5(f) of the Agreement 
on Import Licensing Procedures, unless the information provided is incomplete.  
 What is the amount of time it normally takes to process an application for a license to 
import toys? 
 
 On average, it takes 15 days to process applications for import licenses to toys  
5. Also of concern are the reports that we have received from our exporters, who state that 
in cases where the application has been pending a decision for more than 90 days, Brazil has 
simply cancelled the application and has not provided a determination.  Under what 
circumstances would Brazil cancel an applic ation without providing a determination?  G/LIC/Q/BRA/6 
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 In accordance with paragraph 3 of Article 14 of the Directive SECEX 36/2007, applications 
are cancelled when a problem is detected and th e operator does not correct it within 90 days. 
 
 When an application is cancelled, does Br azil provide the importer with an explanation 
for why it was cancelled?  
 Whenever a problem with the application is  detected, Brazilian authorities indicate what 
obligation the operator has failed to comply with, and point out the specific rule related to that 
obligation. As mentioned above, if the operator do es not correct the problem within 90 days, the 
application is cancelled. 
 
6. We ask that Brazil please notify the Committee of the full scope of its import licensing 
regime as outlined in Articles 5, 7 and 8 of the WTO Agreement on Import Licensing Procedures, including all import approvals administ ered by Ministries that meet the definition 
of an import license in Article 1. The limited no tifications provided by Brazil to date to lack 
necessary information regarding certain products of interest, including toys. 
 Brazil would like to reiterate that informati on regarding both the pr oducts subject to import 
licensing requirements and the authorities respons ible for granting import licenses, including their 
contact details, are provided on the webpage of the Ministry of Development, Industry and Foreign 
Trade, which has been regularly notified to the Co mmittee. Brazil has just upd ated such information 
and notified it to the Committee. 
 
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