WORLD TRADE  
ORGANIZATION  G/LIC/Q/BRA/11 
8 May 2009 
 (09-2260) 
Committee on Import Licensing Original:   English 
  
 
BRAZIL'S NON-AUTOMATIC IMPORT LICENSING PROCEDURES 
 
Replies from BRAZIL to questions from CHINA
1 
  
 The following communication, dated 30 April 2009,  is being circulated at the request of the 
delegation of Brazil.  
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 China is concerned that the procedures and cr iteria used by Brazil in connection with the 
consideration and issuance of non-automatic impor t licenses are inconsistent with Brazil’s 
obligations under the Agreement on Import Licen sing Procedures (“the Agreement”) and the General 
Agreement on Tariffs and Trade (GATT) 1994. To address these concerns, and pursuant to Article 
3.5(a) of the Agreement, China is transmitting to Brazil questions regarding  its non-automatic import 
licensing procedures. 
 1.  Please identify (by tariff classification) the goods that require non-automatic import licenses.  
 
ANSWER:  As informed in Brazil’s most recent notifications to the Import Licensing Committee, 
the list of goods that require non-automatic import licenses (including its identification by tariff 
classification) can be consulted on the website of MDIC - Ministry of Development, Industry and 
Trade (www.mdic.gov.br), and also in SISCOM EX, Brazil’s electronic system of trade. 
 
2.  Please explain the criteri a used to determine which goods require non-automatic import 
licenses. 
 
ANSWER:  Decisions regarding the requirement  of non-automatic import licensing procedures 
follow criteria compatible with the provisions of WTO Agreements.  
3.  In Brazil’s most recent notifications  to the Committee on Import Licensing, 
(e.g., G/LIC/N/3/BRA/6), it stated that non-automa tic import licenses are required with respect to: - 
products which may cause damage to  human, animal, or plant hea lth; - products capable of causing 
environmental damage; - products classified as we apons or made for warlike purposes; - products 
subject to non-tariff quotas as established in th e agreements of the Uruguay Round;  and - products 
subject to tariff quotas. Please indicate  which of these categories covers toys. 
 
ANSWER:  As indicated in Brazil’s most recent notifications to the Import Licensing Committee, the categories listed above are non- exhaustive examples of products th at are subject to non-automatic 
import licensing. Toys are subject to non-automa tic import licensing procedures because there are 
technical regulations that they must comply with . Those technical regulations were notified to the 
Committee on Technical Barriers to Trade. 
                                                     
 
1 See document G/LIC/Q/BRA/5.  G/LIC/Q/BRA/11 
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4.  Please indicate the information that must be provided in an application for a non-automatic 
import license.  If additional or different informatio n must be provided with respect to applications 
relating to toys, please indicate that information as well. 
 ANSWER:  Information requirements related to applications for non-automatic import licenses 
are contained in Directive SECEX No. 25/2008, wh ich can be consulted on the website of MDIC. 
Besides general rules applied to non-automatic import licensing procedures, toys are subject to specific provisions contained in paragraph 4 of Ar ticle 11 of the above-mentioned Directive and in 
item VI of its Annex B. Directive SECEX No. 25/2008  will be soon notified to the Committee, but it 
is important to note that it does not modify the procedures for toys established by Directive SECEX 
No. 36/2007 which was notified to the Import Licensing Committee under G/LIC/N/1/BRA/4, G/LIC/N/2/BRA/4 and G/LIC/N/3/BRA/7.  
5.  Please explain the procedures followed by  Brazil in considering applications for non-
automatic import licenses.  If additional or different procedures are fo llowed with respect to 
applications relating to toys, please explain those procedures as well. 
 
ANSWER:  The procedures followed by Brazil with  regard to applications for non-automatic 
import licenses consist in examining if informa tion and documentation requirements established by 
legislation have been fulfilled by applicants. 
 
6.  We understand that Brazil has a two-track sy stem for analyzing non-automatic import license 
applications:  the “green track” and the “red track”. If so,  (a)  Please explain the criteria considered in assigning an application to these tracks. 
(b)  Please explain differences in the procedures followed with respect  to applications that have 
been assigned to each track. 
(c)  If additional or different criteria or procedu res are used for applica tions relating to toys, 
please explain those criteria and/or procedures. 
(d)  Please explain when, if ever, the two-tr ack system was notified to the Committee on Import 
Licensing.  
 
ANSWER:  Brazil does not have a two-track syst em for analyzing non-automatic import license 
applications.  
7.  Please explain whether Brazil uses official or unofficial reference prices in connection with 
applications for non-automatic import licenses.  If so, 
 (a)  Please explain the basis under the Agreement for using reference prices as a criterion for 
reviewing applications for non-automatic import licenses. 
(b)  Please explain the procedu res for establishing reference prices.  In particular, please explain 
the role that private parties play in the process, and whether there is an opportunity for 
public comment. 
(c)  Please explain how reference prices are calculated, and provide sample calculations for the 
reference prices currently in effect for toys. 
(d)  Please explain how reference prices are u sed in processing applications for non-automatic 
import licenses. 
(e)  Please explain whether applications are assigne d to the “green track” or “red track” based 
on reference prices.  
(f)  Please explain how applications with prices that are below the relevant reference price are 
treated.  G/LIC/Q/BRA/11 
 Page 3 
 
 
  (g)  Please explain when, if ever, the referen ce price system was notified to the Committee on 
Import Licensing.  
 
ANSWER:  Brazil does not use official or unof ficial reference prices in connection with 
applications for non-automatic import licenses. 
 
8.  Please provide data for the period May 2006 through September 2008 on the quantity and 
value of imports of toys for which applications  for non-automatic import licenses were received, the 
quantity of such licenses that were issued, and the average time between the date of receipt of the import license application and the issuance of a license.  Please provide this data separately for each 
supplying country.  With respect to the time required  for issuance of licenses, please provide separate 
periods for toys placed on the “red track”  versus those placed on the “green track”. 
 
ANSWER:  According to data available so far,  the number of non-automatic import licenses for 
toys that were granted and used between May 2006 and February 2008 was 21.980, of which 16.931 
corresponded to Chinese products. The total value of  imports related to those licenses was US$ 
396,916,700.00. On average, it takes 15 days to process applications for import licenses to toys. Brazil 
does not have a “green/red track” system for an alysis of applications for non-automatic import 
licenses.  
9.  Please explain how the “green track” and “red Track” system, based on an unpublished 
reference price, is consistent with Brazil’s obligat ions under Article 1.3 of the Agreement that import 
licensing procedures must be “neutral in applicati on” and “administered in a fair and equitable 
manner”. 
 
ANSWER:  Brazil does not have a “green/red track” system, based on reference prices, related to 
import licensing procedures. 
  
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