. /.   WORLD TRADE  
ORGANIZATION  G/LIC/Q/BRA/5 
17 October 2008 
 
 (08-5002) 
Committee on Import Licensing Original:   English 
  
BRAZIL’S
 NON-AUTOMATIC  IMPORT  LICENSING  PROCEDURES 
 
Questions from CHINA to BRAZIL  
  
 The following communication, dated 16 October 2008, is being circulated at the request of 
the delegation of the People's Republic of China.  
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 China is concerned that the procedures and criteria used by Brazil in connection with the 
consideration and issuance of non-automatic import licenses are inconsistent with Brazil’s obligations 
under the Agreement on Import Licensing Procedures ("the Agreement") and the General Agreement 
on Tariffs and Trade (GATT) 1994. To address these c oncerns, and pursuant to Article 3.5(a) of the 
Agreement, China is transmitting to Brazil questi ons regarding its non-auto matic import licensing 
procedures.   
1. Please identify (by tariff classification) the goods that require non-automatic import licenses. 
2. Please explain the criteria used to determine which goods require non-automatic import 
licenses. 
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 health; 
• products capable of causing environmental damage; 
• products classified as weapons or made for warlike purposes;  
• products subject to non-tariff quotas as establis hed in the agreements of the Uruguay 
Round;  and  
• products subject to tariff quotas. 
Please indicate which of these categories covers toys. 
4. Please indicate the information that must be provided in an application for a non-automatic 
import license.  If additional or different informati on must be provided with respect to applications 
relating to toys, please indicate that information as well. 
5. Please explain the procedures followed by Br azil in considering applications for non-
automatic import licenses.  If additional or diffe rent procedures are followed with respect to 
applications relating to toys, please explain those procedures as well. G/LIC/Q/BRA/5 
Page 2  
 
  6. We understand that Brazil has a two-track system 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 follo wed with respect to applications that 
have been assigned to each track. 
(c) If additional or different criteria or proce dures are used for applications relating to 
toys, please explain those criteria and/or procedures. 
(d) Please explain when, if ever, the two-track system was notified to the Committee on 
Import Licensing. 
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 procedures 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) Please explain when, if ever, the reference price system was notified to the 
Committee on Import Licensing. 
8. Please provide data for the period May 2 006 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 require d for issuance of licenses, please provide separate 
periods for toys placed on the "red track" versus those placed on the "green track". 
9. Please explain how the "green track" and "red track" system, based on an unpublished 
reference price, is consistent with Brazil’s obliga tions under Article 1.3 of the Agreement that import 
licensing procedures must be "neutral in applica tion" and "administered in  a fair and equitable 
manner." 
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