WORLD TRADE  
ORGANIZATION  G/LIC/N/3/NIC/1 
13 October 2009 
 
 (09-5000) 
Committee on Import Licensing Original:   Spanish 
  
 
REPLIES TO QUESTIONNAIRE ON IMPORT 
LICENSING PROCEDURES
1 
 
Notification Under Article 7.3 of the Agreement on  
Import Licensing Procedures  
 
NICARAGUA 
   The following communication, dated 12 October 2009, is being circulated at the request of 
the delegation of Nicaragua. 
 
_______________ 
 
Outline of systems
 
 1. Import licences issued by the Treaty Application Department (DAT) of the 
Directorate-General of Foreign Trade of the Mini stry of Development, Industry and Trade (MIFIC) 
are required for the administration of the import tariff quotas granted by Nicaragua within the framework of its WTO commitments and current free trade agreements (FTAs).  MIFIC is the authority responsible for the administration of such quotas. 
 
 The tariff quotas are administered under the licensing system established by ministerial decisions which regulate the procedures governing applications for quota allocation, quota distribution and monitoring and control of products subject to quotas.  All these legal instruments are 
published in the Official Journal ( La Gaceta ) and/or in the national press, and on the MIFIC website 
(www.mific.gob.ni
). 
 
Purposes and coverage of licensing  
 
2. The import quota allocation system is based  on the issuing of non-automatic licences for 
products entering Nicaraguan customs territory unde r tariff quotas, for which a preferential import 
duty (DAI) lower than the current tariff is paid. 
 3. The system applies to goods originating in and coming from all WTO Members (in the case 
of commitments bound in the WTO) and countri es with which Nicaragua has FTAs.  Among the 
products bound by Nicaragua in the WTO, the only ones concerned are powdered milk and rice, since 
the applied tariff for all other products subject to quotas is lower than the bound tariff in Nicaragua's 
Schedule XXIX.  4. Import licensing applies to products subject to import tariff quotas in accordance with multilateral WTO commitments and current FTAs.  Its purpose is to ensure more  effective control of 
the volume of products entering the country at preferential tariffs under import tariff quotas, while 
                                                     
 
1 See document G/LIC/3, Annex, for the Questionnaire. G/LIC/N/3/NIC/1 
Page 2  
 
  providing a means of monitoring actual rates of fill  for quotas allocated to parties to which licences 
have been issued.  5. The licensing system is governed by Law No. 290 (Law on the Organization, Powers and Procedures of the Executive), its implementing regu lations, and amendments thereto;  Article 138 of 
Law No. 453 (Law on Fiscal Equity);  Article 26 of  the Convention on the Central American Tariff 
and Customs Regime and its Protocols;  the provisi ons of international trade and regional integration 
treaties, conventions and agreements;  the provi sions of the WTO Agreements on Agriculture and 
Import Licensing Procedures, and Nicaragua's Sche dule XXIX (Part I – Section I-B, Tariff quotas);  
and the relevant provisions of the FTAs in force.  The ministerial decisions in effect for the current 
year are:  MIFIC Ministerial Decision No. 071-2008;  MIFIC Ministerial Decision No. 070-2008;  
Ministerial Decision No. 041-2007;  Ministerial Decision No. 039-2007;  Ministerial Decision No. 038-2007;  Ministerial Decision No. 040-2007;  Ministerial Decision No. 037-2007;  Ministerial Decision No. 059-2007;  MIFIC Ministerial Decision No. 001-2009;  MIFIC Ministerial Decision No. 038-2009;  and MIFIC Ministerial Decision No. 020-2009. 
 
Procedures
 
 
6.I. Nicaragua's import tariff quotas in the WTO and under current FTAs are allocated and distributed pursuant to the ministerial decisions published in Nicaragua's O fficial Journal and the 
national press, and on the MIFIC website ( www.mific.gob.ni
).  These decisions contain provisions 
relating to the volumes of available quotas, tariff headings, product description, period of validity, 
period for the submission of applications, countries of origin, and requirements to be met by parties 
wishing to submit applications.  The amounts allo cated to importers are not published, as this 
information is considered confidential under Law No. 621 (Law on Access to Public Information), 
published in Official Journal No. 118 of 22 J une 2007.  Details concerning the overall volumes 
allocated are made available on the MIFIC website ( www.mific.gob.ni ) only at the request of the 
exporting countries and their trade representatives.  There are no exceptions or derogations from the 
procedures established in the ministerial decisions in force.  II. The size of the quotas established in the various  trade agreements is determined on a yearly 
basis in accordance with the commitments set forth in Nicaragua's Schedule XXIX (Part I – 
Section I-B, Tariff quotas) and, in the case of FTA s, the negotiated volume.  For tariff quotas 
introduced because of lack of supply, size is dete rmined according to needs for the supply of raw 
materials and agricultural inputs.  Import licences may be used for pa rtial or total shipments until the 
allocated volume has been used up.  
III. Import licences are granted to interested parties,  whether natural or lega l persons, that fulfil 
the requirements laid down in the ministerial d ecisions, regardless of whether or not they are 
producers of like goods.  Unused allotments are not added to the corresponding quota for the 
following year.  Governments or export promo tion bodies of exporting countries are not notified 
directly of the allocation of quotas, as this is c onsidered confidential information under Law No. 621 
(Law on Access to Public Information), published in Official Journal No. 118 of 22 June 2007. 
 
IV. Time-limits for the submission of applications are set forth in the ministerial decisions and the notices announcing the opening of quotas.  V. Once the ministerial decisions and notices have  been published, interested parties have a 
period of between three and ten working days, as of the working day following the date of 
publication, to submit their applications.  Once the deadline for submitting applications has expired, 
the competent authority has between four and ten wo rking days to review the applications, followed 
by three additional working days to issue the r espective import licence to the beneficiaries of the 
quota.  G/LIC/N/3/NIC/1 
 Page 3 
 
 
   
VI. Once issued, import licences may be used i mmediately and are valid for the period of 
importation relevant to the corresponding quota, except in the case of the first yearly allocation of the 
tariff quotas bound by Nicaragua in the WTO and ex isting FTAs.  These are allocated approximately 
two weeks before the quota import period, which r uns from 1 January to 31 December each year. 
 
VII. Applications for import licences are examin ed solely by the MIFIC's Treaty Application 
Department.  VIII. Quotas are allocated on the b asis of three criteria:  first, on the basis of the percentage 
distribution of the total quota among historical im porters, with smaller quota amounts allocated to 
new importers;  second, on the basis of the chronolog ical order in which applications are submitted;  
and third, on a first-come, first-served basis, subject to a minimum allocation volume.  The third method is used if amounts are still available followi ng the initial allocation, in which case they are 
announced in the various notices referred to in th e ministerial decisions.  Under no circumstances is 
the volume allocated greater than the one requ ested.  Applications are examined on receipt. 
 IX. In the case of bilateral export quotas or e xport restraint arrangements, Nicaragua does not 
currently issue export licences.  Countries which grant bilateral export quotas are responsible for 
administering them in accordance with the co mmitments negotiated under the respective FTAs.  
Nicaragua only sets aside a volume of sugar for export under the quota granted to it by the United 
States within the WTO framework, and on this basi s the United States issues a licence for use of the 
quota.  X. No export permits are required from exporting countries.  
XI. There are no products for which licences are granted only on condition that they are exported 
and not sold in the domestic market.  7. Import licences do not apply in cases where there is no quantitative limit on the importation of a product.  
8. An application for a quota allocation will be re jected if it is incomplete or submitted in an 
untimely fashion, or if it contains errors, blots or smudges, or serious omissions in respect of the 
information or requirements provided for in the resp ective ministerial decisions.  If the examination of 
an application reveals errors and omissions that coul d justify its rejection, the applicant is notified of 
these and given two working days to correct or s upplement the relevant information and resubmit the 
application.  If the application is submitted inco rrectly a second time, it will be eliminated from the 
allocation process.  
Eligibility of importers to apply for licence
 
 
9. All natural and legal persons  domiciled in Nicaragua are eligible to apply for a tariff quota 
import licence provided that they fulfil the require ments established in the respective ministerial 
decisions.  
Documentational and other require ments for application for licence
 
 10. Applications must contain the following information: 
 (a) Name or business name of the natura l person or legal entity, as appropriate; G/LIC/N/3/NIC/1 
Page 4  
 
   (b) address, telephone number, e-mail address and/or fax number to which notifications 
may be sent; 
 (c) description of the quota in which the applicant wishes to participate; 
 (d) the volume sought, indicating the tariff heading(s);  (e) photocopy of card showing taxpayers' registration number, certified by a public 
notary; 
 (f) legal entities must also attach photocopies,  duly certified by a public notary, of the 
following:  their articles of incorporation,  as registered in the Public Business 
Register;  a document showing proof of sufficient authority;  and their representative's identity card; 
 (g) natural persons must also attach photoc opies, duly certified by a public notary, of the 
certificate showing that they are registered  as a business person in the Public Business 
Register and of their identity card. 
 Interested parties are not required to submit the documents referred to in points (e), (f) and (g) 
if they have already submitted that information to the DAT in a previous application and if there are 
no changes in the circumstances reflected in tho se documents at the time of submitting the new 
application.  The ministerial decisions and resp ective notices are available on the MIFIC website 
(www.mific.gob.ni
). 
11. The DAT will issue an import licence to the be neficiaries of the allocated quota.  A copy of 
this licence is sent to the Directorate-Genera l of Customs Services (DGA) for registration and 
administration purposes.  The beneficiaries must pr esent the DGA with the original and valid import 
licence issued by the DAT in order to make partial or total imports under the allocated quota. 
 When using the import licence registered with the DGA, beneficiaries must comply with the 
applicable provisions relating inter alia  to customs matters, taxation, and plant, animal and public 
health. 
12. The import licence application process is free of charge. 
13. The issuing of import licences is not s ubject to a deposit or advance payment. 
Conditions of licensing  
 
14. A licence is valid for the duration of the quota import period and may not be extended.  15. Any licence that is not used during its period of  validity must be returned to the DAT within 
15 calendar days following its expiry (a licence is c onsidered not to have been used when no imports 
have been made).  Failing this, the allocation of  the volume indicated on the licence for the current 
period will be lost.   If a beneficiary uses less than 90 per cent of the total volume allocated to it in the preceding 
period, it will only be entitled, in the subseque nt period, to the volume actually imported in the 
preceding period.  The respective ministerial d ecisions provide for a quota return process, under 
which the beneficiaries must, within the first three working days of September, confirm in writing to 
the DAT the portions of the quotas assigned to them  for the corresponding year that they intend to 
use.  Any returned portion(s) the utilization of wh ich remains unconfirmed will immediately be made  G/LIC/N/3/NIC/1 
 Page 5 
 
 
  available to any interested natural or lega l person through a written announcement circulated 
nationally.  In other words, if a beneficiary uses this return mechanism, utilization of the allotted 
quota will be assessed on the basis of the volume initially allocated less the portion returned. 
  If the documents submitted by a beneficiary in connection with the allocation of quotas 
contain incorrect information and if that informa tion is crucial for the allocation of the quota in 
question, the beneficiary will lose the quota allotted fo r that year and will not be entitled to participate 
in the allocation of that quota for the following year.   Any beneficiary that transfers or negotiat es an import licence will lose the quota assigned for 
that year and will not be entitled to participate in  the allocation of the quota in question for the 
following year.  16. Import licences may not be transferred among importers.  
17. There are no conditions attached to the issui ng of licences other than those laid down in the 
respective ministerial decisions.  
Other procedural requirements
 
 
18. Imports are not subject to any other admini strative procedures, except for those relating to 
customs matters, taxation, and plant, animal and public health. 
 19. There is no relation between the import licen sing regime and the foreign exchange system. 
 
__________