. /.  WORLD TRADE  
ORGANIZATION   
G/LIC/Q/IND/18 
13 October 2011 
 (11-5041) 
Committee on Import Licensing Original:   English 
  
 
IMPORT LICENSING SYSTEM OF INDIA 
 
Replies by INDIA to the questions from TURKEY 
  
 The following communication, dated 13 October 2011, is being circulated at the request of 
the delegation of India.  
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  India thanks Turkey for the questions on its Import Licensing System dated 5 October 2011 
and circulated in document G/LIC/Q/IND/17 .  
 
(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? 
 Reply : Products falling under HS Codes 25151220 and 25151290 are restricted for import 
and would be governed by the restricted import licensing stated in ITC(HS) classification 
book and paragraph 2.36 of the Handbook of Proce dure, Volume 1. Both these documents are 
available at dgft.gov.in. 
 
(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? 
Reply: Marble mining in India is subject to li censing and production control due to above 
reasons.  Accordingly, the restriction on imports  has also been imposed as cutting and further 
processing of marble blocks will also have an equal impact on environment.  
(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? 
 Reply : The eligibility criterion is governed by DGFT Notification No. 64 dated 
4 August 2011 and Policy Circular No. 37 dated 8 August 2011.  The criteria is intended to 
ensure adequate and sustainable manufacturing capacity.  G/LIC/Q/IND/18 
Page 2  
 
  (d) Why does India impose a ceiling of 300.000 metric tons for the whole of the licensing year? 
 Reply : The ceiling for import is 500000 metric tons  for the financial year 2011-2012, as per 
DGFT Notification No. 64 dated 4.8.2011. This  notification is available at dgft.gov.in. 
(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? 
 Reply: Both, the criteria and the ceiling have been revised on the basis of consultations held 
with the domestic stakeholders. 
 
(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? 
 Reply: The procedure has now been re vised. The applicants are required to apply by sending 
e-mails.  The details regarding the applica tion and processing is at Annexure -3 of the 
Notification No. 64 dated 4.8.2011.  
 
(g) Is the "floor price" a license fee? if so, how is the price determined? 
 Reply: The "floor price" is not a license fee. It is the minimum import price to ensure quality 
of goods under import.
  
 
 
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