WORLD TRADE  
ORGANIZATION  TN/MA/W/15/Add.4 
18 April 2006 
 (06-1774) 
Negotiating Group on Market Access Original:   English 
  
 
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS 
 
Text-Based Proposal for Negotiati on on Enhanced Transparency
 
on Export Restrictions  
 
Communication from Japan 
 
Addendum  
  
 The following communication, dated 13 April 2006,  is being circulated at the request of the 
delegations of Japan. 
_______________ 
 
I. INTRODUCTION 
1. Japan has been promoting for enhanced  transparency on export restrictions.
1  The issue was 
initially identified with respect to export restric tions on mineral resources, but it actually had a 
horizontal expanse since similar experiences of diffi culty in importation in a stable manner due to 
export restrictions have been pointed out by ot her Members, in the field such as wood and wood 
products. It later turned out that it was a systemic  issue since the WTO agr eement appears to lack 
sufficient rules for transparen cy on export restrictions. 
2. Through informal meetings, Members have examined the desired rules on this issue.2 The 
essence of these desired rules can be summarised as follows: 
- procedures for publication of the rules and administration of export restrictions; 
- notification procedures to a Committee - publication of relevant statis tics, such as domestic production  
 
3. This paper proposes a concrete text which aims  to establish a new Agreement in order to 
embody the above rules. The Doha Ministerial Declaration on 14 November 2001 gives us the 
mandate to eliminate non-tariff barriers by modalities to be agreed,
3 and the July framework notes that 
such modalities include horizontal approaches.4 This proposal surely falls within horizontal 
approaches. Hong Kong Ministerial Declaration, adopted in December 2005, noted the need for 
specific negotiating proposals in the NAMA negotiations , and encouraged participants to make such 
submissions as quickly as possible.5 This proposal responds to the encouragement by the Declaration.  
                                                      
1 The concept paper has been documented as JOB(06)/14. 
2 The progress report has been documented as JOB(06)/21/Rev.1. 
3 WT/MIN(01)/DEC/W/1, at paragraph 16. 
4 WT/L/579, at Annex B, paragraph 14. 
5 WT/MIN(05)/W/3/Rev.2, at paragraph 22. TN/MA/W/15/Add.4 
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  4. It should be emphasised that this proposal do es not intend to strain any legitimate export 
restriction which complies with the WTO Agreement,  or to introduce new substantive rules. It is 
proposed merely from the viewpoint of procedural transparency. 
5. On the basis of this proposal, Japan would like to  take the lead of the discussion with a view 
to establish fair and equitable Agreement taking full y into account of specific needs and interests of 
developing and least-developed Members. The draft text is prepared for discussion purpose and 
without prejudice to all Members’ formal positions . The text may be modified in the course of 
discussion in order to reflect interests and respond to concerns of Members as much as possible. 
II. THE OUTLINE OF THE TEXT 
6. The text is based on the present Agreement on Import Licensing Procedures, and the parts 
which have been modified from the original Agre ement are indicated with underlines or crossing 
lines. Footnotes had been included in the original Import Licensing Agreement. Explanatory notes have been inserted at the end of each Article.  7. The summary of the text is as follows: 
 
The preamble explains the background and objectives of this text. 
 Article 1 and 1 bis  (General Provisions)  sets up general principles which govern export 
restrictions, such as publication of rules, ex ceptions for security measures and confidential 
information. The principle stated in paragr aphs 2 and 5 of the GATT XIII, that Members 
should make effort to maintain the shares of distribution of trade in imposing export 
restriction is strengthened.  Article 2 (Automatic Export Licensing)  provides for principles which apply to automatic 
export licensing, such as prohibition on restrictive administration of automatic licensing 
procedures. Grace period of two years will be  provided to all the developing Members. 
 Article 3 (Non-Automatic Export Licensing)  provides for principles on non-automatic 
export licensing, such as publication of overall amount of quotas. Providing information on 
relevant measures and specific statistics upon the request, such as statistics on the amount 
expected to be produced, have been newly proposed. 
 
Article 4  (Institutions)  provides that the existing Import Licensing Committee will also be in 
charge of the operation of the procedures for export restrictions.  Article 5  (Notification)  provides for notification procedures, such as requirement to notify 
the committee with lists of products subject to export restrictions. No change from the Import 
Licensing Agreement has been made except that references to importation have been replaced 
with exportation.  Article 6 (Consultation and Dispute Settlement) and Article 8 (Final Provisions)  provides 
for the ground of dispute settlement and final provisions such as reservations. No change from 
the Import Licensing Agreement has been made regarding these provisions. 
 
Article 7 (Review)  provides for review mechanism by  the committee. An internet-based 
registry of notifications is newly proposed. 
 
 The text is provided in the following pages.  TN/MA/W/15/Add.4 
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  DRAFT AGREEMENT ON EXPORT LICENSING PROCEDURES  
 
Members,  
  
 Having regard  to the Multilateral Trade Negotiations;  
 
 Desiring  to further the objectives of GATT 1994; 
  Taking into account  the particular trade, development and financial needs of developing 
country Members; 
 
 Recognizing  the usefulness of automatic ex
import licensing for certain purposes and that such 
licensing should not be used to restrict trade;   Recognizing  that ex
import licensing may be employed to administer measures such as those 
adopted pursuant to the relevant provisions of GATT 1994; 
  Recognizing  the provisions of GATT 1994 as they apply to ex
import licensing procedures; 
  Desiring  to ensure that ex
import licensing procedures are not utilized in a manner contrary to  
the principles and obligations of GATT 1994; 
 
 Recognizing  that the flow of international trade coul d be impeded by the inappropriate use of 
eximport licensing procedures; 
  Convinced  that ex
import licensing, particularly non-automatic ex import licensing, should be 
implemented in a transparent and predictable manner; 
  Recognizing  that non-automatic licensing procedures should be no more administratively 
burdensome than absolutely necessary to  administer the relevant measure; 
  Desiring  to simplify, and bring transparency to, the administrative procedures and practices 
used in international trade, and to ensure the fair  and equitable application and administration of such 
procedures and practices;   Desiring  to provide for a consultative mechanism and the speedy, effective and equitable 
resolution of disputes arising under this Agreement; 
 
 Hereby agree as follows: 
  TN/MA/W/15/Add.4 
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  Article 1  
General Provisions  
 
1. For the purpose of this Agreement, ex
import licensing is defined as administrative 
procedures6 used for the operation of ex import licensing regimes requiring the submission of an 
application or other documentation (other than th at required for customs purposes) to the relevant 
administrative body as a prior condition for ex importation from into the customs territory of the 
eximporting Member. 
 2. Members shall ensure that the admini strative procedures used to implement ex
import 
licensing regimes are in conformity with the rele vant provisions of GATT 1994 including its annexes 
and protocols, as interpreted by this Agreement, w ith a view to preventing trade distortions that may 
arise from an inappropriate operation of tho se procedures, taking into account the economic 
development purposes and financial and trad e needs of developing country Members.7 
 
3. The rules for ex import licensing procedures shall be neutral in application and administered in 
a fair and equitable manner.  4.(a)  The rules and all information concerning procedures for the submission of applications, 
including the eligibility of persons, firms and institutions to make such applications, the 
administrative body(ies) to be approached, and th e lists of products subject to the licensing 
requirement shall be published, in th e sources notified to the Committee on Ex
Import 
Licensing provided for in Article 4 (referred to in this Agreement as "the Committee"), in 
such a manner as to enable governments8 and traders to become acquainted with them.  Such 
publication shall take place, whenever practicable, 21 days prior to the effective date of the requirement but in all events not later than such  effective date.  Any exception, derogations or 
changes in or from the rules concerning licensing procedures or the list of products subject to 
ex
import licensing shall also be published in th e same manner and within the same time 
periods as specified above.  Copies of these publicat ions shall also be made available to the 
Secretariat.   
 (b) Members which wish to make comments in writing shall be provided the opportunity to 
discuss these comments upon request.  The concerne d Member shall give due consideration to 
these comments and results of discussion. 
 5. Application forms and, where applicable, rene wal forms shall be as simple as possible.  Such 
documents and information as are considered stri ctly necessary for the proper functioning of the 
licensing regime may be required on application. 
 6. Application procedures and, where applicab le, renewal procedures shall be as simple as 
possible.  Applicants shall be allowed a reasonabl e period for the submission of licence applications.  
Where there is a closing date, this period should be at least 21 days with provision for extension in 
circumstances where insufficient applications have b een received within this period.  Applicants shall 
have to approach only one administrative body in conn ection with an application.  Where it is strictly 
indispensable to approach more than one administra tive body, applicants shall not need to approach 
more than three administrative bodies.  
                                                     
 
6Those procedures referred to as "licensing" as well as other similar administrative procedures. 
7Nothing in this Agreement shall be taken as implying that the basis, scope or duration of a measure 
being implemented by a licensing procedure is subject to question under this Agreement. 
8For the purpose of this Agreement, the term "governments" is deemed to include the competent 
authorities of the European Communities.  TN/MA/W/15/Add.4 
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  7. No application shall be refused for minor doc umentation errors which do not alter basic data 
contained therein.  No penalty greater than necessar y to serve merely as a warning shall be imposed in 
respect of any omission or mistake in documentati on or procedures which is obviously made without 
fraudulent intent or gross negligence.  
8. Licensed ex
imports shall not be refused for minor varia tions in value, quantity or weight from 
the amount designated on the licence due to diff erences occurring during shipment, differences 
incidental to bulk loading and other minor differences consistent with normal commercial practice. 
 9.
 The foreign exchange necessary to pay for licensed imports shall be made available to licence 
holders on the same basis as to importers of goods not requiring import licences.  
 9
10. With regard to security exceptions, the provisi ons of Article XXI of GATT 1994 apply. This 
means, inter alia, that nothing in this Agreement sh all be construed to require  any Member to furnish 
any information the disclosure of which it consid ers contrary to its essential security interests.  
 
1011. The provisions of this Agreement shall not require any Member to disclose confidential 
information which would impede law enforcement or ot herwise be contrary to the public interest or 
would prejudice the legitimate commercial interest s of particular enterprises, public or private. 
  Note
: 
- [Paragraph 8] Part of the carriage outside of the territory of th e exporting Member comes 
after the export procedures and thus irrelevant  
- [Former paragraph 9] Foreign exchange restric tion will not be a problem in the context of 
export restriction.  
- [New paragraph 9] Security exceptions have been clarified.  
- [New paragraph 10] Confidential information is not to be disclosed against legitimate 
commercial interests of particular enterprises.  
 
 
Article 1 bis  
Non-discriminatory Administration of Quantitative Restriction  
 
In applying export restrictions to any product, c ontracting parties shall aim at a distribution of  
trade in such product approaching as closely as po ssible the shares which the various contracting 
parties might be expected to obtain in the absence of such restrictions.  
 
Note : 
 - [Article 1 bis] The principle stated in GATT XIII.2&5 is strengthened.
 
  
Article 2  
Automatic Ex
Import Licensing9 
 
6. Automatic ex import licensing is defined as ex import licensing where approval of the 
application is granted in all cases, and which is in  accordance with the requirements of paragraph 2(a). 
                                                      
9Those ex import licensing procedures requiring a secur ity which have no restrictive effects on 
eximports are to be considered as falling wi thin the scope of paragraphs 1 and 2. TN/MA/W/15/Add.4 
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  7. The following provisions
10, in addition to those in paragra phs 1 through 10 of Article 1 and 
paragraph 1 of this Article, shall apply to automatic ex import licensing procedures: 
(a)  automatic licensing procedures shall not be administered in such a manner as to have 
restricting effects on ex imports subject to automatic licensing.  Automatic licensing 
procedures shall be deemed to have trade-restricting effects unless, inter alia : 
 
(i) any person, firm or institution which fulfils the legal requirements of the ex importing 
Member for engaging in ex import operations involving produc ts subject to automatic 
licensing is equally eligible to apply for and to obtain ex import licences; 
 
(ii) applications for licences may be submitte d on any working day prior to the customs 
clearance of the goods; 
 (iii) applications for licences when submitte d in appropriate and complete form are 
approved immediately on receipt, to the extent administratively feasible, but within a 
maximum of 10 working days; 
 (b) Members recognize that automatic ex
import licensing may be necessary whenever other 
appropriate procedures are not available.  Automatic ex import licensing may be maintained as 
long as the circumstances which gave rise to  its introduction prevail and as long as its 
underlying administrative purposes cannot be achieved in a more appropriate way. 
 Note
: 
- Grace period of 2 years will be provided for all the developing Members. (footnote 10)  
 
 
Article 3  
Non-Automatic Ex Import Licensing 
 
1. The following provisions, in addition to those in paragraphs 1 through 10  of Article 1, shall 
apply to non-automatic ex import licensing procedures.  Non-automatic ex import licensing procedures 
are defined as ex import licensing not falling within the defi nition contained in paragraph 1 of 
Article 2. 
 2. Non-automatic licensing shall not have trade-restrictive or -distortive effects on ex
imports 
additional to those caused by the imposition of the restriction.  Non-automatic licensing procedures 
shall correspond in scope and duration to the measure they are used to implement, and shall be no 
more administratively burdensome than absolu tely necessary to administer the measure. 
 3. In the case of licensing requirements for purposes other than the implementation of 
quantitative restrictions, Members shall publish suffi cient information for other Members and traders 
to know the basis for granti ng and/or allocating licences. 
 
 
 
                                                     
 
10A developing country Member, other than a developing country Member which was a Party to the 
Agreement on Import Licensing Procedures done on 12 April 197 9, which has specific difficulties with the 
requirements of subparagraphs (a)(ii)  and (a)(iii) may, upon notification to  the Committee, delay the application 
of these subparagraphs by not more th an two years from the date of entry into force of the WTO Agreement for 
such Member.  TN/MA/W/15/Add.4 
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  4. Where a Member provides the possibility fo r persons, firms or in stitutions to request 
exceptions or derogations from a licensing requirement , it shall include this fact in the information 
published under paragraph 4 of Artic le 1 as well as information on how to make such a request and, to 
the extent possible, an indication of the circumstances under which requests would be considered.  
5.(a)  Members shall provide, upon the request of an y Member having an interest in the trade in the 
product concerned, all releva nt information concerning: 
 (i) the administration of the restrictions;  
(ii) the ex
import licences granted over a recent period; 
 (iii) the distribution of such licences among importing
supplying  countries; 
 (iv) where practicable, recent available 
import  statistics (i.e. value and/or volume) on the 
amount expected to be produced, actua lly produced, and actually exported with respect 
to the products subject to ex import licensing.  Developing country Members would not 
be expected to take additional administrativ e or financial burdens on this account such 
as to set up new statistics only for this purpose ; 
 (v)   if any, measures taken in conjunction w ith export licensing, such as restrictions on 
domestic production or consumption, a governmental stabilizataion plan;  
 
(b) Members administering quotas by means of licensing shall publish the overall amount of 
quotas to be applied by quantity and/or value, the opening and closing dates of quotas, and any change thereof, within the time periods speci fied in paragraph 4 of Article 1 and in such a 
manner as to enable governments and trad ers to become acquainted with them; 
 (c) in the case of quotas allocated among importing
supplying  countries, the Member applying the 
restrictions shall promptly inform all othe r Members having an interest in importing supplying  
the product concerned of the shares in the quota currently allocated, by quantity or value, to 
the various importing suppl ying countries and shall publish this information within the time 
periods specified in paragraph 4 of Article 1 and in such a manner as to enable governments 
and traders to become acquainted with them; 
 (d) where situations arise which make it necessary to  provide for an early opening date of quotas, 
the information referred to in paragraph 4 of Article 1 should be published within the time-
periods specified in paragraph 4 of Article 1 and in such a manner as to enable governments 
and traders to become acquainted with them; 
 (e) any person, firm or institution which fulfils the legal and administrative requirements of the 
ex
importing Member shall be equally eligible to a pply and to be considered for a licence.  If 
the licence application is not approved, the ap plicant shall, on request, be given the reason 
therefore and shall have a right of appeal or review in accordance with the domestic 
legislation or procedures of the ex importing Member; 
 (f) the period for processing applications shall, except when not possible for reasons outside the 
control of the Member, not be longer than 30 days if applications are considered as and when 
received, i.e. on a first-come first-served basis,  and no longer than 60 days if all applications 
are considered simultaneously.  In the latter case, the period for processing applications shall be considered to begin on the day following the closing date of the announced application 
period; 
 TN/MA/W/15/Add.4 
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  (g) the period of licence validity shall be of reasona ble duration and not be so short as to preclude 
ex
imports.  The period of licence validity shall not preclude import s from distant sources , 
except in specia l cases where imports are necessary to meet unforeseen short -term 
requirements ; 
 
(h) when administering quotas, Members shall not prevent ex importation from being effected in 
accordance with the issu ed licences, and shall not discourage the full utilization of quotas; 
 (i) when issuing licences, Members shall take in to account the desirability of issuing licences for 
products in economic quantities; 
 
(j) in allocating licences, the Member should consider the ex
import performance of the applicant.  
In this regard, consideration s hould be given as to whether licences issued to applicants in the 
past have been fully utilized during a recent representative period.  In cases where licences 
have not been fully utilized, the Member sha ll examine the reasons for this and take these 
reasons into consideration when allocating new li cences.  Consideration shall also be given to 
ensuring a reasonable distribution of licences to new importers, taking into account the desirability of issuing licences for products in economic quantities.  In this regard, special 
consideration should be given to those importers importing produc ts originating in developing 
country Members and, in particular, the least -developed country Members ; 
 
(k) in the case of quotas administered through licences which are not allocated among 
importing supplying  countries, licence holders11 shall be free to choose the destinations of 
exports sources of imports .  In the case of quotas allocated among importing supplying  
countries, the licence shall clearly stipulate the country or countries; 
 
(l) in applying paragraph 8 of Article 1, compensa ting adjustments may be made in future licence 
allocations where ex imports exceeded a previous licence level.   
 
Note : 
 - [sub-paragraph (a)] Specific statistics and in formation on relevant measures are added to 
be required.  
- [sub-paragraph (g)] Importation from distant sources situation with respect to validity 
period of import licensing will not be relevant in the context of export licensing.  
- [sub-paragraph (j)] Special consideration fo r importation from developing Members with 
respect to import licensing will not be releva nt in the context of export licensing.  
 
Article 4  
Institutions 
 
 There is hereby established a Committee on Import Licensing composed of representatives  
from each of the Members.  The Committ ee shall elect its own Chairman and Vice -Chairman and 
shall meet as necessary for the purpose of afford ing Members the opportunity of consulting on any 
matters relating to the operation of  this Agreement or the furthe rance of its objectives.  
  There is hereby established a Committee on Export Licensing composed of the same 
Chairman, Vice-Chairman and other representatives from each of the Members as the Committee on 
Import Licensing established under the Agreement on import licensing procedures.  The Committee  
shall meet as necessary for the purpose of afford ing Members the opportunity of consulting on any 
matters relating to the operation of this Ag reement or the furtherance of its objectives.  
                                                      
11 Sometimes referred to as "quota holders".  TN/MA/W/15/Add.4 
 Page 9 
 
 
   
 Note
: 
 - This Article aims to let the existing Import Licensing Committee also in charge of the 
export licenses.  
  
Article 5  
Notification 
 
1. Members which institute licensing procedures or  changes in these pro cedures shall notify the 
Committee of such within 60 days of publication. 
2. Notifications of the institution of ex
import licensing procedures sh all include the following 
information: 
 
(a) list of products subject to licensing procedures;  (b) contact point for information on eligibility;  (c) administrative body(ies) for submission of applications; 
 
(d) date and name of publication where licensing procedures are published;  (e) indication of whether the licensing procedur e is automatic or non-automatic according to 
definitions contained in Articles 2 and 3; 
 
(f) in the case of automatic ex
import licensing procedures, their administrative purpose; 
 (g) in the case of non-automatic ex
import licensing procedures, indication of the measure being 
implemented through the licensing procedure; and 
 
(h) expected duration of the licensing procedure if  this can be estimated with some probability, 
and if not, reason why this information cannot be provided. 
 3. Notifications of changes in ex
import licensing procedures shall indicate the elements 
mentioned above, if changes in such occur. 
 
4. Members shall notify the Committee of the pub lication(s) in which the information required 
in paragraph 4 of Artic le 1 will be published. 
 5. Any interested Member which considers that  another Member has not notified the institution 
of a licensing procedure or changes therein in accordance with the provisions of paragraphs 1 
through 3 may bring the matter to the attention of such other Member.  If notification is not made 
promptly thereafter, such Member may itself not ify the licensing procedure or changes therein, 
including all relevant and available information. 
 
  
   TN/MA/W/15/Add.4 
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  Article 6  
Consultation and Dispute Settlement 
 
 Consultations and the settlement of disputes with  respect to any matter affecting the operation 
of this Agreement shall be subject to the provi sions of Articles XXII and XXIII of GATT 1994, as 
elaborated and applied by the Di spute Settlement Understanding.  
   
Article 7  
Review 
 
1. The Committee shall review as necessary, but at least once every two years, the implementation and operation of this Agreement, taking into account the objectives thereof, and the 
rights and obligations contained therein. 
 
2. As a basis for the Committee review, the Secr etariat shall prepare a factual report based on 
information provided under Article 5, responses to the annual questionnaire  on ex
import licensing 
procedures12 and other relevant reliable info rmation which is available to it.  This report shall provide 
a synopsis of the aforementioned information, in particular indicating any changes or developments 
during the period under review, and including any ot her information as agreed by the Committee.   
 
3. Members undertake to complete the annual questionnaire on ex import licensing procedures 
promptly and in full.  4. The Committee shall inform the Council for Trade in Goods of developments during the 
period covered by such reviews.  
 
5. A registry of notifications for export licensi ng measures shall be established. The registry 
shall record and make available to public through the internet the information notified by Members 
under this Agreement. 13  
Note : 
- Paragraph 5 aims to form part of the attempt to establish a central registry of notifications 
 by the Decision on Notificatio n Procedures at the Uruguay Round.  
 
 
Article 8  
Final Provisions  
Reservations  
 
1. Reservations may not be entered in respect of any of the provisions of this Agreement without 
the consent of the other Members. 
 
Domestic Legislation  
 
                                                      
12 Originally circulated as GATT 1947 document L/3515 of 23  March  1971.  
 
13 The URL (Uniform Resource Locater) of the official internet site where relevant information of such 
measure is sufficiently available may be recorded alternatively, but this is without prejudice to the notification 
obligation under the Article 5.   TN/MA/W/15/Add.4 
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  2.(a)  Each Member shall ensure, not later than th e date of entry into force of the WTO Agreement 
for it, the conformity of its laws, regula tions and administrative procedures with the 
provisions of this Agreement. 
 (b)  Each  Member shall inform the Committee of any changes in its laws and regulations relevant 
to this Agreement and in the administ ration of such laws and regulations. 
   
__________