Automatic Import Licensing[68]

Non-Automatic Import Licensing

AGREEMENT ON IMPORT LICENSING PROCEDURES

Agreement on Import Licensing Procedures

d. the issuance of import and export licenses.

Convinced that import licensing, particularly non-automatic import licensing, should be implemented in a transparent and predictable manner;

Non-automatic import licensing procedures are defined as import licensing not falling within the definition contained in paragraph 1 of Article 2.

Recognizing the usefulness of automatic import licensing for certain purposes and that such licensing should not be used to restrict trade;

the import or export license or any other documents required have been acquired;

(g) in the case of non-automatic import licensing procedures, indication of the measure being implemented through the licensing procedure; and

Recognizing the provisions of GATT 1994 as they apply to import licensing procedures;

(a) automatic licensing procedures shall not be administered in such a manner as to have restricting effects on imports subject to automatic licensing.

General requirements for export, import and transit licensing or authorization systems

(f) in the case of automatic import licensing procedures, their administrative purpose;

Automatic import licensing is defined as import licensing where approval of the application is granted in all cases, and which is in accordance with the requirements of paragraph 2(a).

(iv) where practicable, import statistics (i.e. value and/or volume) with respect to the products subject to import licensing.

Notifications of the institution of import licensing procedures shall include the following information:

Members undertake to complete the annual questionnaire on import licensing procedures promptly and in full.

There is hereby established a Committee on Import Licensing composed of representatives from each of the Members.

Recognizing that the flow of international trade could be impeded by the inappropriate use of import licensing procedures;

The rules for import licensing procedures shall be neutral in application and administered in a fair and equitable manner.

Notifications of changes in import licensing procedures shall indicate the elements mentioned above, if changes in such occur.

(b) Members recognize that automatic import licensing may be necessary whenever other appropriate procedures are not available.

Any exception, derogations or changes in or from the rules concerning licensing procedures or the list of products subject to import licensing shall also be published in the same manner and within the same time periods as specified above.

Desiring to ensure that import licensing procedures are not utilized in a manner contrary to the principles and obligations of GATT 1994;

Recognizing that import licensing may be employed to administer measures such as those adopted pursuant to the relevant provisions of GATT 1994;

The following provisions, in addition to those in paragraphs 1 through 11 of Article 1, shall apply to non-automatic import licensing procedures.

Non-automatic licensing shall not have trade-restrictive or -distortive effects on imports additional to those caused by the imposition of the restriction.

4 Those import licensing procedures requiring a security which have no restrictive effects on imports are to be considered as falling within the scope of paragraphs 1 and 2.

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.

The following provisions[69], in addition to those in paragraphs 1 through 11 of Article 1 and paragraph 1 of this Article, shall apply to automatic import licensing procedures:

For the purpose of this Agreement, import licensing is defined as administrative procedures[65] used for the operation of import licensing regimes requiring the submission of an application or other documentation (other than that required for customs purposes) to the relevant administrative body as a prior condition for importation into the customs territory of the importing Member.

(i) any person, firm or institution which fulfils the legal requirements of the importing Member for engaging in import operations involving products subject to automatic licensing is equally eligible to apply for and to obtain import licences;

Automatic 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.

Each State Party shall establish or maintain an effective system of export and import licensing or authorization, as well as of measures on international transit, for the transfer of firearms, their parts and components and ammunition.

As a basis for the Committee review, the Secretariat shall prepare a factual report based on information provided under Article 5, responses to the annual questionnaire on import licensing procedures[71] and other relevant reliable information which is available to it.

Licensed imports shall not be refused for minor variations in value, quantity or weight from the amount designated on the licence due to differences occurring during shipment, differences incidental to bulk loading and other minor differences consistent with normal commercial practice.

Preshipment inspection entities shall share confidential business information with the governments contracting or mandating them only to the extent that such information is customarily required for letters of credit or other forms of payment or for customs, import licensing or exchange control purposes.

(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 the lists of products subject to the licensing requirement shall be published, in the sources notified to the Committee on Import Licensing provided for in Article 4 (referred to in this Agreement as "the Committee"), in such a manner as to enable governments[67] and traders to become acquainted with them.

1 These measures include quantitative import restrictions, variable import levies, minimum import prices, discretionary import licensing, non-tariff measures maintained through state-trading enterprises, voluntary export restraints, and similar border measures other than ordinary customs duties, whether or not the measures are maintained under country-specific derogations from the provisions of GATT 1947, but not measures maintained under balance-of-payments provisions or under other general, non-agriculture-specific provisions of GATT 1994 or of the other Multilateral Trade Agreements in Annex 1A to the WTO Agreement.

Notwithstanding the provisions of Articles 23, 24 and 25, on the entry into force of this Agreement, all prohibitions or restrictions on importation or exportation affecting trade between the Parties shall be eliminated, with the exception of the customs duties, taxes, fees and other charges referred to in Article 11, irrespective of whether they are implemented through quotas, import or export licensing or other measures.

5 A developing country Member, other than a developing country Member which was a Party to the Agreement on Import Licensing Procedures done on 12 April 1979, 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 than two years from the date of entry into force of the WTO Agreement for such Member.

Members shall ensure that the administrative procedures used to implement import licensing regimes are in conformity with the relevant provisions of GATT 1994 including its annexes and protocols, as interpreted by this Agreement, with a view to preventing trade distortions that may arise from an inappropriate operation of those procedures, taking into account the economic development purposes and financial and trade needs of developing country Members.[66]

Agreement on Agriculture, Article 19; Agreement on the Application of Sanitary and Phytosanitary Measures, paragraph 1 of Article 11; Agreement on Textiles and Clothing, paragraph 4 of Article 8; Agreement on Technical Barriers to Trade, paragraph 1 of Article 14; Agreement on Trade-Related Investment Measures, Article 8; Agreement on Implementation of Article VI of GATT 1994, paragraph 2 of Article 17; Agreement on Implementation of Article VII of GATT 1994, paragraph 2 of Article 19; Agreement on Preshipment Inspection, Article 7; Agreement on Rules of Origin, Article 7; Agreement on Import Licensing Procedures, Article 6; Agreement on Subsidies and Countervailing Measures, Article 30; Agreement on Safeguards, Article 14; Agreement on Trade-Related Aspects of Intellectual Property Rights, Article 64.1; and any corresponding consultation provisions in Plurilateral Trade Agreements as determined by the competent bodies of each Agreement and as notified to the DSB.

Import & Export Licensing Unit