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AGREEMENT ONIMPORT LICENSING PROCEDURES
Members,
Having regard totheMultilateral Trade Negotiations;
Desiring tofurther theobjectives ofGATT 1994;
Taking intoaccount theparticular trade, development andfinancial needs ofdeveloping country
Members;
Recognizing theusefulness ofautomatic import licensing forcertain purposes andthatsuch
licensing should notbeusedtorestrict trade;
Recognizingthatimportlicensingmaybeemployedtoadministermeasuressuchasthoseadopted
pursuant totherelevant provisions ofGATT 1994;
Recognizing theprovisions ofGATT 1994 astheyapply toimport licensing procedures;
Desiring toensure thatimport licensing procedures arenotutilized inamanner contrary to
theprinciples andobligations ofGATT 1994;
Recognizing thattheflowofinternational trade could beimpeded bytheinappropriate useof
import licensing procedures;
Convinced thatimport licensing, particularly non-automatic import licensing, should be
implemented inatransparent andpredictable manner;
Recognizing thatnon-automatic licensing procedures should benomore administratively
burdensome thanabsolutely necessary toadminister therelevant measure;
Desiring tosimplify, andbring transparency to,theadministrative procedures andpractices
usedininternational trade, andtoensure thefairandequitable application andadministration ofsuch
procedures andpractices;
Desiring toprovide foraconsultative mechanism andthespeedy, effective andequitable
resolution ofdisputes arising under thisAgreement;
Hereby agree asfollows:
Article 1
General Provisions
1. Forthepurpose ofthisAgreement, import licensing isdefined asadministrative procedures1
usedfortheoperation ofimport licensing regimes requiring thesubmission ofanapplication orother
documentation (other thanthatrequired forcustoms purposes) totherelevant administrative body as
aprior condition forimportation intothecustoms territory oftheimporting Member.
1Those procedures referred toas"licensing" aswellasother similar administrative procedures.Page222
2. Members shallensure thattheadministrative procedures usedtoimplement import licensing
regimesareinconformitywiththerelevantprovisionsofGATT1994includingitsannexesandprotocols,
asinterpreted bythisAgreement, withaviewtopreventing trade distortions thatmayarisefrom an
inappropriate operation ofthose procedures, taking intoaccount theeconomic development purposes
andfinancial andtrade needs ofdeveloping country Members.2
3. Therulesforimport licensing procedures shallbeneutral inapplication andadministered in
afairandequitable manner.
4. (a) Therulesandallinformation concerning procedures forthesubmission ofapplications,
including theeligibility ofpersons, firms andinstitutions tomake suchapplications, theadministrative
body(ies) tobeapproached, andthelistsofproducts subject tothelicensing requirement shallbe
published, inthesources notified totheCommittee onImport Licensing provided forinArticle 4
(referred tointhisAgreement as"theCommittee"), insuchamanner astoenable governments3and
traderstobecomeacquaintedwiththem.Suchpublicationshalltakeplace,wheneverpracticable,21days
prior totheeffective dateoftherequirement butinallevents notlaterthansucheffective date. Any
exception, derogations orchanges inorfrom therulesconcerning licensing procedures orthelistof
products subject toimport licensing shallalsobepublished inthesame manner andwithin thesame
timeperiods asspecified above. Copies ofthese publications shall alsobemade available tothe
Secretariat.
(b) Members which wishtomake comments inwriting shallbeprovided theopportunity
todiscuss these comments uponrequest. Theconcerned Member shallgivedueconsideration tothese
comments andresults ofdiscussion.
5. Application forms and,where applicable, renewal forms shallbeassimple aspossible. Such
documentsandinformationasareconsideredstrictlynecessaryfortheproperfunctioningofthelicensing
regime mayberequired onapplication.
6. Applicationproceduresand,whereapplicable,renewalproceduresshallbeassimpleaspossible.
Applicants shallbeallowed areasonable period forthesubmission oflicence applications. Where
thereisaclosing date,thisperiod should beatleast21dayswithprovision forextension incircumstances
where insufficient applications havebeenreceived within thisperiod. Applicants shallhavetoapproach
onlyoneadministrative body inconnection withanapplication. Where itisstrictly indispensable to
approach more thanoneadministrative body, applicants shallnotneedtoapproach more thanthree
administrative bodies.
7. Noapplication shallberefused forminor documentation errors which donotalterbasic data
contained therein. Nopenalty greater thannecessary toserve merely asawarning shallbeimposed
inrespect ofanyomission ormistake indocumentation orprocedures which isobviously made without
fraudulent intent orgross negligence.
8. Licensed imports shallnotberefused forminor variations invalue, quantity orweight from
theamount designated onthelicence duetodifferences occurring during shipment, differences incidental
tobulkloading andother minor differences consistent withnormal commercial practice.
2Nothing inthisAgreement shallbetaken asimplying thatthebasis, scope orduration ofameasure being implemented
byalicensing procedure issubject toquestion under thisAgreement.
3ForthepurposeofthisAgreement,theterm"governments"isdeemedtoincludethecompetentauthoritiesoftheEuropean
Communities.Page223
9. Theforeign exchange necessary topayforlicensed imports shallbemade available tolicence
holders onthesame basis astoimporters ofgoods notrequiring import licences.
10. With regard tosecurity exceptions, theprovisions ofArticle XXIofGATT 1994 apply.
11. Theprovisions ofthisAgreement shall notrequire anyMember todisclose confidential
information which would impede lawenforcement orotherwise becontrary tothepublic interest or
would prejudice thelegitimate commercial interests ofparticular enterprises, public orprivate.
Article 2
Automatic Import Licensing4
1. Automatic import licensing isdefined asimport licensing where approval oftheapplication
isgranted inallcases, andwhich isinaccordance withtherequirements ofparagraph 2(a).
2. Thefollowing provisions5,inaddition tothose inparagraphs 1through 11ofArticle 1and
paragraph 1ofthisArticle, shallapply toautomatic import licensing procedures:
(a) automatic licensing procedures shallnotbeadministered insuchamanner astohave
restricting effects onimports subject toautomatic licensing. Automatic licensing
procedures shallbedeemed tohavetrade-restricting effects unless, interalia:
(i) anyperson, firmorinstitution which fulfils thelegal requirements ofthe
importingMemberforengaginginimportoperationsinvolvingproductssubject
toautomatic licensing isequally eligible toapply forandtoobtain import
licences;
(ii) applications forlicences maybesubmitted onanyworking dayprior tothe
customs clearance ofthegoods;
(iii) applications forlicences when submitted inappropriate andcomplete formare
approved immediately onreceipt, totheextent administratively feasible, but
within amaximum of10working days;
(b) Members recognize thatautomatic import licensing maybenecessary whenever other
appropriateproceduresarenotavailable.Automaticimportlicensingmaybemaintained
aslongasthecircumstances which gaverisetoitsintroduction prevail andaslong
asitsunderlying administrative purposes cannot beachieved inamore appropriate
way.
4Those import licensing procedures requiring asecurity which havenorestrictive effects onimports aretobeconsidered
asfalling within thescope ofparagraphs 1and2.
5Adeveloping country Member, other thanadeveloping country Member which wasaParty totheAgreement onImport
Licensing Procedures done on12April 1979, which hasspecific difficulties withtherequirements ofsubparagraphs (a)(ii)
and(a)(iii) may, upon notification totheCommittee, delay theapplication ofthese subparagraphs bynotmore thantwoyears
from thedateofentry intoforce oftheWTO Agreement forsuch Member.Page224
Article 3
Non-Automatic Import Licensing
1. Thefollowing provisions, inaddition tothose inparagraphs 1through 11ofArticle 1,shall
apply tonon-automatic import licensing procedures. Non-automatic import licensing procedures are
defined asimport licensing notfalling within thedefinition contained inparagraph 1ofArticle 2.
2. Non-automaticlicensingshallnothavetrade-restrictiveor-distortiveeffectsonimportsadditional
tothosecausedbytheimpositionoftherestriction.Non-automaticlicensingproceduresshallcorrespond
inscope andduration tothemeasure theyareusedtoimplement, andshallbenomore administratively
burdensome thanabsolutely necessary toadminister themeasure.
3. Inthecaseoflicensing requirements forpurposes other thantheimplementation ofquantitative
restrictions, Members shallpublish sufficient information forother Members andtraders toknow the
basis forgranting and/or allocating licences.
4. Where aMember provides thepossibility forpersons, firms orinstitutions torequest exceptions
orderogations fromalicensing requirement, itshallinclude thisfactintheinformation published under
paragraph 4ofArticle 1aswellasinformation onhowtomake sucharequest and,totheextent possible,
anindication ofthecircumstances under which requests would beconsidered.
5. (a) Members shallprovide, upontherequest ofanyMember having aninterest inthetrade
intheproduct concerned, allrelevant information concerning:
(i) theadministration oftherestrictions;
(ii) theimport licences granted overarecent period;
(iii) thedistribution ofsuchlicences among supplying countries;
(iv) where practicable, import statistics (i.e.value and/or volume) withrespect
totheproductssubjecttoimportlicensing.DevelopingcountryMemberswould
notbeexpected totakeadditional administrative orfinancial burdens onthis
account;
(b) Members administering quotas bymeans oflicensing shallpublish theoverall amount
ofquotas tobeapplied byquantity and/or value, theopening andclosing datesofquotas,
andanychange thereof, within thetimeperiods specified inparagraph 4ofArticle 1
andinsuchamanner astoenable governments andtraders tobecome acquainted with
them;
(c) inthecaseofquotas allocated among supplying countries, theMember applying the
restrictions shallpromptly inform allother Members having aninterest insupplying
theproduct concerned oftheshares inthequota currently allocated, byquantity or
value, tothevarious supplying countries andshallpublish thisinformation within the
timeperiods specified inparagraph 4ofArticle 1andinsuchamanner astoenable
governments andtraders tobecome acquainted withthem;
(d) where situations arisewhich make itnecessary toprovide foranearly opening date
ofquotas, theinformation referred toinparagraph 4ofArticle 1should bepublishedPage225
within thetime-periods specified inparagraph 4ofArticle 1andinsuchamanner
astoenable governments andtraders tobecome acquainted withthem;
(e) anyperson, firmorinstitution which fulfils thelegalandadministrative requirements
oftheimporting Member shallbeequally eligible toapply andtobeconsidered for
alicence. Ifthelicence application isnotapproved, theapplicant shall, onrequest,
begiven thereason therefor andshallhavearightofappeal orreview inaccordance
withthedomestic legislation orprocedures oftheimporting Member;
(f) theperiodforprocessingapplicationsshall,exceptwhennotpossibleforreasonsoutside
thecontrol oftheMember, notbelonger than30daysifapplications areconsidered
asandwhen received, i.e.onafirst-come first-served basis, andnolonger than60days
ifallapplications areconsidered simultaneously. Inthelatter case, theperiod for
processing applications shallbeconsidered tobegin onthedayfollowing theclosing
dateoftheannounced application period;
(g) theperiod oflicence validity shallbeofreasonable duration andnotbesoshort as
topreclude imports. Theperiod oflicence validity shallnotpreclude imports from
distant sources, except inspecial cases where imports arenecessary tomeetunforeseen
short-term requirements;
(h) when administering quotas, Members shallnotprevent importation frombeing effected
inaccordance withtheissued licences, andshallnotdiscourage thefullutilization of
quotas;
(i) when issuing licences, Members shall takeintoaccount thedesirability ofissuing
licences forproducts ineconomic quantities;
(j) inallocating licences, theMember should consider theimport performance ofthe
applicant. Inthisregard, consideration should begiven astowhether licences issued
toapplicants inthepasthavebeenfullyutilized during arecent representative period.
Incases where licences havenotbeenfullyutilized, theMember shallexamine the
reasons forthisandtakethesereasons intoconsideration when allocating newlicences.
Consideration shallalsobegiven toensuring areasonable distribution oflicences to
newimporters, taking intoaccount thedesirability ofissuing licences forproducts in
economic quantities. Inthisregard, special consideration should begiven tothose
importers importing products originating indeveloping country Members and,in
particular, theleast-developed country Members;
(k) inthecaseofquotas administered through licences which arenotallocated among
supplying countries, licence holders6shallbefreetochoose thesources ofimports.
Inthecaseofquotas allocated among supplying countries, thelicence shallclearly
stipulate thecountry orcountries;
(l) inapplying paragraph 8ofArticle 1,compensating adjustments maybemade infuture
licence allocations where imports exceeded aprevious licence level.
6Sometimes referred toas"quota holders".Page226
Article 4
Institutions
There ishereby established aCommittee onImport Licensing composed ofrepresentatives
fromeachoftheMembers. TheCommittee shallelectitsownChairman andVice-Chairman andshall
meetasnecessary forthepurpose ofaffording Members theopportunity ofconsulting onanymatters
relating totheoperation ofthisAgreement orthefurtherance ofitsobjectives.
Article 5
Notification
1. Members which institute licensing procedures orchanges inthese procedures shallnotify the
Committee ofsuchwithin 60daysofpublication.
2. Notifications oftheinstitution ofimport licensing procedures shall include thefollowing
information:
(a) listofproducts subject tolicensing procedures;
(b) contact point forinformation oneligibility;
(c) administrative body(ies) forsubmission ofapplications;
(d) dateandname ofpublication where licensing procedures arepublished;
(e) indication ofwhether thelicensing procedure isautomatic ornon-automatic according
todefinitions contained inArticles 2and3;
(f) inthecaseofautomatic import licensing procedures, theiradministrative purpose;
(g) inthecaseofnon-automatic import licensing procedures, indication ofthemeasure
being implemented through thelicensing procedure; and
(h) expected duration ofthelicensing procedure ifthiscanbeestimated withsome
probability, andifnot,reason whythisinformation cannot beprovided.
3. Notifications ofchanges inimport licensing procedures shallindicate theelements mentioned
above, ifchanges insuchoccur.
4. Members shallnotify theCommittee ofthepublication(s) inwhich theinformation required
inparagraph 4ofArticle 1willbepublished.
5. Anyinterested Member which considers thatanother Member hasnotnotified theinstitution
ofalicensing procedure orchanges therein inaccordance withtheprovisions ofparagraphs 1through 3
maybring thematter totheattention ofsuchother Member. Ifnotification isnotmade promptly
thereafter, suchMember mayitself notify thelicensing procedure orchanges therein, including all
relevant andavailable information.Page227
Article 6
Consultation andDispute Settlement
Consultations andthesettlement ofdisputes withrespect toanymatter affecting theoperation
ofthisAgreement shallbesubject totheprovisions ofArticles XXII andXXIII ofGATT 1994, as
elaborated andapplied bytheDispute Settlement Understanding.
Article 7
Review
1. TheCommittee shallreview asnecessary, butatleastonceevery twoyears, theimplementation
andoperation ofthisAgreement, taking intoaccount theobjectives thereof, andtherights andobligations
contained therein.
2. Asabasis fortheCommittee review, theSecretariat shallprepare afactual report based on
information provided under Article 5,responses totheannual questionnaire onimport licensing
procedures7andother relevant reliable information which isavailable toit.Thisreport shallprovide
asynopsis oftheaforementioned information, inparticular indicating anychanges ordevelopments
during theperiod under review, andincluding anyother information asagreed bytheCommittee.
3. Membersundertaketocompletetheannualquestionnaireonimportlicensingprocedurespromptly
andinfull.
4. TheCommittee shallinform theCouncil forTrade inGoods ofdevelopments during theperiod
covered bysuchreviews.
Article 8
Final Provisions
Reservations
1. Reservations maynotbeentered inrespect ofanyoftheprovisions ofthisAgreement without
theconsent oftheother Members.
Domestic Legislation
2. (a) Each Member shallensure, notlaterthanthedateofentry intoforce oftheWTO
Agreement forit,theconformity ofitslaws, regulations andadministrative procedures
withtheprovisions ofthisAgreement.
(b) Each Member shallinform theCommittee ofanychanges initslawsandregulations
relevant tothisAgreement andintheadministration ofsuchlawsandregulations.
7Originally circulated asGATT 1947 document L/3515 of23March 1971.