Having regard to the Multilateral Trade Negotiations;
Desiring to further the objectives of the GATT 1994;
Taking into account the particular trade, development and financial needs of developing country Members;
Recognizing the usefulness of automatic import licensing for certain purposes and that such licensing should not be used to restrict trade;
Recognizing that import licensing may be employed to administer measures such as those adopted pursuant to the relevant provisions of the GATT 1994;
Recognizing the provisions of the GATT 1994 as they apply to import licensing procedures;
Desiring to ensure that import licensing procedures are not utilized in a manner contrary to the principles and obligations of the GATT 1994;
Recognizing that the flow of international trade could be impeded by the inappropriate use of import licensing procedures;
Convinced that import licensing, particularly non-automatic 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:
Article 1
General Provisions
1. For the purpose of this Agreement, import licensing is defined as administrative procedures1 used for the operation of import licensing r��gimes 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.
2. Members shall ensure that the administrative procedures used to implement import licensing r��gimes are in conformity with the relevant provisions of the 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.2
3. The rules for 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 the lists of products subject to the licensing requirement shall be published in the sources notified to the Committee established under Article 4, in such a manner as to enable governments3 and traders to become acquainted with them. Such publication shall take place, whenever practicable, twenty-one 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 import licensing shall also be published in the same manner and within the same time periods as specified above. Copies of these publications shall also be made available to the WTO Secretariat. (b) Members who wish to make comments in writing shall be provided the opportunity to discuss these comments upon request. The concerned Member shall give due consideration to these comments and results of discussion.
5. Application forms and, where applicable, renewal forms shall be as simple as possible. Such documents and information as are considered strictly necessary for the proper functioning of the licensing r��gime may be required on application.
6. Application procedures and, where applicable, renewal procedures shall be as simple as possible. Applicants shall be allowed a reasonable period for the submission of licence applications. Where there is a closing date, this period should be at least twenty-one days with provision for extension in circumstances where insufficient applications have been received within this period. Applicants shall have to approach only one administrative body in connection with an application. Where it is strictly indispensable to approach more than one administrative body, applicants shall not need to approach more than three administrative bodies.
7. No application shall be refused for minor documentation errors which do not alter basic data contained therein. No penalty greater than necessary to serve merely as a warning shall be imposed in respect of any omission or mistake in documentation or procedures which is obviously made without fraudulent intent or gross negligence.
8. 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.
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.
10. With regard to security exceptions, the provisions of Article XXI of the GATT 1994 apply.
11. The provisions of this Agreement shall not require any Member to disclose confidential information which would impede law enforcement or otherwise be contrary to the public interest or would prejudice the legitimate commercial interests of particular enterprises, public or private.
Article 2
Automatic Import Licensing4
1. Automatic import licensing is defined as import licensing where approval of the application is granted in all cases, and in accordance with the requirements of paragraph 2(a) of this Article. 2. The following provisions5, in addition to those in paragraphs 1 to 11 of Article 1 and paragraph 1 of the present Article, shall apply to automatic import licensing procedures:
Article 3
Non-automatic Import Licensing
1. The following provisions, in addition to those in paragraphs 1 to 11 of Article 1, shall apply to non-automatic import licensing procedures. Non-automatic import licensing procedures are defined as import licensing not falling within the definition contained in paragraph 1 of Article 2.
2. Non-automatic licensing shall not have trade restrictive or distortive effects on 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 absolutely necessary to administer the measure.
3. In the case of licensing requirements for purposes other than the implementation of quantitative restrictions, Members shall publish sufficient information for other Members and traders to know the basis for granting and/or allocating licences.
4. Where a Member provides the possibility for persons, firms or institutions to request exceptions or derogations from a licensing requirement, it shall include this fact in the information published under paragraph 4 of Article 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.
Article 4
Institutions
There shall be established under this Agreement a Committee on Import Licensing composed of representatives from each of the Members (referred to in this Agreement as "the Committee"). The Committee shall elect its own Chairman and Vice-Chairman and shall meet as necessary for the purpose of affording Members the opportunity of consulting on any matters relating to the operation of this Agreement or the furtherance of its objectives.
Article 5
Notification
1. Members which institute licensing procedures or changes in these procedures shall notify the Committee of such within sixty days of publication.
2. Notifications of the institution of import licensing procedures shall include the following information:
3. Notifications of changes in import licensing procedures shall indicate the elements mentioned above, if changes in such occur.
4. Members shall notify the Committee of the publication(s) in which the information required in paragraph 4 of Article 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 to 3 of this Article may bring the matter to the attention of such other Member. If notification is not made promptly thereafter, such Member may itself notify the licensing procedure or changes therein, including all relevant and available information.
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 provisions of Articles XXII and XXIII of the GATT 1994, as elaborated and applied by the Understanding on Rules and Procedures Governing the Settlement of Disputes.
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 WTO Secretariat shall prepare a factual report based on information provided under Article 5, responses to the annual questionnaire on import licensing procedures7 and other relevant reliable information 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 other information as agreed by the Committee. 3. Members undertake to complete the annual questionnaire on 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.
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
2.
1. Those procedures referred to as "licensing" as well as other similar administrative procedures.
2. Nothing 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.
3. For the purpose of this Agreement, the term "governments" is deemed to include the competent authorities of the European Communities.
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 of this Article.
5. A developing country Member, other than a developing country Member which was a Party to the Agreement on Import Licensing Procedures 1979, which has specific difficulties with the requirements of sub-paragraphs (a)(ii) and (a)(iii) may, upon notification to the Committee referred to in Article 4, delay the application of these sub- paragraphs by not more than two years from the date of entry into force of the Agreement Establishing the WTO for such Member.
6. Sometimes referred to as "quota holders".
7. Originally circulated as GATT 1947 document L/3515 of 23 March 1971.
W3 since October 3 1993.