RESTRICTED
WORLD TRADE G/LIC/W/5
24September 1996
ORGANIZATION(96-3696)
Committee onImport Licensing
FIRST BIENNIAL REVIEW OFTHE IMPLEMENTATION AND OPERATION
OFTHE AGREEMENT ONIMPORT LICENSING PROCEDURES
Background Working Document bytheSecretariat1
ThisworkingdocumentiscirculatedbytheSecretariatinpreparationforthefirstbiennialreview
oftheimplementation andoperation oftheAgreement onImport Licensing Procedures, tobeconducted
on23October 1996. Asindicated inthetextbelow, thisdocument willhavetobeupdated inlight
ofthediscussion atthatmeeting inorder togiveafullpicture ofthedevelopments intheCommittee
during theperiod covered. Members areinvited tocommunicate totheSecretariat anyadditional data
theywishtohaveincluded inthisdocument.
_______________
Article 7.1oftheAgreement onImport Licensing Procedures requires theCommittee toreview
asnecessary, butatleastonceevery twoyears, theimplementation andoperation oftheAgreement,
taking intoaccount theobjectives thereof, andtherights andobligations contained therein. Article 7.2
states thatasabasisfortheCommittee review, theSecretariat shallprepare afactual report based on
information provided under Article 5,responses totheannual questionnaire onimport licensing
procedures andother relevant reliable information which isavailable toit,andthatthisreport shall
provide asynopsis oftheaforementioned information, inparticular indicating anychanges or
developments during theperiod under review, andincluding anyother information asagreed bythe
Committee.
Themainobjectives oftheAgreement arethose listed inthepreamble oftheAgreement. The
review should cover theimplementation andoperation oftheAgreement inthelightofitsobjectives
andspecific obligations.
Atitsmeeting of12October 1995, theCommittee agreed toconduct thefirstbiennial review
under Article 7.1atthemeeting inAutumn 1996.
Theinformationcontainedinthisdocumentcoverstheperiodfrom1January1995to[23October
1996].
1Delegations willbeabletocomment onthisfirstdraft ataninformal meeting oftheCommittee which will
beheldon1October 1996. Comments onthisfirstdraftshould besenttoMrs.Nimala Perera by9October 1996
(Tel: 7395092, Room 3138).G/LIC/W/5
Page2
Thecontents ofthisdocument areasfollows:
Page
I. COMMITTEE ONIMPORT LICENSING 3
A. Officers, Members andobservers 3
B. Main Developments oftheCommittee during thePeriod Covered 4
II. NOTIFICATIONS 5
C. Invocation ofdelayed application provisions bydeveloping country 5
Members (footnote 5toArticle 2.2)
D. Notifications ofPublications and/or Legislation 5
(Articles 1.4(a)and/or 8.2(b)
E. Notifications ofImport Licensing Procedures (Articles 7.3and5) 7
III. CONSULTATION AND DISPUTE SETTLEMENT 8
ANNEX I 9
ANNEX II 10
ANNEX III 11G/LIC/W/5
Page3
I. COMMITTEE ONIMPORT LICENSING
A. Officers, Members andObservers
1. Officers:
Chairman (1995-1996): Mr.Calson Mbegabolawe (Zimbabwe)
Vice-Chairman (1995-1996): Mr.JanMichalek (Poland)
2. Members [123]2
Antigua andBarbuda Grenada Norway
Argentina Guatemala Pakistan
Australia Guinea Bissau Papua NewGuinea
Austria Guinea, Rep.of Paraguay
Bahrain Guyana Peru
Bangladesh Haiti Philippines
Barbados Honduras Poland
Belgium Hong Kong Portugal
Belize Hungary Qatar
Benin Iceland Romania
Bolivia India Rwanda
Botswana Indonesia Saint Kitts&Nevis
Brazil Ireland Saint Lucia
Brunei Darussalam Israel Saint Vincent &Grenadines
Burkina Faso Italy Senegal
Burundi Jamaica Sierra Leone
Cameroon Japan Singapore
Canada Kenya Slovak Republic
Central African Rep. Korea Slovenia
Chile Kuwait Solomon Islands
Colombia Lesotho South Africa
Costa Rica Liechtenstein Spain
Côted'Ivoire Luxembourg SriLanka
Cuba Macau Suriname
Cyprus Madagascar Swaziland
Czech Republic Malawi Sweden
Denmark Malaysia Switzerland
Djibouti Maldives Tanzania
Dominica Mali Thailand
Dominican Republic Malta Togo
EC Mauritania Trinidad &Tobago
Ecuador Mauritius Tunisia
Egypt Mexico Turkey
ElSalvador Morocco Uganda
Fiji Mozambique United Arab Emirates
Finland Myanmar United Kingdom
France Namibia United States
Gabon Netherlands Uruguay
Germany NewZealand Venezuela
Ghana Nicaragua Zambia
Greece Nigeria Zimbabwe
2Members andobservers on[23October 1996].G/LIC/W/5
Page4
3. Observers
Observer Governments [37]2
Albania
Algeria
Angola
Armenia
Belarus
Bulgaria
Cambodia
Chad
China
Congo
Croatia
Estonia
Former Yugoslav Rep. of
MacedoniaGambia
Georgia
Jordan
Kazakhstan
Kyrgyz Rep.
Latvia
Lithuania
Moldova
Mongolia
Nepal
Niger
Oman
Panama
Russian FederationSaudi Arabia
Seychelles
Sudan
Taipei, Chinese
Tonga
Ukraine
Uzbekistan
Vanuatu
Vietnam
Zaire
Observer Organizations3
IMF
UNCTAD
World Bank
B. Main Developments oftheCommittee during thePeriod Covered
4. During thereporting period, theCommittee heldfourmeetings on3Mayand12October 1995,
and8March and23October 1996. Theminutes ofthese meetings arecontained indocuments
G/LIC/M/1-4, respectively.
5. During theperiod covered, theCommittee adopted rules ofprocedure foritsmeetings
(G/LIC/W/1); reviewed notifications oflegislation and/or publications submitted by[26]Members,
repliestotheQuestionnaireonImportLicensingProceduressubmittedby[22]Members,andnotifications
relating totheinstitution ofimport licensing procedures orchanges inthese procedures submitted by
[seven] Members; agreed onreporting procedures totheCouncil forTrade inGoods under Article 7.4;
adopted procedures fornotification andreview under theAgreement; asconcerns notifications provided
forinArticle 7.3,agreed onrevisions totheQuestionnaire onImport Licensing Procedures and
established atime-limit of30September toprovide replies totheQuestionnaire; agreed thatallimport
licensing procedures, including thosedealing withtheadministration ofagricultural tariffquotas, should
benotified totheCommittee onImport Licensing andthatanyproblems thatmight ariserelating to
duplication oroverlapping ofnotifications should betaken upattheWorking Group onNotification
Obligations andProcedures (G/LIC/M/2); [asconcerns substantive issues arising from notifications
ofimport licensing procedures, reached anunderstanding onreview procedures ingeneral withaview
tofacilitating andspeeding upthereview ofnotifications andminimizing anydelays inproviding
clarifications orresponses tosuchqueries concerning notifications (G/LIC/M/4);] conducted thefirst
biennial review oftheimplementation andoperation oftheAgreement under Article 7.1onthebasis
2Members andobservers on[23October 1996].
3Theinvitations tothese three organizations bytheCouncil forTrade inGoods areadhocarrangements,
pending final agreement onguidelines forobserver status forinternational intergovernmental organizations.G/LIC/W/5
Page5
ofafactual report prepared bytheSecretariat (G/LIC/M/4); andtooknoteoftheinvocation ofthe
provisions offootnote 5toArticle 2.2by[24]developing country Members (G/LIC/1 andAdds.1-3).
II. NOTIFICATIONS4
C. Invocation ofDelayed Application Provisions byDeveloping Country Members (Footnote 5
toArticle 2.2)
6. Pursuant tofootnote 5toArticle 2.2oftheAgreement, adeveloping country Member, other
thanadeveloping country Member which wasaParty totheAgreement onImport Licensing Procedures
doneon12April 1979, which hasspecific difficulties complying withtherequirements ofsubparagraph
(a)(ii) (which requires applications forautomatic import licences tobeaccepted onanyworking day
prior tothecustoms clearance ofthegoods) andsubparagraph (a)(iii) (which requires applications for
automatic import licences when submitted inappropriate andcomplete form tobeapproved within
amaximum of10working days) may, upon notification totheCommittee, delay theapplication of
these provisions bynotmore thantwoyears fromthedateofentry intoforce oftheWTO Agreement
forsuchMember.
7. Listed below arethe[24]developing country Members which have invoked thedelayed
application provisions since theentry intoforce oftheWTO Agreement and(inbrackets) thedateof
entry intoforce oftheWTO Agreement fortheMember concerned (G/LIC/1 andAdds.1-3):
Bangladesh (1.1.95) Honduras (1.1.95)
Bolivia (13.9.95) Indonesia (1.1.95)
Brazil (1.1.95) Kenya (1.1.95)
Burkina Faso(3.6.95) Malaysia (1.1.95)
Cameroon (13.12.95) Myanmar (1.1.95)
Colombia (30.4.95) SriLanka (1.1.95)
Costa Rica(1.1.95) Thailand (1.1.95)
Côted'Ivoire (1.1.95) Tunisia (29.3.95)
Dominican Republic (9.3.95) Turkey (26.3.95)
ElSalvador (7.5.95) United Arab Emirates (10.4.96)
Gabon (1.1.95) Uruguay (1.1.95)
Guatemala (21.7.95) Venezuela (1.1.95)
D. Notifications ofPublications and/or Legislation (Articles 1.4(a)and/or 8.2(b))
8. Paragraph4(a)ofArticle1andparagraphs3,4,5(b),5(c)and5(d)ofArticle3requireMembers
topublish certain information "forother Members andtraders toknow thebasis forgranting and/or
allocating licences", or"insuchamanner astoenable governments andtraders tobecome acquainted
withthem". Article 1.4(a) requires Members tonotify theCommittee thesources inwhich the
information concerning import licensing procedures arepublished, andtomake copies ofthese
publications available totheSecretariat.
9. Paragraph 2(a)ofArticle 8provides that"each Member shallensure, notlaterthanthedate
ofentry intoforce oftheWTO Agreement forit,theconformity ofitslaws, regulations and
administrative procedures withtheprovisions ofthisAgreement"; paragraph 2(b)states that"each
MembershallinformtheCommitteeofanychangesinitslawsandregulationsrelevanttothisAgreement
andintheadministration ofsuchlawsandregulations".
4Alistofnotifications byMember andArticle iscontained inAnnex III.G/LIC/W/5
Page6
10. Atitsmeeting on12October 1995, theCommittee agreed thatincases where thepublications
orlegislation were notinaWTO official language Members shall provide, together withsuch
publications orlegislation ,asummary ofthenotification inoneoftheWTO languages. Other Members
mayaskforafulltranslation iftheysowish, orseekanyadditional information onabilateral basis.
Anyissues thatcannot besolved onabilateral basismaybebrought totheattention oftheCommittee.
Itwasalsoagreed thatthefirstnotification under Article 8.2(b) shallcontain thefulltextofrelevant
lawsandregulations ineffect onentry intoforce oftheWTO Agreement fortheMember concerned
(G/LIC/M/2 andG/LIC/3).
11. Notifications pursuant toArticles 1.4(a) and/or 8.2(b) havebeenreceived fromthefollowing
Members andhavebeencirculated inG/LIC/N/1/- series. Copies ofpublications and/or legislation
submitted withthese notifications areavailable forconsultation intheSecretariat.
Argentina (G/LIC/N/1/ARG/1)
Australia (G/LIC/N/1/AUS/1)
Barbados (G/LIC/N/3/BRB/1)
Canada (G/LIC/N/1/CAN/1)
Chile (G/LIC/N/1/CHL/1)
Colombia (G/LIC/N/1/COL/1)
Costa Rica (G/LIC/N/1/CRI/1)
Cuba (G/LIC/N/1/CUB/1)
Cyprus (G/LIC/N/1/CYP/1)
European Communities (G/LIC/N/1/EEC/1/Rev.2 &Rev.2/Add.1)
Hong Kong (G/LIC/N/1/HKG/1)
Jamaica (G/LIC/N/1/JAM/1)
Japan (G/LIC/N/1/JPN/1)
Malta (G/LIC/N/1/MLT/1)
Mauritius (G/LIC/N/1/MUS/1)
Morocco (G/LIC/N/1/MAR/1)
NewZealand (G/LIC/N/1/NZL/1)
Nicaragua (G/LIC/N/1/NIC/1)
Pakistan (G/LIC/N/1/PAK/1)
Peru (G/LIC/N/1/PER/1)
Romania (G/LIC/N/1/ROM/1)
Swaziland (G/LIC/N/1/SWZ/1)
Turkey (G/LIC/N/1/TUR/1)G/LIC/W/5
Page7
Uganda (G/LIC/N/1/UGA/1)
Uruguay (G/LIC/N/1/URY/1)
Zimbabwe (G/LIC/N/1/ZWE/1)
E. Notifications ofImport Licensing Procedures (Articles 7.3and5)
12. Article 2.1oftheAgreement defines automatic import licensing as"import licensing where
approval oftheapplication isgranted inallcases, andinaccordance withtherequirements of
paragraph 2(a)". Paragraph 2(a)ofArticle 2states that"automatic import licensing procedures shall
notbeadministered insuchamanner astohaverestricting effects onimports subject toautomatic
licensing..."5Article 3defines non-automatic import licensing as"import licensing notfalling within
thedefinition contained inparagraph 1ofArticle 2".6
13. Pursuant toArticle 7.3oftheAgreement, Members undertake tocomplete theannual
Questionnaire onImport Licensing Procedures promptly andinfull.Atitsmeeting inOctober 1995,
theCommittee established atime-limit of30September each yeartosubmit these notifications
(G/LIC/M/2 andG/LIC/3).
14. Article 5.1oftheAgreement requires Members which institute licensing procedures orchanges
inthese procedures tonotify theCommittee ofsuchwithin 60daysofpublication. Pursuant to
Article 5.2,thenotifications shallinclude thelistofproducts subject tolicensing procedures; contact
point forinformation oneligibility; administrative body(ies) forsubmission ofapplications; dateand
name ofpublication where licensing procedures arepublished; indication ofwhether thelicensing
procedure isautomatic ornon-automatic according todefinitions contained inArticles 2and3;inthe
caseofautomatic licensing procedures, theiradministrative purpose; inthecaseofnon-automatic
licensing procedures, indication ofthemeasure being implemented through thelicensing procedure;
andexpected duration ofthelicensing procedure ifthiscanbeestimated withsome probability, and
ifnot,reason whythisinformation cannot beprovided.
15. Inaddition,pursuanttoArticle5.5anyinterestedMemberwhichconsidersthatanotherMember
hasnotnotified theinstitution ofalicensing procedure orchanges therein inaccordance withthe
provisions ofArticles 5.1-5.3 maybring thematter totheattention ofsuchotherMember. Ifnotification
isnotmade promptly thereafter, suchMember mayitself notify thelicensing procedure orchanges
therein, including allrelevant andavailable information.7
16. During theperiod covered, thefollowing Members havesubmitted replies totheQuestionnaire
pursuant toArticles 7.3oftheAgreement and/or havenotified theinstitution ofimport licensing
procedures orchanges inthese procedures pursuant toArticle 5(circulated inG/LIC/N/3/- and
G/LIC/N/2/- series, respectively). Reference isalsomade toanyrelevant statements made byMembers
ontheirimplementation oftheAgreement, asreported intheminutes ofthemeetings.
Argentina (G/LIC/N/3/ARG/1 &G/LIC/N/2/ARG/1)
Australia (G/LIC/N/3/AUS/1)
Barbados (G/LIC/N/3/BRB/1)
5Aconcordance between theprovisions oftheAgreement relating toautomatic import licensing procedures
andtheQuestionnaire onImport Licensing iscontained inAnnex I.
6Aconcordance between theprovisions oftheAgreement relating tonon-automatic licensing
procedures andtheQuestionnaire onImport Licensing Procedures iscontained inAnnex II.
7Sofar,theCommittee hasnotreceived anynotifications under thisprovision.G/LIC/W/5
Page8
Canada (G/LIC/N/3/CAN/1)
Chile (G/LIC/N/3/CHL/1)
Colombia (G/LIC/N/3/COL/1)
Costa Rica (G/LIC/N/3/CRI/1)
Cyprus (G/LIC/N/3/CYP/1/Rev.1)
Ecuador (G/LIC/N/3/ECU/1)
European Communities (G/LIC/N/2/EEC/1)
Hong Kong (G/LIC/N/3/HKG/1)
India (G/LIC/N/3/IND/1)
Japan (G/LIC/N/2/JPN/1)
Malta (G/LIC/N/3/MLT/1)
Malaysia (G/LIC/N/2/MYS/1 &G/LIC/M/1, paragraphs 39-44)
Mauritius (G/LIC/N/3/MUS/1)
Morocco (G/LIC/N/3/MAR/1)
Nigeria (G/LIC/N/2/NGA/1 &G/LIC/N/3/NGA/1)
Norway (G/LIC/N/3/NOR/1 &Corr.1)
Pakistan (G/LIC/N/2/PAK/1)
Peru: (G/LIC/N/3/PER/1)
Romania (G/LIC/N/2/ROM/1 &G/LIC/N/3/ROM/1)
Trinidad andTobago (G/LIC/N/3/TTO/1)
Turkey (G/LIC/N/3/TUR/1)
United States (G/LIC/N/3/USA/1)
Uruguay (G/LIC/N/3/URY/1)
III. CONSULTATION AND DISPUTE SETTLEMENT
17. During thereporting period, Ecuador, Guatemala, Honduras, Mexico andtheUnited States
requested consultations withtheEuropean Communities concerning theECregime fortheimportation,
saleanddistribution ofbananas. Thecomplainants allege thattheEC'sregime isinconsistent with,G/LIC/W/5
Page9
interalia,Articles 1and3oftheAgreement onImport Licensing Procedures (G/LIC/D/1 and2).
Apanel wassubsequently established atthemeeting oftheWTO Dispute Settlement Body on8May
1996 (WT/DS27/7 andG/LIC/M/2, paragraphs 38-39).
ANNEX I
Generally, information concerning theadministration ofautomatic licensing procedures can
befound under thefollowing headings ofthereplies totheQuestionnaire onImport Licensing
Procedures:
Relevant Relevant
Article in Question in
Agreement Questionnaire
1. Purposes ofmaintaining
automatic import licensing Article 2.2(b) No.4
procedures
2. Product coverage Article 1.4(a) No.2
3. Eligibility ofimporters Articles 2.2(a)(i) No.9(b)
toapply forautomatic &1.4(a)
licences
4. Period ofsubmission and Articles 2.2(a)(ii) Nos. 7(a),7(b),
processing ofapplications &2.2(a)(iii) &7(c)
5. Administrative body tobe Article 1.6 No.7(d)
approached
6. Refusal ofapplications Article 1.7 No.8
7. Application forms andother Article 1.5 No.10
documents required on
application
8. Availability offoreign Article 1.9 No.19
exchange forimportsG/LIC/W/5
Page10
ANNEX II
Generally, information concerning theadministration ofnon-automatic licensing procedures can
befound under thefollowing headings ofthereplies totheQuestionnaire onImport Licensing
Procedures:
Relevant Relevant
Article in Question in
Agreement Questionnaire
1. Purpose Articles 3.1&3.3 No.4
2. Product coverage under each Article 1.4(a) No.2
non-automatic licensing system
3. Distribution oflicences Article 3.5(a)iii No.3
among supplying countries &3.5(c)
4. Sizeofquotas Articles 3.5(h), Nos. 6(I),
3.5(i) &3.5(l) 6(II)&6(III)
5. Eligibility ofimporters to Article 3.5(e) No.9(a)
apply fornon-automatic licences
6. Allocation oflicences to Article 3.5(j) Nos. 6(III)
applicants &6(VIII)
7. Period ofprocessing of Article 3.5(f) Nos. 6(V)
applications &6(VIII)
8. Period oflicence validity Article 3.5(g) Nos. 6(VI) &14
9. Application forms andother Article 1.5 No.10
documents required onapplication
10. Administrative body tobe Article 1.6 No.6(VII)
approached
11. Refusal ofapplications Article 1.7 No.8
12. Availability offoreign Article 1.9 No.19
exchange forimportsG/LIC/W/5
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ANNEX III
Notifications received asat[23October 1996]
(i) Notifications oflegislation and/or publications (Articles 1.4(a) and/or 8.2(b)) received from:
(26)
Argentina (G/LIC/N/1/ARG/1) Malta (G/LIC/N/1/MLT/1)
Australia (G/LIC/N/1/AUS)1) Mauritius (G/LIC/N/1/MUS/1)
Barbados (G/LIC/N/3/BRB/1) Morocco (G/LIC/N/1/MAR/1)
Canada (G/LIC/N/1/CAN/1) NewZealand (G/LIC/N/1/NZL/1)
Chile (G/LIC/N/1/CHL/1) Nicaragua (G/LIC/N/1/NIC/1)
Colombia (G/LIC/N/1/COL/1) Pakistan (G/LIC/N/1/PAK/1)
Costa Rica(G/LIC/N/1/CRI/1) Peru(G/LIC/N/1/PER/1)
Cuba (G/LIC/N/1/CUB/1) Romania (G/LIC/N/1/ROM/1)
Cyprus (G/LIC/N/1/CYP/1) Swaziland (G/LIC/N/1/SWZ/1)
EC(G/LIC/N/1/EEC/1/Rev.2 &Rev.2/Add.1) Turkey (G/LIC/N/1/TUR/1)
Hong Kong (G/LIC/N/1/HKG/1) Uganda (G/LIC/N/1/UGA/1)
Jamaica (G/LIC/N/1/JAM/1) Uruguay (G/LIC/N/1/URY/1)
Japan (G/LIC/N/1/JPN/1) Zimbabwe (G/LIC/N/1/ZWE/1)
(ii) Replies totheQuestionnaire onImport Licensing Procedures (Article 7.3)received from:
(22)
Argentina (G/LIC/N/3/ARG/1) Malta (G/LIC/N/3/MLT/1)
Australia (G/LIC/N/3/AUS/1) Mauritius (G/LIC/N/3/MUS/1)
Barbados (G/LIC/N/3/BRB/1) Morocco (G/LIC/N/3/MAR/1)
Canada (G/LIC/N/3/CAN/1) Nigeria (G/LIC/N/3/NGA/1)
Chile (G/LIC/N/3/CHL/1) Norway(G/LIC/N/3/NOR/1&Corr.1)
Colombia (G/LIC/N/3/COL/1) Peru(G/LIC/N/3/PER/1)
Costa Rica(G/LIC/N/3/CRI/1) Romania (G/LIC/N/3/ROM/1)
Cyprus (G/LIC/N/3/CYP/1/Rev.1) Trinidad&Tobago(G/LIC/N/3/TTO/1)
Ecuador (G/LIC/N/3/ECU/1) Turkey (G/LIC/N/3/TUR/1)
Hong Kong (G/LIC/N/3/HKG/1) United States (G/LIC/N/3/USA/1)
India (G/LIC/N/3/IND/1) Uruguay (G/LIC/N/3/URY/1)
(iii) Notifications ofinstitution ofimport licensing procedures orchanges therein (Article 5)received
from: (7)
Argentina (G/LIC/N/2/ARG/2) Nigeria (G/LIC/N/2/NGA/1)
EC(G/LIC/N/2/EEC/1) Pakistan (G/LIC/N/2/PAK/1)
Japan (G/LIC/N/2/JPN/1) Romania (G/LIC/N/2/ROM/1)
Malaysia (G/LIC/N/2/MYS/1)
(iv) Developing country Members which haveinvoked thetwo-year delayed application provisions
(footnote 5toArticle 2.2): (24)(G/LIC/1 andAdds.1-3)
Bangladesh (asfrom 1.1.95) Honduras (asfrom 1.1.95)
Bolivia (13.9.95) Indonesia (1.1.95)
Brazil (1.1.95) Kenya (1.1.95)
Burkina Faso(3.6.95) Malaysia (1.1.95)
Cameroon (13.12.95) Myanmar (1.1.95)
Colombia (30.4.95) SriLanka (1.1.95)
Costa Rica(1.1.95) Thailand (1.1.95)
Côted'Ivoire (1.1.95) Tunisia (29.3.95)
Dominican Republic (9.3.95) Turkey (26.3.95)
ElSalvador (7.5.95) United Arab Emirates (10.4.96)G/LIC/W/5
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Gabon (1.1.95) Uruguay (1.1.95)
Guatemala (21.7.95) Venezuela (1.1.95)