AGREEMENT ON IMPORT 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 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 GATT 1994;
Recognizing the provisions of 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 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 procedures[1] 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.
2. 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.[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 on Import Licensing provided for in Article 4 (referred to in this 
Agreement as "the Committee"), in such a manner as to enable governments[3] 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 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 Secretariat. 
(b) Members which 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 regime 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 21 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 
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 Licensing[4]
1. 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).
2. The following provisions[5], 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:
(a) automatic licensing procedures shall not be administered in such a 
manner as to have restricting effects on 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 importing Member for engaging in import operations involving 
products subject to automatic licensing is equally eligible to apply for 
and to obtain import licences;
(ii) applications for licences may be submitted on any working day prior 
to the customs clearance of the goods;
(iii) applications for licences when submitted 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 import licensing may be necessary 
whenever other appropriate procedures are not available. 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.
Article 3 - Non-Automatic Import Licensing
1. 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 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. (a) Members shall provide, upon the request of any Member having an 
interest in the trade in the product concerned, all relevant information 
concerning:
(i) the administration of the restrictions;
(ii) the import licences granted over a recent period;
(iii) the distribution of such licences among supplying countries;
(iv) where practicable, import statistics (i.e. value and/or volume) with 
respect to the products subject to import licensing. Developing country 
Members would not be expected to take additional administrative or 
financial burdens on this account;
(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 specified in paragraph 4 of Article 1 and in such a manner as 
to enable governments and traders to become acquainted with them;
(c) in the case of quotas allocated among supplying countries, the Member 
applying the restrictions shall promptly inform all other Members having 
an interest in supplying the product concerned of the shares in the quota 
currently allocated, by quantity or value, to the various supplying 
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 importing Member shall be equally 
eligible to apply and to be considered for a licence. If the licence 
application is not approved, the applicant shall, on request, be given the 
reason therefor and shall have a right of appeal or review in accordance 
with the domestic legislation or procedures of the 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;
(g) the period of licence validity shall be of reasonable duration and not 
be so short as to preclude imports. The period of licence validity shall 
not preclude imports from distant sources, except in special cases where 
imports are necessary to meet unforeseen short-term requirements;
(h) when administering quotas, Members shall not prevent importation from 
being effected in accordance with the issued licences, and shall not 
discourage the full utilization of quotas;
(i) when issuing licences, Members shall take into account the 
desirability of issuing licences for products in economic quantities;
(j) in allocating licences, the Member should consider the import 
performance of the applicant. In this regard, consideration should 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 shall examine the 
reasons for this and take these reasons into consideration when allocating 
new licences. 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 products 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 supplying countries, licence holders[6] shall be free to 
choose the sources of imports. In the case of quotas allocated among 
supplying countries, the licence shall clearly stipulate the country or 
countries;
(l) in applying paragraph 8 of Article 1, compensating adjustments may be 
made in future licence allocations where imports exceeded a previous 
licence level. 
Article 4 - Institutions
There is hereby established a Committee on Import Licensing composed of 
representatives from each of the Members. 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 60 days of 
publication.
2. Notifications of the institution of import licensing procedures shall 
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 procedure is automatic or 
non-automatic according to definitions contained in Articles 2 and 3;
(f) in the case of automatic import licensing procedures, their 
administrative purpose;
(g) in the case of non-automatic 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 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 through 3 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 GATT 1994, as elaborated and 
applied by the Dispute 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 Secretariat shall prepare a 
factual report based on information provided under Article 5, responses to 
the annual questionnaire on import licensing procedures[7] 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. (a) Each Member shall ensure, not later than the date of entry into force of the WTO Agreement for it, the conformity of its laws, regulations 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 administration of such laws and regulations.

[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.
[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.
[6] Sometimes referred to as "quota holders".
[7] Originally circulated as GATT 1947 document L/3515 of 23 March 1971.