Agreement on Import Licensing Procedures

The principal aim of the Tokyo Round Agreement on Import Licensing Procedures is to ensure that the procedures applied for granting import licences do not act as additional restrictions on imports over and above those which the licensing system administers.

The Agreement interprets the relevant GATT provisions in the context of import licensing; it simplifies, clarifies and minimizes the administrative requirements necessary for obtaining import licences and makes information on licensing requirements more easily accessible. The Uruguay Round Agreement strengthens the disciplines on the users of import licensing systems and increases transparency and predictability.

It contains general provisions applying to all types of import licensing, as well as specific provisions applying to automatic and non-automatic licensing procedures.

General provisions

These define import licensing and seek to reduce the scope for discrimination or administrative discretion concerning the procedures. They include provisions on:

• neutral application and equitable administration of licensing procedures
• advance publication of all information necessary for compliance with licensing requirements
• simplification of application forms and procedures
• provision of a minimum period for the submission of applications
• allocation of foreign exchange for licensed imports
• protection of confidential information

Specific provisions

The Agreement stipulates the eligibility conditions for a licence and the duration of the procedures that must be fulfilled for licensing procedures to be considered automatic. Developing countries may delay the application of these conditions by not more than two years. With respect to non-automatic licensing, the Agreement includes provisions on -

• the relationship between the licensing procedures and the measures which they administer
• transparency with respect to the allocation of licences and the administrative details of the licensing system (including, where applicable, the administration of quotas)
• eligibility for obtaining a licence
• the period of validity of the licence
• the amount of imports for which a licence is granted
• the distribution of licences between existing and new importers, including special consideration for imports from developing countries, and in particular from least-developed countries
• time period for processing applications

The Agreement requires all Members to submit replies to the annual questionnaire on import licensing procedures promptly and in full.

Recognition of Interests

Preamble


Members are to take into account the particular trade, development and financial needs of developing country Members.

General Provisions: Article 1:2


When ensuring that the administrative procedures implementing import licensing regimes are in conformity with GATT provisions and do not have trade-distorting effects, Members are to take into account the trade, development and financial needs of developing country Members.

Non-automatic Import Licensing: Article 3:5(j)


In allocating licences among importers, Members should give special consideration to those importers importing products originating in developing country Members and, in particular, in least-developed countries.

Fewer Obligations

Non-automatic Import Licensing: Article 3:5(a)(iv)


To ensure transparency, Members using non-automatic import licensing regimes are to provide, on request from other Members, all relevant information concerning the administration of restrictions, import licences granted by Members over a recent period and, where practicable, import statistics of the products concerned. Developing country Members are not expected to undertake additional administrative or financial burdens in fulfilling this latter requirement.

Implementation Period

Automatic Import Licensing: Article 2:2 and Footnote 5


A developing country Member which is not currently a signatory of the Tokyo Round Agreement on Import Licensing Procedures may, on notification to the Committee, delay by a maximum of two years the implementation of the two following obligations -

• acceptance of applications for automatic licences on any working day prior to the customs clearance of the goods; and
• the granting of automatic licences immediately on receipt, or within a maximum of ten working days, provided that applications for licences are submitted in appropriate and complete form.