Draft

REPORT (2015) OF THE COMMITTEE ON IMPORT LICENSING

TO THE COUNCIL FOR TRADE IN GOODS

1.  The Agreement on Import Licensing Procedures (hereinafter "the Agreement") which entered into force on 1 January 1995, establishes disciplines on users of import licensing systems with the principal objective of ensuring that the procedures applied for granting import licences do not in themselves restrict trade. It aims to simplify, clarify and minimize the administrative requirements necessary to obtain import licences.

2.  The Committee on Import Licensing was established to afford Members the opportunity of consulting on any matters relating to the operation of the Agreement or the furtherance of its objectives. The Committee's Rules of Procedure, which were approved by the Council for Trade in Goods, are contained in document G/L/147.

3.  All Members of the WTO are ipso facto members of the Committee. Observer governments in the General Council of the WTO have Observer status in the Committee. The International Monetary Fund, the World Bank and UNCTAD have regular Observer status in the Committee.

4.  The focus of this report is on the period since the Committee's last annual report (G/L/1078), i.e. 21 October 2014 - 9 October 2015 (hereinafter "the review period"). During the review period, the Committee held two meetings on 21 April and 20 October 2015 (G/LIC/M/41 and [G/LIC/M/42]). At its meeting on 21 April 2015, the Committee took note of the nomination of
Ms. Carrie I.J. WU (Chinese Taipei) as Chairperson of the Committee for the current year and elected her by acclamation. At that meeting, the Committee elected Mr. Tapio Pyysalo (Finland) as Vice-Chairperson for the current year by acclamation. Pursuant to the Committee's Rules of Procedure, they took office at the end of that meeting.

5.  Pursuant to Articles 1.4(a) and/or 8.2(b) of the Agreement and procedures agreed by the Committee, all Members are required, to notify their laws, regulations and administrative procedures relevant to import licensing and submit copies of any relevant publications or laws and regulations upon becoming a WTO Member. Any subsequent changes to these laws, regulations and administrative procedures are also required to be published and notified. During the review period, the Committee reviewed [16] notifications (Annex I) from the following [13] Members: [Australia; Brazil; Cameroon; the European Union; Hong Kong, China; Mexico; Montenegro; Russian Federation; Macao, China; Paraguay; Peru; Philippines and the Separate Customs Territory of Taiwan Penghu, Kinmen and Matsu]. These notifications can be found in document series G/LIC/N/1/-. Copies of publications and legislation submitted with these notifications are available for consultation in the Secretariat.

6.  The Committee also reviewed^[1], pursuant to paragraphs 5.1-5.4 of Article 5, [16] notifications (Annex II) relating to the institution of new import licensing procedures or changes in these procedures from [10] Members: [Australia; Brazil; the European Union; Hong Kong, China; Indonesia; Malawi; Mexico; Paraguay; Sri Lanka and Viet Nam]. These notifications can be found in documents series G/LIC/N/2/-. Article 5.5 of the Agreement allows Members to submit reverse notifications, where a Member considers that another Member has not notified the institution of a licensing procedure or changes in the procedures. However, no such reverse notifications have been received under this provision since the entry into force of this Agreement.

7.  Article 7.3 of the Agreement requires all Members to provide replies to the Questionnaire on Import Licensing Procedures^[2] by 30 September each year. During the review period, the Committee reviewed [36] notifications (Annex III) from the following [35] Members: [Australia; Brazil; Cameroon; Canada; Chile; China; Cuba; European Union; Haiti; Hong Kong, China; Japan; Jordan; Liechtenstein; Macao, China; Malawi; Malaysia; Mauritius; the Republic of Moldova; Montenegro; Nepal; Nicaragua; Panama; Paraguay; Peru; Philippines; Qatar; Russian Federation; Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu; Saint Vincent and the Grenadines; Singapore; Trinidad and Tobago; Turkey; Ukraine; United States and Zimbabwe]. These notifications can be found in document series G/LIC/N/3/-.

8. During the review period, three Members had submitted for the first time, notifications to the Committee under various Articles of the Agreement: (i) under Articles 1.4(a)/8.2(b) Montenegro; (ii) under Article 5, Sri Lanka; (iii) under Article 7.3, Montenegro and Saint Vincent and Grenadines. The Chair thanked these Members for their notifications and urged Members who had not yet notified and had not updated their notifications to do so as soon as possible.

9.  Written comments and questions concerning notifications submitted to the Committee and/or on import licensing procedures maintained by Members, and replies thereto, may be found in document series G/LIC/Q/-. During the review period: the European Union posed written questions to Angola (G/LIC/Q/AGO/1), India (G/LIC/Q/IND/24), Nigeria (G/LIC/Q/NGA/2), Turkey (G/LIC/Q/TUR/9) and the Republic of Moldova (G/LIC/Q/MDA/1); the United States posed written questions to Mexico (G/LIC/Q/MEX/1) and Viet Nam (G/LIC/Q/VNM/6); Australia posed written questions to Indonesia (G/LIC/Q/IDN/34). The following Members provided written responses to comments and questions: Brazil to questions from the EU (G/LIC/Q/BRA/19); Ecuador to questions from the EU (G/LIC/Q/ECU/8); India to questions from the EU (G/LIC/Q/IND/25); Indonesia to questions from the US (G/LIC/Q/IDN/33/Add.1) and to questions from Australia (G/LIC/Q/IDN/35); Nigeria to questions from Iceland, Norway and Uruguay (G/LIC/Q/NGA/1); Turkey to questions from the EU (G/LIC/Q/TUR/8 and G/LIC/Q/TUR/10); and the Republic of Moldova to questions from the EU (G/LIC/Q/MDA/2)

10. The Committee has provided a regular forum for exchanging views on specific trade issues raised by Members. The following Members made statements on specific issues regarding other Members' import licensing regimes/measures. At Committee meeting(s) during the review period,  the United States made statements on Indonesia's import licensing regime for cellphones, handheld computers and tablets; on India's import licensing requirements for boric acid; on Bangladesh's import licensing procedures; on Mexico's steel import licensing program as well as on Viet Nam's import requirements on distilled spirits and the completeness of its notification. Australia made a statement on Indonesia's import licensing regulations for the importation of carcasses and processed meat products.  The European Union made statements on Indonesia's new regulation on tyre imports; on India's import of marble and marble products; on Brazil's regulatory requirements for nitrocellulose import; and jointly with the US, on India's amendments to its import policy conditions applicable to apples. Members whose licensing measures have been questioned responded at the meeting(s).

11.  For some time now, the low level of compliance of Members with the transparency obligations of the Agreement has been the main preoccupation of the Committee. On 27 March 2015, three sessions of informal consultations were held by the former Vice-Chair Mr. Juha Miemi (Finland) with Members who had not submitted any notifications under this Agreement; those who had not submitted any N/1 notifications and those who had not yet submitted any N/3 notifications up to date. Mr. Niemi reported on his consultations at the April Committee meeting. He noted that capacity constraints were cited by Members present at the consultations (mostly LDCs) as the main factor hampering such notifications from being made. He noted that some ideas on technical assistance were floated at the consultations including organizing a workshop on import licensing notifications in Geneva for Members in need of technical assistance. He encouraged Members to continue the discussion and table written proposals in this regard. As a follow-up, Ms. Carrie WU, the current Chairperson held an informal consultation on 9 July 2015 seeking Members' views on a possible workshop. Members present at the consultation agreed to continue the discussion on the possibility of a workshop on the basis of written proposals from interested Members.

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 ANNEX I: NOTIFICATIONS REviewED DURING THE REVIEW PERIOD PURSUANT TO ARTICLES 1.4(A) AND/OR 8.2(B) OF THE AGREEMENT

[From 21 october 2014 TO 9 October 2015]

ANNEX II: NOTIFICATIONS REVIEWED DURING THE REVIEW PERIOD PURSUANT TO PARAGRAPHS 5.1-5.4 OF ARTICLE 5 OF THE AGREEMENT
 [From 21 October 2014 TO 9 October 2015]

ANNEX III: NOTIFICATIONS REVIEWED DURING THE REVIEW PERIOD PURSUANT ARTICLE 7.3 OF THE AGREEMENT
[From 21 OCTOBER 2014 TO 9 October 2015]

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