IMPORT LICENSING SYSTEM OF India
replies by India to the questions from the united
states[1]
The
following submission, dated 11 December 2023, is being circulated at the
request of the delegation of India.
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Question (a)
What objective is India hoping to achieve through these
import licensing requirements?
Reply:
The present system has been put in
place to manage and monitor import of specified IT Hardware goods to
ensure supply chain resilience and address national security concerns.
Question (b)
Does India intend to
expand the use of import licensing beyond the listed products?
Reply:
As of date, India has no plans to expand
the use of import management system beyond the listed products.
Question (c)
Did India carry out
a public notice and comment period ahead of publication of this measure? If so,
please describe your process.
Reply:
Industry consultations were
undertaken prior to the notification No. 23/2023 dated 3 August 2023. A
transition period of three months was provided till 31 October 2023, wherein,
further comments were sought from Trade & Industry. Additional Notification
No. 38/2023 dated 19 October 2023 was issued thereafter.
Question (d)
Please explain when
India will notify this measure to the Committee on Import Licensing.
Reply:
The measure has already been
notified to the WTO Committee on Import Licensing and it was published on
29 November 2023. The document reference is G/LIC/N/2/IND/23.
Question (e)
How will the
licenses be issued? Will the products be subject to automatic or non-automatic
licensing.
Reply:
The process is subject to Automatic
Licensing.
Question (f)
If non-automatic,
please explain:
1. What criteria will India use
to approve or deny a license? Will India prioritize specific industries,
sectors, or products? On what basis are these priorities determined?
2. What is the timeframe for
issuing a license for listed products? How will India avoid long or
unpredictable delays?
3. Please describe the process for importer to
apply for a license. How can importers seek information about the status of
their request for a license or make corrections to license applications? What
recourse will importers have if a license is denied?
Reply:
Not Applicable.
Question (g)
We understand that
India is considering carrying out an initial monitoring phase for this measure.
Please explain:
1. What is the timeframe for
the monitoring phase? Will India delay full implementation of the measure
during this time?
2. Which data will importers be required to
provide and how does India plan to use this information? Will the information
impact the process for granting licenses? Is India considering the use of
quantitative restrictions based on the information supplied?
Reply:
1. There
is no such proposal as on date.
2. As
mentioned, this is an automatic licensing process.
Question (h)
The measure
specifies that "exemption is also provided where the item is an essential
part of a capital good." How does India intend to administer this
exemption?
Reply:
A clarification has been provided
vide Para (iii) of DGFT Policy circular No. 06/2023-24 dated 19 October
2023, which addresses this question.
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