Import Licensing Procedures

In one line

Where a member requires a licence to import, the paperwork must not become the barrier, and the Agreement fixes what may be asked and how long it may take.

In exam wording: the Agreement on Import Licensing Procedures defines import licensing as the administrative procedure 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, and disciplines automatic and non-automatic licensing separately.

The distinction the whole agreement rests on

The distinction matters because it decides which article applies, and because a member sometimes calls a scheme automatic when the approval is in fact discretionary. Article 2.2(a) meets that by providing that automatic licensing is not to be considered to have restricting effects if, among other things, any person fulfilling the legal requirements is equally eligible to apply and to obtain licences.

The general provisions, Article 1

Neutral application and fair and equitable administration. Rules must be published in such a manner as to enable governments and traders to become acquainted with them, and normally not later than twenty one days before the effective date.

Application forms and procedures must be as simple as possible. An applicant must approach only one administrative body where possible, and no more than three where more than one is unavoidable.

No refusal for minor documentation errors. Article 1.7 provides that an application shall not be refused for minor documentation errors which do not alter the basic data contained in it. Article 1.8 provides that no penalty greater than necessary to serve merely as a warning shall be imposed for an omission or error in documentation or procedures which is obviously made without fraudulent intent or gross negligence.

And no refusal on account of minor variations. Licensed imports shall not be refused for minor variations in value, quantity or weight from the amount designated on the licence, consistent with normal commercial practice.

Automatic licensing, Article 2

It may be maintained whenever other appropriate procedures are not available, and must be abolished when the circumstances that gave rise to it no longer exist.

The conditions in Article 2.2(a). Any person fulfilling the legal requirements is equally eligible to apply and to obtain licences; applications may be submitted on any working day prior to customs clearance; and applications submitted in appropriate and complete form are approved immediately on receipt, to the extent administratively feasible, and in any case within a maximum of ten working days.