REFERENCE:
Negotiating Group on MTN 1 June 1990
Agreements and Arrangements
AGREEMENT ON IMPORT LICENSING PROCEDURES
Note by the Secretariat
At the meeting of the Negotiating Group held on 31 January- 2 February 1990, an informal group, open to all interested countries, was established with the task of clarifying and exchanging views on the proposals under consideration (MTN.GNG/NG8/15, item B). This group held its initial meeting on 28 February 1990.
In pursuance of the Decision of the NG8 at its meeting on 21-22 March 1990 (MTN.GNG/NG8/16, para. 14) and following the second meeting of the informal group on 4 May 1990, attached hereto is an informal side-by-side text produced by the secretariat. It gives the status of work
prior to the next informal meeting to be held on 11 June 1990.
Technical Barriers to Trade Division
Let/1673
1 June 1990
Agreement on Import Licensing
Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS*
STATES AND HONG KONG
Preamble Preamble Preamble
Having regard to the No change. No comments.
Multilateral Trade
Negotiations, the Parties to
this Agreement on Import
Licensing Procedures
(hereinafter referred to as
"Parties" and "this
Agreement");
Desiring to further the No change. One delegation suggested to
objectives of the General include a reference to the
Agreement on Tariffs and recognition and reaffirmation
Trade (hereinafter referred of the GATT principles here
to as "General Agreement" or rather than mention Article XI
"GATT"); below.
Taking into account the No change. No comments.
particular trade, development
and financial needs of
developing countries;
_______________
*This column summarizes main comments made, as, in the Secretariat's judgement, they seem to appear after the meetings of the Informal Group on 28 February and 4 May 1990. Earlier comments on the revised proposal (NG8/W/53/Rev.1), made at the November 1989 meeting, are summarized in MTN.GNG/NG8/14, paragraphs 57-75. Apart from particular comments on individual proposed provisions the point has been made that the whole text has to be considered in a comprehensive and balanced manner.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Recognizing the usefulness of No change. No comments.
automatic import licensing for
certain purposes and that such
licensing should not be used to
restrict trade;
Desiring to ensure that import Some delegations suggested the
licensing is not utilized in a deletion of this provision
manner contrary to GATT because it was not the purpose
principles and obligations; of the Code to ensure
consistency with substantive GATT principles and obligations. Some delegations believed that, in this paragraph and the next, since dealing with a procedural Code, the word "procedures" should be inserted after "import licensing". Some other delegations warned against devoting too much time to this issue since it was difficult to distinguish what was procedure and what was substance; moreover, the Code already contained substantive provisions.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Recognizing that import Recognizing and reaffirming the One comment was to delete this
licensing may be employed to provisions of Article XI of the reference because Article XI
administer measures such as General Agreement as they was not the only GATT Article
those adopted pursuant to the apply to import licensing; which might be relevant. It
relevant provisions of the was also suggested to delete
GATT; the reference to Art. XI since
this was a provision of
substance. One suggestion was
to add the word "procedures"
at the end. The sponsors
argued that Article XI was the
principle GATT provision that
gave rise to licensing
procedures; other Articles built on Article XI or provided exceptions to the prohibition it contained. However, they were open to discuss inclusion of other Articles and of other language.
Recognizing also that the Recognizing that the Two delegations believed the
inappropriate use of import inappropriate or excessive word "excessive" did not add
licensing procedures may use of import licensing to clarity or to the operational
impede the flow of procedures constitutes a nature of the Code and would be
international trade; particular impediment to difficult to measure. One
the flow of international trade; delegation suggested inserting
the words "could constitute
further" instead of
"constitutes a particular
impediment" to show there was
an element of doubt.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Convinced that import No comments.
licensing, particularly
non-automatic import
licensing, should be
implemented in a transparent
and predictable manner;
Recognizing that non-automatic No comments.
licensing procedures should be
no more administratively
burdensome than absolutely
necessary to administer the
relevant measure;
Desiring to simplify, and bring No change. No comments.
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 No change. No comments.
consultative mechanism and the
speedy, effective and equitable
resolution of disputes arising
under this Agreement;
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Hereby agree as follows: In a general comment, one
delegation said that what was
added in the Preamble was in
line with the purpose and scope
of the Code. It was therefore
prepared to amend the Code in
all regards which were in line
with the Preamble.
Article 1: General Provisions Article 1: General Provisions Article 1: General Provisions
Article 1.1
For the purpose of this No change. No comments.
Agreement, import licensing is
defined as administrative
procedures1 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 country.
_______________
1Those procedures referred to as "licensing" as well as other similar administrative
procedures.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 1.2
The Parties shall ensure that No change. No comments.
the administrative procedures
used to implement import
licensing regimes are in
conformity with the relevant
provisions of the GATT
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 countries.
Article 1.3
The rules for import licensing No change. No comments.
procedures shall be neutral in
application and administered in
a fair and equitable manner.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 1.4 Article 1.4 (Based on Article 1.4
Committee Recommendation)
The rules and all information The rules and all information Some delegations have noted
concerning procedures for the concerning procedures for the that they did not have specific
submission of applications, submission of applications, opening dates for the
including the eligibility of including the eligibility of submission of applications. One
persons, firms and institutions persons, firms, and delegation, using a tender
to make such applications, and institutions to make such system, said that the word
the lists of products subject to applications, and the lists of "consideration" instead of
the licensing requirement shall products subject to the "submission" would meet this
be published promptly in such a licensing requirement shall be point. Another delegation has
manner as to enable published in the sources argued that time limits might
governments and traders to notified to the create impediments to trading
become acquainted with them. secretariat at least and that the 21 day period had
Any changes in either the rules twenty-one days prior to to do with a quota system,
concerning licensing the specific opening date which its authorities did not
procedures or the list of for the submission of follow. One delegation said
products subject to import applications, and in such a that Article 1.4 should be made
licensing shall also be promptly manner as to enable more generic and applicable to
published in the same manner. governments and traders to all systems. The drafters
Copies of these publications become acquainted with them. agreed.
shall also be made available to Any changes in either the rules
the GATT Secretariat. concerning licensing Recommendation adopted by the
procedures or the list of Committee on Import Licensing
products subject to import Procedures on 19 May 1987:
licensing shall be published in "The rules and all information
the same manner, at least concerning procedures for the
twenty-one days before submission of applications
the effective date of the referred to in Article 1.4 and
change. the lists of products subject to
the licensing requirement, as
well as any changes in either
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
the rules or the lists of products should, where there is a specific opening date for the submission of applications, normally be published at least 21 days prior to that date." "The elements of information referred to in Article 3(c) should also be published in such a manner as to enable governments and traders to become acquainted with them."
During this twenty-one-day One delegation, supported by
period, Parties shall be another, said that the political
provided the opportunity to and administrative system in
make comments in writing and its country did not permit
to discuss these comments consultations with other
upon request. The concerned governments before making
Party shall give due changes in policies or
consideration to these procedures. Hence, an
comments and results of obligatory opportunity for
discussions. making comments in writing
and discuss upon request was not acceptable. Two delegations were concerned that this paragraph might make the licensing authorities' job administratively complex. One of these proposed the following language: "During this twenty-
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
one-day period, Parties shall be provided the opportunity to make comments in writing and to discuss these comments upon request, if either the rules concerning licensing procedures or the list of products subject to import licensing, changes in these rules or list may have a significant effect on trade of these Parties. The concerned Party shall etc. . ." In reply to a question it said that "significant effect" would be assessed by the administrative authority. The sponsors replied that the time limit proposed was based on a Committee Recommendation but that perhaps "twenty-one-day period" could be replaced by the notion of expeditiousness. Another delegation tentatively agreed with this idea. The sponsors have also stressed that the intention is to provide for a best-endeavour clause.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Notwithstanding the above, if Two delegations have
situations arise which make it expressed concern that the
absolutely necessary to word "situations" might permit
provide for an early opening systematic use of this
date for the submission of paragraph. Although there was
licensing applications, the a Committee Recommendation
information referred to in (see Recommendation in Article
sub-paragraph 1 shall be 3.5(e)), this paragraph might
published and notified to the have to be re-evaluated. The
GATT secretariat immediately sponsors have replied that the
and in no case later than seven Committee Recommendation
days after the announcement of had been carefully reflected
the quota or other measure upon. This paragraph was a
involving an import licensing response to concerns voiced
requirement. earlier on the time-frame;
case by case exceptions were envisioned, not systematic
exceptions. 1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 1.5 Article 1.5 Article 1.5
Application forms and, where No change. No comments.
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
régime may be required on
application,
Article 1.6 Article 1.6 (Based on Article 1.6
Committee Recommendation)
Application procedures and, Application procedures and, Committee Recommendation of
where applicable, renewal where applicable, renewal 19 May 1987; "When there is
procedures shall be as simple procedures shall be as simple a closing date for the
as possible. Applicants shall as possible. Where there is submission of licensing
have to approach only one a closing date for the applications, applicants should
administrative body previously submission of licensing be allowed at least 21 days for
specified in the rules referred applications, applicants making such submissions.
to in paragraph 4 above in should be allowed at least However, this provision should
connection with an application twenty-one days for not be interpreted as
and shall be allowed a making such submissions. derogating from Article 3(a),
reasonable period therefor. In However, this provision particularly in cases where
cases where it is strictly should not be interpreted insufficient amounts of
indispensable that more than as derogating from applications have been received
one administrative body is to Article 3(5)(a), within the 21 days."
be approached in connection particularly in cases
with an application, these shall where insufficient One delegation visualized
be kept to the minimum number amounts of applications possible misuse as there could
possible. have been received within be a great rush for applications
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
this stipulated period. with such advance notices of
Applicants shall have to closing dates. The sponsors
approach only one replied that unlike Art.1.4
administrative body previously which dealt with notification in
specified in the rules referred advance, this proposal dealt
to in paragraph 1 of with how much time should be
Article 1.4 above in allowed for submission of
connection with an application applications. Stating 21 days
and shall be allowed a would give predictability to
reasonable period therefor. traders who would not have to
rush to get applications in.
Questions were also raised
regarding the intention of the
cross reference to Article
3(5)(a).
In cases where it is strictly Committee Recommendation of
indispensable that more than 19 May 1987: "In cases
one administrative body is to where it is strictly
be approached in connection indispensable that more than
with an application, one administrative body is to
applicants shall not need be approached in connection
to approach more than with an application, applicants
two administrative should not need to approach
bodies. more than two administrative
bodies."
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
One delegation stated that a maximum of two bodies did not seem justified as long as the norm of one administrative body had been fixed. Due to administrative complexities, import of certain items might need the clearance of more than two bodies and no limit should be set. The sponsors replied that it was essential to have limits on bodies to assist exporters. While agreeing on this, one delegation suggested perhaps to introduce the words "concerned party will ensure" so that the responsibility was clearly on the government. The point was made that a government could have as many bodies as it wished but the applicant should only have to go to two at the most. One delegation, sharing the objective of avoiding undue trade hindrances, noted that in a federal system, more than two bodies might be needed and that it would have to consider how to avoid unintended consequences if a limitation were placed in the Code.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 1.7 Article 1.7 Article 1.7
No application shall be refused No change. No comments.
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.
Article 1.8 Article 1.8 Article 1.8
Licensed imports shall not be No change. No comments.
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.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 1.9 Article 1.9 Article 1.9
The foreign exchange No change. No comments.
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.
Article 1.10 Article 1.10 Article 1.10
With regard to security No change. No comments.
exceptions, the provisions of
Article XXI of the GATT apply.
Article 1.11 Article 1.11 Article 1.11
The provisions of this No change. No comments.
Agreement shall not require
any Party 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.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 2: Automatic import Article 2: Automatic import Article 2: Automatic import
licensing2 licensing licensing
Article 2.1 Revised Article 2.1 Revised Article 2.1
Automatic import licensing is Automatic import licensing is One delegation considered that
defined as import licensing defined as import licensing the amendments proposed
where approval of the where approval of the originally might lead to
application is freely granted. application is freely granted in confusion and that it was
all cases in accordance with superfluous to refer to the
the requirements of Article legal consequences found in
2.2. particularly within the Art. 2.2 in this definition of the
time limits established in automatic licence itself. The
Article 2.2(e), sponsors replied that their
main concern was about Art.
2.2(e), stated that they would
be amenable to the following:
"where, in all cases,
approval of the application is
freely granted within a
maximum of [7] [10]
working days".
One delegation noted that "licensing" made it unclear whether it was a question of any particular licence which was freely granted, or a licensing system which provided for freely granted applications.
_______________
2Those 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 of Article 2 below.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 2.2 Article 2.2 Article 2.2
The following provisions,3 in No change. No comments.
addition to those in paragraphs
1 to 11 of Article 1 and
paragraph 1 of Article 2
above, shall apply to automatic
import licensing procedures:
(a) Automatic licensing No change. No comments.
procedures shall not be
administered in a manner so as
to have restricting effects on
imports subject to automatic
licensing;
(b) Parties recognize that (b) Parties recognize that
automatic import licensing may automatic import licensing may
be necessary whenever other be necessary whenever other
appropriate procedures are not appropriate procedures are not
available. Automatic import available. Automatic import
licensing may be maintained as licensing may be maintained as
long as the circumstances long as the circumstances
which gave rise to its which gave rise to its
introduction prevail or as long introduction prevail and as
as its underlying long as its underlying
administrative purposes cannot administrative purposes cannot
be achieved in a more be achieved in a more
appropriate way; appropriate way;
_______________
3A developing country Party, which has specific difficulties with the requirements of sub-
paragraphs (d) and (e) below may, upon notification to the Committee referred to in paragraph 1 of Article 4, delay the application of these sub-paragraphs by not more than two years from the date of entry into force of this Agreement for such Party.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
(c) Any person, firm or No change. No comments.
institution which fulfils the
legal requirements of the
importing country for engaging
in import operations involving
products subject to automatic
licensing shall be equally
eligible to apply for and to
obtain import licences;
d) Applications for licences No change. No comments.
may be submitted on any
working day prior to the
customs clearance of the
goods;
(e) Applications for licences No change. One delegation suggested
when submitted in appropriate setting the limit at seven days.
and complete form shall be
approved immediately on
receipt, to the extent
administratively feasible, but
within a maximum of ten
working days.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 3: Non-automatic Article 3: Non-automatic Article 3: Non-automatic
import licensing import licensing import licensing
New Article 3.1 New Article 3.1
The following provisions, in Non-automatic import licensing One delegation believed that
addition to those in paragraphs is defined as import licensing this paragraph should make
1 to 11 of Article 1 above, not falling within the definition reference to Art. 2.1
shall apply to non-automatic contained in Article 2 above. specifically, not Art. 2 in
import licensing procedures, general. The sponsors replied
that is, import licensing that Art. 2 was referred to
procedures not falling under here because of the cross-
paragraphs 1 and 2 of Article 2 reference to Art. 2.2 in Art.
above: 2.1. They were open to
tightening the definition of Art.2.1 so it could stand on its own, and be only referred to in Art. 3.1.
New Article 3.2 New Article 3.2
Non-automatic licensing The sponsors referred to this
procedures shall correspond in proposal as modest, stipulating
scope and duration to the nothing more nor less than that
measure they are used to an import licensing procedure
implement, and shall be no should not extend beyond the
more administratively measure it implemented. They
burdensome than absolutely have agreed with a comment by
necessary to administer the one delegation that Art.3.2
measure. should follow Art. 3.5(a)
without separation. One delegation has suggested the deletion of the word "absolutely"
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
New Article 3.3 New Article 3.3
Given that certain types of One delegation believed this
non-automatic licensing, was preambular rather than
including licensing used to operative language; it was not
administer small quotas which precise enough to show what
fluctuate in size, or general kind of licences the drafters
prohibitions to which had in mind. The sponsors
exceptions are granted, have noted that a core concern
the potential for being behind this proposal was the
particularly trade distortive, fact that the provisions on
Parties shall take particular licensing requirements used to
care to implement such implement QR's were not
licensing requirements in a parallelled in provisions for transparent and predictable licensing to implement other
manner. measures. In the case of
licensing requirements for purposes other than the implementation of QR's,
Parties should publish
sufficient information for other Parties and traders to know the basis for granting and/or allocating licences. The aim was primarily to increase transparency in this area. They were ready to consider a reformulation. (The sponsors have also said that this was an attempt to describe discretionary licensing: those cases
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
where government imposes a small quota which varies unpredictably and not transparently. One delegation has also said that it did not believe discretionary licensing fitted into the non-automatic category and another delegation has said that the best way to reduce discretionary licensing was not to have such an exception provided for in the rules. Discretionary licensing was more a matter of the underlying measure. It has also been suggested to create a third category of other, miscellaneous licences.)
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
New Article 3.4 New Article 3.4
To the extent that exceptions One delegation wondered what
may be granted to licensing exceptions the drafters had in
requirements, such exceptions mind. If what was meant was a
shall be granted in a manner special provision for
that is fair and equitable to all exceptions to the rule, this
traders. Parties shall publish might implicitly recognize
the criteria and/or them. Exceptions to a rule was
circumstances under which part of the rule and should be
exceptions may be granted. dealt with in Article 1.4. The
Notice of any exceptions proposed new Article 3.4 was
granted shall be published as therefore superfluous. The
soon as possible to allow drafters noted that
sufficient time for "exceptions" would cover both
governments and traders to exceptions from a licensing
become familiar with them. In requirement per se and
exceptional circumstances exceptions to any requirement
when prior publication is not in the procedure for obtaining a
possible, Parties shall publish licence. The problem was that
and notify exceptions within governments sometimes
fourteen days of granting them. treated exceptions as
Notifications shall include an something that need not be
explanation as to why prior provided for in the rules but
publication was not possible. could be dealt with on an ad hoc
basis as the need arose. It was important to increase transparency through prior publication of the criteria and conditions under which exceptions might be granted. This meant that governments
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
had to examine their regimes and identify the circumstances for which, at least in the past, they had granted exceptions. However, the intention was not to stipulate rules in the Code which would restrict the ability of a government to grant exceptions. The point was that if exceptions were granted this should be done in a fair, equitable, nondiscriminatory and transparent way. The other delegation maintained that if identification of circumstances and criteria was a question of the objective conditions that had to be fulfilled in order to grant an exception, this was part of the rule and belonged to Article 1.4.
In the discussion of an example it was said that extension of the validity of a licence was not an exception but a part of the rule. The drafters explained that if such an extension was dealt with by some exceptional procedure not
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
covered by regulations, it would be covered under this proposal.
The point was made that the need to respect commercial confidentiality should be taken care of in the drafting as well as the fact that a number of circumstances would arise that could never be foreseen.
Another delegation shared this view, adding that trying to identify rules to deal with exceptions was too ambitious. Concerning "fair and equitable" in the first sentence, one should presume that governments would adhere to their obligations and, thus, not resort to deviations unless for really exceptional reasons.
One delegation expressed no preference for any of the approaches suggested. The problems had to be dealt with however. Possibly the clarification of the intention of this provision could be referred to the Preamble or to a footnote.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
The question of national security implications of a publication requirement has also been raised. The drafters have said that national security exceptions are taken care of in Article XXI and that parties were not required to publish such information.
Article 3(a) Article 3.5(a) (formerly Article 3.5(a) (formerly
Article 3(a)) Article 3(a))
(a) Licensing procedures Licensing procedures adopted, One delegation asked what the
adopted, and practices applied, and practices applied, in implications were of "or
in connection with the issuance connection with the issuance of distortive". The sponsors
of licences for the licences for the administration replied that licensing could
administration of quotas and of quotas and other import have two effects: lessen
other import restrictions, shall restrictions, shall not have amount of trade and change the
not have trade restrictive trade restrictive or flows from one country to
effects on imports additional to distortive effects on imports another,i.e. distort.
those caused by the imposition additional to those caused by
of the restriction; the imposition of the
restriction.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 3(b) Article 3.5 (b) (formerly Article 3.5 (b) (formerly
Article 3(b)) Article 3(b))
(b) Parties shall provide, upon No substantive changes. No comments.
the request of any Party
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. The developing
countries would not be
expected to take additional
administrative or financial
burdens on this account;
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 3(c) Article 3.5 (c). (Revised Article 3.5 (c). (Revised
Article 3(c)) Based on Article 3(c))
committee recommendation
(c) Parties administering Parties administering quotas One delegation, referring to the
quotas by means of licensing by means of licensing shall reference to Art. 1.4 in Article
shall publish the overall amount publish the overall amount of 3.5(c)(d)(e), noted that again
of quotas to be applied by quotas to be applied by quantity the proposal for a time period
quantity and/or value, the and/or value, the opening and of 21 days presupposed and
opening and closing dates of closing dates of quotas, and laid too much emphasis on
quotas, and any change any change thereof, within quota systems. This country
thereof; the time periods specified did not use quota systems to
in Article 1.4 and in a implement licensing regimes
manner as to enable and would have difficulties
governments and traders with a reference to Article
to become acquainted 1.4, if Art. 1.4 were to be
with them. revised as proposed. The
sponsors replied that Article
3.5, dealt solely with quotas,
and stated that they would be
amenable to the following
alternative addition, which
would also apply to Article
3.5(d) and (e) below: "at
least 21 days prior to the
opening date for such quotas".
One delegation, while having
accepted the Recommendation,
said that introducing 21 days
would create a problem
because it currently used 8
days which allowed it, in a
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
flexible manner, to deal with its licensing procedures for certain agricultural products. 21 days would mean less flexibility and less importation.
Committee Recommendation of 19 May 1987: "The elements of information referred to in Article 3(c) should also be published in such a manner as to enable governments and traders to become acquainted with them;"
Article 3(d) Article 3.5(d): (Revised Article 3.5(d): (Revised
Article 3(d)) Based on Article 3(d))
committee recommendation
d) In the case of quotas In the case of quotas allocated Committee Recommendation of
allocated among supplying among supplying countries, the 19 May 1987: "Information on
countries, the Party applying Party applying the restrictions shares in a quota currently
the restrictions shall promptly shall promptly inform all other allocated, by quantity or value,
inform all other Parties having Parties having an interest in among supplying countries,
an interest in supplying the supplying the product referred to in Article 3(d),
product concerned of the concerned of the shares in the should be published within the
shares in the quota currently quota currently allocated, by same time period."
allocated, by quantity or value, quantity or value, to the
to the various supplying various supplying countries See under Article 3.5 (c)
countries and shall give public and shall publish this above.
notice thereof; Information within the
time periods specified in
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 1.4 and in a
manner as to enable
governments and traders
to become acquainted
with them.
Article 3(e) New Article 3.5(e) Based on New Article 3.5(e)
committee recommendation
(e) Where there is a specific Where situations arise Committee Recommendation
opening date for the submission which make it necessary 19 May 1987: "where
of licensing applications, the to provide for an early situations arise which make it
rules and product lists opening date of quotas, necessary to provide for an
referred to in paragraph 4 of the information referred early opening date of quotas,
Article 1 shall be published as to in Article 1.4 should the information referred to in
far in advance as possible of be published within the Articles 1.4 and 3(e) should be
such date, or immediately time periods specified in published no later than 7 days
after the announcement of the Article 1.4, and in a after the announcement of the
quota or other measure manner as to enable quota or other measure
involving an import licensing governments and traders involving an import licensing
requirement; to become acquainted requirement."
with them.
See under Article 3.5(c) above.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 3(f) Article 3.5(f) (formerly Article 3.5(f) (formerly
Article 3(f)) Article 3(f))
(f) Any person, firm or No substantive changes. One delegation suggested to
institution which fulfils the amend this provision by adding
legal requirements of the "legal and/or administrative
importing country shall be requirements..."
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 country;
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 3(g) New Article 3.5(g) Based on New Article 3.5(g)
committee recommendation
(g) The period for processing The period for processing Some delegations believed that
applications shall be as short applications should not be the 21 day limit might not be
as possible; longer than twenty-one sufficient. Some delegations
days if applications are accepted the proposal provided
considered as and when the time period could be made
received, i.e. on a longer. One delegation
first-come first-served proposed 30 days. One
basis, and no longer than delegation proposed to add
sixty days if all "where practicable", before 21
applications are days. One delegation preferred
considered a precise language. Another
simultaneously. delegation stated that it
preferred the existing Code
language. If there was to be a
change, flexibility was needed
to cater to a range of different
systems.
Committee Recommendation 19 May 1987: "The period for processing applications should normally not be longer than 21 days if applications are considered as and when received, i.e. on a first-come first-served basis, and normally no longer than 60 days if all applications are considered simultaneously;"
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 3(h) Article 3.5(h) (formerly Article 3.5(h) (formerly
Article 3(h)) Article 3(h))
(h) The period of licence No substantive changes. No comments.
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;
Article 3(i) Article 3.5(i) (formerly Article 3.5(i) (formerly
Article 3(i)) Article 3(i))
(i) When administering quotas, No substantive changes. No comments.
Parties shall not prevent
importation from being
effected in accordance with the
issued licences, and shall not
discourage the full utilization
of quotas;
Article 3(j) Article 3.5(j) (formerly Article 3.5(j) (formerly
Article 3(j)) Article 3(j))
(j) When issuing licences, No substantive changes. No comments.
Parties shall take into account
the desirability of issuing
licences for products in
economic quantities;
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 3(k) Article 3.5 (k) (Revised Article 3.5 (k) (Revised
former Articles 3(k) and 3(l)) former Articles 3(k) and 3(l))
(k) In allocating licences, In allocating licences, the One delegation suggested
Parties should consider the Party shall consider the retaining the word "should".
import performance of the import performance of the
applicant, including whether applicant. In this regard,
licences issued to the applicant consideration should be
have been fully utilized, during given as to whether lic
a recent representative period; ences issued to applicants
in the past have been ful
ly utilized during a rec
ent representative per
iod. In cases where lic
ences have not been fully
utilized, the Party shall
examine the reasons for
this and take these reas-
Article 3(l) ons into consideration
(l) Consideration shall when allocating new lic-
be given to ences. Consideration shall al-
ensuring a reasonable so be given to ensuring a reas
distribution of licences to new onable distribution of licence
importers, taking into account to new importers, taking into
the desirability of issuing account the desirability of
licences for products in issuing licences for products in
economic quantities. In this economic quantities. In this
regard, special consideration regard, special consideration
should be given to those should be given to those
importers importing products importers importing products
originating in developing originating in developing
countries and, in particular, countries and, in particular,
the least-developed countries; the least-developed countries.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 3(m) Article 3.5(1) (formerly Article 3.5(1) (formerly
Article 3(m)) Article 3(m))
(m) In the case of quotas In the case of quotas No comments.
administered through licences administered through licences
which are not allocated among which are not allocated among
supplying countries, licence supplying countries, licence
holders (footnote: sometimes holders (footnote: sometimes
referred to as "quota referred to as "quota
holders"), shall be free to holders"), shall be free to
choose the sources of imports. choose the sources of imports.
In the case of quotas allocated In the case of quotas allocated
among supplying countries, the among supplying countries, the
licence shall clearly stipulate licence shall clearly stipulate
the country or countries; the country or countries.
Article 3(n) Article 3.5(m) (formerly Article 3.5(m) (formerly
Article 3(n)) Article 3(n))
(n) In applying paragraph 8 of In applying Article 1(8) above, No comments.
Article 1 above, compensating compensating adjustments may
adjustments may be made in be made in future licence
future licence allocations allocations where imports
where imports exceeded a exceeded a previous licence
previous licence level. level.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 4: Institutions, Revised Article 4: Institutions Revised Article 4: Institutions
consultation and dispute
settlement
Article 4.1 Revised Article 4.1 Revised Article 4.1
There shall be established There shall be established No comments.
under this Agreement a under this Agreement a
Committee on Import Licensing Committee on Import Licensing
composed of representatives composed of representatives
from each of the Parties from each of the Parties
(referred to in this Agreement (referred to in this Agreement
as "the Committee"). The as "the Committee"). The
Committee shall elect its own Committee shall elect its own
Chairman and shall meet as Chairman and Vice
necessary for the purpose of Chairman and shall meet as
affording Parties the necessary for the purpose of
opportunity of consulting on affording Parties the
any matters relating to the opportunity of consulting on
operation of this Agreement or any matters relating to the
the furtherance of its operation of this Agreement or
objectives. the furtherance of its
objectives.
Article 4.2 Article 4.2 Article 4.2
Consultations and the See new Articles 6 No comments.
settlement of disputes with (Consultations) and 7 (Dispute
respect to any matter affecting Settlement) below.
the operation of this
Agreement, shall be subject to
the procedures of Articles XXII
and XXIII of the GATT.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
New Article 5 - Notification New Article 5 - Notification
Article 5.1 Article 5.1
1. Parties which institute One delegation considered
licensing procedures or thirty days too short a period.
changes in these procedures
shall notify the Committee of
such within thirty days of
publication.
Article 5.2 Article 5.2
2. Each notification shall One delegation has noted that
include the following the majority of countries using
information: import licensing procedures
(a) list of products subject to are developing countries for
licensing procedures; whom these notification
(b) contact point for requirements, amounting to
information on eligibility and notifications of the whole
submission of applications; import policy regime, would
(c) date and name of represent a considerable
publication where licensing additional burden. In reply, it
procedures or changes in has been said that the GATT
procedures are published; Questionnaire on Import
(d) indication of whether Licensing Procedures already
licensing procedure is requires much information and
automatic or non-automatic notification was not intended to
according to definitions be an administrative burden,
contained in Articles 2 and 3; nor to duplicate the level of
detail of the Questionnaire. It was
intended to provide the essential
information
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
necessary to allow contracting parties to understand enough about the licensing procedures to be able to monitor implementation of the Code, and to provide the necessary information to traders. The relation between new Article 5.2 and Article 1.4 was also taken up. In reply to a concern expressed about too burdensome notification requirements, the drafters
(e) in the case of automatic agreed that it might be enough
licensing procedures, the to file a copy of the Official
circumstances giving rise to Gazette in question. The
introduction of the licensing drafters noted that (e) was
procedure and its underlying taken out of Article 2:2(b) of
administrative purpose; the present Code, and was
intended to make the Code more operational, for a government to raise a question if it believed the purpose of an automatic licence had been changed. This might help the implementing country in eliminating unnecessary and unintended obstacles. Four delegations supported the proposal. Two delegations considered it a duplication of the Questionnaire and Article 5.2.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
(f) in the case of non- The drafters felt strongly that
automatic import licensing Article 5.2(f) was necessary
procedures, identification of for transparency reasons and
the measure being implemented in order to make Article 3.2
through the licensing procedure operational "GATT basis" was
and the GATT basis for taking already required to be notified
the measure; and in the "QR Survey".* One
delegation, supported by five
other delegations, held that
this fact made it a duplication
to notify the basis under this
Code, which was not the right
place for such a notification.
Some delegations have added
that any party who has
difficulty with the GATT basis
for another country's measure
should address this in the right
forum, but not in the context of
import licensing procedures.
Four delegations supported the
proposed new Article 5.2(f)
(g) expected duration of the
measure and licensing
procedure or reason why this
information cannot be provided.
_______________
*
Secretariat note: BISD 31 S, p. 221-222, paragraph 44 (iii).
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 5.3 Article 5.3
3. If a Party to the Agreement One delegation proposed the
believes that another Party has following: "If a Party to this
implemented licensing Agreement believes that
procedures but has failed in another Party has implemented
part or total to satisfy the licensing procedures but has
above notification failed in part or total to satisfy
requirements, the first Party the above notification
may bring this failure to the requirements, the first Party
attention of the Committee. may seek information on such
The first Party may also measures bilaterally from the
cross-notify these licensing Party concerned. The first
procedures. Such Party may also bring this
cross-notifications should failure to the attention of the
include all relevant and Committee, if the first Party
available information regarding could not get satisfactory
the existence and nature of the information." It noted that this
licensing procedures in was based on paragraph 3 of
question. the 1979 Decision on
Notification, Consultation,
Dispute Settlement and
Surveillance (BISD 26 S/210). Two
delegations stressed the importance of
"multilateral transparency".
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
New Articles 6 (Consultation) New Articles 6 (Consultation)
and 7 (Dispute Settlement) and 7 (Dispute Settlement)
(This Agreement's provisions No comments.
on consultation and dispute
settlement should be examined
with a view to their
improvement and clarification
taking into account, as
appropriate, the work of the
Negotiating Group on Dispute
Settlement.)
Article 5.5: Review New Article 8.1- Review New Article 8.1 - Review
(formerly Article 5.5) (formerly Article 5.5)
The Committee shall review as The Committee shall review as One delegation accepted the
necessary, but at least once necessary, but at least once proposal in a spirit of
every two years, the every two years, the compromise. The following
implementation and operation implementation and operation words seemed generally
of this Agreement taking into of this Agreement, taking into acceptable to delegations who
account the objectives thereof account the objectives, rights spoke: "..objectives thereof
and shall inform the and obligations and shall and the rights and obligations
CONTRACTING PARTIES to the inform the contracting parties contained therein". However,
GATT of developments during to the GATT of developments one delegation stated that
the period covered by such during the period covered by further changes might be
reviews. such reviews. needed and that one would have
to come back to the whole of
Article 8.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 8.2 Article 8.2
In conducting its review, the one delegation has asked if
Committee shall examine the "licensing régime" referred to
licensing régimes of each procedure or substance. One
signatory to ensure their sponsor has said it meant the
consistency with the principles totality of procedures and
and obligations of this practices, not the substantive
agreement, particularly those measures of which the
specified in Articles 3.2, 3.3 procedures were an
and 3.4. expression. One delegation
said this should be stated
specifically in the text itself.
Another delegation said that
this concern would be taken
into account if the Code itself
was limited to procedures. One
delegation proposed the
following language: "In
conducting its review, the
committee shall examine the
licensing regimes of each
signatory in light of the
principles and obligations of
this Agreement." One
delegation stated that the
language of Article 8.2 could
only be discussed after the
language of Article 3.2, 3.3
and 3.4 was clear. The
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
sponsors said that they would be amenable to deleting the words after the last comma. They have stressed that it was not their intention to allow the Committee to "pass judgement" but only to improve the weak language of the Review provision and make this Code similar to others.
Article 8.3 Article 8.3
The Committee shall also One delegation asked for a
examine whether the existing clarification of the relationship
provisions of the Agreement between Art.8.3 and new
are adequate to achieve its Art.9.6. Sponsors said that
objectives. Article 9.6 was a mechanical
provision that spelled out how
to amend the Agreement, if so
decided. Article 8.3 simply
made clear that in the biannual
reviews, one of the matters
that could be discussed was the
adequacy of the Agreement.
One delegation added that it
saw Article 8.3 as dealing with
the present functioning of the
Agreement and 9.6 with future
performance. One delegation
stated that it accepted this
proposal in a spirit of
compromise.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 8.4 Article 8.4
To assist in this review, the One delegation did not see a
Secretariat shall prepare a need for a Secretariat report
report based on the and questioned what purpose it
notifications, would serve given the
cross-notifications, and existence of replies to the
responses to the annual licensing questionnaire and the
licensing questionnaires. opportunity for discussion
Parties shall respond to this provided under the TPRM and
questionnaire in a prompt and BOP Committee. A sponsor
thorough manner, ensuring that noted that a review provision
their response includes all the is common to many or most
information specified in Article Codes and that this Code had a
5(2). A compilation of great potential for increased
notifications and transparency and improvement
cross-notifications shall be in this regard; most of the
appended to the report. This burden would fall on the
report shall serve as the basis Secretariat rather than on the
for the Committee review. delegations. The sort of
information produced by
reviews would be most helpful
to small, developing country
delegations who might lack
resources to conduct such
reviews on their own. One
delegation stated that it had
difficulties with this provision.
One delegation said that, as a
result of its own above-
mentioned amendment to
Article 5.3, the word "cross-
notification", should be deleted.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 8.5 Article 8.5
The Secretariat shall submit One delegation stated that it did
its report to the Committee not see a need for this
sixty days after the due date provision. Another delegation
for responses to the annual also said that it had difficulties
questionnaire. It shall with it.
incorporate the best available
information regarding the
licensing practices of those
Parties which have not
submitted responses to the
questionnaire.
Article 8.6 Article 8.6
The Committee shall begin its One delegation stated that it
review not later than sixty had difficulties with this
days after the receipt of the provision.
Secretariat report. As
appropriate, the Committee
may establish Working Groups,
consisting of Committee
members, to assist in this
review.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 5: Final provision Article 9 (formerly Article 5) Article 9 (formerly Article 5)
Article 5.1: Acceptance and Article 9.1: Acceptance Article 9.1: Acceptance and
accession accession (formerly Article accession (formerly Article
5.1) 5.1)
a) This Agreement shall be (a) This Agreement shall be No comments.
open for acceptance by open for acceptance by
signature or otherwise, by signature or otherwise, by
governments contracting governments contracting
parties to the GATT and by the parties to the GATT and by the
European Economic Community; European Economic Community;
(b) This Agreement shall be (b) This Agreement shall be
open for acceptance by open for acceptance by
signature or otherwise by signature or otherwise by
governments having governments having
provisionally acceded to the provisionally acceded to the
GATT, on terms related to the GATT, on terms related to the
effective application of rights effective application of rights
and obligations under this and obligations under this
Agreement, which take into Agreement, which take into
account rights and obligations account rights and obligations
in the instruments providing in the instruments providing
for their provisional accession; for their provisional accession;
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
(c) This Agreement shall be (c) This Agreement shall be
open to accession by any other open to accession by any other
government on terms, related government on terms, related
to the effective application of to the effective application of
rights and obligations under rights and obligations under
this Agreement, to be agreed this Agreement, to be agreed
between that government and between that government and
the Parties, by the deposit the Parties, by the deposit
with the Director-General to with the Director-General to
the CONTRACTING PARTIES to the CONTRACTING PARTIES to
the GATT of an instrument of the GATT of an instrument of
accession which states the accession which states the
terms so agreed; terms so agreed;
(d) In regard to acceptance, (d) In regard to acceptance,
the provisions of Article the provisions of Article
XXVI:5(a) and (b) of the XXVI:5(a) and (b) of the
General Agreement would be General Agreement would be
applicable. applicable.
Article 5.2: Reservations Article 9.2: Reservations Article 9.2. Reservations
(formerly Article 5.2) (formerly Article 5.2)
Reservations may not be Reservations may not be No comments.
entered in respect of any of the entered in respect of any of the
provisions of this Agreement provisions of this Agreement
without the consent of the without the consent of the
other Parties. other Parties.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 5.3: Entry into force Article 9.3: Entry into Force Article 9.3: Entry into Force
(formerly Article 5.3) (formerly Article 5.3)
This Agreement shall enter into This Agreement shall enter into No comments.
force on 1 January 1980 for force on 1 January 1980 for
the governments (footnote: the governments (footnote:
For the purpose of this For the purpose of this
Agreement, the term Agreement, the term
"governments" is deemed to "governments" is deemed to
include the competent include the competent
authorities of the European authorities of the European
Economic Community) which Economic Community) which
have accepted or acceded to it have accepted or acceded to it
by that date. For each other by that date. For each other
government it shall enter into government it shall enter into
force on the thirtieth day force on the thirtieth day
following the date of its following the date of its
acceptance or accession to this acceptance or accession to this
Agreement. Agreement.
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 5.4: National Article 9.4: National Article 9.4: National
legislation Legislation (formerly Article Legislation (formerly Article
5.4) 5.4)
(a) Each government accepting (a) Each government accepting No comments.
or acceding to this Agreement or acceding to this Agreement
shall ensure, not later than the shall ensure, not later than the
date of entry into force of this date of entry into force of this
Agreement for it, the Agreement for it, the
conformity of its laws, conformity of its laws,
regulations and administrative regulations and administrative
procedures with the provisions procedures with the provisions
of this Agreement. of this Agreement.
(b) Each Party shall inform the (b) Each Party shall inform the
Committee of any changes in Committee of any changes in
its laws and regulations its laws and regulations
relevant to this Agreement and relevant to this Agreement and
in the administration of such in the administration of such
laws and regulations. laws and regulations.
Article 5.5: Review (see
above)
1 June, 1990
Agreement on Import Licensing Procedures
PRESENT CODE PROPOSAL BY THE UNITED COMMENTS
STATES AND HONG KONG
Article 5.6: Amendments Article 9.6: Amendments Article 9.6: Amendments
(formerly Article 5.6) (formerly Article 5.6)
The Parties may amend this The Parties may amend this No comments.
Agreement, having regard, Agreement, having regard,
inter alia, to the experience inter alia, to the experience
gained in its implementation. gained in its implementation.
Such an amendment, once the Such an amendment, once the
Parties have concurred in Parties have concurred in
accordance with procedures accordance with procedures
established by the Committee, established by the Committee,
shall not come into force for shall not come into force for
any Party until it has been any Party until it has been
accepted by such Party. accepted by such Party.
Article 5.7: Withdrawal Article 9.7: Withdrawal Article 9.7: Withdrawal
(formerly Article 5.7) (formerly Article 5.7)
Any Party may withdraw from Any Party may withdraw from No comments.
this Agreement. The this Agreement. The
withdrawal shall take effect withdrawal shall take effect
upon the expiration of sixty upon the expiration of sixty
days from the day on which days from the day on which
written notice of withdrawal is written notice of withdrawal is
received by the received by the
Director-General to the Director-General to the
CONTRACTING PARTIES to the CONTRACTING PARTIES to the
GATT. Any Party may upon GATT. Any Party may upon
such notification request an such notification request an
immediate meeting of the immediate meeting of the
Committee. Committee.