What is Import licensing?

Import licensing is the submission of all needed documents by an organization to the right authority for approval of the importation of specific types of goods. 

The requirements for import licensing are influenced primarily by the General Agreement on Tariffs and Trade.  

What is GATT Article VIII? 

Article VIII of GATT, discuss extensively all the procedures involved in acquiring an importation license 

- Paragraph 1(c) establishes a common ground for members to minimize the complexity of import and export formalities by decreasing and simplifying all the documents required. 

- Paragraph 2. This compels each member to review the rules and regulations as regards the provisions of this article when requested by another member. 

- Paragraph 3. Stops members from forcing a specific type of penalties for slight breach of the customs regulations requirements.

What is GATT Article X?

Article X requires that each member of the group must publish the rules, regulations, judicial judgments, and the administrative rulings of general applications, inclusive of requirements of importation and exportation promptly. Also, to deliver all of these in a uniform, reasonable, and impartial manner. 

What is The Tokyo Round Code To the Uruguay Round Agreement?

The Tokyo round import licensing code was primary agreement conduct guiding the non-tariff measures concluded during the multilateral trade negotiations held in 1973 and 1979. It was enforced on 1st January 1980 with the aim of preventing import licensing procurement from suffering from unnecessary delays that affect international trade. As a stand-alone agreement, it only obliged with countries that had signed and ratified it. 

During the Uruguay Round Agreement, it was revised to build a solid ground on notifications and transparency. The amended agreement entered into force on 1st January 1995. It is binding on all WTO members. 

Main Objectives The number one priority of this agreement is to simplify and bring transparency to import licensing procedures and also to ensure that the application is fair and equitable, to prevent restricted or distorted effects on importation.  

General provisions Members are obliged to apply for import licensing procedures on neutral ground and also to administer them in a fair and equitable way. Applications with little errors of omissions or spellings are not to be refused, applications without intent to defraud or gross negligence are not to be neglected as well. Import licensing procedures are not to be rejected or ignored for minor variations. 

Publications of rules and procedures All the information and guidelines concerning the submission of applications, which includes the eligibility of applicants, a list of products should be clearly stated, the right administrative channel to contact. The applications are processed within 21 working days.  

Simple forms and procedures Application forms and all renewal forms are meant to be simple for smooth and swift processing. There is a grace period for the submission of license application maximum number of administrative bodies an applicant can contact is three.

Other principles Import license should be assigned on the same basis as for good not requiring import licenses.  There are provisions for security exception of article XXI of GATT 1994  Members are not allowed to disclose confidential information contrary to the public interest or which may influence the legitimate commercial interests of a particular industry.