The licensing agreement allows WTO member states to introduce import certificate systems, either automatic or non-automatic. Automatic licenses issued by a government and do not limit imports may be necessary to collect trade data, original statistics or other information. On the other hand, non-automatic licenses are not granted in all cases. They are used to manage quotas or other types of import restrictions. Under the agreement, non-automatic licences must not have the effects on imports due to the restrictions they impose and should not be heavier than is strictly necessary for the management of the measure. The agreement on import certificate procedures stipulates that import certificates must be simple, transparent and predictable so as not to become an obstacle to trade. Any U.S. company exporting goods to a WTO member country that requires import licenses for these products can benefit from this agreement. At the request of a member with an interest in the trade of the product concerned, members disclose all relevant information (Article 3.5 a).
When awarding certificates, members should take into account an applicant`s import results and ensure adequate distribution of certificates to new importers, particularly importers importing products from developing and least developed countries (Article 3.5, d). If quotas are not distributed by country, licensees are free to choose sources of imports; if they are distributed among the supplier countries, the licence must clearly define the countries (Article 3. 5, point k). Compensatory adjustments can be made for future licensing under Article 1.8, where imports have exceeded an earlier licence level (Article 3.5 l). The WTO Agreement on Import Certificate Procedures (Import Certificate Agreement) sets rules for all members regarding the use of import certificate systems to regulate their trade. Import certificate systems are administrative procedures that require the submission of an application or other documentation (which is not usually required for customs purposes) to an administrative authority designated as a precondition for importation. In addition to the import licence itself, the agreement also includes procedures related to a number of practices that meet this definition, including import permits, import or import authorizations, and import licences. The provisions of the agreement contain guidelines for the fair and non-discriminatory application of these procedures to protect members from inappropriate licensing requirements or delays. Members of the World Trade Organization (WTO) have agreed to apply the procedures described in this agreement when issuing import certificates. They also agreed that these procedures should be managed fairly and fairly. These commitments are intended to ensure that import authorisation procedures do not create additional trade barriers beyond licensing policies.
In addition, the agreement sets requirements for periodic notifications decrying all licensing systems applicable to imports, as well as copies of applicable legislation, in order to increase the transparency and predictability of members` licensing regimes. For example, the agreement requires governments to publish enough information for merchants to know how and why licenses are granted. It also describes how countries should notify the WTO when introducing new import authorisation procedures or amending existing procedures. Members who initiate authorization procedures or changes to these procedures are required to notify the committee within 60 days of publication. These communications should contain information on: licensed products; The point of contact for the