March 20, 2022
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Licensing procedures (export and import)

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What is licensing in international trade?

Licensing is a restrictive measure that consists of the need to obtain permission from the competent authority to import or export goods. Under the GATT 1994, the application of such measures is allowed only in exceptional cases (as supporting measures for developing countries, to prevent or relieve critical shortages of foodstuffs, on any agricultural or fisheries products, etc.).

What is the import licensing procedure?

According to the WTO Agreement on Import Licensing Procedures (Article 1), the term 'Import licensing procedure' refers to an administrative procedure, used for the operation of import licensing regimes, requiring the submission of an application or other documentation other than what is generally required for customs clearance purposes to the relevant administrative body as a prior condition for importation into the territory of the WTO Member State.

The main requirements for licensing are transparency, fairness, and predictability of the procedures. It practically means that countries have to publish sufficient information for traders to know the basis on which licenses are granted.

What is the export licensing procedure?

The term 'Export licensing procedure' means an administrative procedure, whether or not referred to as licensing, used for the operation of export licensing regimes, requiring the submission of an application or other documentation, other than that generally required for customs clearance purposes, to the relevant administrative body as a prior condition for exportation from the customs territory. This definition can be found in free trade agreements.

What is a practical example of licensing?

For example, on 3rd February 2022, the European Commission informed that it formally ended its investigation under the EU’s Trade Barriers Regulation (TBR) concerning measures taken by Mexico relating to its exportation of 'Tequila', following the successful resolution of the issue. The complaint had been brought by Brewers of Europe, who had argued that Mexico’s refusal to issue export certificates for 'Tequila' was WTO incompatible, causing significant economic damage to an EU company relying on 'Tequila' as an input. In the course of its investigation, the Commission raised concerns with the Mexican authorities about the WTO compatibility of the measure. The measure was also challenged by the affected exporter before domestic courts in Mexico.

Comments ()

en, lt
Sanctioned persons: get to know your customers and suppliers
30-04-2022

As you know, the European Union has adopted several packages of restrictive measures against the Russian Federation in the wake of the Russian war of aggression against Ukraine and restrictive measures against the Republic of Belarus in the light of the situation in Belarus. All these measures must be effectively implemented by the competent authorities and the EU economic operators. Let us discuss one of the measures - directly and indirectly sanctioned persons and how to identify them so that they do not appear among customers or suppliers.

Andrius Košel

restrictions and prohibitions
en, lt
Sanctioned persons: get to know your customers and suppliers
30-04-2022

As you know, the European Union has adopted several packages of restrictive measures against the Russian Federation in the wake of the Russian war of aggression against Ukraine and restrictive measures against the Republic of Belarus in the light of the situation in Belarus. All these measures must be effectively implemented by the competent authorities and the EU economic operators. Let us discuss one of the measures - directly and indirectly sanctioned persons and how to identify them so that they do not appear among customers or suppliers.

Andrius Košel

restrictions and prohibitions
en, lt
Kaliningrad – Russia transit: are there any special simplifications?
17-04-2022

Due to the war in Ukraine, the Kaliningrad Oblast is getting increased attention. We receive questions about the ‘Kaliningrad transit‘: whether there are any simplifications for the transportation of goods from Russia to Kaliningrad and vice versa or exemptions from sanctions? The exemptions have been introduced in the fifth EU sanctions package against Russia. But let’s start with an overview of some historical events.

Jurgita Stanienė

restrictions and prohibitions
en, lt
Kaliningrad – Russia transit: are there any special simplifications?
17-04-2022

Due to the war in Ukraine, the Kaliningrad Oblast is getting increased attention. We receive questions about the ‘Kaliningrad transit‘: whether there are any simplifications for the transportation of goods from Russia to Kaliningrad and vice versa or exemptions from sanctions? The exemptions have been introduced in the fifth EU sanctions package against Russia. But let’s start with an overview of some historical events.

Jurgita Stanienė

restrictions and prohibitions
image lt
Sankcionuojami asmenys: pažink savo klientus ir tiekėjus
12-04-2022

Andrius Košel

restrictions and prohibitions
image lt
Sankcionuojami asmenys: pažink savo klientus ir tiekėjus
12-04-2022

Andrius Košel

restrictions and prohibitions
lt
Tarptautinės sankcijos Rusijai ir Baltarusijai: teisinis reguliavimas ir verslo rizikos valdymas
10-04-2022

Tarptautinės sankcijos – privalomos kiekvienam, ir ne tik ES įvedami ribojimai. Verslui tenka susidurti ir su kitų šalių, pavyzdžiui, JAV, ekstrateritorialaus poveikio sankcijomis. Kaip valdyti riziką? Apžvelkime ribojimus sandorio šalims, jų patikrą viešai prieinamuose sąrašuose, sankcijų įtaką finansinėms operacijoms, apėjimo rizikos valdymą ir atsakomybę, teismų praktiką ir kokias reikėtų numatyti prekių pirkimo-pardavimo ar kitų sutarčių sąlygas, kad įvedus sankcijas, įtakojančias sandorį, būtų apsisaugota nuo neigiamų pasekmių.

Inga Karulaitytė-Kvainauskienė

restrictions and prohibitions
lt
Tarptautinės sankcijos Rusijai ir Baltarusijai: teisinis reguliavimas ir verslo rizikos valdymas
10-04-2022

Tarptautinės sankcijos – privalomos kiekvienam, ir ne tik ES įvedami ribojimai. Verslui tenka susidurti ir su kitų šalių, pavyzdžiui, JAV, ekstrateritorialaus poveikio sankcijomis. Kaip valdyti riziką? Apžvelkime ribojimus sandorio šalims, jų patikrą viešai prieinamuose sąrašuose, sankcijų įtaką finansinėms operacijoms, apėjimo rizikos valdymą ir atsakomybę, teismų praktiką ir kokias reikėtų numatyti prekių pirkimo-pardavimo ar kitų sutarčių sąlygas, kad įvedus sankcijas, įtakojančias sandorį, būtų apsisaugota nuo neigiamų pasekmių.

Inga Karulaitytė-Kvainauskienė

restrictions and prohibitions
en
What exporters should know about licensing barriers?
03-04-2022

Due to the non-transparent import licensing requirements in many countries, such as Turkey, India, Malaysia, Brazil, and Argentina, to mention a few, exporters are denied trade opportunities, which these days are especially important for those who lost their export markets after Russia invaded Ukraine. The article introduces basic information on automatic and non-automatic licensing and provides practical examples of some non-transparent licensing regimes worldwide that must be considered when choosing new export markets.

Dr. Ilona Mishchenko

restrictions and prohibitions
en
What exporters should know about licensing barriers?
03-04-2022

Due to the non-transparent import licensing requirements in many countries, such as Turkey, India, Malaysia, Brazil, and Argentina, to mention a few, exporters are denied trade opportunities, which these days are especially important for those who lost their export markets after Russia invaded Ukraine. The article introduces basic information on automatic and non-automatic licensing and provides practical examples of some non-transparent licensing regimes worldwide that must be considered when choosing new export markets.

Dr. Ilona Mishchenko

restrictions and prohibitions
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