There are multiple World Trade Organisation (WTO) agreements. The WTO oversees about 60 agreements that have the status of international legal texts. As a member of the WTO, a country must, on accession, sign and ratify all its agreements. The WTO has 164 members, which account for 98% of world trade, while an additional 22 countries are locked in negotiations to become members of the organisation.

The WTO’s overriding objective is to ensure that trade flows smoothly, freely and predictably, which it does in six ways: administering trade agreements, acting as a forum for trade negotiations, settling trade disputes, reviewing national trade policies, building the trade capacity of developing economies, and cooperating with other international organisations.

Arguably one of the lesser known WTO agreements is the Agreement on Import Licensing Procedures, which stipulates that import licensing should be simple, transparent and predictable so as not to become an obstacle to trade. This agreement requires a country’s government to publish sufficient information for traders to know how and why the licences are granted. It also prescribes how countries should notify the WTO when they introduce new import licensing procedures or change existing procedures. In addition, the agreement offers guidance on how governments should assess applications for licences.

In certain instances, licences are issued automatically if certain conditions are met. But the agreement sets the criteria for automatic licensing so that the procedures used do not restrict trade. In instances where licences are not issued automatically, the agreement strives to minimise the importers’ burden when applying for licences, so that the administrative work does not in itself restrict or distort imports. The agreement further stipulates that the agencies handling licensing should not normally take more than 30 days to process an application, and 60 days when all applications are considered at the same time.

Against this backdrop, the encouraging news emanating from the WTO’s on Import Licensing Committee is that, as part of its efforts to improve transparency, a new import licensing website and database are expected go live in late 2019 or early 2020. The website and database are based on WTO members’ notifications and on the work carried out by the Import Licensing Committee since 1995. Profiles have already been prepared and uploaded for 138 members of the 164 member countries, and profiling and preparation for uploading are under way for another 12, while 14 still have to make their notifications. The deadline for these notifications is September 30, which is also the annual deadline for WTO members to complete the questionnaire on Import Licensing Procedures.

At a meeting of Import Licensing Committee held on April 4, WTO members shared their experiences on the use of the new notification form, which aims to simplify and streamline the way new or updated import licensing laws and procedures are reported to the WTO secretariat.

If you are interested in learning more about the Import Licensing Agreement, you should familiarise yourself with the WTO’s ‘Understanding the WTO: Agreements’, which offers insight into a number of agreements that deal with various bureaucratic or legal issues that could be hindrances to trade, namely import licensing, rules for the valuation of goods at customs, preshipment inspection, rules of origin and investment measures.

While awaiting the launch of the WTO’s import licensing website, you may wish to visit the WTO’s Licensing Gateway, which offers, among others, brief information on import licensing and the WTO, the ‘Links to Import Licensing’ section of the WTO guide (Understanding the WTO), technical information on import licensing, an explanation of the agreement on import licensing procedures and the ‘Search Documents Online’ section. The last mentioned allows the user to search for notifications of publications and official import licensing documents.

If you want to keep yourself informed of South African import licences, the best way to do so is to read Government Gazette notices or to keep tabs on the International Trade Administration Commission of South Africa’s (ITAC)’s Import and Export Control Unit.