World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Reply: India does not agree with the observation made in the Secretariat report. India is aware of its obligations emanating from WTO Agreement.

US 44:

eport by the Secretariat (WT/TPR/S/249): III. TRADE POLICIES AND PRACTICES BY MEASURE: (2) Measures Directly Affecting Imports: (vi) Import prohibitions, restrictions, and licensing: Page 53, paragraph 53:

The Secretariat report states that "For sanitary reasons, India has continued to ban imports of certain avian livestock and livestock products." Please explain how India's currently applied measures on avian influenza conform to the World Organization for Animal Health (OIE) guidelines on acceptable international measures for preventing the spread of this disease in commercial poultry trade.

Reply: OIE recognizes that epidemiology of Avian Influenza (AI) differs widely in different regions of the world. India's AI measures are based on scientific observations and available experience in India and around the world.

US 45:

Report by the Secretariat (WT/TPR/S/249): III. TRADE POLICIES AND PRACTICES BY MEASURE: (2) Measures Directly Affecting Imports: (vi) Import prohibitions, restrictions, and licensing: Pages 54 57, paragraphs 54 62:

We understand that although India allows domestic production and sale of remanufactured goods, it maintains import license requirements that are intended to restrict the importation of remanufactured goods.  What is India's rationale and justification for requiring import licenses for these goods? Why would less trade restrictive measures not address any concerns that India may have?

Please confirm whether such import license requirements are intended specifically to restrict the quantity or value of imports of remanufactured products.  Does India have similar licensing procedures for companies engaged in or seeking to be engaged in remanufacturing in India?  Does India maintain annual part specific limits on the quantity or value of remanufactured goods produced at domestic facilities, similar to the limits associated with import licenses for such goods?

Are import licenses on these goods issued automatically? If they are not issued automatically, why not, and what are the conditions that must be met to receive a license? How long does it typically take to receive an import license on these goods? How frequently are licenses issued for remanufactured goods and how many are issued annually? What is the duration of those licenses?

Indian Policy circular No. 4 (RE 2006)/2004 09, dated April 20, 2006, explicitly allows for the importation of second hand capital goods without any restrictions. How does India justify that it allows the importation, without an import license, of second hand capital goods that may have undergone no processing, cleaning, inspection and testing, to ensure that they are restored to original working condition, yet it requires an import license for remanufactured goods that have undergone those processes? Does India view the unrestricted importation of second hand capital goods to have no impact on the rationale/objective for requiring such a license for remanufactured goods?

Reply: Second hand capital goods are clearly defined and their imports are therefore freely allowed. However, there is no agreed definition of remanufactured goods in the WTO and different members have different criteria. Hence the import of such goods have to be considered on merits to safeguard public interest.

US 46:

Report by the Secretariat (WT/TPR/S/249): III. TRADE POLICIES AND PRACTICES BY MEASURE: (2) Measures Directly Affecting Imports: (vi) Import prohibitions, restrictions, and licensing: Page 54, paragraph 55:

According to the Secretariat: "The Import Policy Schedule lists the items that are restricted and items that are restricted with a condition. Restricted items require a specific import licence issued by the Directorate General of Foreign Trade (DGFT). Restricted items subject to conditions, require import permits (e.g. sanitary and phytosanitary permits), in addition to the specific import licence. It is not clear to the Secretariat which products require an automatic licence and which require a non automatic licence [emphasis added]." Additionally, we understand that India's ITC (HS) Classification website at www.dgft.gov.in does not indicate which procedures are automatic or non automatic. Please explain India's automatic and non automatic licensing system in light of its obligations under the WTO Agreement on Import Licensing. For example, please provide a list that specifies which products are subject to automatic license requirements, and which are subject to non automatic import license requirements. What is the rationale for requiring a non automatic import license in respect of each of the identified products? What is India's plan to increase the transparency of its licensing regime by making information publicly available and accessible?