Import Licensing
In order to import something in a definite country, it is not sufficient to know the international standards. You have to prove the quality of the products by the help of the special permit. This permit allows an importer to bring in a specified quantity of certain goods during a specified period (usually one year). Import licenses are employed as means of restricting outflow of foreign currency to improve a country's balance of payments position.
The World Trade Organization is the one to establish the rules regarding all import licensing on international market. The WTO sets out rules for all members on the use of import licensing systems to regulate their trade. Import Licensing systems are new ones. They are created in order to motivate local manufacturers produce qualitative products and influence positively the country’s economy. In the same time, these are administrative procedures requiring the submission of an application or other documentation (other than that typically required for customs purposes) to a designated administrative body as a prior condition for importation. In addition to import licensing itself, the Agreement also covers procedures associated with a range of practices meeting that definition, including import approvals, import permissions or permits, and activity licenses required for importation.
The main aims of the Agreement are:
1. to simplify, and bring transparency to import licensing procedures;
2. to ensure their fair and equitable application and administration;
3. to prevent procedures applied for granting import licenses for having in themselves, restrictive or distortive effects on imports.
How to obtain an Import License?
Some countries, as the United States of America does not require an importer to have a license or a permit, but other countries as India and Japan may require one, depending on the goods being imported. In order to avoid potential problems in the clearance of your merchandise, follow these guidelines:
1. Contact government agencies and departments directly to find out their respective importing policies and procedures.
2. Find out if you need a license from a local or state authority.
3. You must provide your importer number on the CBP entry form in order to import merchandise into the definite country. An importer number can be:
a. The IRS business registration number.
b. If your business is not registered with the IRS or you do not have a business, your Social Security number (SSN) will be sufficient.
All he importers have to apply for an import licensing independently, and administer them in a fair and equitable manner. Applications are not going to be refused for minor documentation errors, not to be penalized heavily for any omissions or mistakes in documentation or procedures obviously made without fraudulent intent or gross negligence. Licensed imports are to not be refused for minor variations in value, quantity or weight from the amount shown on the license for reasons consistent with normal commercial practices.
Application forms have to be very clear and simple. Rules and all information concerning the application procedure, including the eligibility criteria for applicants are going to be analyzed by the administrative bodies, taking into account lists of products for import. The procedure takes 21 days before the importer gets the certificate with a definite decision.
The Agreement on Import Licensing Procedures says that import licensing should be simple, transparent and predictable so as not to become an obstacle to trade. For example, the agreement requires governments to publish sufficient information for traders to know how and why the licences are granted. It also describes how countries should notify the WTO when they introduce new import licensing procedures or change existing procedures.
How to complete an Import License?
Every importer has to remember, that all the Import License templates and fields can differ from a country to country. These are some standard information which has to be indicated:
1. Fill in these details: (applicant's full name; address; telephone/fax number and email address; unique entity No. (UEN); exporter's name and address; end-user's name and address; 8-digit HS code);
2. Indicate whether the goods are for use in the country or for re-export. If the goods are for re-export, state the country where the goods will be re-exported to.
3. A maximum of 10 items can be filled in each IC application.
4. Description of goods refers to the exact name of the items. The description must match the particulars in the end user's and foreign exporter's declarations, including brand, model number and technical specifications.
5. For each item, state the quantity to be imported and its unit of measurement (for example, 12 tonnes, 8 pieces).
6. For each item, state the Cost, Insurance and Freight (CIF) value in local currency.
7. Sign off the application by an authorised person in the company, indicating the full name and designation.
