GENERAL AGREEMENT ON Tltt<£fr%rr TARIFFS AND TRADE

RESTRICTED
GENERAL AGREEMENT O N
TARIFFS AND TRADE
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Limited Distribution
Original: English
PORTUGAL - CHANGES IF THE IMPORT REGIME
Addendum
Portuguese Import Quota System for Some Consumer Goods
NOTIFICATION BY THE DELEGATION OF PORTUGAL
1.
Decree Law No. 720-A/76 of 9 October 1976 granted to responsible Ministers the
;necessary authorization to introduce temporary import quota systems for less
essentiali goods, whenever imports attained levels incompatible with the foreign
exchange situation. Sharp deterioration in the external payments balance made it
necessary to complement, by other steps, measures already in force, in order to
achieve the desired reduction of imports of less essential consumer goods.
2.
Thus, in accordance with the above-mentioned authorization, the Official Gazette
published Government Orders Nos. 99-A/77 of 28 February, and 365-A/77 of 18 June
(containing some corrections to the Annex to Government Order No..*-9-9-A/77» and the •
new text of Article U of that Government Order), establishing.an import quota system
for 1977, for some consumer goods. The English version of the said import quota
system legislation is enclosed.
3.
In order to clarify administrative enactment of the import quota system, the
following has been agreed at Government level:
(a) Since Government Order No. 99-A/77 was published on 28 February and the
import quota system will be in force during the whole year of 1977, and in
order to simplify its execution, only 10-12 of the quotas will be
allocated until the end of 1977. The calculation of the quotas to be
allocated to each importer does not include the imports which had already
been authorized prior to the date of publication of the above-mentioned
Government Order No. 99-A/77.
L/U568/Md.l
Page 2
(b) Parts and spares classified under quota system tariff heading vill not
be included in the respective quota, provided they are to be used in
domestic industry or in after-sale repairing. The same procedure will
apply to consumer goods used only for industrial purposes and falling
under quota tariff headings with no specification concerning domestic
or industrial consumption of consumer goods.
(c) Additional quotas referred to in Article h of Government Order
No. 99-A/77 (as per its new text, according to Government Order
No. 365-A/77 of 18 June) will be calculated on the basis of the national
value added to Portuguese goods exported during 1975 and 1976 by the
importer, or by other national exporters to the foreign manufacturer of
the specific goods which are to be imported and which are to be strictly
used by those manufacturers for industrial purposes. The amounts of
these additional quotas will be equal to the value added to Portuguese
exports during 1977 exceeding the level of the average national value
added to exports during 1975 and 1976. The expression "foreign
manufacturer" does not only mean the supplying manufacturer but also
the holding through which purchases for industrial units are carried
out (Enactment No. 1 W 7 7 , published in the Official Gazette of
3 June).
k.
Products subject to the import quota system represented an import value
of Esc"1*. 191 million in 1975, i.e. Û.21 per cent of total imports in 1975 and,
on the basis of provisional data for 1976, an import value of Esc 5 567 million.i.e. k.26 per cent of total imports in 1976 (see Tables Î and II of the Appendix).
L/U568/Add.l
Page 3
ANNEX
Portuguese System of Import Quotas for
1977a for some Consumer Goods
(Government Orders Ko. 99-A/77 of 28 February 1977»
and No. 365-A/77 of 18 June 1977)
The serious situation of the country's balance of payments led to the creation
of mechanisms aiming at the maintenance of imports at convenient levels, considering
the existing payment availabilities in foreign currency. Subsequently, on
9 October 1976, the incidence of the surcharges already in force was increased and
imports of a given number of goods, deemed to be less essential, were made subject
to a system of import deposit. On the same date, the Ministers of Planning and
Economic Co-ordination, Finance and Trade and Tourism were authorized by Government
Decree No. 720-A/76, to publish joint Ministerial Orders listing products the
imports of which would be subject to import quotas, and establishing the respective
rules of application.
. , -The aggravation of the trade balance requires adoption of more drastic
measures than those at present in force, limiting imports, although the latter are
to be maintained wherever they seem to be efficient. Therefore, it has. been
deemed essential to make use of the powers granted in the above-mentioned Government
Decree and a system of import quotas has been introduced for some consumer goods
with regard to which purchases from abroad show higher levels than those
permissible in the present financial situation of the country.
However, the internal and external implications of measures taken have been
duly considered and, in view of the currency savings they may effect, this
solution has been deemed to be the most adequate. Furthermore, the temporary
nature of the measure now taken, which depends to a great extent on the
relaunching of the productive sector, must be stressed.
Therefore, under the terms of Government Decree No. 720-A/76, of 9 October,
the following rules are hereby established:
1.
During 1977, imports of goods mentioned in the enclosed list will be
subject to import quotas and may not exceed the amounts set out in that
list for each product or group of products.
L/4568/Add.l
Page k
2.
The Directorate-General of Foreign Trade (Direcçâo-Geral do Comércio
Externo) or other entities given powers for the granting of import
licences, through proposals to be approved by a joint enactment from
the Ministers of Planning and Economic Co-ordination, Finance and Trade
and Tourism, are empowered to allocate the import quotas among importers.
3. Except for reasons concerning public supply, the criterion to be used
as the basis of distribution is the average imports made by each importer
in 1975 and 1976. Importers will have to substantiate the level of
imports reached during that period by submitting to the Departments
mentioned in 2. above, the certificates of the respective Customs
clearance forms, freedom of choice as to the origin of the goods to be
imported being, however, maintained.
U.
Beyond the import quotas set out in the enclosed list, additional
authorization may be granted, in accordance with conditions to be
established by Ministerial Enactment, for imports the value of which may
not exceed the national value added to Portuguese exports manufactured
in Portugal and exported by the importer, or by other national exporters,
to the foreign manufacturer of the specific product which is to be
imported and which is to be strictly used by those foreign manufacturers,
for industrial purposes.
5. Any cases of doubt, arising from this Order, will be settled by means of
joint enactment from the Ministers of Planning and Economic Co-ordination,
Finance, and Trade and Tourism.
L/U568/Add.
Page 5
LIST OF GOODS TO WHICH IMPORT QUOTAS WILL APPLY
UNTIL 31 DECEMBER 1977
(Esc 'OOP)
08.01
Bananas
200,000
09.01
Coffee, whether or not roasted or freed of caffeine;
coffee husks and skins; coffee substitutes
containing coffee in any proportions
800,000
21.02
Extracts, essences or concentrates, of coffee, tea
or maté; preparations with a basis of those
extracts, essences or concentrates
10,000
21.05
Soups and broths, in liquid, solid or powder form;
homogenised composite food preparations
30,000
39.07.03
/OU/05
Articles of materials of the kinds described in
heading Nos. 39.01 to 39.06: floor coverings;
articles not specified, whether or not printed
U8.ll
Wallpaper, lincrusta and window transparencies
of paper
30,000
59.10
Linoleum and materials prepared on a textile base
in a similar manner to linoleum, whether or not
cut to shape or of a kind used as floor coverings;
floor coverings consisting of a coating applied on
a textile base, cut to shape or not
30,000
73.36
Stoves (including stoves with subsidiary boilers
for central heating), ranges, cookers, grates, fires
and other space heaters, gas-rings, plate warmers
with burners, wash boilers with grates or other
heating elements, and similar equipment of a kind
used for domestic purposes, not electrically
operated, and parts thereof, of iron or steel
U0,000
100,000
LA568/Add.l
Page 6
(Esc 'OOP)
84.15.02
Refrigerators and refrigerating equipment (electrical
or other): cabinets and other furniture imported
with their respective refrigerating equipment,
weighing up to 200 kg each
8U.17.01
Instantaneous or storage water heaters, of a kind
used for domestic purposes
U0,000
8U.19.01
Dish washing and drying machines
60,000
ex 8U.UO.03
Domestic washing machines
300,000
250,000
8U.Ul.01
Sewing machines for domestic use
U5,000
85.03.OI
Primary cells and primary batteries, dry
30,000
85.O6
Electro-mechanical domestic appliances, with selfcontained electric motor
85.12.01
Electric instantaneous or storage water heaters
and immersion heaters; electric soil heating
apparatus and electric space heating apparatus;
electric hairdressing appliances (such as hair
dryers, hair curlers, curling tong heaters) and
electric smoothing irons; electro-thermic
domestic appliances; electric heating resistors
other than those included in No. 85.2U: water
heaters and space heaters
30,000
85.12.03
Do., stoves, cookers, ranges and similar cooking
appliances for domestic use
Uo,000
85.12.06
Do., not specified apparatus
Uo,000
85.15.01
Radio-broadcasting reception apparatus
120,000
85.15.02
Television reception apparatus
120,000
87.lU
Other vehicles (including trailers), not mechanically
propelled, and parts thereof
200,000
30,000
L/U568/Add.
Page 7
(Esc ;
92.11.02
Gramophones, dictating machinés and other sound
recorders and reproducers, including recordplayers and tape decks, with or without sound
heads; television image and sound recorders and
reproducers, magnetic : articles not specified
50,000
92.12.01
Sound-recording media prepared for recording:
wires, strips and tapes
U0,000
93.0U/05
Firearms (not mentioned in Nos. 93.02 and 93.03),
including those using gunpowder, such as very light
pistols, pistols and revolvers for firing "blank
ammunition only, line-throwing guns and the like;
arms of other descriptions, including air, spring
and similar pistols, rifles and guns
50,000
97.01/02
Wheeled toys designed to he ridden hy children
(such as toy bicycles and tricycles and pedal motor
cars); dolls' prams and dolls' push chairs; dolls
20,000
97.03
Other toys, working models of a kind used for
recreational purposes
90,000
97.OU/O5
Equipment for parlour, table and funfair games for
adults or children (including billiard tables and
pin tables and table tennis requisites); carnival
articles; entertainment articles (for example,
conjuring tricks and novelty jokes); Christmas
tree decorations and similar articles for Christmas
festivities (for example, artificial Christmas trees,
Christmas stockings, imitation yule logs, nativity
scenes and figures therefor
10,000
LA568/Add.l
Page 8
DEVELOPMENT OF IMPORTS, AT PRESENT SUBJECT TO THE IMPORT QUOTA
SYSTEM ESTABLISHED FOR SOME CONSUMER GOODS
(Government Orders Nos. 99-A/77 and 365-A/77)
TABLE I
Value
(103 Esc.)
% in total
imports
Total imports
99,^,0^0
100.0
Total (quota)
1|,190,550
Years
1?75
1*.21
ma.
Total imports
130,812,619
Total (quota)
5,567,1+56
Source:
1975 - INE, Trade b y Commodities
1976 - Provisional data
100.0
It. 26
>
TABLE II
(103 Esc.)
i
1976^.
1975
i
Structure
Total
value
j
i
TOTAL IMPORT
Total
Quota
! EEc£'
i
EFTA
OTHER COUNTRIES
—
-^Provisional data (IKE)
Quota
1*,130,550
U.21
100.00
5,567,1*56
1+.26
100.00
2,238,1*37
2.2U
53. k
3,093,097
2.36
55.56
30^,629
0.30
7.26
218,785
0.17
3.93
1.6U7, W U
1.37
39.30
2,21*7,571*
1.73
1*0.51
I
i
Total
130,312,695
99,l*70,oUo
TOTAL (QUOTA)
Structure
Total
value
ii