L 86/22 Official Journal of the European Communities 30. 3. 1999 COMMISSION DECISION of 17 March 1999 under the provisions of Council Regulation (EC) No 3286/94 concerning the Brazilian non-automatic import licensing system and its operation (notified under document number C(1999) 607) (1999/234/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 3286/94 of 22 December 1994 laying down Community procedures in the field of the common commercial policy in order to ensure the exercise of the Community’s rights under international trade rules, in particular those established under the auspices of the World Trade Organisation (WTO) (*), as amended by Regulation (EC) No 356/95 (%), and in particular Articles 13 and 14 thereof, After consulting the Advisory Committee, Whereas: A. PROCEDURE (1) On 12 January 1998 the Commission received a complaint pursuant to Article 4 of Council Regula- tion (EC) No 3286/94 (herafter the ‘Regulation’). The complaint was lodged by Febeltex (Fédération belge du textile — Belgian Textile Federation). (2)  The complainant alleged that the Brazilian non- automatic import licensing and in particular its enforcement through the imposition of compulsory payment terms and compulsory minimum prices are inconsistent with several provisions of the Agreement establishing the World Trade Organ- isation (hereafter ‘the WTO Agreement) and its annexes. On that basis the complainant asked the Commission to take the necessary actions to convince Brazil to repeal these measures. (3)  The complaint contained sufficient prima facie evidence to justify the initiation of a Community examination procedure pursuant to Article 8 of the () OJ L 349, 31. 12. 1994, p. 71. () OJ L 41, 23. 2. 1995, p. 3. Regulation. Consequently, such procedure was initiated on 27 February 1998 (). 4) Following the initiation of the examination pro- cedure the Commission conducted an in-depth legal and factual investigation into the Brazilian import licensing system as applied to textile prod- ucts. Based on the findings of this investigation the Commission reached the conclusions which are indicated below. B. FINDINGS REGARDING THE EXISTENCE OF AN OBSTACLE TO TRADE (5) The investigation established that the Brazilian system is a licensing system within the meaning of Article 3(1) of the WTO Agreement on import licensing procedures (ILP) and should therefore comply with the rules laid down by this Agreement as well as by GATT 1994. (6) The relevant Brazilian legislation concerning the non-automatic import licensing system s composed of: — Decreto 660, of 25 September 1992 (which established the Sistema Integrado de Comércio Exterior, Siscomex), — Portaria Interministerial 291 (Ministry of the Treasury/Ministry of Industry and Trade), of 12 December 1996 (concerning the processing of import operations by means of the Siscomex), — Portaria Secex 21, of 12 December 1996 (concerning the implementation of import operations by means of the Siscomex, including price control) and — Comunicados Decex listing the goods subject to non-automatic import licensing, which have been consolidated by Comunicado Decex 37 of 17 December 1997. However, the Brazilian system is very flexible: new products can be added to the list of those for which a non-automatic import license is required by simple decision of the Ministry of Industry, Trade and Tourism. () Notice of initiation of an examination procedure concerning an obstacle to trade, within the meaning of Council Regula- tion (EC) No 3286/94, consisting of trade practices maintained by Brazil in relation to trade in textile products (OJ C 63, 27. 2. 98, p. 2).