Voluntary Report - public distribution

**Date:** 10/5/2006

**GAIN Report Number:** CH6087

CH6087

**China, Peoples Republic of**

**FAIRS Product Specific**

**Implementation Measures of 2007 TRQ Allocations for Imported Wool and
Wool Tops**

**2006**

**Approved by:**

![](media/image1.wmf)Casey Bean

U.S. Embassy

**Prepared by:**

Mark Petry and Wu Bugang

**Report Highlights:**

This is an UNOFFICIAL translation of the Implementation Measures of 2007
TRQ Allocations for Wool and Wool Tops (a semi-processed wool product)
issued by the Chinese Ministry of Commerce on September 30, 2006. The
volumes are identical to calendar year 2004, the final year of the WTO
TRQ phase-in for wool and wool tops. Exporters should carefully discuss
regulations and their application with importers to ensure their
interpretation of this regulation is accurate.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Beijing \[CH1\]

\[CH\]

**Summary**

The following is an UNOFFICIAL translation of the Implementation
Measures of 2007 Tariff Rate Quota (TRQ) Allocations for Imported Wool
and Wool Tops as issued by the Ministry of Commerce on September 30,
2006. Under China's WTO obligations, China must publish TRQ allocation
details for major imported agricultural products one month ahead of the
application period, which is from October 15 to October 30 of each year.
Wool and wool tops import TRQs were initially phased in during CY 2004
and are not subject to further changes. The document also contains two
appendixes: Application Form of Agricultural Product Import TRQ
Certificate and HS Code and Tariffs for Imported Wool and Wool Tops in
2007.

The publication of these TRQ amounts maintains the status quo for market
access for wool and wool tops per China's obligations to the WTO.

BEGIN TRANSLATION

# Implementation Measures of 2007 TRQ Allocations for Wool and Wool Tops

Article 1

These measures are established to facilitate the management of import
TRQs for wool and wool tops on the basis of the "Interim Rules and
Regulations for Agricultural Imports Tariff Rate Quota\" (Decree No. 4
(2003) of the Ministry of Commerce and the National Development and
Reform Commission).

Article 2

The 2007 TRQ amount for imported wool is 287,000 metric tons and that
for wool tops is 80,000 metric tons.

Article 3

Imports of wool and wool tops through all forms of trade are subject to
the import TRQ management for wool and wool tops.

Article 4

The 2007 import TRQs for wool and wool tops will be allocated on
first-come-first-serve basis. Applicants shall provide import contracts
of wool or wool tops or a Processing Trade Business Certificate in
applying for import TRQs. The Ministry of Commerce will issue
Agricultural Product Import TRQ Certificates, through authorized
agencies, to eligible quota applicants on first-come-first-serve basis.
Applications for import TRQs for wool and wool tops will no longer be
accepted at a time when all 2007 import TRQs for wool and wool tops have
been allocated.

Article 5

Requirements of application

1). Having registered at the State Industry and Commerce Management
Authorities before January 1, 2007 and passed the annual inspection by
the industry and commerce department;

2). No record of misconduct at the Customs, Industry and Commence, Tax
Bureau, Foreign Exchange and during importation of wool and wool tops in
the previous year;

3). No record of violating the Interim Rules and Regulations for
Agricultural Import Tariff Rate Quota issued by the Ministry of Commerce
and the National Development and Reform Commission or the Implementation
Measures of 2006 TRQ Allocations for Wool and Wool Tops.

Article 6

Quota applicants shall submit their applications to the Ministry of
Commerce authorized agencies within the jurisdiction of where the
enterprise is registered by providing a wool or wool top import contract
(processing trade enterprises also need to provide a "Processing Trade
Business Certificate"). Applicants shall fill out an Application Form
for Wool or Wool Top Import TRQs (see appendix A) and provide the
aforementioned relevant documents.

Article 7

TRQ applicants may obtain an Application Form for Wool or Wool Top
Import TRQs (see appendix) at the Ministry of Commerce authorized
agencies or download a copy from the Ministry's web site
(http://www.mofcom.gov.cn).

Article 8

TRQ applicants may apply multiple times for the import TRQs within the
calendar year, but shall abide by:

1). For applicants with actual imports of wool, wool tops in 2006, the
accumulative allocations (except for processing trade, the same as
below) before 30 September 2007 do not exceed 2006 actual import amount
(measured in accumulative amount on the customs stamped Agricultural
Product Import TRQ Certificates that are received by the certificate
issuing agencies). If the actual import volume is less than 300 metric
tons in 2006, applicants may apply for 300 metric tons.

2). For applicants without actual imports of wool, wool tops in 2006,
the accumulative amount requested should not exceed 300 metric tons
before September 30, 2007.

Article 9

If an end-user has imported the entire allocated TRQ amount stipulated
in Article 8 (measured in accumulative amount on the customs stamped
Agricultural Product Import TRQ Certificates that are received by the
certificate issuing agencies), he or she may apply again for import TRQs
after September 30.

Article 10

After the authorized agencies have accepted applications, they should,
if the applications comply with Articles 5, 8, and 9, request online via
the Ministry of Commerce network, and fax the reviewed and signed
applications to the Ministry of Commerce. The sequence of applications
will be determined by display on the Ministry of Commerce network
terminal.

Article 11

The Ministry of Commerce shall notify the authorized agencies of review
results within 5 workdays after it receives an online application and
faxed copy.

Article 12

Based on the number of approved applications, the authorized agencies
shall issue Agricultural Product Import TRQ Certificates to the
end-users within 5 workdays after receiving approval notifications from
the Ministry of Commerce.

Article 13

An Agricultural Product Import TRQ Certificate is valid for 6 months,
but the validity shall not go beyond December 31, 2007. The validity of
an Agricultural Product Import TRQ Certificate for processing trade
shall not exceed the re-export date for final product stipulated in the
Certificate of Processing Trade Business.

Article 14

If a cargo departs the port of origin prior to December 31, 2007 and
arrives at the destination in the following year, the end-user shall
take the loading documents to the certificate-issuing agency applying
for an extension, but the extension shall not go beyond the end of
February 2008. For processing trade, if imports are not (all) completed
by December 31, the unused quotas can be replaced by the following
year's Agricultural Product Import TRQ Certificates if the original TRQ
certificates are returned. However, the validity of the new TRQ
certificates will not go beyond the deadline of the re-export date for
final product stipulated in the Certificate of Processing Trade
Business.

Article 15

In case of alteration or extension in processing trade, the processing
trade enterprise shall renew its Agricultural Product Import TRQ
certificate at the certificate-issuing agency by providing old
certificate and alteration notice for the Certificate of Processing
Trade. The validity shall not exceed the date stipulated in the
alteration notice for the Certificate of Processing Trade.

Article 16

An end-user shall return the original certificate to the
certificate-issuing agency if TRQs have not been used within certificate
validity. The Ministry of Commerce shall recall the quotas listed in the
TRQ certificate and convert them into the balance of the TRQs.

Article 17

If an end-user forges the import contract and other documents to obtain
an Agricultural Product Import TRQ Certificate, he/she will be punished
according to provisions of the Interim Rules and Regulations for
Agricultural Imports Tariff Rate Quota.

Article 18

After an end-user has finished the customs clearance for imported goods,
he/she should return the first page of the customs stamped Agricultural
Product Import TRQ Certificate (copy for customs clearance) to the
certificate-issuing agency within 20 workdays.

Article 19

The Ministry of Commerce shall be responsible for the interpretation of
these measures.

Appendix A:

Application Form of Import TRQs for Wool, Wool Tops

Stamp of Applicant Organization:

<table>
<colgroup>
<col style="width: 22%" />
<col style="width: 1%" />
<col style="width: 9%" />
<col style="width: 12%" />
<col style="width: 3%" />
<col style="width: 1%" />
<col style="width: 1%" />
<col style="width: 14%" />
<col style="width: 3%" />
<col style="width: 29%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10">Name of enterprise:</td>
</tr>
<tr class="even">
<td colspan="4">Application items:  wool  wool tops</td>
<td colspan="6">Forms of trade: general trade processing trade</td>
</tr>
<tr class="odd">
<td colspan="4">Requested amount (metric tons):</td>
<td colspan="6">In year accumulative quotas allocated (MT):</td>
</tr>
<tr class="even">
<td colspan="10">Enterprise category: with actual import record
without actual import record</td>
</tr>
<tr class="odd">
<td colspan="3">Registered address:</td>
<td colspan="5">Registration No.</td>
<td colspan="2">Telephone:</td>
</tr>
<tr class="even">
<td colspan="2">Nature of enterprise:</td>
<td colspan="8">State-owned Share-holding Foreign-invested</td>
</tr>
<tr class="odd">
<td colspan="2">Type of enterprise:</td>
<td colspan="8">Manufacturing enterprise Trading enterprise</td>
</tr>
<tr class="even">
<td colspan="2" rowspan="2">Wool product and capacity</td>
<td colspan="5">Product name:</td>
<td colspan="3">Wool product sales value in 2006</td>
</tr>
<tr class="odd">
<td colspan="5">2006 production:</td>
<td colspan="3">2007 demand for imported wool, wool tops</td>
</tr>
<tr class="even">
<td colspan="10">The following is to be completed by the general trade
enterprises with actual import record (not including agents):</td>
</tr>
<tr class="odd">
<td rowspan="2">TRQs for general trade in 2006</td>
<td colspan="4">Allocated TRQs (MT):</td>
<td colspan="4" rowspan="2">TRQs for general trade in 2007</td>
<td>Allocated TRQs (MT):</td>
</tr>
<tr class="even">
<td colspan="4">Actual imports (MT):</td>
<td>Actual imports (MT):</td>
</tr>
<tr class="odd">
<td colspan="10">The following is to be completed by processing trade
enterprises with actual import record:</td>
</tr>
<tr class="even">
<td rowspan="2">Processing trade TRQs in 2006</td>
<td colspan="4">Allocated TRQs (MT):</td>
<td colspan="4" rowspan="2">TRQs for general trade in 2007</td>
<td>Allocated TRQs (MT):</td>
</tr>
<tr class="odd">
<td colspan="4">Actual imports (MT):</td>
<td>Actual imports (MT):</td>
</tr>
<tr class="even">
<td colspan="10">The following is to be completed by processing
enterprises applying for TRQs:</td>
</tr>
<tr class="odd">
<td colspan="2">Name of processing enterprise:</td>
<td colspan="8"><p>Type of processing trade: material supplied by
customer</p>
<p>material bought by processor</p></td>
</tr>
<tr class="even">
<td colspan="6">No. of certificate of processing trade business:</td>
<td colspan="4">Deadline of final product re-export:</td>
</tr>
<tr class="odd">
<td colspan="10">Import contract:</td>
</tr>
<tr class="even">
<td colspan="6">Importer:</td>
<td colspan="4">Importer customs registration No.:</td>
</tr>
<tr class="odd">
<td colspan="3">Contract No.:</td>
<td colspan="5">Commodity name:</td>
<td colspan="2">Commodity code:</td>
</tr>
<tr class="even">
<td colspan="3">Contract volume (MT):</td>
<td colspan="5">Signing date:</td>
<td colspan="2">Declaration port:</td>
</tr>
<tr class="odd">
<td colspan="3">Loading date:</td>
<td colspan="5">Origin:</td>
<td colspan="2">Trading country (region):</td>
</tr>
<tr class="even">
<td colspan="3">Contract unit price:</td>
<td colspan="5">Contract value:</td>
<td colspan="2">Contract value in USD:</td>
</tr>
<tr class="odd">
<td colspan="10">Whether agree to provide information about enterprise
and TRQ allocation to others: yes no</td>
</tr>
<tr class="even">
<td colspan="10">Verification comments completed by authorized
agency:</td>
</tr>
</tbody>
</table>

Notes:

1\. General trade and processing trade shall be filled out separately.
2. Actual imports: refers to calendar year accumulative import volume as
recorded on import TRQ certificate and returned to issuing agency
(including shipment loaded before December 31 and arriving before the
end of February of the following year). 3. Allocated TRQs: refers to
accumulative TRQs allocated by authorized agency within calendar year.

Appendix B

HS Code and Tariffs for Imported Wool and Wool Tops in 2007

  ---------- ----------- ---------- ----------- --------- --------- ---------
  Serial No. Commodity   HS Code    Commodity   Tariffs             
             Category               name        (%)                 

                                                MFN       General   In quota

  1          Wool        51011100               38        50        1

                         51011900               38        50        1

                         51012100               38        50        1

                         51012900               38        50        1

                         51013000               38        50        1

                         51031010               38        50        1

  2          Wool tops   51051000               38        50        3

                         51052100               38        50        3

                         51052900               38        50        3
  ---------- ----------- ---------- ----------- --------- --------- ---------

END TRANSLATION