Voluntary Report - public distribution

**Date:** 10/6/2005

**GAIN Report Number:** CH5070

CH5070

**China, Peoples Republic of**

**FAIRS Product Specific**

**Implementation Measures of 2006 TRQ Allocations for Wool and Wool
Tops**

**2005**

**Approved by:**

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

U.S. Embassy Beijing, Office of Agricultural Affairs

**Prepared by:**

Wu Bugang

**Report Highlights:**

This is an UNOFFICIAL translation of the Implementation Measures of 2006
TRQ Allocations for Wool and Wool Tops (semi-processed wool product)
issued by the Ministry of Commerce on September 30, 2005. The TRQ
volumes are identical to CY2004-the final year of WTO agreed-upon
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 2006 Tariff Rate Quota (TRQ) Allocation for Imported Wool
and Wool Tops as issued by the Ministry of Commerce on September 30,
2005. Under WTO obligation, China should 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 phased in during CY2004 and are not
subject to further changes. TRQ allocation measures and requirements
remain basically unchanged from those in 2005. 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 2006.

BEGIN TRANSLATION

Implementation Measures of 2006 TRQ Allocation 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 2006 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 2006 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 2006 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, 2006 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 2005 TRQ Allocation 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
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 2005, the
accumulative allocations (except for processing trade, the same as
below) before 30 September 2006 do not exceed 2005 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 2005, applicants may apply for 300 metric tons.

2). For applicants without actual imports of wool, wool tops in 2005,
the accumulative amount requested should not exceed 300 metric tons
before 30 September 2006.

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, 2006. 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 31 December 2006 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 2007. 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 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:

  ----------------------------------- -----------------------------------
  Name of Enterprise:                 

  Application items: wool wool tops Forms of trade: general trade
                                      processing trade

  Requested amount (metric tons):     In year accumulative quotas
                                      allocated (metric ton):
  ----------------------------------- -----------------------------------

  -----------------------------------------------------------------------
  Enterprise category: with actual import record without actual import
  record

  -----------------------------------------------------------------------

  ----------------------- ----------------------- -----------------------
  Registered address:     Registration No.        Telephone:

  ----------------------- ----------------------- -----------------------

  --------------- --------------------------- ---------------------------
  Nature of        State-owned              
  Enterprise:     Share-holding  Private    
                  Foreign Invested            

  Type of          Manufacturing enterprise  
  Enterprise       Trading enterprise        

  Wool product    Product name:               Wool product sales value in
  and capacity                                2004 (10,000 yuan)

                  2004 production:            2005 demand for imported
                                              wool, wool tops
  --------------- --------------------------- ---------------------------

  -----------------------------------------------------------------------
  The following is to be completed by the general trade enterprises with
  actual import record (excluding agents):

  -----------------------------------------------------------------------

  ----------------- ----------------- ----------------- -----------------
  TRQs for general  Allocated TRQs    TRQs for general  Allocated TRQs
  trade in 2004     (MT):             trade in 2005     (MT):

                    Actual imports                      Actual imports
                    (MT):                               (MT):
  ----------------- ----------------- ----------------- -----------------

  -----------------------------------------------------------------------
  The following is to be completed by processing trade enterprises with
  actual import record:

  -----------------------------------------------------------------------

  -------------------- ---------------- --------------- ------------------
  Processing trade     Allocated TRQs   Processing      Allocated
  TRQs in 2004         (MT):            trade TRQs in   TRQs(MT):
                                        2005            

                       Actual imports                   Imported
                       (MT):                            amount(MT):
  -------------------- ---------------- --------------- ------------------

  ----------------------- ----------- -------------- -----------------------
  The following is to be                             
  completed by processing                            
  trade enterprises                                  
  applying for TRQs:                                 

  Name of Processing                  Type of        
  enterprise:                         processing     
                                      trade:         
                                      material      
                                      supplied by    
                                      customer       
                                      material      
                                      bought by      
                                      processor      

  No. of Certificate of               Deadline of    
  Processing Trade                    final product  
  Business:                           re-export:     

  Import Contract:                                   

  Importer:                           Importer       
                                      customs        
                                      registration   
                                      No.            

  Contract No.            Commodity                  Commodity Code
                          name:                      

  Contract volume (MT):   Signing                    Declaration port:
                          date:                      

  Loading date:           Origin:                    Trading country
                                                     (region):

  Contract unit price:    Contract                   Contract value in USD:
                          value:                     
  ----------------------- ----------- -------------- -----------------------

  -----------------------------------------------------------------------
  Whether agree to provide information about enterprise and TRQ
  allocation to others:  yes  no

  Verification Comments completed by Authorized Agency:
  -----------------------------------------------------------------------

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 2006

  ---------- ----------- ---------- ----------- --------- --------- ---------
  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