. /.WORLD TRADE
ORGANIZATIONG/LIC/Q/CHN/7
22 September 2003
(03-5014)
Committee on Import Licensing Original:  English
CHINA'S TRANSITIONAL REVIEW MECHANISM1
Questions from the Separate Customs Territory of TAIWAN, PENGHU, KINMEN
AND MATSU to CHINA2
The following communication, dated 19 September 2003, has been received from the
Permanent Mission of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
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1. We would like to address the following questions to China relating to its Measures for the
Administration of Licences for the Import of Goods :
(i) Article 11 of these Measures  states that “one licence can only be used at one Customs
Office”.  However, paragraph 129 of China’s Working Party Report3 indicates that it will
adopt a system that is transparent, timely and responsive to market conditions.  Therequirements of Article 11 appear to place restrictions on traders, which do not correspond
with their real needs and therefore seem to go against the principle of trade facilitation.  It
would be appreciated if China could please expl ain how it intends to bring its Article 11 into
compliance with the WTO Agreement on Import Licensing Procedures and with its
obligations as stated in the Working Party Report.
(ii) Article 11 of China’s  Measures for the Administration of Licences for the Import of Goods
also requires that, in normal circumstances, an import licence may be used for one entry only.
It also states, however, that an importer may apply for a licence for multiple entries (up to 12
times within a specified period of time).  Please explain the circumstances in which a licence
for multiple entries is granted.
(iii) Article 3, paragraph 5 (e) of the WTO Agreement on Import Licensing Procedures states that
“if the licence application is not approved, the applicant shall, on request, be given the reason
therefor and shall have a right of appeal or review in accordance with the domestic legislation
or procedures of the importing Member.”  We should be grateful if China would explain how
the applicant can go about seeking the protection of his or her rights if this situation occurs,and if it would also identify for us the relevant existing laws and regulations.
2. The following questions relate to China’s Measures on the Administration of Automatic
Import Licensing of Goods :
(i) The WTO Agreement on Import Licensing Proc edures is designed to ensure that the
automatic import procedures are simple and convenient, and it states that they “should not be
administered in such a manner as to have restricting effects on imports.”  However,
                                                     
1 Pursuant to Section 18 of the Protocol of Acces sion of the People's Republic of China (WT/L/432).
2 See Understanding on Procedures for the Review of Notifications (G/LIC/4).
3 WT/MIN(01)/3G/LIC/Q/CHN/7
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Article 7.4 of China’s Measures on the Administration of Automatic Import Licensing of
Goods  stipulates that “the applicant must submit the import contract.”  It would be
appreciated if China could please justify and explain this requirement to submit an import
contract in the case of automatic import licensing.
(ii) Furthermore, Article 7.6 of China’s Measures on the Administration of Automatic Import
Licensing of Goods states that “other necessary documents” may also be required.  Please
explain the meaning of “other necessary documents” and how this would comply with the
WTO Agreement on Import Licensing Procedures, which calls for procedures to be
implemented in a transparent and predictable way.
(iii) Article 1, paragraph 6 of the Agreement on Import Licensing Procedures states that
“application procedures and, where applicable, renewal procedures shall be made as simple as
possible.”  However, Article 13 of China’s Measures on the Administration of Automatic
Import Licensing of Goods stipulates that “if automatic import licences need to be extended or
changed, then the entire application must be made over again.”  We wonder whether this is in
compliance with the WTO Agreement on Import Licensing Procedures.
3. China has agreed that it will provide any import licence as necessary in the procedure for
granting a quota allocation (paragraph 138 of Working Party Report).  Please describe what specific
measures China plans to take in order to ensure that each quota-holder is indeed able to obtain the
necessary import licence.
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