RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/CHN/1/Rev.8 
31 July 2001 
 (01-3845) 
Working Party on the 
Accession of China  
 
 
     
 
    
 
DRAFT REPORT OF THE WORKING PARTY 
 
ON THE ACCESSION OF CHINA 
 
Revision
 
  WT/ACC/SPEC/CHN/1/Rev.8 
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TABLE OF CONTENTS  
I. INTRODUCTION ................................................................................................................ ....1 
1. Documentation Provided...................................................................................................... ....1 
2. Introductory  Statements ..................................................................................................... .....1 
II. ECONOMIC POLICIES.......................................................................................................... 4 
1. Non-Discrimination (includi ng national treatment) ..............................................................4 
2. Monetary and Fiscal Policy.................................................................................................. ....7 
3. Foreign Exchange and Payments ............................................................................................7 
4. Balance-of-Payments Measures.............................................................................................10 5. Investment Regime........................................................................................................... .......11 
6. State-Owned and State- Invested Enterprises.......................................................................12 
7. Pricing Policies ............................................................................................................ ............14 
8. Competition Policy.......................................................................................................... ........17 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES ....................................18 
1. Structure and Powers of the Government ............................................................................18 
2. Authority of Sub-National Governments..............................................................................19 3. Uniform Administration  of the Trade Regime.....................................................................20 
4. Judicial Review ............................................................................................................. ..........21 
IV. POLICIES AFFECTIN G TRADE IN GOODS ...................................................................22 
A. TRADING
 RIGHTS .................................................................................................................22 
1. General..................................................................................................................... ................22 
2. Designated Trading.......................................................................................................... .......24 
B. IMPORT  REGULATION.........................................................................................................25 
1. Ordinary Customs Duties..................................................................................................... ..25 
2. Other Duties and Charges.................................................................................................... ..26 
3. Rules of Origin ............................................................................................................. ...........27 
4. Fees and Charges fo r Services Rendered..............................................................................27 
5. Application of Internal Taxes to Imports .............................................................................28 6. Tariff Exemptions ........................................................................................................... ........29 
7. Tariff Rate Quotas .......................................................................................................... ........30 
8. Quantitative Import Restrictions, including Prohibitions and Quotas..............................33 9. Import Licensing............................................................................................................ .........37 
10. Customs Valuation.......................................................................................................... ........39 
11. Other Customs Formalities.................................................................................................. ..40 
12. Preshipment  Inspection..................................................................................................... .....40 
13. Anti-Dumping, Countervailing Duties ..................................................................................41 WT/ACC/SPEC/CHN/1/Rev.8 
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14. Safeguards ................................................................................................................. ..............44 
C. EXPORT
 REGULATIONS ......................................................................................................44 
1. Customs Tariffs, Fees and Charges for Services Rendered, Application of 
Internal Taxes to Exports...................................................................................................... .44 
2. Export Licensing and Export Restrictions ...........................................................................45 
3. Export Subsidies ............................................................................................................ .........47 
D. INTERNAL  POLICIES  AFFECTING  FOREIGN  TRADE  IN GOODS..................................47 
1. Taxes and Charges Levied on Imports and Exports ...........................................................47 
2. Industrial Policy, including Subsidies ...................................................................................48 3. Technical Barriers to Trade................................................................................................. ..49 
4. Sanitary and Phytosanitary Measures ..................................................................................56 
5. Trade-Related Investment Measures ....................................................................................57 6. State Trading Entities...................................................................................................... .......58 
7. Special Economic Areas ...................................................................................................... ...60 
8. Transit..................................................................................................................... .................62 
9. Agricultural Policies ....................................................................................................... ........62 
10. Trade in Civil Aircraft.................................................................................................... ........64 
11. Textiles ................................................................................................................... ..................64 
12. Measures Maintained  Against China....................................................................................66 
13. Transitional Safeguards .................................................................................................... .....66 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME.......................................68 
A. GENERAL..................................................................................................................... ...........68 
1. Overview .................................................................................................................... ..............68 
2. Responsible agencies for policy formulation and implementation .....................................74 3. Participation in international intellectual property agreements ........................................74 4. Application of national and MFN treatment to foreign nationals......................................75 
B. SUBSTANTIVE
 STANDARDS  OF PROTECTION,  INCLUDING  PROCEDURES  
FOR  THE  ACQUISITION  AND  MAINTENANCE  OF INTELLECTUAL  
PROPERTY  RIGHTS...............................................................................................................76 
1. Copyright protection ........................................................................................................ ......76 
2. Trademarks, includi ng service marks...................................................................................76 
3. Geographical indications, including appellations of origin.................................................78 
4. Industrial designs.......................................................................................................... ..........78 
5. Patents..................................................................................................................... .................78 
6. Plant variety protection.................................................................................................... ......82 
7. Layout designs of integrated circuits ....................................................................................83 8. Requirements on undisclosed information,  including trade secrets and test data............83  WT/ACC/SPEC/CHN/1/Rev.8 
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C. MEASURES  TO CONTROL  ABUSE  OF INTELLECTUAL  PROPERTY  RIGHTS.............84 
D. ENFORCEMENT................................................................................................................. ....85 
1. General..................................................................................................................... ................85 
2. Civil judicial procedures and remedies.................................................................................86 3. Provisional measures ........................................................................................................ ......86 
4. Administrative procedures and remedies.............................................................................87 
5. Special border measures..................................................................................................... ....88 
6. Criminal procedures......................................................................................................... ......89 
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................90 
1. Licensing ................................................................................................................... ...............90 
2. Choice of Partner ........................................................................................................... .........94 
3. Modification of the Equity Interest .......................................................................................94  
4. Prior Experience Requirement for Es tablishment in Insurance Sector ............................94 
5. Inspectio n Services......................................................................................................... .........94 
6. Market Research............................................................................................................. ........95 
7. Legal Services.............................................................................................................. ............95 
8. Minority Shareholder Rights................................................................................................. 95 
9. Schedule of Specific Commitments .......................................................................................95 VII. OTHE R ISSUES .............................................................................................................. .......95 
1. Notifications............................................................................................................... ..............95 
2. Special Trade Arrangements .................................................................................................9 6 
3. Transparency ................................................................................................................ ..........96 
2. Government Procurement...................................................................................................... 99 
VIII. CONC LUSIONS .............................................................................................................. .....100 
DRAFT DECISION................................................................................................................. ..........101 
DRAFT PROTOCOL................................................................................................................. .......102 
ANNEX 1A ....................................................................................................................... ..................118 
ANNEX 1B....................................................................................................................... ...................124 
ANNEX 2A1 ...................................................................................................................... .................125 
ANNEX 2A2 ...................................................................................................................... .................129 
ANNEX 2B....................................................................................................................... ...................134 
ANNEX 3 ........................................................................................................................ ....................141 
ANNEX 4 ........................................................................................................................ ....................156 
ANNEX 5A ....................................................................................................................... ..................159 
ANNEX 5B....................................................................................................................... ...................184 
ANNEX 6 ........................................................................................................................ ....................188 WT/ACC/SPEC/CHN/1/Rev.8 
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ANNEX 7 ........................................................................................................................ ....................190 
ANNEX 8 ........................................................................................................................ ....................196 
ANNEX 9 ........................................................................................................................ ....................197 
  WT/ACC/SPEC/CHN/1/Rev.8 
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I. INTRODUCTION 
1. At its meeting on 4 March 1987, the Council established a Working Party to examine the 
request of the Government of the People's Re public of China ("China") (L/6017, submitted on 
10 July 1986) for resumption of its status as a GATT contracting party, and to submit to the Council 
recommendations which may include a Draft Protocol  on the Status of China.  In a communication 
dated 7 December 1995, the Government of Chin a applied for accession to the Marrakesh Agreement 
Establishing the World Trade Organization ("WTO Ag reement") pursuant to Article XII of the WTO 
Agreement.  Following China's application and pur suant to the decision of the General Council on 
31 January 1995, the existing Working Party on China's Status as a GATT 1947 Contracting Party was transformed into a WTO Acces sion Working Party, effective from 7 December 1995.  The terms 
of reference and the membership of the Working Party are reproduced in document 
WT/ACC/CHN/2/Rev.11 and Corr.1.   
2. The Working Party on China's Status as a Contracting Party met on 20 occasions between 
1987 and 1995 under the Chairmanship of H.E. Mr. Pierre-Louis Girard (Switzerland).  The Working 
Party on the Accession of China met on 22 March 1996, 1 November 1996, 6 March 1997, 
23 May 1997, 1 August 1997, 5 December 1997, 8 April 1998, 24 July 1998, 21 March 2000, 
23 June 2000, 27 July 2000, 28 September 2000, 9 November 2000, 8 December 2000, 17 January 2001, 4 July 2001, 20 July 2001 and [1 3 September 2001] under the same Chairman.  At 
meetings held on 9 November 2000, 8 December 2 000 and 17 January 2001, Mr. Paul-Henri Ravier, 
Deputy Director-General of the WTO, served as Acting Chairman. 
1. Documentation Provided 
3. The Working Party had before it, to serve as a basis for its discussion, a Memorandum on 
China's Foreign Trade Regime (L/6125) and questions  posed by members of the Working Party on the 
foreign trade regime of China, together with repli es of the Chinese authorities thereto.  In addition, the 
Government of China made available to the Work ing Party a substantial amount of documentation, 
which is listed in document WT/ACC/CHN/23/Rev.1.  
2. Introductory Statements 
4. In statements to the GATT 1947 Working Party an d subsequently to the Working Party on the 
Accession of China, the representative of China stated that China's c onsistent efforts to resume its 
status as a contracting party to GATT and accession to the WTO Agreement were in line with its 
objective of economic reform to establish a soci alist market economy as well as its basic national WT/ACC/SPEC/CHN/1/Rev.8 
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policy of opening to the outside world.  China believed that its WTO accession would increase its 
economic growth and enhance its economic and trade rela tions with WTO Members. 
5. Members of the Working Party welcomed China's accession to the WTO Agreement and 
considered that its accession would contribute to a strengthening of the multilateral trading system, 
enhancing the universality of the WTO, bringing mutu al benefits to China and to the other Members 
of the WTO, and ensuring the steady development of the world economy. 
6. The representative of China said that China had a territory of 9.6 million square kilometres 
and, at the end of 1998 a population of 1.25 billio n.  Since 1979, China had been progressively 
reforming its economic system, with the objective of  establishing and improving the socialist market 
economy.  The reform package introduced in 1994, covering the banking, finance, taxation, investment, foreign exchange ("forex") and foreign trade sectors, had brought about major 
breakthroughs in China's socialist market economy.  State-owned enterprises had been reformed by a 
clear definition of property rights and responsibiliti es, a separation of government from enterprise, 
and scientific management.  A modern enterprise system had been created for the state-owned sector, and the latter was gradually getting on the track of growth through independent  operation, responsible 
for its own profits and losses.  A nation-wide unified  and open market system had been developed.  
An improved macroeconomic regulat ory system used indirect means and market forces to play a 
central role in economic management and the allocati on of resources.  A new tax and financial system 
was functioning effectively.  Financial policy had been separated from commercial operations of the 
central bank, which now focussed on financial regulation and supervisi on.  The exchange rate of the 
Chinese currency Renminbi (also "RMB") had been un ified and remained stable.  The Renminbi had 
been made convertible on current account.  Further lib eralization of pricing po licy had resulted in the 
majority of consumer and producer products being subject to market prices.  The market now played a 
much more significant role in boosting supply and meeting demand.  
7. The representative of China further noted that  as a result, in 1999, the Gross Domestic 
Product ("GDP") of China totaled RMB 8.2054 trilli on yuan (approximately US$ 990 billion).  In 
1998, the net per capita income for rural reside nts was RMB 2,160 yuan (approximately US$ 260), 
and the per capita dispensable income for ur ban dwellers was RMB 5,425 yuan (approximately 
US$ 655).  In recent years, foreign trade had grown s ubstantially.  In 1999, total imports and exports 
of goods reached US$ 360.65 b illion, of which exports stood at US$ 194.93 billion, and imports, 
US$ 165.72 billion. Exports from China in 1998 account ed for 3.4 per cent of the world's total.  
8. The representative of China stated that although important achievements have been made in 
its economic development, China was still a developi ng country and therefore should have the right to  WT/ACC/SPEC/CHN/1/Rev.8 
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enjoy all the special and preferential treatment ac corded to developing country Members pursuant to 
the WTO Agreement. 
9. Some members of the Working Party indicated that because of the significant size, rapid 
growth and transitional nature of the Chinese ec onomy, a pragmatic approach should be taken in 
determining China's need for recourse to transitiona l periods and other special provisions in the WTO 
Agreement available to developing country WTO Me mbers.  Each agreement and China's situation 
should be carefully considered and specifically addr essed.  In this regard it was stressed that this 
pragmatic approach would be tailored to fit the specific cases of China's accession in a few areas, 
which were reflected in the relevant provisions set  forth in China's Draft Protocol and Working Party 
Report.  Noting the preceding statements, Members re iterated that all commitments taken by China in 
her accession process were solely those of China and would prejudice neith er existing rights and 
obligations of Members under the WTO Agreement nor on-going and future WTO negotiations and 
any other process of accession.  While noting the pr agmatic approach taken in China's case in a few 
areas, Members also recognized the importance of differential and more favourable treatment for developing countries embodied in the WTO Agreement. 
10. At the request of interested members of the Wo rking Party, the representative of China agreed 
that China would undertake bilateral market a ccess negotiations with respect to industrial and 
agricultural products, and initial commitments in services.  
11. Some members of the Working Party stated th at in addition to undertaking market access 
negotiations in goods and services, close attenti on should also be paid to China's multilateral 
commitments, in particular China's future oblig ations under the Multilateral Agreements on Trade in 
Goods and the General Agreement on Trade in Servi ces ("GATS").  This was of vital importance to 
ensure that China would be able to take full be nefit of WTO membership as quickly as possible, as 
well as to ensure that the value of any market access conditions undertaken were not adversely 
affected by inconsistent measures such as some types of non-tariff measures. 
12. The representative of China stated that the achievement of balance between rights and 
obligations was the basic principle in its negotiation of WTO accession. 
13. Some members of the Working Party expressed  concern over discrepancies in statistical 
information supplied by the Government of Ch ina on trade volume/value.  Members and China 
pursued this issue separatel y in an Informal Group of Experts on Export Statistics. WT/ACC/SPEC/CHN/1/Rev.8 
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14. The Working Party reviewed the foreign trad e regime of China.  The discussions and 
commitments resulting therefrom are contained in pa ragraphs 15-341 below and in the Draft Protocol 
of Accession ("Draft Protocol"), including the annexes.  
II. ECONOMIC POLICIES 
1. Non-Discrimination (including national treatment) 
15. Some members expressed concern regarding th e application of the principle of non-
discrimination in relation to foreign individuals a nd enterprises (whether wholly or partly foreign 
funded).  Those members stated that China shoul d enter a commitment to accord non-discriminatory 
treatment to all foreign individuals and enterpri ses and foreign-funded enterprises in respect of the 
procurement of inputs and goods and services neces sary for production of goods and the conditions 
under which their goods were produced, marketed or so ld, in the domestic market and for export.  In 
addition, those members said that China should also enter a commitment to guarantee non-
discriminatory treatment in respect of the prices  and availability of goods and services supplied by 
national and sub-national authorities and public or state enterprises, in areas including transportation, 
energy, basic telecommunications, other utilities and factors of production. 
16. Some members of the Working Party also raised concerns over China's practice of 
conditioning or imposing restri ctions upon participation in the Chinese economy based upon the 
nationality of the entity concerned.  Those members in  particular raised concerns over such practices 
in relation to the pricing and pr ocurement of goods and services, a nd the distribution of import and 
export licences.  Members of the Working Party requ ested that China enter into a commitment not to 
condition such practices on the nationa lity of the entity concerned.   
17. In response, the representative of China emph asized the importance of the commitments that 
the government was undertaking on non-discriminati on.  The representative of China noted, however, 
that any commitment to provide non-discriminat ory treatment to Chinese enterprises, including 
foreign-funded enterprises, and foreign enterprises and individuals in China, would be subject to other 
provisions of the Draft Protocol and, in par ticular, would not prejudice China's rights under the 
GATS, China's Schedule of Specific Commitments or  commitments undertaken in relation to trade-
related investment measures. 
18. The representative of China further confirmed that  China would provide the same treatment to 
Chinese enterprises, including foreign-funded enterpri ses, and foreign enterprises and individuals in 
China.  China would eliminate dual pricing practic es as well as differences in treatment accorded to  WT/ACC/SPEC/CHN/1/Rev.8 
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goods produced for sale in China in comparison to  those produced for export.  The Working Party 
took note of these commitments.   
19. The representative of China confirmed that, cons istent with China's rights and obligations 
under the WTO Agreement and the Draft Protocol, China would provide non-discriminatory treatment 
to all WTO Members, including Members of the WT O that were separate customs territories.  The 
Working Party took note of this commitment. 
20. Some members of the Working Party expressed concern about certain provisions of Chinese 
laws, regulations, administrative notices and other re quirements which could, directly or indirectly, 
result in less favourable treatment of imported products  in contravention of Article III of the General 
Agreement on Tariffs and Trade ("GATT 1994").  Such requirements included product registration 
and certification, internal taxation, price and prof it controls and all distinct forms of licensing for 
imports, and distribution or sale of imported goods.  Even where such requirements existed in relation 
to domestically produced goods, those members reiterate d that any de facto or de jure less favourable 
treatment of imported goods had to be eliminated in order to ensure full conformity with the principle 
of national treatment. 
21. Some members of the Working Party drew Chin a's attention to the variety of types of 
requirements which could contravene GATT Articl e III. Specific reference was made to the 
procedures, charges and conditions for granting of bu siness licences, whether to import, distribute, re-
sell or retail goods of non-Chinese origin.  Referenc e was also made to taxes and fiscal provisions 
whose impact depended, directly or indirectly, upon the Chinese or non-Chinese origin of the goods 
imported or traded.  Those members drew the atten tion of China to its obligation to ensure that 
product testing and certification requirements, incl uding procedures for in situ inspections, posed no 
greater burden – whether financial or practical - on goods of non-Chinese origin than on domestic 
goods.  Those members underlined that conformity  assessment procedures and standards, including 
safety and other compliance requirements, had to  respect the terms of the WTO Agreement on 
Technical Barriers to Trade ("TBT Agreement") as well as GATT Article III. 
22. The representative of China confirmed that the full respect of all laws, regulations and 
administrative requirements with the principle of  non-discrimination between domestically produced 
and imported products would be ensured and enforced by the date of China's accession unless 
otherwise provided in the Draft Protocol or Draft Report.  The representative of China declared that, 
by accession, China would repeal and cease to appl y all such existing laws, regulations and other 
measures whose effect was inconsistent with WTO rules on national treatment.  This commitment was WT/ACC/SPEC/CHN/1/Rev.8 
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made in relation to final or interim laws, administ rative measures, rules and notices, or any other form 
of stipulation or guideline. The Working Party took note of these commitments.  
23. In particular, the representative of China confir med that measures would be taken at national 
and subnational level, including repeal or modificat ion of legislation, to provide full GATT national 
treatment in respect of laws, regulations and othe r measures applying to internal sale, offering for 
sale, purchase, transportation, distribution or use of the following: 
- After sales service
 (repair, maintenance and assistance), including any conditions applying to 
its provision, such as the MOFTEC third Decr ee of 6 September 1993 , imposing mandatory 
licensing procedures for the supply of after- sales service on various imported products; 
- Pharmaceutical  products, including regulations, no tices and measures which subjected 
imported pharmaceuticals to distinct procedures and formulas for pricing and classification, 
or which set limits on profit margins attainab le and imports, or which created any other 
conditions regarding price or local content whic h could result in less favourable treatment of 
imported products; 
- Cigarettes , including unification of the licensing requirements so that a single licence 
authorized the sale of all cigarettes, irrespectiv e of their country of origin, and elimination of 
any other restrictions regarding points of  sale for imported products, such as could be 
imposed by the China National Tobacco Corporation ("CNTC"). It was understood that in the case of cigarettes, China could avail itself of a transitional period of two years to fully unify 
the licensing requirements.  Immediately upon accession, and during the two year transitional 
period, the number of retail outlets selling imported cigarettes would be substantially 
increased throughout the territory of China; 
- Spirits
, including requirements applied under Chin a's "Administrative Measures on Imported 
Spirits in the Domestic Market", and other provisions which imposed distinct criteria and 
licensing for the distribution and sale of different categories of spirits, including unification of 
the licensing requirements so that a single licence authorized the sale of all spirits irrespective 
of their country of origin; 
- Chemicals , including registration procedures applicab le to imported products, such as those 
applied under China's "Environmental Control Re gulations for Initial Imports of Chemical 
Products and Imports a nd Exports of Toxic Chemical Products";  WT/ACC/SPEC/CHN/1/Rev.8 
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- Boilers and pressure vessels , including certification and inspection procedures which had to 
be no less favourable than those applied to goods  of Chinese origin, and fees applied by the 
relevant agencies or administrative bodies, whic h had to be equitable in relation to those 
chargeable for like products of domestic origin. 
The representative of China stated that in the cases of pharmaceuticals, spirits and chemicals cited 
above, China would reserve the right to use a transitional period of one year from the date of 
accession in order to amend or repeal the relevant le gislation.  The Working Party took note of these 
commitments.  
2. Monetary and Fiscal Policy 
24. The representative of China st ated that through the reform and opening up in the last two 
decades, China had established a fiscal management sy stem which was compatible with the principles 
of a market economy.  With respect to fiscal reve nue, a taxation system with a value-added tax as the 
main element had been established since the taxa tion reform in 1994. With respect to fiscal 
expenditure, over recent years the government had, in  line with the public fiscal requirement generally 
exercised by market economies, strengthened its adju stment of the structure of expenditure and given 
priority to public needs so as to ensure  the normal operations of the government. 
25. The representative of China further stated that in  recent years, while pursuing proactive fiscal 
policy, China had implemented proper monetary poli cy and had taken a series of adjusting and reform 
measures which included lowering the interest rate for loans from financial institutions, improving the 
system of required deposit reserves and lowering th e ratio of required reserves, positively increasing 
the input of base money and encouraging th e commercial banks to expand their credit. 
26. In respect of future fiscal policy, the represen tative of China noted that the Government of 
China would further improve its taxation system an d would continue to improve the efficiency of 
fiscal expenditure through implementing reform measures such as sectoral budget, centralized 
payment by the national treasury and zero base budge t, as well as improving management of fiscal 
expenditure. With respect to future monetary po licy, the central bank would continue to pursue a 
prudent policy, maintain the stability of RMB, prom ote interest rate liberalization and establish a 
modern commercial banking system. 
3. Foreign Exchange and Payments 
27. Some members of the Working Party raised con cerns about China's use of forex controls to 
regulate the level and composition of trade in goods a nd services.  In response, the representative of WT/ACC/SPEC/CHN/1/Rev.8 
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China stated that China was now a member of th e International Monetary Fund ("IMF") and that 
recently its system of forex had undergone rapid cha nge.  Significant moves had been taken to reform, 
rationalize and liberalize the forex market.  The pr actice of multiple exchange rates in swap centres 
had been abolished.  China had already unified its forex market and removed many of the restrictions 
on the use of forex.  
28. Outlining the historical development of China' s forex reform, the representative of China 
stated that the purpose of China's forex reform wa s to reduce administrative intervention and increase 
the role of market forces.  From 1979, a forex rete ntion system was applied in China, although forex 
swap was gradually developing.  In early 1994, o fficial RMB exchange rates were unified with the 
market rates. The banking excha nge system was adopted and a na tionwide unified inter-bank forex 
market was established, with c onditional convertibility of the Renminbi on current accounts.  Since 
1996, foreign invested enterprises ("FIEs") were also permitted into the banking exchange system, 
and the remaining exchange restrictions on curre nt accounts were eliminated. On 1 December 1996, 
China had formally accepted the obligations of Ar ticle VIII of the IMF's Articles of Agreement, 
removing exchange restrictions on current account transactions.  Accordingly, since then the 
Renminbi had been fully convertible on current acc ounts.  It was confirmed by the IMF in its Staff 
Report on Article IV Consultations with China in 2000 that China had no existing forex restrictions 
for current account transactions. 
29. The representative of China stated that the State Administration of Foreign Exchange 
("SAFE") was under the auspices of the People's Bank of China ("PBC"), and was the administrative 
organ empowered to regulate forex.  Its main f unctions were to monitor and advise on balance-of-
payments and forex matters.  SAFE was also requi red to draft appropriate regulations and monitor 
compliance.  He further noted that domestic and fo reign banks, and financial institutions could engage 
in forex business, with the approval of the PBC.  
30. In response to requests from members of the Working Party for further information, the 
representative of China added that for forex pa yments under current accounts, domestic entities 
(including FIEs) could purchase forex at market exch ange rates from designated banks or debit their 
forex accounts directly upon presentation of valid do cuments.  For payments such as pre-payment, 
commission, etc., exceeding the proportion or limit,  the entities could also purchase forex from the 
banks upon meeting the bona fide test administered by SAFE.  Forex for personal use by individuals 
could be purchased directly from the banks upon pr esentation of valid documents (within a specified 
limit).  For amounts exceeding the limit, individuals  able to prove their need for additional forex 
could purchase it from the banks.  He also noted that current account forex receipts owned by 
domestic entities had to be repatriated into China, so me of which could be retained and some sold to  WT/ACC/SPEC/CHN/1/Rev.8 
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the designated banks at market rates.  A verifica tion system for forex payment (imports) and forex 
receipt (exports) had also been adopted. 
31. Concerning the exchange rate regime in partic ular, the representative of China noted that 
since the unification of exchange rates on 1 Janua ry 1994, China had adopted a single and managed 
floating exchange rate regime based on supply a nd demand.  PBC published the reference rates of 
RMB against the US dollar, the HK dollar and Japan ese yen based on the weighted average prices of 
forex transactions at the interbank forex market during the previous day's trading. The buying and 
selling rates of RMB against the US dollar on the in ter-bank forex market could fluctuate within 0.3 
per cent of the reference rate. For the HK dollar and Japanese yen, the permitted range was 1 per cent.   
Designated forex banks could deal w ith their clients at an agreed rate.  Under such contracts the 
exchange rate of the US dollar was required to be within 0.15 per cent of the reference rate, whereas 
for the HK dollar and Japanese yen, the permitted range was 1 per cent.  The exchange rates for other 
foreign currencies were based on the rates of RMB ag ainst the US dollar and cross-exchange rates of 
other foreign currency on the international mark et. The permitted margin between the buying and 
selling rate could not exceed 0.5 per cent. 
32. The representative of China further noted that since 1 January 1994, designated forex banks 
had become major participants in forex transactions .  On 1 April 1994, the China Foreign Exchange 
Trading System was set up in Shanghai and branches  were opened in dozens of cities.  The Foreign 
Exchange Trading System had adopted a system of  membership, respective quotation, concentrated 
trading and forex market settlement.  Designated fo rex banks dealt on the inter-bank market according 
to the turnover position limit on banking exchange  stipulated by SAFE and covered the position on 
the market. Depending on its macro-economic objectives, the PBC could intervene in the forex open market in order to regulate market supply and demand, and maintain the stability of the RMB 
exchange rate.  
33. The representative of China noted that since 1 July 1996, forex dealing of the FIEs was 
carried out through the banking exchange system.  He further noted that to encourage foreign direct investment, China had granted national treatment to FIEs in exchange administration.  Accordingly, 
FIEs were allowed to open and hold forex settle ment accounts to retain receipts under current 
accounts, up to a maximum amount stipulated by SA FE.  Receipts in excess of the maximum amount 
were required to be sold to desi gnated forex banks.  No restrictions  were maintained on the payment 
and transfer of current transactions by FIEs, a nd FIEs could purchase forex from designated forex 
banks or debit their forex accounts for any paym ent under current transactions, upon the presentation 
of valid documents to the designa ted forex banks or SAFE for the bona  fide test.  FIEs could also 
open forex accounts to hold foreign-invested cap ital, and they could sell from these accounts upon the WT/ACC/SPEC/CHN/1/Rev.8 
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approval of SAFE.  FIEs could also borrow fore x directly from domestic and overseas banks, but 
were required to register with SAFE afterwards, and obtain approval by SAFE for debt repayment and 
services.  FIEs could make payments from their fo rex accounts or in forex purchased from designated 
forex banks after liquidatio n, upon approval by SAFE according to law.   
34. The representative of China further noted that  the laws and regulations mentioned above 
were:  Law of the People's Republic  of China on Chinese-Foreign Equi ty Joint Venture;  Law of the 
People's Republic of China on Chinese-Foreign Cont ractual Joint Venture;  Regulations on the 
Exchange System of the People's Republic of China;  and Regulations on the Sale and Purchase of and 
Payment in Foreign Exchange.  
35. The representative of China stated  that China would implement its obligations with respect to 
forex matters in accordance with the provisions of the WTO Agreement and related declarations and 
decisions of the WTO that concerned the IMF.  The representative further r ecalled China's acceptance 
of Article VIII of the IMF's Articles of Agreement,  which provided that "no member shall, without the 
approval of the Fund, impose restrictions on th e making of payments and transfers for current 
international transactions".  He stated that, in accordance with these obligations, and unless otherwise 
provided for in the IMF's Articles of Agreement, Ch ina would not resort to any laws, regulations or 
other measures, including any requirements with respect  to contractual terms, that would restrict the 
availability to any individual or enterprise of fore x for current international transactions within its 
customs territory to an amount related to the forex in flows attributable to that individual or enterprise.  
The Working Party took no te of these commitments. 
36. In addition, the representative of China stat ed that China would provide information on 
exchange measures as required under Article VIII, S ection 5 of the IMF's Articles of Agreement, and 
such other information on its exchange measur es as was deemed necessary in the context of the 
transitional review mechanism.  The Working Party took note of this commitment.  
4. Balance-of-Payments Measures 
37. Some members of the Working Party stated that China should apply balance-of-payments 
("BOPs") measures only under the circumstances provided for in the WTO Agreement and not as a 
justification for imposition of restrictions on imports  for other protectionist purposes.  Those members 
stated that measures taken for BOPs reasons should have the least trade disr uptive effect possible and 
should be limited to temporary import surcharges, import deposit requirements or other equivalent 
price-based trade measures, and those measures shou ld not be used to provide import protection for 
specific sectors, industries or products.  WT/ACC/SPEC/CHN/1/Rev.8 
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38. Those members of the Working Party further stat ed that any such measures should be notified 
pursuant to the Understanding on the Balance- of-Payments Provisions of the GATT 1994 ("BOPs 
Understanding") and to the Genera l Council not later than the imposition of the measures, together 
with a time schedule for their elimination and a pr ogramme of external and domestic policy measures 
to be used to restore BOPs equilibrium.  Those me mbers also stated that following deposit of such a 
notification, the Committee on Balance-of-Payment s Restrictions ("BOPs Committee") should meet 
to examine the notification.  It was noted that  paragraph 4 of the BOPs  Understanding would be 
available to China in the case of "essential produ cts".  Some members stated that the BOPs 
Committee should review the operation of any BOPs measures taken by China, if so requested by 
China or a WTO Member. 
39. Some other members of the Working Party consid ered that, in respect of measures taken for 
BOP purposes, China should enjoy the same rights as those accorded to other developing country 
WTO Members, as provided in GATT Article XVIII:B and the BOPs Understanding.   
40. In response, the representative of  China stated that China considered that it should have the 
right to make full use of WTO BOPs provisions to protect, if necessary, its BOPs situation.  He 
confirmed that China would fully comply with the provisions of the GATT 1994 and the BOPs 
Understanding.  Further to such compliance, China would give preference to application of price-
based measures as set forth in the BOPs Understanding.   If China resorted to measures that were not 
price-based, it would transform such measures in to price-based measures as soon as possible.  Any 
measures taken would be maintained strictly in accordance with the GATT 1994 and the BOPs 
Understanding, and would not exceed what was necessar y to address the particular BOPs situation.  
The representative of China also confirmed that measures taken for BOPs reasons would only be 
applied to control the general level of imports and not to protect specific sectors, industries or products, except as noted in paragraph 38.  The Working Party took note of these commitments. 
5. Investment Regime 
41. The representative of China stated that sin ce the inception of the reform and opening up 
policy in the late 1970's, China had carried out a series of reforms of its investment regime. The 
highly centralized investment administration under the planned economy had been progressively 
transformed into a new pattern of diversification of investors, multi-channelling of capital sources and 
diversification of investment modalities. The govern ment encouraged foreig n investment into the 
Chinese market and had uninterruptedly opened and expanded the scope for investment. At the same 
time, the Government of China also encouraged the development of the non-state-operated economy 
and was speeding up the opening of areas for non-stat e investment. With China's programme in the WT/ACC/SPEC/CHN/1/Rev.8 
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establishment of its market economy, the construc tion projects of various enterprises utilizing free 
capital and financed by the credit of the enterprise would be fully subject to the decision-making of 
the enterprise concerned and at their own risk. Th e commercial banks' credit activities to all kinds of 
investors would be based on their own evaluation and decision-making, and would be at their own 
risk.  The business activities of intermediate investme nt agencies would be fully subject to the market 
and would provide service at the instruction of the investors. These agencies would break up their 
administrative relations with government agen cies and the service activities financed by the 
government would also be subject to the terms a nd conditions agreed in the contracts concerned. 
42. The representative of China further stated that  China had promulgated investment guidelines 
and that the Government of China was in the pr ocess of revising and completing these guidelines.  
Responding to concerns raised by certain members of the Working Party, he confirmed that these 
investment guidelines and their implementation would be in full conformity with the WTO 
Agreement.  The Working Party took  note of this commitment.   
6. State-Owned and State-Invested Enterprises 
43. The representative of China stated that th e state-owned enterprises of China basically 
operated in accordance with rules of market econom y.  The government would no longer directly 
administer the human, finance and material res ources, and operational activities such as production, 
supply and marketing.  The prices of commodities produced by state-owned enterprises were decided 
by the market and resources in operational areas we re fundamentally allocated by the market.  The 
state-owned banks had been commercialized an d lending to state-owned enterprises took place 
exclusively under market conditions.  China was fu rthering its reform of state-owned enterprises and 
establishing a modern enterprise system. 
44. In light of the role that state-owned and stat e-invested enterprises played in China's economy, 
some members of the Working Party expressed conc erns about the continuing governmental influence 
and guidance of the decisions and activities of su ch enterprises relating to the purchase and sale of 
goods and services. Such purchases and sales should be based solely on commercial considerations, 
without any governmental influence or application of discriminatory measures.  In addition, those 
members indicated the need for China to clarify its  understanding of the types of activities that would 
not come within the scope of Article III:8(a) of  GATT 1994.  For example, any measure relating to 
state-owned and state-invested enterprises importing materials and machinery used in the assembly of 
goods, which were then exported or otherwise made available for commercial sale or use or for non-
governmental purposes, would not be considered to be  a measure relating to government procurement.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 13 
 
 
45. The representative of China emphasized the e volving nature of Ch ina's economy and the 
significant role of FIEs and the private sector in the economy.  Given the increasing need and 
desirability of competing with private enterprises in  the market, decisions by state-owned and state-
invested enterprises had to be based on commer cial considerations as provided in the WTO 
Agreement.    
46. The representative of China further confirmed th at China would ensure that all state-owned 
and state-invested enterprises would make pur chases and sales based solely on commercial 
considerations, e.g., price, quality, marketability a nd availability, and that the enterprises of other 
WTO Members would have an adequate opportunity  to compete for sales to and purchases from these 
enterprises on non-discriminatory terms and conditions.  In addition, the Government of China would 
not influence, directly or indirectly, commercial deci sions on the part of state-owned or state-invested 
enterprises, including on the quantity, value or c ountry of origin of any goods purchased or sold, 
except in a manner consistent with the WTO Agr eement.  The Working Party took note of these 
commitments.   
47. The representative of China confirmed that, w ithout prejudice to China's rights in future 
negotiations in the Government Pr ocurement Agreement, all laws, regulations and measures relating 
to the procurement by state-owned and state- invested enterprises of goods and services for 
commercial sale, production of goods or supply of services for commercial sale, or for non-governmental purposes would not be considered to be laws, regulations and measures relating to 
government procurement. Thus, such purchases or sales would be subject to the provisions of 
Articles II, XVI and XVII of the GATS and Article III of the GATT 1994.  The Working Party took note of this commitment.  
48. Certain members of the Working Party expr essed concern about laws, regulations and 
measures in China affecting the transfer of technolog y, in particular in the context of investment 
decisions.  Moreover, these members expressed con cern about measures conditioning the receipt of 
benefits, including investment a pprovals, upon technology transfer.  In their view, the terms and 
conditions of technology transfer, particularly in the context of an investment, should be agreed 
between the parties to the investment without g overnment interference.  The government should not, 
for example, condition investment approval upon technology transfer.  
49. The representative of China confirmed that Chin a would only impose, apply or enforce laws, 
regulations or measures relating to the transfer  of technology, production processes, or other 
proprietary knowledge to an individual or enterprise in  its territory that were not inconsistent with the 
WTO Agreement on Trade-Related Aspects of Intell ectual Property Rights ("TRIPS Agreement") and WT/ACC/SPEC/CHN/1/Rev.8 
Page 14  
 
the Agreement on Trade-Related I nvestment Measures ("TRIMs Agreem ent").  China confirmed that 
the terms and conditions of technology transfer, production processes or other proprietary knowledge, 
particularly in the context of an investment, woul d only require agreement between the parties to the 
investment.  The Working Party took note of these commitments. 
7. Pricing Policies  
50. Some members of the Working Party noted th at China had made extensive use of price 
controls, for example in the agricultural sector .  Those members request ed that China undertake 
specific commitments concerning its system of state pr icing.  In particular, those members stated that 
China should allow prices for traded goods and servi ces in every sector to be determined by market 
forces, and multi-tier pricing practices for such goods and services should be eliminated.  Those members noted, however, that Chin a expected to maintain price controls on the goods and services 
listed in Annex 4 to the Draft Protocol, and stated th at any such controls should be maintained in a 
manner consistent with the WTO Agreement, in pa rticular Article III of the GATT 1994 and Annex 2, 
paragraphs 3 and 4, of the Agreement on Agri culture.  Those members noted that except in 
exceptional circumstances, and subject to notificatio n to the WTO Secretariat, price controls should 
not be extended to goods or services beyond those list ed in Annex 4, and China should make its best 
efforts to reduce and eliminate those controls.  They  also asked that China publish in the appropriate 
official journal the list of goods and services subject to state pricing and changes thereto.  
51. Some members of the Working Party expressed the view that price controls and state pricing 
in China also encompassed "guidance pricing" and  regulation of the range of profits that enterprises 
could enjoy.  Such policies and practices would also  be subject to China's commitments.  In their 
view, price controls should be adopted only in extr aordinary circumstances and should be removed as 
soon as the circumstances justifying their adoption were addressed. 
52. The representative of China said that China cu rrently applied a mechanism of market-based 
pricing under macro-economic adjustment.  He noted that national treatment wa s applied in the areas 
of government pricing for all imported goods.  There were presently three types of prices:  government price, government guidance price and market-regulated price.  The government price was set by price administration authorities and could not be changed without the approval of these 
authorities. Products and services subject to government  pricing were those having a direct bearing on 
the national economy and the basic needs of the people's livelihood, including those products that were scarce in China.   
53. The representative of China stated that when  government prices or  government guidance 
prices needed to be adjusted or reset, the agencies concerned should  apply to the competent pricing  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 15 
 
 
authorities for that purpose.  There was not a fixe d time frame for the adjustment of government 
prices or government guidance prices.  Operators or competent agencies could, in the light of market 
changes and according to their purview of pricing,  submit applications to the competent pricing 
authorities for pricing or adjustment of the original  prices.  The government pricing authorities would, 
in the light of such factors as market demand a nd supply, operational costs, effect on consumers as 
well as the quality of services, determine specific pr ices for the services concerned, or set guidance 
prices and floating ranges within which operators could determine specific prices.  When setting 
prices for public utilities, important public welf are services and goods subject to natural monopolies 
and services which were of vital interest to the ge neral public, government pricing authorities would 
hold public hearings and invite consumers, opera tors and other concerned parties to comment and 
debate on the necessity and impact of a price adjustment.  The prices of important services were 
subject to the approval of the State Council.   This mechanism had helped to significantly improve the 
rationality and transparency of govern ment pricing.  All enterprises, regardless of their nature and 
ownership, were free to participate in such h earings and voice their opinions and concerns which 
would be taken into consideration by the comp etent pricing authorities. Meanwhile, government 
pricing was product- or service-specific, regardless of  the ownership of the enterprises concerned.  All 
the enterprises and individuals enjoyed the same trea tment in terms of participating in the process of 
setting government prices and government guidance prices.   
54. The representative of China added that the gove rnment guidance price mechanism was a more 
flexible form of pricing.  The price administration authorities stipulated either a basic price or floating 
ranges. The floating range of guidance pricing was ge nerally 5 per cent to 15 per cent.  Enterprises 
could, within the limits of the guidance and taking into account the market situation, make their own 
decisions on prices.  With market-regulated prices,  enterprises were free to set prices in accordance 
with supply and demand to the extent permitted by ge nerally applicable laws, regulations and policies 
concerning prices.   
55. The representative of China stated that in formulating government prices and government 
guidance prices, the following criteria were taken in to account:  normal production costs, supply and 
demand situation, relevant government policies and prices of related products. When fixing prices of 
consumer goods, consideration was given to the lim its of consumers' purchasing power.  He noted 
that due to the continued reform of China's pri ce system, the share of government prices had dropped 
substantially and that of market-regulated prices had increased;  of social retailing products, the share 
of government prices was about 4 per cent, that of  government guidance prices 1.2 per cent, and that 
of market-regulated prices 94.7 per cent.  For agri cultural products, the share of government prices 
was 9.1 per cent, government guidance prices 7.1 pe r cent, and market-regulated 83.3 per cent.  For 
production inputs, the share of government prices was 9.6 per cent, that of government guidance WT/ACC/SPEC/CHN/1/Rev.8 
Page 16  
 
prices 4.4 per cent, and market-regulated prices 86 per cent.  The share of directly government-
controlled prices had been much reduced.  The Gove rnment of China considered that China's price 
system was becoming increasingly rationalized, creating a relatively fair marketplace for all 
enterprises to compete on an equal footing. 
56. The representative of China recalled that Annex 4 of the Draft Protocol contained a 
comprehensive listing of all products and services presently subject to government guidance pricing 
and government pricing.  He stated that the services subject to price controls were listed in Annex 4 
by their respective CPC codes. 
57. Some members of the Working Party request ed additional information on the specific 
activities subject to government pricing or govern ment guidance pricing.  In particular, those 
members requested information on professional services, educational services, and charges for 
settlement clearing and transmission services of banks.  In response, the representative of China stated 
that "The Administrative Rules on Intermediate Services" promulgated in 1999 by six central 
government agencies led by the State Developmen t and Planning Commission ("SDPC") dealt with 
government pricing on intermediate services such as inspection authentication, notarization and 
arbitration and services which were in limited suppl y due to their special requirements.  For legal 
services, the Interim Regulation on Charges and Fees of Legal Services, jointly promulgated by the SDPC and the Ministry of Justice stipulated that  for law firms practising Chinese law, charges and 
fees for the following activities were subject to the approval of the SDPC: (1) representing a client in 
a civil case, including an appeal; (2) representing a client in a case contesting an administrative 
agency's decision; (3) providing legal advice to cr iminal suspects, acting for a client in connection 
with an appeal or prosecution, applying for bail, representing a defendant or victim in a criminal case; 
and (4) representing a client in an arbitration.  For foreign legal service providers engaged in activities 
such as those listed in China's GATS schedule, th e foreign legal service pr oviders would determine 
the appropriate charges and fees which would not be subject to government pricing or guidance 
pricing. 
58. The representative of China noted that regulati ons also existed for the other services included 
in Annex 4.  Government pricing and guidance pricing related to accounting and auditing services 
cover auditing and accounting review services.  For architectural services, advisory and pre-design 
architectural services and contract administration activities were subject to government pricing or 
government guidance pricing.    For engineer ing services, advisory and consultative services, 
engineering design services for the construction of foundations and building structures, design services for mechanical and electrical installations for buildings, construction of civil engineering 
works, and industrial processes a nd production were subject to govern ment pricing or government  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 17 
 
 
guidance pricing.  For education services, primar y, secondary and higher education services were 
subject to government pricing or government guidance pricing unless the provider was a non-profit 
educational service provider. 
59. The representative of China further explaine d that charges for settlement, clearing and 
transmission services of banks referred to in Annex 4 related to the charges and fees collected by 
banks for the services provided to enterprises a nd individuals when the banks conducted currency 
payments and transmission and fund settlements by using clearance methods such as bills and notes, 
collections and acceptances.  These mainly included commission charges of b ills, cashier's cheques, 
cheques, remittances, entrusted collections of payment, and collections and acceptances of banks. 
60. The representative of China confirmed that it would publish in the official journal the list of 
goods and services subject to state pricing and changes thereto, together with price-setting 
mechanisms and policies.  The Working Party took note of these commitments. 
61. The representative of China confirmed that the official journal providing price information 
was the Pricing Monthly of the People's Republic of  China, published in Beijing.  It was a monthly 
magazine listing all products and services priced by th e State.  He further stated that China would 
continue to further its price reform, adjusting the catalogue subject to state pricing and further 
liberalize its pricing policies. 
62. The representative of China further confirmed th at price controls would not be used for 
purposes of affording protection to domestic industries or services providers.  The Working Party took 
note of this commitment. 
63. Some members of the Working Party expressed a concern that China could maintain prices 
below market-based ones in order to limit imports. 
64. In response, the representative of China confir med that China would apply its current price 
controls and any other price controls upon accession in a WTO-consistent fashion, and would take 
account of the interests of exporting WTO Member s as provided for in Article III:9 of the GATT 
1994.  He also confirmed that price controls wo uld not have the effect of limiting or otherwise 
impairing China's market-access commitments on goods and services.  The Working Party took note of these commitments. 
8. Competition Policy 
65. The representative of China noted that the Gove rnment of China encouraged fair competition 
and was against acts of unfair competition of all ki nds. The Law of the People's Republic of China on WT/ACC/SPEC/CHN/1/Rev.8 
Page 18  
 
Combating Unfair Competition, promulgated on 2 September 1992 and implemented on 
1 December 1992, was the basic law to maintain the order of competition in the market. In addition, 
the Price Law, the Law on Tendering and Bidding, th e Criminal Law and other relevant laws also 
contained provisions on anti-m onopoly and unfair competition. Chin a was now formulating the Law 
on Anti-Monopoly. 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
1. Structure and Powers of the Government 
66. The representative of China informed members of  the Working Party that in accordance with 
the Constitution and the Law on Legislation of the Pe ople's Republic of China, the National People's 
Congress was the highest organ of state power.  Its permanent body was its Standing Committee.  The National People's Congress and its Standing Committee exercised the legislative power of the State.  
They had the power to formulate the Constitution and laws.  The State Council, i.e., the Central 
People's Government of China, was the executive body of the highest organ of state power.  The State 
Council, in accordance with the Co nstitution and relevant laws, was entrusted with the power to 
formulate administrative regulations.  The ministri es, commissions and other competent departments 
(collectively referred to as "departments'') of the State Council could issue departmental rules within 
the jurisdiction of their respective departments a nd in accordance with the laws and administrative 
regulations.  The provincial people's congresses and their standing committees could adopt local regulations.  The provincial governments had the power to make local government rules.  The 
National People's Congress and its Standing Comm ittee had the power to annul the administrative 
regulations that contradicted the Constitution and laws as well as the local regulations that 
contradicted the Constitution, laws and administra tive regulations.  The State Council had the power 
to annul departmental rules and local government ru les that were inconsistent with the Constitution, 
laws or administrative regulations.  The Governme nt of China believed that these features of the 
Chinese legal system would ensure an effective a nd uniform implementation of the obligations after 
China's accession. 
67. The representative of China stated that Ch ina had been consistently performing its 
international treaty obligations in good faith.  According to the Constitution and the Law on the 
Procedures of Conclusion of Treaties, the WTO Ag reement fell within the category of "important 
international agreements" subject to the ratifi cation by the Standing Committee of the National 
People's Congress.  China would ensure that its laws  and regulations pertaining to or affecting trade 
were in conformity with the WTO Agreement and with its commitments so as to fully perform its 
international obligations.  For this purpose, China had commenced a plan to systematically revise its  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 19 
 
 
relevant domestic laws.  Therefore, the WTO Ag reement would be implemented by China in an 
effective and uniform manner through revising its ex isting domestic laws and enacting new ones fully 
in compliance with the WTO Agreement. 
68. The representative of China confirmed that administrative regulations, departmental rules and 
other central government measures would be prom ulgated in a timely manner so that China's 
commitments would be fully implemented within the relevant time frames.  If administrative 
regulations, departmental rules or other measures were not in place within such time frames, 
authorities would still honour China's obligations un der the WTO Agreement and Draft Protocol.  The 
representative of China further confirmed that th e central government would undertake in a timely 
manner to revise or annul administrative regulations or departmental rules if they were inconsistent 
with China's obligations under the WTO and Draft Protocol.  The Wo rking Party took note of these 
commitments.   
2. Authority of Sub-National Governments 
69. Several members of the Working Party raised  concerns about the continued presence of 
multiple trade instruments used by different levels  of government within China.  Those members 
considered that this situation resulted in a lessen ing of the security and predictability of access to the 
Chinese market. These Members raised specific con cerns regarding the authority of sub-national 
governments in the areas of fiscal, financial and budgetary activities, specifically with respect to 
subsidies, taxation, trade policy and other issu es covered by the WTO Agreement and the Draft 
Protocol.  In addition, some members expressed c oncerns about whether the central government could 
effectively ensure that trade-related measures intr oduced at the sub-national level would conform to 
China's commitments in the WTO Agreement and the Draft Protocol. 
70. The representative of China stated that sub-national governments had no autonomous 
authority over issues of trade policy to the extent that they were related to the WTO Agreement and 
the Draft Protocol.  The representative of China conf irmed that China would in a timely manner annul 
local regulations, government rules and other local  measures that were inconsistent with China's 
obligations.  The representative of China further c onfirmed that the central government would ensure 
that China's laws, regulations and other measures, including those of local governments at the sub-
national level, conformed to China's obligations undertaken in the WTO Agreement and the Draft 
Protocol.  The Working Party took note of these commitments.   WT/ACC/SPEC/CHN/1/Rev.8 
Page 20  
 
3. Uniform Administration of the Trade Regime 
71. Some members of the Working Party stated that  it should be made clear that China would 
apply the requirements of the WTO Agreement and its other accession commitments throughout 
China's entire customs territory, including border trade regions, minority autonomous areas, Special 
Economic Zones ("SEZs"), open coastal cities, econom ic and technical development zones and other 
special economic areas and at all levels of government. 
72. Those members of the Working Party also rais ed concerns about whether China's central 
government would be sufficiently informed about  non-uniform practices and would take necessary 
enforcement actions.  Those members stated that  China should establish a mechanism by which any 
concerned person could bring to the attention of the central government cases of non-uniform 
application of the trade regime and receive prompt and effective action to address situations in which 
non-uniform application was established.  
73. The representative of China confirmed that the provisions of the WTO Agreement, including 
the Draft Protocol, would be applied uniformly th roughout its customs territory, including in SEZs 
and other areas where special regimes for tariffs, ta xes and regulations were established and at all 
levels of government.  The Working Pa rty took note of this commitment. 
74. In response to questions from certain members of the Working Party, the representative of 
China confirmed that laws, regulations and othe r measures included decrees, orders, directives, 
administrative guidance and provisional and interim measures.  He stated that in China, local 
governments included provincial governments, including autonomous regions and municipalities 
directly under the central government, cities, coun ties and townships.  The representative of China 
further stated that local regulations, rules and othe r measures were issued by local governments at the 
provincial, city and county levels acting within  their respective constitutio nal powers and functions 
and applied at their corresponding local level.  Townships were only authorized to implement 
measures.  Special economic areas were also auth orized to issue and implement local rules and 
regulations. 
75. The representative of China further confirmed that the mechanism established pursuant to 
Section 2(A) of the Draft Protocol would be operative upon accession.  All individuals and entities 
could bring to the attention of central governme nt authorities cases of non-uniform application of 
China's trade regime, including its commitments u nder the WTO Agreement and the Draft Protocol.  
Such cases would be referred promptly to the r esponsible government agency, and when non-uniform 
application was established, the authorities would act promptly to address the situation utilizing the 
remedies available under China's laws, taking into co nsideration China's international obligations and  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 21 
 
 
the need to provide a meaningful remedy.  The individual or entity notifying China's authorities would 
be informed promptly in writing of any decision and action taken.  The Working Party took note of 
these commitments. 
4. Judicial Review 
76. Some members of the Working Party stated that China should designate independent 
tribunals, contact points, and procedures for the prom pt review of all administrative actions relating to 
the implementation of laws, regula tions, judicial decisions and administrative rulings of general 
application referred to in Article X:1 of the GA TT 1994, including administrative actions relating to 
import or export licences, non-tariff measures and tariff-rate quota administration, conformity assessment procedures and other me asures.  These members sought explicit confirmation that certain 
types of measures, such as decisions relating to sta ndards and chemical regist ration, would be subject 
to judicial review.  Some members of the Working Party also stated that the administrative actions 
subject to review should also include any actio ns required to be reviewed under the relevant 
provisions of the TRIPS Agreement and the GATS.  These members stated that  such tribunals should 
be independent of the agencies entrusted with admi nistrative enforcement of the matter and should not 
have any substantial interest in the outcome of the matter. 
77. Those members of the Working Party stated th at such review procedures should include the 
opportunity for appeal, without penalty, by individua ls or enterprises affected by any administrative 
action subject to review.  If an initial right of app eal were to an administrative body, there should be 
an opportunity to choose to make a further appeal to a judicial body.  Any decision by any appellate 
body and the reasons therefore would be communica ted in writing to the appellant, together with 
notification of any right to further appeal. 
78. The representative of China confirmed that it woul d revise its relevant laws and regulations so 
that its relevant domestic laws a nd regulations would be consistent with the requirements of the WTO 
Agreement and the Draft Protocol on procedures for judicial review of administrative actions.  He 
further stated that the tribunals responsible for su ch reviews would be impa rtial and independent of 
the agency entrusted with administrative enforcemen t, and would not have any substantial interest in 
the outcome of the matter.  The Working Party took note of these commitments.  
79. In response to questions from certain members of the Working Party, the representative of 
China confirmed that administrative actions relate d to measures covered under Section 2(D)(1) of the 
Draft Protocol included those relating to nationa l treatment, conformity assessment, the regulation, 
control, supply or promotion of a service, including the grant or denial of a licence to provide a service and other matters, and that such administrati ve actions would be subject to the procedures WT/ACC/SPEC/CHN/1/Rev.8 
Page 22  
 
established for prompt review under Section 2(D)(2) of the Draft Protocol, and information on such 
procedures would be available through the enquiry  point that China would establish upon accession.  
The Working Party took no te of these commitments. 
IV. POLICIES AFFECTING TRADE IN GOODS 
A. TRADING
 RIGHTS 
1. General 
80. Some members of the Working Party noted that  China was in the process of liberalizing the 
availability of the right to impor t and export goods from China, but that such rights were now only 
available to some Chinese enterpri ses (totalling 35,000).  In addition,  foreign-invested enterprises had 
the right to trade, although this was restrict ed to the importation for production purposes and 
exportation, according to the enterprises' scope of business.  Those members stated their view that 
such restrictions were inconsistent with WTO requirements, including Articles XI and III of GATT 
1994, and welcomed China's commitment to progressive ly liberalize the availability and scope of the 
right to trade so that within three years after ac cession all enterprises would have the right to import 
and export all goods (except for the share of produc ts listed in Annex 2A to the Draft Protocol 
reserved for importation and exportation by state trad ing enterprises) throughout the customs territory 
of China.  Those members requested that Chin a provide detailed information on the process and 
criteria that it would use to increase the number of  enterprises with trading rights and the scope of 
products that enterprises could import and export during the transition period. 
81. Some members of the Working Party also noted China's commitment to accord foreign 
enterprises and individuals, including those not invest ed or registered as enterprises in China, no less 
favorable treatment than that accord ed enterprises in China with respect  to the right to trade except as 
otherwise provided for in the Draft Protocol. Memb ers of the Working Party requested that China 
provide detailed information regarding the process for such enterprises and individuals to obtain the 
right to import and export goods. 
82. Some members of the Working Party expressed c oncerns that after the transition period any 
linkage between an enterprise's scope of business or business licence and the right to trade would 
constitute a restriction on the right to import and export.  Those members noted that within three years 
after accession, China would have to permit all ente rprises in China to trade in all goods throughout 
the customs territory of China (except as otherwise provided in the Draft Protocol).  
83. The representative of China confirmed that duri ng the three years of transition, China would 
progressively liberalize the scope and availability of trading rights.   WT/ACC/SPEC/CHN/1/Rev.8 
 Page 23 
 
 
(a) The representative of China confirmed that, upon accession, China would eliminate for both 
Chinese and foreign-invested enterprises any ex port performance, trade balancing, foreign 
exchange balancing and prior experience requi rements, such as in importing and exporting, 
as criteria for obtaining or maintaining the right to import and export.   
(b)  With respect to wholly Chinese-invested en terprises, the representative of China stated that 
although foreign-invested enterprises obtained limited trading rights based on their approved 
scope of business, wholly Chinese-invested ente rprises were now required to apply for such 
rights and the relevant authorities applied a threshold in approving such applications.  In order to accelerate this approval process and in crease the availability of trading rights, the 
representative of China confirmed that China would reduce the minimum registered capital 
requirement (which applied only to wholly Ch inese-invested enterprises) to obtain trading 
rights to RMB 5,000,000 for year one, RMB 3,000,000 for year two, RMB 1,000,000 for 
year three and would eliminate the examination and approval system at the end of the phase-in period for trading rights.  
(c)  The representative of China also confirme d that during the phase-in period, China would 
progressively liberalize the scope and availab ility of trading rights for foreign-invested 
enterprises.  Such enterprises would be grante d new or additional trading rights based on the 
following schedule.  Beginning one year afte r accession, joint-venture enterprises with 
minority share foreign-investment would be gr anted full rights to trade and beginning two 
years after accession majority share foreign-invested joint-ventures would be granted full 
rights to trade.  
(d) The representative of China also confirme d that within three years after accession, all 
enterprises in China would be granted the right to trade. Foreign-invested enterprises would 
not be required to establish in a particular form or as a separate entity to engage in importing 
and exporting nor would new business licence encompassing distribution be required to 
engage in importing and exporting. 
The Working Party took no te of these commitments. 
84. (a) The representative of China reconfirmed th at China would eliminate its system of 
examination and approval of trading rights within three years after accession.  At that time, 
China would permit all enterprises in Chin a and foreign enterprises and individuals, 
including sole proprietorships of other WT O Members, to export and import all goods 
(except for the share of products listed in A nnex 2A to the Draft Protocol reserved for 
importation and exportation by state trading enterprises) throughout the customs territory of WT/ACC/SPEC/CHN/1/Rev.8 
Page 24  
 
China.  Such right, however, did not permit im porters to distribute goods within China.   
Providing distribution services would be done in accordance with China's Schedule of 
Specific Commitments under the GATS. 
(b)  With respect to the grant of trading righ ts to foreign enterprises and individuals, including 
sole proprietorships of other WTO members,  the representative of China confirmed that 
such rights would be granted in a non-discrimin atory and non-discretionary way.  He further 
confirmed that any requirements for obtaining tr ading rights would be for customs and fiscal 
purposes only and would not constitute a barrier to trade.  The representative of China 
emphasized that foreign enterprises and individua ls with trading rights had to comply with 
all WTO-consistent requirements related to  importing and exporting, such as those 
concerning import licensing, TBT and SPS, but confirmed that requirements relating to 
minimum capital and prior experience would not apply. 
The Working Party took no te of these commitments.  
2. Designated Trading 
85. The representative of China stated  that China would adjust and expand its list of enterprises 
under its designated trading regime annually duri ng the transition period, leading up to full 
implementation of the commitment contained in An nex 2B.  The current criteria for enterprises under 
the designated trading regime included registered capital, import and export volume and the import 
volume of products subject to designated trading in  the previous year, bank credit rating and profits 
and losses. 
86. Members of the Working Party noted China's commitment that it would phase out the 
limitation on the grant of trading rights for goods speci fied in Annex 2B of its Draft Protocol within 
three years after accession.  In responding to questions  raised by some members of the Working Party, 
the representative of China confirmed that China wo uld progressively liberalize the right to trade in 
such goods by increasing the number of designated entities permitted to import goods in each of the 
three years of the transition period specified in Annex 2B.  The representative of China added that 
China would eliminate import and export volume as a criterion for obtaining the right to trade these 
products, reduce minimum capitalizati on requirements and extend the right to register as designated 
importing and exporting enterprises to enterprises that  used such goods in the production of finished 
goods and enterprises that distributed such goods in Ch ina.  At the end of three years, all enterprises 
in China and all foreign enterprises and individuals  would be permitted to import and export such 
goods throughout the customs territory of China.  During the transition period, none of the criteria  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 25 
 
 
applicable under the designated trading regime w ould constitute a quantitative restriction on imports 
or exports.  The Working Party took note of these commitments. 
B. IMPORT  REGULATION 
1. Ordinary Customs Duties 
87. Members of the Working Party welcomed China' s decision to bind tariffs for all products in 
its schedule on market access for goods.  This acti on would increase the certainty and predictability of 
this aspect of China's trade regime.  Members also noted the substantial unila teral tariff reductions 
made in many sectors by China in recent years. 
88. The representative of China provided members of the Working Party with a copy of the 
Customs Import and Export Tariff of the People's Republic of China ("Customs Tariff") and related 
laws and regulations.  He noted that the Custom s Tariff of China was a charge imposed on imported 
goods. The purpose of levying tariffs was twofold:  (a) to regulate imports so as to promote and 
support domestic production;  and (b) to serve as an  important source of reve nue for the treasury of 
the central government.  China's tariff policy w as to promote economic reform and opening of the 
economy.  The basic principles for establishing duty  rates were as follows.  Duty-free or low duty 
rates were applied to imported goods which were needed for the national economy and the people's 
livelihood but which were not produced sufficiently  domestically.  Import duty rates on raw materials 
were generally lower than those on semi-manufact ured or manufactured products.  For parts or 
components of machinery, equipment and instruments which were not produced domestically, or at a 
sufficiently high standard, the import duty was lower than the duty on finished products.  Higher duty rates were applied to products which were pr oduced domestically or which were considered non-
essential for the national economy and the people's livelihood.   A higher duty was applied to 
imported products, the equivalent of which were produced domestically and the local manufacturer of 
which needed protection. 
89. The representative of China said that China had adopted the Harmonized Commodity 
Description and Coding System ("HS") as fro m 1 January 1992 and joined the International 
Convention on the Harmonized Commodity Description and Coding System in the same year.  There 
were 21 sections, 97 chapters and 7062 eight-digit tariff headings b ased on the six-digit HS'96 version 
in the Customs Tariff for the year 2000.  Tariff ra tes were fixed by the State Council.  Partial 
adjustment to the duty rates was subject to deliberation and final decision by the State Council Tariff 
Commission.  The simple averag e of China's import duties in 2000 was 16.4 per cent.  Among the 
7062 tariff headings, tariff rates for 525 headings were below 5 per cent, 1488 were between 5 per 
cent (inclusive) and 10 per cent (exclusive), 202 2 between 10 per cent (inclusive) and 15 per cent WT/ACC/SPEC/CHN/1/Rev.8 
Page 26  
 
(inclusive) and 3027 were above 15 per cent.  In formation on tariff rates for specific products and 
import statistical data for recent years had been provided to the Working Party.   
90. He also noted that currently there were two columns of import duty rates: general rates and 
preferential rates.  The preferential rates applied to  imports originating in countries and regions with 
which China had concluded reciprocal tariff agreem ents, whereas the general rates applied to imports 
from other sources. 
91. The representative of China confirmed that for wood and paper products, the same rates of 
duty, including the rates applied under a preferen ce programme, customs union or free-trade area, 
would be applied to all imports of wood and paper products.  The Wo rking Party took note of this 
commitment. 
92. The representative of China confirmed that up on accession China would participate in the 
Information Technology Agreement ("ITA") and would eliminate tariffs on all information 
technology products as set out in China's sche dule.  Furthermore, upon accession, China would 
eliminate all other duties and charges for ITA pr oducts.  The Working Party took note of these 
commitments. 
93. Certain members of the Working Party expressed particular concerns about tariff treatment in 
the auto sector.  In response to questions about the tariff treatment for kits for motor vehicles, China 
confirmed that it had no tariff lines for completely  knocked-down kits for motor vehicles or semi-
knocked down kits for motor vehicles.  If China created  such tariff lines, the tariff rates would be no 
more than 10 per cent.  The Working Pa rty took note of this commitment. 
94. Without prejudice to its rights to participat e in the WTO process, China confirmed its 
commitment to support the ta riff liberalization proposal outlined in WT/GC/W/138/Add.1 
(22 April 1999) and that it would participate full y in any tariff liberalization initiative based on this 
proposal that WTO Members might accept for implementation.   
95. China undertook bilateral market access negotiations on goods with members of the Working 
Party.  The results of those negotiations were  contained in the Schedule of Concessions and 
Commitments on Goods and formed Annex 8 to the Draft Protocol.  
2. Other Duties and Charges 
96. The representative of China confirmed that Chin a had agreed to bind at zero other duties and 
charges in its Schedule of Concessions and Commitments, pursuant to Article II:1(b) of the GATT 1994.  The Working Party took note of that commitment.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 27 
 
 
3. Rules of Origin 
97. Some members of the Working Party requested information about the adoption and 
application of rules of origin in China, whether in  the context of free trade agreements or otherwise, 
and also requested China to confirm that its rules of origin for both preferential and non-preferential 
trade complied fully with the WTO Agreement on Rules of Origin. 
98. The representative of China noted that the criteri a for making the determination of substantial 
transformation was:  (a) change in tariff classificati on of a four-digit tariff line in the Customs Tariff; 
or (b) the value-added component was 30 per cent or more in the total value of a new product. 
99. He further noted that under current arrangements,  and in accordance with the criteria outlined 
above, when an imported product was processed and manufactured in several countries, the country of origin of the product was determined to be the last  country in which the pr oduct underwent substantial 
transformation.  The rules of origin appl ied for statistical purposes were the same.  
100. The representative of China stated  that China's rules of origin for import and export were non-
preferential rules of origin.  Once the internationa l harmonization of non-preferential rules of origin 
was concluded, China would fully adopt and appl y the internationally harmonized non-preferential 
rules of origin.  A mechanism that met the requi rements of Articles 2(h) and 3(f), and Annex II, 
paragraph 3(d) of the Agreement, which require d provision upon request of an assessment of the 
origin of an import or an export and outlined th e terms under which it would be provided, would be 
established in China's legal framework by the da te of accession.  The Working Party took note of 
these commitments. 
101. The representative of China further stated that China would not use the rules of origin as an 
instrument to pursue trade objectives directly or indi rectly.  He also confirmed that China would apply 
rules of origin equally for all purposes.  The Working Party took note of these commitments. 
102. The representative of China confirmed that fro m the date of accession, China would ensure 
that its laws, regulations and other measures relating to rules of origin would be in full conformity 
with the WTO Agreement on Rules of Origin and th at it would implement such laws, regulations and 
other measures in full conformity with that Agr eement.  The Working Party took note of this 
commitment. 
4. Fees and Charges for Services Rendered 
103. Members of the Working Party noted that as a condition of accession, China should undertake 
a commitment to ensure conformity of Customs fees and charges with Article VIII of the GATT 1994.  WT/ACC/SPEC/CHN/1/Rev.8 
Page 28  
 
The representative of China confirmed that China would comply with Article VIII of GATT 1994 in 
this regard.  The Working Party took note of this commitment. 
5. Application of Internal Taxes to Imports 
104. Some members of the Working Party expressed c oncern that some internal taxes applied to 
imports, including a value-added tax ("VAT") were  not administered in conformity with the 
requirements of the GATT 1994, particularly Article III.  Those members of the Working Party noted 
that China appeared to permit the application of di scriminatory internal taxes and charges to imported 
goods and services, including taxes and charges applie d by sub-national authorities.  Those members 
requested that China reaffirm that all such internal taxes and charges would be in conformity with the 
requirements of the GATT 1994.   
105. In response, the representative of China noted that there were three major types of taxes 
levied on products and services:  (a) VAT levied  on goods and services for processing, maintenance 
and assembling;  (b) the Consumption Tax on some sel ected consumer products;  and (c) the Business 
Tax on providing services, transferring intangible asset s and selling real estate.   Both the VAT and 
the Consumption Tax were applicable to entities im porting goods.  VAT and the Consumption Tax on 
imported goods were collected by Customs at the point  of entry.  He noted that VAT was  reimbursed 
once goods were exported.  Exported goods we re exempted from the Consumption Tax. 
106. He further noted that the State Council determin ed all policies concerning the levying of VAT 
and the Consumption Tax, adjustment of tax types and tax rates (tax value), as well as the tax 
exemption of VAT, the Consumption Tax and the Business Tax.  The laws and regulations were 
interpreted and implemented by the Ministry of Finance and the State Administration of Taxation. VAT and the Consumption Tax were levied and admi nistered by the State competent departments of 
taxation, while the Business Tax was collected and administered by the local competent departments 
of taxation.  
107. The representative of China confirmed that fro m the date of accession, China would ensure 
that its laws, regulations and othe r measures relating to internal taxes and charges levied on imports 
would be in full conformity with its WTO oblig ations and that it would implement such laws, 
regulations and other measures in full conformity with those obligations.  The Working Party took 
note of this commitment.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 29 
 
 
6. Tariff Exemptions 
108. The representative of China stated that the tariff exemption policy of China was developed 
and implemented in accordance with the Customs Law of the People's Republic of China and the 
Regulations of the People's Republic of China on Im port and Export Duties. The coverage of specific 
tariff reduction or exemption was provided for by  the State Council. All the tariff reductions and 
exemptions were applied on an MFN basis. 
109. The representative of China noted that in accordance with international practices and 
provisions of China's Customs Law, import duty re ductions or exemptions were available for the 
following goods: 
(a) A consignment of goods, on which custom s duties were estimated below RMB 10 yuan; 
(b) advertising articles and samples, which were of no commercial value; 
(c) goods and materials, which were rendered gra tis by international organizations or foreign 
governments; 
(d) fuels, stores, beverages and provisions for u se en route loaded by any means of transport, 
which were in transit across the border; 
(e) exported goods being replaced; 
(f) goods damaged prior to Customs release; (g) goods covered by international treaties provi ding for tariff reductions and exemptions which 
China had entered into or acceded to; 
(h) goods temporarily imported; 
(i) goods imported under inward processing programmes; (j) goods imported at zero cost for replacement purposes; (k) domestic- or foreign-funded projects encouraged by China; 
(l) articles for scientific research, education and the disabled. WT/ACC/SPEC/CHN/1/Rev.8 
Page 30  
 
He noted that goods so imported were required to be put under Customs supervision and control. The 
Customs duty was required to be recovered if such  goods were sold, transferred or used for other 
purposes during the time period of  supervision and control. 
110. Some members of the Working Party expressed c oncerns over the availability and application 
of tariff reductions and exemptions for a variet y of enterprises and other entities, including state 
trading enterprises, state-owned enterprises, forei gn-invested enterprises an d not-for-profit entities.  
Similar concerns also existed for exemptions from application of other duties, taxes and charges.  
These members noted the negative effect such reduc tions or exemptions co uld have on revenues and 
predictability and certainty in applica tion of tariff and other trade measures. 
111. The representative of China confirmed that upon accession, China would adopt and apply 
tariff reductions and exemptions so as to ensu re MFN treatment for imported goods.  The Working 
Party took note of this commitment. 
7. Tariff Rate Quotas 
112. Several members of the Working Party expressed  concern over the lack of transparency, 
uniformity and predictability of China's administra tion of its tariff rate quota ("TRQ") regime.  Those 
members requested that China enter a commitment to administer TRQs in a simple, transparent, 
timely, predictable, uniform, non-discriminatory, and non-trade restrictive manner, and in a way that would not cause trade distortions.  Those members as ked that China ensure that its TRQ arrangements 
be no more administratively burdensome than abso lutely necessary, and also expressed the hope that 
China would move as quickly as possible to a market-based TRQ allocation process. 
113. Those members of the Working Party also rai sed concerns regarding the administration of 
China's TRQ system and the practices of state trading enterprises in relation to importing such 
products.  These concerns included the current lack  of transparent regulations for administering 
TRQs;  use of administrative guidance;  distortions  introduced into the market due to allocations 
based on government determinations of subnationa l supply and utilization rather than consumer 
preferences and end-user demand;  failure to establish and publish annual TRQ quantities;  trade-
restrictive and non-competitive practices of state trading enterprises;  and general uncertainty, 
inconsistency and discrim ination in trade of bulk commodities.  Those members expressed similar 
concerns about the operation of China's TRQ system  for products subject to designated trading.  
Those members requested that China reduce tariffs  for commodities subject to TRQs, enter into 
access commitments for these commodities, improve the administration of the TRQ regime, and 
ensure that trade would not be distorted by unjus tified government regulation.  Certain members of  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 31 
 
 
the Working Party also requested that a number of  specified products be removed from China's TRQ 
system and that, upon import, these pr oducts be subject only to tariffs. 
114. The representative of China noted that in 1996, for the first time, China published a list of 
import products subject to TRQs, together with the ta riff rates applicable to imports both in and out of 
quota.  Allocation of TRQ was based on historical pe rformance and administration of the state trading 
regime, although China had also tried several ot her ways of administration, including import at 
applied tariff rates, first-come-first-served at the po int of entry.  China was trying to simplify the TRQ 
administration regime and procedures in a bid to facilitate use, enhance efficiency and implement 
further reform. 
115. The representative of China further noted that, in undertaking market-oriented reform in the 
agricultural sector, China had made progress in freeing agricultural products from state pricing and in 
guiding farmers to adjust the structure of agricu ltural production based on the demands of the market.  
In connection with that reform process, in the b ilateral negotiations with Members, China committed 
that, upon accession, it would eliminate TRQs on a number of products and subject these only to 
tariffs.  The products concerned were barley, soybean s, rapeseed, peanut oil, sunflower seed oil, corn 
oil, and cottonseed oil.  In a ddition, China would replace quantita tive import restrictions on sugar, 
cotton and three types of fertilizers (DAP, NPK and urea) by TRQs.  The Working Party took note of 
these commitments. 
116. The representative of China stated that upon accessi on, China would ensure that TRQs were 
administered on a transparent, predictable, uniform , fair and non-discriminatory basis using clearly 
specified timeframes, administrative procedures and requirements that would provide effective import 
opportunities;  that would reflect consumer prefer ences and end-user demand;  and that would not 
inhibit the filling of each TRQ.  China would a pply TRQs fully in accordance with WTO rules and 
principles and with the provisions set out in Ch ina's Schedule of Concessions and Commitments on 
Goods.  The Working Party took note of these commitments. 
117. The representative of China confirmed that fo r the goods listed in Annex 2 of the Draft 
Protocol that were subject to a TRQ, China would also apply the provisions of its Schedule relating to 
TRQ administration and related commitments in the Draft Protocol, including the grant of trading 
rights to non-state trading entities to import the TR Q allocations set aside for importation by such 
entities.  For products in Annex 2 of the Draft Protoc ol that were subject to designated trading, China 
confirmed that it would ensure that additional en terprises granted trading rights in accordance with 
China's commitments to phase out designated trading would not be disadvantaged in the allocation of 
TRQ.  The Working Party took note of these commitments. WT/ACC/SPEC/CHN/1/Rev.8 
Page 32  
 
118. Some members of the Working Party expressed th e view that allocation decisions were based, 
in large part, on government-determined provincial  supply and utilization ra ther than on commercial 
market criteria that reflected consumer preferences and end-user demand.  Those members expressed 
concern that China's stated intention to allocate quota to sub-national authorities and to authorize 
those authorities to then allocate that quota to end-users in separate processes would add an 
unnecessary, burdensome step in the procedures and redu ce the likelihood that quotas would be filled.  
Further, those members stated that  China's stated intention with re gards to TRQ procedures would not 
be consistent with China's commitments to unifo rm administration of its trade regime.  Those 
members sought confirmation that China would not establish a separate process of allocation to sub-national authorities, as well as confirmation that all allocation and reallocation decisions would be 
made by a single, central authority in China. 
119. The representative of China conf irmed that the role of sub-na tional bodies would be limited to 
purely administrative operations, such as receiving a pplications from end-u sers and forwarding them 
to the central authority;  receiving queries and tran smitting these to the central authority;  reporting on 
allocation and reallocation decisions made by th e central authority and providing information 
regarding such allocations and reallocations upon request;  checking the information in the 
applications to verify that it met the published crite ria;  notifying applicants of any deficiencies in 
their applications;  and providing applicants with an opportunity to cure deficiencies in their 
applications.  After the central authority decided on allocations of quota to end-users, the sub-national 
bodies would issue TRQ certificates accordingly.  Th e representative of China also confirmed that 
China would administer a consistent national allo cation (and reallocation) policy for TRQs, that it 
would not establish a separate process of allocation to sub-national authorities and that decisions 
regarding all allocations and realloca tions to end-users would be made by a single, central authority.  
The Working Party took no te of these commitments. 
120. The representative of China further confirmed that China would grant to any enterprise 
possessing the right to trade any product pursuant to Section 5 of the Draft Protocol, the right to 
import goods in Annex 2A (of the Draft Protocol) that  were subject to a TRQ or to an agreed volume 
of imports by non-state trading enterprises.  Such right to import would not extend to the quantity of 
goods specifically reserved for importation by state trading enterprises.  Any enterprise possessing the 
right to trade pursuant to Section 5 of the Draft Protocol would also have the right to import that portion of a TRQ reallocated to non-state trading enterprises pursuant to the agreed rules on TRQ 
administration.  The representative of China also co nfirmed that for goods in Annex 2A (of the Draft 
Protocol) subject to a TRQ, any enterprise granted the right to trade, pursuant to Section 5 of the Draft 
Protocol, would be permitted to import such goods at the out-of-quota rate.  The Working Party took 
note of these commitments.    WT/ACC/SPEC/CHN/1/Rev.8 
 Page 33 
 
 
8. Quantitative Import Restrictions, including Prohibitions and Quotas 
121. In response to requests for information from members of the Working Party, the 
representative of China noted that China prohib ited or restricted the importation of certain 
commodities, including weapons, ammunition and explosives, narcotic drugs, poisons, obscene 
materials and those foodstuffs, medicines, animals a nd plants which were inc onsistent with China's 
technical regulations on food, medicines, animals and plants. 
122. Some members of the Working Party noted that there were a large number of non-tariff 
measures in existence in China, both at the nationa l and sub-national levels, wh ich appeared to have a 
trade restrictive or trade distorting effect.  Those members requested that China undertake a 
commitment to eliminate and not to introduce, re -introduce or apply non-tariff measures other than 
those specifically identified and subject to phased elimination in Annex 3 to the Draft Protocol.  The 
representative of China confirmed that China woul d not introduce, re-introduce or apply non-tariff 
measures other than listed in Annex 3 of th e Draft Protocol unless justified under the WTO 
Agreement.  The Working Party t ook note of this commitment.  
123. Some members of the Working Party also rai sed concerns that many non-tariff measures were 
imposed by sub-national authorities in China on a non-transparent, discretionary and discriminatory 
basis.  Those members of the Working Party asked that China undertake a co mmitment to ensure that 
non-tariff measures would only be imposed by the ce ntral government or by sub-national authorities 
with clear authorization from the central government .  Actions lacking authorization from the national 
authorities should not be implemented or enforced.  The representative of China clarified that only the 
central government could issue regulations on n on-tariff measures and that these measures would be 
implemented or enforced only by the central  government or sub-national authorities with 
authorization from the central government.  He furthe r stated that sub-national authorities had no right 
to formulate non-tariff measures.  The Work ing Party took note of these commitments. 
124. Some members of the Working Party noted that China had provided a list of non-tariff 
measures in respect of which China was prepared  to commence phased elimination, contained in 
Annex 3 of the Draft Protocol.  Those members stat ed that China should elim inate the measures listed 
in accordance with the sche dule provided in Annex 3, during the periods specified in Annex 3.  For 
measures subject to phased elimination, China sh ould provide for growth in the quota over the 
relevant period specified in Annex 3.  Those member s also noted that the protection afforded by the 
measures listed in Annex 3 should not  be increased or expanded in size, scope, or duration, nor any 
new measures be applied, unless justified unde r the provisions of the WTO Agreement.  WT/ACC/SPEC/CHN/1/Rev.8 
Page 34  
 
125. Those members of the Working Party noted th at all non-tariff measures administered by 
China, whether or not referred to in Annex 3 of th e Draft Protocol, which were applied after China's 
accession, should be allocated and otherwise administered  in strict conformity with the provisions of 
the WTO Agreement, including Article XIII of the GATT 1994 and the Agreement on Import 
Licensing Procedures, including notification requirements.  
126. The representative of China stat ed that China had modified Annex 3 on the basis of the 
comments raised by certain members of the Worki ng Party.  He confirmed that only the machinery 
and electronic products listed in Annex 3 were s ubject to specific tendering requirements and that 
these requirements would be administered pursuant to Chapter III of the Regulation entitled "Interim 
Measures for Import Administration of Machinery and Electronics Products" (approved by the State Council on 22 September 1993 and pr omulgated in Order No. 1 by the State Economic and Trade 
Commission and Ministry of Foreign Trade and Ec onomic Cooperation on 7 Oc tober 1993).  He also 
confirmed that Annex 3 contained all of the produc ts subject to quotas, licences and such tendering 
requirements in China and  that, during the rele vant phase-out period, China would implement the 
growth rates for quotas as indicated in Annex 3.  The Working Party took note of these commitments. 
127. Some members of the Working Party requested information on how China would implement 
the quota and licensing requirements for products listed in Annex 3, in particular the procedures and 
criteria for grant of quota allocations and licensi ng during the phase-out period for these restrictions.  
Members expressed concern about requirements for obtaining a licence or quota allocation which 
often required approvals from various authorities w ithin an organization as well as approval from both 
the central and sub-national level.  Those member s sought a transparent, streamlined system that 
would issue quota allocations and licences through a si mple, consolidated approval process that would 
ensure full use of the quota and its equitable distribution among importers.  Those members also requested information on how China would establish the value of imports for those products whose 
quota was established in terms of value of imports.  The representative of China confirmed that the 
administration of quotas and import licences would be consistent with the WTO Agreement, including 
Article XIII of the GATT 1994 and the Agreement on Import Licensing Procedures. The allocation of 
quotas and issuance of import licences would go through a simple and transparent procedure, so as to 
ensure the full utilization of quota.  He further stat ed that the establishment of value of imports would 
be based on the information collected by the Cust oms authorities and provisions of the WTO Customs 
Valuation Agreement.    For quota quantities specified  in terms of value, China would determine the 
value of any shipment based on the c.i.f. ship va lue listed on the bill of lading.  The Working Party 
took note of these commitments.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 35 
 
 
128. The representative of China confirmed that th e products currently covered under the HS 
categories listed in Annex 3 as of the date of accessi on were the only products that would be subject 
to these quotas during the agreed phase-out periods .  Any non-tariff measures covering additional 
products would need to be justified under the WTO Agreement.  Further, the representative of China 
stated that for products listed in Annex 3 as bein g subject to quota and licensing requirements, any 
entity that will possess the right to trade in the quota year, including enterprises possessing trading 
rights to import such products or inputs for pr oduction purposes under a particular quota category, 
could apply for a quota allocation and licence to import products listed in Annex 3.  The Working 
Party took note of these commitments. 
129. The representative of China further confirmed th at for products listed in Annex 3, China's 
system for quota allocation and licensing would ensu re that those entities with quota allocations 
would also receive any necessary import licence.  This system would conform to WTO rules, 
including the WTO Agreement on Import Licensing Procedures, and would be transparent, timely, 
responsive to market conditions and would minimize the burden on trade.  Applications for a quota 
allocation would need to be submitted to only one orga nization, at one level (central or sub-national) 
for approval.  The relevant or ganization would then issue an import licence based on the quota 
allocation, in most cases within 3 working days and,  in exceptional cases, within a maximum of 10 
working days after a request for the licence.  A licence would be issued for the full amount of the 
quota and would be valid for the calendar year issued.  Such licence would be extended once, upon 
request,  for up to 3 months, if the request was made  before 15 December of the current quota year.  
Imports occurring under an extended licence would be  counted against the relevant quota amount for 
the year in which the allocation took place.  The representative of China confirmed that the relevant 
organization for issuing quota allocations and lic ences, amount of quota, including the growth in 
quota provided for in Annex 3, the eight-digit tariff codes and full descriptions of all products covered 
by each quota and procedures for application fo r a quota allocation and licence, including the 
beginning and end date of the app lication period and any other releva nt procedures or criteria, would 
be published in the official journal referred to in paragraph 2(C)(2) of the Draft Protocol at least 
21 days prior to the beginning of the application period.  Such application period would be from 
1-31 August.  Quotas would be allocated to applic ants no later than 60 days after closure of the 
application period.  The Working Party took note of these commitments. 
130. The representative of China stated that Chin a would allocate quotas in accordance with the 
following criteria and procedures which would be published in advance and would be applied in 
conformity with WTO requirements, including th e Agreement on Import Licensing Procedures.  In 
applying these criteria, China would consider the need to allow for equitable participation by WT/ACC/SPEC/CHN/1/Rev.8 
Page 36  
 
producers from WTO Members and take into account the need to maximize the potential for quota 
fill. 
(a) If the relevant quota quantity exceeded total requests for quota allocations, all requests would 
be approved. 
(b) In other cases, the criteria for allocation would be as follows: 
(i) Historical  performance of applicants  where relevant (in cases in which average 
imports over the 3-year period immediately pr ior to the year of China's accession, for 
which data was available, amounted to less than 75 per cent of the relevant quota, it would be necessary to take into account other criteria inter alia  as set forth below); 
— Production or processing capacity, in the case of intermediate products and 
raw materials; 
— Experience and ability in producing,  importing,  marketing, or servicing in 
international markets, in the case of fini shed products or products destined 
for wholesale or retail distribution; 
(c) In cases in which average imports over the 3- year period immediately prior to the year of 
China's accession, for which data  was available, exceeded 75 per cent of the relevant quota, 
applicants that had not previously been allocat ed quota would be allocated 10 per cent of the 
total quota in the first year and the majority of any quota growth in any subsequent year. 
(d) In other cases : 
(i) In the first year, 25 per cent of the total quota would be allocated to applicants that 
had not previously been allocated quota;  however, an applicant that had imported under a quota on the relevant products in the year prior to China's accession would not receive a decrease in the absolu te amount of its quota allocation. 
(ii) In the second year, for the amount of the quota growth as well as an amount 
equivalent to the amount of any quota that had not been filled in the previous year, 
China would give priority consideration to requests from enterprises with foreign ownership equal to or less than fifty per cent. 
(iii) In the third and fourth year, if relevant, for the amount of the quota growth as well as 
an amount equivalent to the amount of an y quota that had not been filled in the  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 37 
 
 
previous year, China would give priority consideration to requests from enterprises 
with foreign ownership greater that fifty per cent. 
(e) In all cases, a quota-holder receiving an initial a llocation that had fully utilized or contracted 
for its quota allocation would, upon application, receive an allocation in the following year for 
a quantity no less than the quantity imported in the previous year.  A quota-holder that did not import its full allocation would receive a propor tional reduction in its quota allocation in the 
subsequent year unless the quantity was re turned for reallocation by1 September.  
The Working Party took no te of these commitments. 
 131. The representative of China confirmed that all co mmercial terms of trade, including product 
specifications, product mix, pricing, and packaging, would be at the sole discretion of the quota 
holder, so long as the products are within the relevant quota category.   Allocations would be valid for 
any article or mixture of articles subject to th e same quota as specified in Annex 3 of the Draft 
Protocol.  Allocations would be valid for a peri od of one calendar year from the opening of the quota 
import period.  However, if the holder of a quota a llocation had not contracted for import of the total 
quantity allocated to the holder by 1 September,  the holder was to immediately return the unused portion of the allocation to the relevant authority which would reallocate the quota immediately, if unfilled requests were pending, or otherwise within 10 da ys after receipt of a request for an allocation.  
The relevant organization would publish notice of the availability of additional allocations after 
collecting any unused quotas returned by the quota holders.  Licences for goods imported under 
reallocated quota would be extended once, upon request,  for up to 3 months, if the request was made before 15 December of the current quota year.  Imports occurring under an extended licence would be counted against the relevant quota amount for the year in which the re-allocation took place.  The 
Working Party took note of these commitments. 
9. Import Licensing 
132. The representative of China confirmed that th e list of all entities responsible for the 
authorization or approval of imports  would be updated and republishe d in the official journal, the 
MOFTEC Gazette, within one month of any change th ereto.  The Working Party took note of this 
commitment. 
133. In response to requests for additional information about its system of import licensing, the 
representative of China said that the import licensing  system was administered without discrimination 
among countries or regions.  In 1984, the State Counc il had promulgated the "I nterim Regulations on 
Licensing System for Import Commodities", and MO FTEC and Customs had issued "Detailed Rules WT/ACC/SPEC/CHN/1/Rev.8 
Page 38  
 
for the Implementation of the Interim Regulations  on Licensing System for Import Commodities".  
The Interim Regulations were unifo rmly implemented throughout China.  In 1999, of the total import 
value of US$ 165.7 billion, imports subject to licensing represented 8.45 per cent, covering US$ 14 
billion.  MOFTEC determined which products should be subject to import licensing according to the 
relevant provisions of the "Foreign Trade Law".   
134. The representative of China further stated that in 1993, China had applied import restrictions 
to 53 product categories.  By 1999, the number had been reduced to 35.  Products covered were (1) 
Processed oil; (2) Wool;  (3) Polyester fibre;  (4) Acrylic fibres;  (5) Polyester fillet;  (6) Natural 
rubber;  (7) Vehicles tyres;  (8) Sodium cyanide;  (9) Sugar;  (10) Fertilizer;  (11) Tobacco and its products;  (12) Acetate tow;  (13) Cotton;  (14) Mo tor vehicles and their key parts;  (15) Motorcycles 
and their engines and chassises; (16) Colour tele vision sets and TV kinescope;  (17) Radios, tape 
recorders and their main parts;  (18) Refrigerators  and their compressor;  (19) Washing machines;  
(20) Recording equipment and its key parts;  ( 21) Cameras and their bodies (without lenses);  (22) 
Watches;  (23) Air conditioners and their comp ressor;  (24) Audio a nd video tape duplication 
equipment;  (25) Crane lorries and their chassises;  (26) Electronic microscopes;  (27) Open-end 
spinning machines;  (28) Electronic colour scanners;  (29) Grain;  (30) Vegetable oil;  (31) Wine;  
(32) Colour sensitive material;  (33) Chemical under supervision and control that were used for 
chemical weapon;  (34) Chemicals used to produce narcotics;  and (35) Laser disc production facilities.  He also noted that in 1999, there were  13 commodity categories which were imported by 
the foreign trade companies designated by MO FTEC. These categories were as follows:  (1) 
Processed oil;  (2) Fertilizer; (3) Tobacco; (4) Vegeta ble oil; (5) Grain; (6) Natural rubber; (7) Wool; 
(8) Acrylic fibers; (9) Sugar; (10) Cotton; ( 11) Crude oil; (12) Steel; and (13) Plywood. 
135. Concerning the granting and administration of import licences, the representative of China 
said that the examination and approval of the licence  took two to three working days.  Applications 
for import licences could be submitted to the Quot a and Licence Administrative Bureau of MOFTEC, 
or Special Commissioner Offices in 16 provinces, or Commissions of Fore ign Economic Relations 
and Trade of various provinces, autonomous regions , and municipalities directly under the central 
government and those with indepe ndent budgetary status. Licensing agencies authorized by MOFTEC 
could issue import licences on the basis of import documents submitted by the applicants,  approved 
by the competent departments. A licence could not be bought, sold or transferred, and was valid for 
one calendar year.  Import licences could be extended once for up to three months.    
136. Some members of the Working Party expressed c oncern that China's Provisional Procedures 
for the Administration of Automatic Registration for the Import of Special Commodities 
(13 August 1994), in particular the criteria for appr oval of registration, would act as a restraint on  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 39 
 
 
imports.  The representative of China emphasized that the purpose of the registration system was only 
to gather statistical information.  He confirmed that China would bring its automatic licensing system 
into conformity with Article 2 of the Agreem ent on Import Licensing Procedures upon accession.  
The Working Party took note of this commitment.   
137. Some members of the Working Party noted that  enterprises and individuals seeking to import  
products subject to tariff quota administration requi rements had to go through extensive procedures to 
receive a quota allocation and that the quota certificate would indicate whether the subject good was 
to be imported through a state trading enterprise or  a non-state trading enterprise and would be valid 
for a certain period of time.  Moreover, the entity importing the good would need trading rights.  In the light of these multiple requirements, a quota allocation certificate should satisfy any import licensing requirement that might apply. 
138. The representative of China confirmed that Chin a would not require a separate import licence 
approval for goods subject to a TRQ allocation re quirement but would provide any necessary import 
licence in the procedure that granted a quota allo cation.  The Working Party took note of this 
commitment. 
10. Customs Valuation 
139. Some members expressed concern regarding th e methods used by China to determine the 
customs value of goods, in particular regarding the practice of using minimum or reference prices for 
certain goods, which would be incons istent with the Agreement on Im plementation of Article VII of 
the GATT 1994 ("Customs Valuation Agreement").  Other WTO-consistent means were available to 
Members doubting the veracity of declared transaction values. 
140. In response, the representative of China stated  that China had ceased to use and would not 
reintroduce minimum or reference prices as a means to determine customs value.  The Working Party 
took note of this commitment. 
141. The representative of China consid ered that there would not be situations where the "customs 
value" could not be "ascertained" since the Cust oms Valuation Agreement provided several methods 
for valuation. 
142. The representative of China recalled that the overwhelming majority of China's customs 
duties were ad valorem  duties.  The customs value of importe d goods was assessed according to the 
c.i.f. price based on the transaction value, as defi ned in the Customs Valuation Agreement.  If the 
transaction value of imported goods could not be determined, the customs value was determined WT/ACC/SPEC/CHN/1/Rev.8 
Page 40  
 
based on other means provided for in the Customs Valuation Agreement.  He also noted that the 
Customs Law provided for appeal procedures. In th e event of a dispute over calculation of duty paid 
or payable with the Customs, the dissatisfied importe r could apply to Customs for a reconsideration of 
the case. If the appeal was rejected the impor ter could sue at the People's Court.   
143. The representative of China confirmed that, upon accession, China would apply fully the 
Customs Valuation Agreement, including the custom s valuation methodologies set forth in Articles 1 
through 8 of the Agreement.  In addition, China would apply the provisions of the Decision on the 
Treatment of Interest Charges in Customs Va lue of Imported Goods, and the Decision on the 
Valuation of Carrier Media Bearing Software for Data Processing Equipment, adopted by the WTO Committee on Customs Valuation (G/VAL/5), as soon as practicable, but in any event no later than 
two years from the date of accession.  In accordance with these latter provisions, only the cost of the 
carrier medium itself would be accounted for in determining the customs value of carrier media 
bearing software.  The Working Party took note of these commitments.   
11. Other Customs Formalities 
144. The representative of China said that China jo ined the International Convention on the 
Simplification and Harmonisation of Customs Sy stem in 1988 and on 15 June 2000 signed the Draft 
Protocol on the Amendment of the International Convention on the Simplification and Harmonisation 
of Customs System.  The Customs authorities of Ch ina had only adopted such customs formalities as 
declaration, examination, levying of duties and re lease which were consiste nt with international 
practices. 
12. Preshipment Inspection 
145. The representative of China stated that, curren tly, there were trade and commerce inspection 
agencies (including joint-venture agencies) engage d in preshipment inspection.  China committed 
itself to comply with the Agreement on Preshipment Inspection, and would regulate the existing trade 
and commerce inspection agencies and permit the qua lified agencies to be engaged in preshipment 
inspection in line with the government mandate or the terms and conditions of commercial contracts. 
146. Some members of the Working Party request ed information on whether China used the 
services of a private preshipment inspection entity.  The representative of China confirmed that China 
would ensure that, upon accession, any laws and regula tions relating to preshipment inspection by any 
inspection agency, including private entities, would be  consistent with releva nt WTO agreements, in 
particular, the Agreement on Preshipment Inspect ion and the Customs Valuation Agreement.  
Moreover, any fees charged in connection with su ch preshipment inspection would be commensurate  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 41 
 
 
with the service provided, in conformity with Ar ticle VIII:1 of the GATT 1994.  The Working Party 
took note of these commitments. 
13. Anti-Dumping, Countervailing Duties 
147. Some members of the Working Party raised con cerns that the current investigations by the 
Chinese authority would be judged to be inconsis tent with the Agreement on Implementation of 
Article VI of GATT 1994("Anti-Dumping Agreement") if China were a Member of the WTO today.  
In certain cases, the basis for calculating dumping ma rgins for a preliminary affirmative determination 
was not disclosed to interested parties.  Furthermor e, the determination of injury and causation did not 
appear to have been made on an objective examinati on of sufficient evidence.  In the views of these 
members, bringing the Chinese anti-dumping rules in to compliance with the WTO Agreement on its 
face was not sufficient. WTO-consistency had to be secured substantively as well. 
148. In response, the representative of China stat ed that China promulgated regulations and 
procedures on anti-dumping and countervailing duties in 1997 with reference to the Anti-Dumping 
Agreement and Agreement on Subsidies and Count ervailing Measures.  He committed to revising 
China's current regulations and procedures prior to its accession in order to fully implement China's 
obligations under the Anti-Dumping and SCM Agreem ents.  The Working Party took note of this 
commitment. 
149. Members of the Working Party and the representativ e of China agreed that the term "national 
law" in paragraph (d) of Section 15 of the Draft Pr otocol, should be interprete d to cover not only laws 
but also decrees, regulations and administrative rules. 
150. Several members of the Working Party noted that China was continuing the process of 
transition towards a full market economy.  Those members noted that under those circumstances, in 
the case of imports of Chinese origin into a WT O Member, special difficulties could exist in 
determining cost and price comparability in th e context of anti-dumping investigations and 
countervailing duty investigations.  Those members stated that in such cases, the importing WTO 
Member might find it necessary to take into account  the possibility that a strict comparison with 
domestic costs and prices in China might not always be appropriate.  
151. The representative of China expressed concern with  regard to past measures taken by certain 
WTO Members which had treated China as a non-market economy and imposed anti-dumping duties 
on Chinese companies without identifying or publis hing the criteria used, without giving Chinese 
companies sufficient opportunity to present evidence a nd defend their interests in a fair manner, and 
without explaining the rationale underlying their dete rminations, including with respect to the method WT/ACC/SPEC/CHN/1/Rev.8 
Page 42  
 
of price comparison in the determinations.  In r esponse to these concerns, members of the Working 
Party confirmed that in implementing paragraph (a )(ii) of Section 15 of the Draft Protocol, WTO 
Members would comply with the following: 
(a) When determining price comparability in a pa rticular case in a manner not based on a strict 
comparison with domestic prices or costs in China, the importing WTO Member should ensure that it had established and published in  advance (1) the criteria that it used for 
determining whether market economy conditions  prevailed in the industry or company 
producing the like product and (2) the methodology that it used in determining price comparability.  With regard to importing WTO Members other than those that had an established practice of applying a methodology th at included, inter alia, guidelines that the 
investigating authorities should normally utilize, to the extent possible, and where necessary 
cooperation was received, the prices or costs in one or more market economy countries that 
were significant producers of comparable merchandise and that either were at a level of economic development comparable to that of Ch ina or were otherwise an appropriate source 
for the prices or costs to be utilized in light of  the nature of the indus try under investigation, 
they should make best efforts to ensure that their methodology for determining price 
comparability included provisions similar to those described above. 
(b) The importing WTO Member should ensure th at it had notified its market-economy criteria 
and its methodology for determining price comparability to the Committee on 
Anti-Dumping Practices before they were applied. 
(c) The process of investigation should be transparent and sufficient opportunities should be 
given to Chinese producers or exporters to make comments, especially comments on the 
application of the methodology for determini ng price comparability in a particular case. 
(d) The importing WTO Member should give notice of information which it required and 
provide Chinese producers and exporters ample opportunity to present evidence in writing in 
particular case. 
(e) The importing WTO Member should provide Chinese producers and exporters a full 
opportunity for the defence of their interests in a particular case. 
(f) The importing WTO Member should provide a sufficiently detailed reasoning of its 
preliminary and final determinations in a particular case.
   WT/ACC/SPEC/CHN/1/Rev.8 
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152. The representative of China stated that determ inations made by China during investigations 
initiated pursuant to applications made before accession should be free from challenge under the Anti-
Dumping Agreement by the Members of the WTO.   He further confirmed that, notwithstanding 
Article 18.3 of the Anti-Dumping Agreement, 
(a) China would apply the provisions of the Anti-Dumping Agreement to: 
(i) proceedings under Article 9.3, including the calculation of margins of 
dumping, in connection with anti-dumping measures adopted before accession ("existing measures");  and 
(ii) reviews of existing measures initia ted under Articles 9.5, 11.2, and 11.3 
pursuant to requests made following accession.  Any review of an existing measure under Article 11.3 would be in itiated no later than five years from 
the date of its imposition. 
(b) China would also provide the type of judi cial review described in Article 13 of the 
Anti-Dumping Agreement with regard to proceedings under Article 9.3 and reviews 
under Articles 9.5, 11.2, and 11.3. 
 
The Working Party took no te of these commitments. 
153. The representative of China noted that pursuan t to the provisions of "Regulation on Anti-
dumping and Anti-subsidy of the People's Republic of China", there were four Chinese government 
bodies responsible for anti-dumping and counterva iling duty investigations. Their identities and 
responsibilities were as follows: 
(a) Ministry of Foreign Trade and Economic Coope ration ("MOFTEC") 
Receiving anti-dumping and countervailing petitions ;  Conducting investigations on foreign 
subsidies and on dumping and dumping marg ins and issuing relevant preliminary 
determination decisions and notices;  Negotiating with foreign interested parties on "Price Undertaking" if necessary;  Providing proposal  on imposition of definitive anti-dumping or 
countervailing duties or proposals on duty refund,  etc.  There was an Anti-dumping Division 
established under the Department of Treaties and Law of MOFTEC, with responsibility to 
handle anti-dumping and countervailing investigations on alleged imports. WT/ACC/SPEC/CHN/1/Rev.8 
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(b) State Economics and Trade Commission ("SETC") 
Responsible for the investigation of injury cau sed to the domestic industry by the dumped or 
subsidized imports, the extent of such injury and making injury findings. 
There was a non-permanent decision and policy-making body in SETC, named the Injury 
Investigation and Determination Committee ("IIDC"), which was composed of six 
commissioners from the relevant departments of SETC. There was a permanent executive office in charge of the investigation of injury  to the industry and submitting its findings to the 
IIDC for approval. 
(c) General Customs Administration ("Customs") 
Coordinating anti-dumping investigations with  MOFTEC;  enforcing anti-dumping measures 
such as collecting cash deposits and dumping duties, enforcing countervailing measures by 
collecting countervailing duties, a nd monitoring implementation. 
(d) Tariff Commission of State Council ("TCSC") 
Making final decisions on whether or not to levy the anti-dumping or countervailing duties 
based on the suggestions by MOFTEC with  regard to imposing anti-dumping or 
countervailing duties and reimbursing excess amount of duties, respectively. 
14. Safeguards  
154. The representative of China stated that  upon accession, China would implement its 
Regulation on Safeguard by which the future safe guard measures would be regulated.  The drafting 
work of this regulation was still under way.  The contents of this new regulation would be fully 
consistent with the Agreement on Safeguards.  He noted that, at present, China was in the process of 
drafting safeguard legislation in accordance with Article 29 of the Foreign Trade Law and the Agreement on Safeguards.  The Working Party took note of this commitment.  
C. EXPORT
 REGULATIONS 
1. Customs Tariffs, Fees and Charges for Servic es Rendered, Application of Internal Taxes 
to Exports 
155. Some members of the Working Party raised  concerns over taxes and charges applied 
exclusively to exports.  In their view, such tax es and charges should be eliminated unless applied in 
conformity with GATT Article VIII or lis ted in Annex 6 to the Draft Protocol.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 45 
 
 
156. The representative of China noted that the majo rity of products were free of export duty, 
although 84 items, including tungste n ore, ferrosilicon and some alum inum products, were subject to 
export duties.  He noted that the duty-paying value of exported goods was the F.O.B. price of the 
goods.  
2. Export Licensing and Export Restrictions 
157. The representative of China confirmed that th e list of all entities responsible for the 
authorization or approval of expor ts would be updated and republishe d in the official journal, the 
MOFTEC Gazette, within one month of any change th ereto.  The Working Party took note of this 
commitment. 
158. The representative of China said that China a pplied its export licence system to certain 
agricultural products, resource products and ch emicals. China's export licencing system was 
administered in accordance with the "Interim Pr ocedures for the Export Licencing System". In 1992, 
there were 143 categories of products subject to export licencing which accounted for 48.3 per cent of 
the total value of the China's exports, but by 1999, the total number of products subject to export licensing had been reduced to 58 categories and 73 ite ms with an export value of US$ 18.5 billion, 
taking up only 9.5 per cent of total exports. Export  licences for these products were issued according 
to the stipulated commodity scope respectively by  the Administrative Bureau of Quota and Licence 
("ABQL"), the Special Commissioner Offices ("SC O") located in 16 provinces and the Commissions 
of Foreign Economic Relations and Trade ("COFT EC") of various provinc es, autonomous regions, 
municipalities directly under the central government and those with independent budgetary status.  
The main criteria used in determining whether a product was subject to export licensing, as set down 
in the Foreign Trade Law, were:  (1) maintenan ce of national security or public interests;  
(2) protection against shortage of supply in the dom estic market or exhaustion of natural resources;  
(3) limited market capacity of importing countries or  regions;  or (4) obligations stipulated in 
international treaties.  Export licensing was also used for statistical purposes. 
159. He further noted that an application for an export licence had to be submitted to the licence 
issuing institutions authorized by MOFTEC, togeth er with documents approving the export by the 
competent departments, and other relevant material s (such as the Export Qualification Certificate for 
the enterprises, export contract and so on). The pr ocedures were the same for all export destinations. 
A decision on the request for an export licence normally took three working days. Licences were valid 
for six months and could be extended once.  FIEs  engaged in exporting products not produced by 
them were required to obtain export licences if th e products to be exporte d were subject to the WT/ACC/SPEC/CHN/1/Rev.8 
Page 46  
 
licensing requirement.  If the products were not s ubject to licensing, customs clearance would be 
given after examination by Customs on the basis of  export contracts and ot her relevant documents. 
160. Certain members of the Working Party noted the conditions in the GATT 1994 in regard to 
non-automatic licensing and export restrictions.  They pointed out that export prohibitions, restrictions 
and non-automatic licensing could only temporarily be applied under Article XI of the GATT 1994 to 
prevent or relieve critical shortages of foodstuffs  or other products essential to an exporting WTO 
Member.  Article XX of the GATT 1994 also allowed fo r restrictive export measures, but only if such 
measures were made effective in conjunction w ith restrictions on domestic production or 
consumption.  These members noted that some of the criteria of the Foreign Trade Law referred to above did not at present meet the specific conditions laid down in Articles XI and XX of the GATT 1994. 
161. Members of the Working Party welcomed the st eady reduction in the number products subject 
to export licensing in China.  Certain members reiterated their request for the submission of a 
complete list of restrictions presently applied.  These members expressed concern that the remaining 
number was still high, covering about ten per cent of e xport trade, and requested that they be either 
reduced further or eliminated by the date of a ccession in order to achieve full compatibility with 
GATT requirements.  Some members expressed partic ular concern about expor t restrictions on raw 
materials or intermediate products that could be subject to further processi ng, such as tungsten ore 
concentrates, rare earths and other metals. 
162. The representative of China confirmed that Chin a would abide by WTO rules in respect of 
non-automatic export licensing and export restrictions.  The Foreign Trade Law would also be brought into conformity with GATT requirements.  Moreover, export restrictions and licensing would 
only be applied, after the date of accession, in  those cases where this was justified by GATT 
provisions. The Working Party took note of these commitments. 
163. The representative of China stat ed that China prohibited expor t of narcotic drugs, poisons, 
materials containing State secrets, precious and rare animals and plants. 
164. Some members of the Working Party expressed c oncern about China's restrictions on exports 
of silk.  Certain other members expressed concer n about export restrictions on other goods, in 
particular raw materials or intermediate products th at could be subject to further processing, such as 
tungsten ore concentrates, rare earths and other me tals.  Members of the Working Party urged China 
to ensure that any such restrictions that were im posed or maintained complied with the terms of the 
WTO Agreement and the Draft Protocol.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 47 
 
 
165. The representative of China confirmed th at upon accession, remaining non-automatic 
restrictions on exports would be notified to the WTO annually and would be eliminated unless they 
could be justified under the WTO Agreement or the Draft Protocol.  The Working Party took note of 
this commitment. 
3. Export Subsidies 
166. Some members of the Working Party noted that China had provided a list of prohibited 
subsidies falling within the scope of Article 3 of the SCM Agreement and a timetable for their 
elimination, in Annex 5B of the Draft Protocol.  T hose members considered this list to be incomplete. 
167. The representative of China confirmed, as provided in Section 11.3 of the Draft Protocol,  that 
it would eliminate all export subsidies, within the meaning of Article 3.1(a) of the SCM Agreement, 
by the time of accession.  To this end, China w ould, by accession, cease to maintain all pre-existing 
export subsidy programmes and, upon accession, make no further payments or disbursements, nor 
forego revenue or confer any ot her benefit, under such programmes.  This commitment covered 
subsidies granted at all levels of government whic h were contingent, in law or in fact, upon an 
obligation to export.  The Working Party took note of this commitment. 
168. On the same basis, the repr esentative of China confirmed that China would eliminate, upon 
accession, all subsidies contingent upon the use of  domestic over imported goods, within the meaning 
of Article 3.1(b) of the SCM Agreement.  Th e Working Party took note of this commitment. 
D. INTERNAL  POLICIES  AFFECTING  FOREIGN  TRADE  IN GOODS 
1. Taxes and Charges Levied on Imports and Exports 
169. Some members of the Working Party expressed c oncern about the application of the VAT and 
additional charges levied by sub-national government s on imports.  Non-discriminatory application of 
the VAT and other internal taxes was deemed essential. 
170. The representative of China confirmed that upon accession, China would ensure that its laws 
and regulations relating to all fees, charges or ta xes levied on imports and exports would be in full 
conformity with its WTO obligations, including Ar ticles I, III:2 and 4, and XI:1 of the GATT 1994, 
and that it would also implement such laws and regul ations in full conformity with these obligations.  
The Working Party took note of this commitment. WT/ACC/SPEC/CHN/1/Rev.8 
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2. Industrial Policy, including Subsidies 
171. Some members of the Working Party expressed c oncern that the special features of China's 
economy, in its present state of reform, still created the potential for a certain level of trade-distorting 
subsidization;  this could have an impact not only on access to China's domestic market, but also on 
the performance of Chinese exports in the markets of other WTO Members, and should be subject to effective SCM Agreement disciplines.  In view of this, some members felt that it would be 
inappropriate for China to benefit from certain provi sions of Articles 27.  The representative of China, 
in turn, considered that certain provisions of this  Article should be available to China, and informed 
the Working Party of the efforts being undertaken, as part of its ongoing reform process, to reduce the 
availability of certain types of subsidies.  Ch ina was committed to implementing the SCM Agreement 
in a manner that was fair and equitable to China and to other WTO Members.  In line with this 
approach, the representative of China stated his in tention to reserve the right to benefit from the 
provisions of Articles 27.10, 27.11, 27.12 and 27.15  of the SCM Agreement, while confirming that 
China would not seek to invoke Articles 27.8, 27.9 and 27.13 of the SCM Agreement.  The Working 
Party took note of these commitments. 
172. Some members of the Working Party, in view  of the special characteristics of China's 
economy, sought to clarify that when state-owne d enterprises (including banks) provided financial 
contributions, they were doing so as government acto rs within the scope of Article 1.1(a) of the 
SCM Agreement.  The representative of China noted , however, that such financial contributions 
would not necessarily give rise to a benefit within the meaning of Article 1.1(b) of the 
SCM Agreement.  He pointed out that China's obj ective was that state-owned enterprises, including 
banks, should be run on a commercial basis and be re sponsible for their own profits and losses.  The 
Working Party took note of this commitment. 
173. Some members of the Working Party, while understanding the difficulties involved in 
gathering information, raised concerns over the comprehensiveness of the subsidy notification which 
China had provided in Annex 5A to the Draft Protocol, as last modified on 31 May 2000.  Some members of the Working Party explained that, as an illustration of the above, certain types of 
subsidies did not appear in Annex 5A.  Those memb ers of the Working Party first identified state 
support through the banking system, notably governme nt-owned banks, in the form of policy loans, 
the automatic roll-over of unpaid principal and inte rest, forgiven and non-performing loans, and the 
selective use of below-market interest rates.  Some members also referred to unreported tax subsidies, investment subsidies and subsidies provided by sub-national governments, some of which favoured 
exporting firms.  Other members mentioned subsid ies granted to the telecommunications, footwear, 
coal and shipbuilding sectors.  The representative of China explained that, in common with many  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 49 
 
 
other Members, China had experienced difficulty in obtaining accurate data about all types of 
subsidies.  He also indicated that China was atte mpting to reduce the availability of certain types of 
subsidies, in particular by reforming its tax sy stem and making government- owned banks ope rate on a 
commercial basis.  The representative of China stat ed that China would progressively work towards a 
full notification of subsidies, as contemplated by  Article 25 of the SCM Agreement.  The Working 
Party took note of this commitment. 
174. Some members of the Working Party also raised  concerns regarding the subsidies that China 
provided in connection with SEZs and other special economic areas.  Some of these appeared to be contingent upon export performance or on the u se of domestic goods.  The representative of China 
noted that the main purpose of such subsidies was to promote regional development and foreign 
investment.  He confirmed that China would, up on accession, eliminate any such subsidies which 
were inconsistent with the SCM Agreement.  The Working Party took note of this commitment. 
175. Some members of the Working Party requested  information from China on the Steel Import 
Substitution Programme, which appeared to provide e xport subsidies to the big four steel groups in 
China.  In response, the represen tative of China clarified that China did not collect VAT on imported 
and domestically produced steel used as raw material for the processing trade.  Such a policy, in his 
view, was consistent with WTO rules and the prac tices of many WTO Members, and thus should not 
be considered as subsidies.   
176. Some members of the Working Party request ed information from China on the "China 
High-Tech Product Export Catalogue", which set forth central government export policies for the 
telecommunications, computer software, aviation and aerospace, lasers, pharmaceuticals, medical 
equipment, new materials and energy industries.  In response, the representative of China clarified 
that products listed in the Catal ogue would enjoy full VAT rebate treatment, while other exported 
products would only be given partial VAT rebate  treatment.  Such a policy, in his view, was 
consistent with Article XVI of the GATT 1994 and relevant Annexes of the SCM Agreement.  He 
further confirmed that the VAT rebates were applied only to exported products and not to 
domestically consumed products. 
3. Technical Barriers to Trade 
177. The representative of China stated  that China had set up a TBT notification authority and two 
enquiry points which had been notified to the TBT Committee. Upon accession, notices of adopted 
and proposed technical regulations,  standards and conformity assessment procedures would be 
published.  The names of the publications where this  information could be fo und would be included in WT/ACC/SPEC/CHN/1/Rev.8 
Page 50  
 
China's Statement of Implementation and Administ ration under Article 15.2 of the TBT Agreement, 
which would be submitted upon accession.  The Wo rking Party took note of this commitment. 
178. The representative of China stated that, further to China's implementation of WTO provisions, 
internal mechanisms would exist, upon accession, to  inform and consult with, on an ongoing basis, 
government agencies and ministries (at national and s ub-national levels), and private sector interests 
on the rights and obligations under the GATT 1994 a nd the TBT Agreement.  Concerning questions 
from some members of the Working Party on the opportunity for public consultation and comment on 
proposed standards and technical regulations, th e representative of China confirmed that, upon 
accession, China's procedures would clearly indicate th at such opportunity existed and that comments 
would be given due consideration regardless of origin.  The representative of China also confirmed 
that, upon accession, China would have in place minimum timeframes for allowing public comment 
on proposed technical regulations, standards and c onformity assessment procedures as set out in the 
TBT Agreement and relevant decisions and recomm endations adopted by the TBT Committee.  The 
Working Party took note of these commitments.  
179. Several members of the Working Party requ ested information on the extent to which 
international standards were used as the basis for existing Chinese standards, details on China's plans 
for using international standards as the basis for new standards, and details on China's plans for 
reviewing existing standards so as to harmonize th em with relevant international standards.   
180. In response, the representative of Ch ina stated that, as a full member of,  for example, ISO, 
IEC and ITU, China actively participated in the de velopment of relevant in ternational standards.  
With China's efforts in restructuring government agencies, China would, not later than four months  
after accession, notify acceptance of   the Code of Good Practice.  The representative of China stated 
that for government standardizing bodies, a clear  policy existed to periodically review existing 
standards, inter alia , to harmonize them with relevant in ternational standards where appropriate .  
Furthermore, China would speed up its process of revising the current voluntary  national , local and 
sectoral standards so as to harmonize them with inte rnational standards.  The Working Party took note 
of these commitments. 
181. Some members of the Working Party expressed  concern that China's use of the terms 
"technical regulations" and "standards" was not always  consistent with the definitions found in the 
TBT Agreement, e.g., China sometime s used the word "standards" to refer to mandatory requirements 
that fell within the definition of "technical re gulations".  These members noted that China had 
developed a number of different types of measures, re ferred to as "standards", at  levels other than the 
central government, in particular, regi onal, sectoral, and enterprise levels.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 51 
 
 
182. In response, the representative of  China stated that China, in its notifications under the TBT 
Agreement, including its notifications under Article 15.2 and in publications referenced therein, and 
in modifications of existing measures, would use the terms "technical regulations" and "standards" 
according to their meanings under the TBT Agreement.  The Working Party took note of these commitments. 
183. Some members of the Working Party also expr essed concern that China did not use relevant 
and available international standards as the basis for some of its existing technical regulations.  
Several members asked for information on the extent to which international standards were used as 
the basis for existing technical regulations, details on China's plans for using international standards 
as the basis for new technical regulations, and details  on China's plans for reviewing existing technical 
regulations so as to harmonize standards referenced in them with international standards or their 
relevant parts. 
184. In response, the representative of China stated that since 1980, China had taken the active 
adoption of international standards as the basis for technical regulations as a basic policy of 
accelerating industrial modernization and promoti ng economic growth. The representative of China 
confirmed that this policy also required technical regulations to be reviewed every five years, 
inter alia , to ensure that international standards were  used in accordance with Article 2.4 of the 
Agreement.  He also confirmed that China would provide this policy as part of its notification under 
Article 15.2 of the Agreement .  He noted that as a result of China's efforts in the past 20 years, the use  
of international standards as the basis for techni cal regulations had increased from 12 per cent to 40 
per cent.  China had begun formulating a standardi zation development programme in a bid to meet the 
challenges of the 21st century and the requirement s provided for in the TBT Agreement, and had 
undertaken to further increase the use of internati onal standards as the basis for technical regulations 
by 10 per cent  in five years.  The representativ e of China also confirmed that China would make 
publicly available procedures to implement Article 2.7 of the Agreement.  The Working Party took 
note of these commitments. 
185. Bearing in mind the relevant provisions of the TBT Agreement, some members of the 
Working Party asked China to identify local government bodies, directly below the central 
government level, and non-governmental organizati ons, that were authorized to adopt technical 
regulations or conformity assessment procedures.  The representative of China replied that China 
would provide a list of relevant local govern mental and non-governmental bodies, upon accession, as 
part of its notification under Article  15.2 of the TBT Agreement.  The Working Party took note of this 
commitment. WT/ACC/SPEC/CHN/1/Rev.8 
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186. With respect to conformity assessment proce dures, several members of the Working Party 
asked for information about the extent to which international guides and recommendations were used 
as the basis for existing conformity assessment pro cedures, details on China's plans for using such 
guides and recommendations as the basis for new conformity assessment procedures, and details on China's plans for reviewing existing conformity asse ssment procedures so as to harmonize them with 
relevant international guides and recommendations. 
187. In response, the representative of China stated th at China played a full part in the preparation 
by appropriate international standardizing bodi es of guides and recommendations for conformity 
assessment procedures, e.g., as a full member of IS O CASCO.  He stated that it was difficult to 
quantify the extent to which such guides and reco mmendations were used as the basis for existing 
conformity assessment procedures.  He confirme d that China would use relevant guides or 
recommendations issued by international standa rdizing bodies as the basis for new conformity 
assessment procedures in accordance with Article 5. 4 of the TBT Agreement.  The representative of 
China also stated that existing conformity assessm ent procedures were reviewed concurrently with 
and under the same policy as re lated technical regulations, inter alia , to ensure the use of relevant 
international guides or recommendations in accordan ce with Article 5.4 of the TBT Agreement.  He 
also confirmed that, upon accession, China would ensure that the same conformity assessment 
procedures were applied to both imported and dom estic products.  The Working Party took note of 
these commitments. 
188. Some members of the Working Party expr essed concerns about the complexity and 
inconsistency of China's conformity assessment regi me with the TBT Agreement requirements.  In 
particular, those members noted that conform ity assessment on imported a nd domestic products was 
not performed by the same governmental entities and th at this situation could result in less favourable 
treatment for imports.  In response, the representa tive of China stated that the Chinese government 
had already decided to merge CIQ-SA and CSBTS into the State General Administration of the 
People's Republic of China for Quality Supervis ion and Inspection and Quarantine ("AQSIQ"), under 
its policy of development of market economy a nd further reform and opening up in China. The 
representative of China confirmed that the AQSIQ was responsible for all policies and procedures 
related to conformity assessment in China.  He further stated that other government ministries and 
agencies developed conformity assessment policies and procedures but that these had to be authorized 
by AQSIQ before they could be enacted. 
189. Some members of the Working Party expressed c oncern about the consistency of the Law of 
the People's Republic of China on Import-Export Commodity Inspection ("the Law"), and the 
Regulations for the Implementation of that Law ("the Implementing Regulations"), with the TBT  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 53 
 
 
Agreement.  In particular, provisions for technical  regulations and conform ity assessment procedures 
did not adequately address fundamental obligations such as transparency, non-discrimination, national 
treatment, and the avoidance of unnecessary barriers to trade. 
190. Some members of the Working Party expressed concern about  a conformity assessment 
procedure known as Statutory In spection, which was described, inter alia , in Articles 4, 5, and 6 of 
the Law and Articles 4, 5, and 9 of the Implementing Regulations.  They stated that it was inconsistent 
with the principle of national treatment and constitu ted an unnecessary obstacle to international trade.  
Members of the Working Party agreed that WT/ACC/CHN/31 and WT/ACC/CHN/32, lists of products subject to Statutory Inspection, did not preju dge the legal status, nature or effects of notified 
technical regulations and standards under the WTO Ag reement.  The representative of China stated 
that China would bring the Law and Implementing Regul ations, as well as othe r relevant legislation 
and regulations, into conf ormity with the TBT Agreement by the date of accession.  The Working 
Party took note of this commitment. 
191. Some members of the Working Party expressed concern  about a conformity assessment 
procedure, and the application thereof, known as the Safety Licence System for Import Commodities 
("the System"), which was described in Article 22 of the Law and Article 38 of the Implementing 
Regulations.  They stated that it was inconsiste nt with the principle of national treatment and 
constituted an unnecessary obstacle to international tr ade (e.g., due to the frequent plant inspections 
required).  In response, the representative of Chin a confirmed that, for technical regulations and 
conformity assessment procedures related to goods cu rrently subject to the Sa fety Licence System for 
Import Commodities, relevant legislation and re gulations would be brought into full conformity   with 
the TBT Agreement by the date of accession.  Th e Working Party took note of this commitment 
192. Responding to the concerns of members of the Working Party, the representative of China 
confirmed that to eliminate unnecessary barriers to trade, China would not maintain multiple or 
duplicative conformity assessment procedures, nor would it impose requirements exclusively on 
imported products.  The Working Party took note of this commitment. 
193. Some members of the Working Party expressed c oncern with respect to the confidentiality of 
information in connection with conformity assessment  procedures undertaken by China.  In response, 
the representative of China confirmed that Ch ina would fully implement the obligations of 
Article 5.2.4 of the TBT Agreement in this regard .  The Working Party took note of this commitment. 
194. Some members of the Working Party expressed  concern about China's practice of not 
accepting the results of conformity assessment by bodies in other WTO Members.  In this regard, 
those members noted the obligation of unilateral acce ptance of the results of conformity assessment as WT/ACC/SPEC/CHN/1/Rev.8 
Page 54  
 
described in Article 6.1 of the TBT Agreement.  The representative of China responded that products 
certified by bodies recognized by China would require no additional conformity assessment 
procedures in China, except for random sampli ng of said products.  Furthermore, where random 
sampling was undertaken and China's test results di ffered from the test results of competent bodies in 
other WTO Members, the representative of China conf irmed that China would act in accordance with 
international guidelines and recommendations, wher e these existed, or would provide a process of 
review with the objective of resolving such di fferences.  Some members of the Working Party 
requested China to make public and update on  an ongoing basis information on conformity 
assessment bodies that were recognized  by China.  The representative of China confirmed that China 
would provide this information.  The Working Party took note of these commitments. 
195. Concerning foreign and joint-venture conform ity assessment bodies, certain members of the 
Working Party noted that China should not maintain  requirements which had the effect of acting as 
barriers to their operation, unless otherwise specif ied in China's Schedule of Specific Commitments.   
The representative of China replied that China would not maintain such requirements.  Some 
members also observed that all foreign or joint ve nture conformity assessment bodies that met China's 
requirements should be eligible for accreditation a nd accorded national treatment.  The representative 
of China confirmed that the accreditation requireme nts would be transparent and provide national 
treatment to foreign conformity assessment bodies.   The Working Party took note of these 
commitments. 
196. Some members of the Working Party raised sp ecific concerns regarding such matters as 
(a) registration of initial imports of chemical pr oducts, (b) procedures to obtain and apply "CCIB" 
safety mark and the "Great Wall" mark, (c) auto mobiles and parts, and (d) the safety and quality 
licence system for boilers and pressu re vessels.  In response, the re presentative of China stated that 
China would  implement the following measures prior to accession, unless otherwise indicated: 
(a) Registration of Initial Imports of Chemical Products 
− Enact and implement, within one year after its accession, a new law and relevant 
regulations regarding assessment and control of chemicals for the protection of the 
environment, in which complete national treat ment and full consistenc y with international 
practices would be ensured. 
− Ensure that chemicals listed in the "inventor y chemicals" annexed to the above new law 
and its regulations would be exempted from a registration obligation and that a unified 
assessment procedure would be established fo r domestic and imported products under the 
new law and its regulations.  WT/ACC/SPEC/CHN/1/Rev.8 
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(b) CCIB Safety Mark and the "Great Wall" Mark 
− Unify the existing certification marks, i.e., th e "CCIB" mark and the "Great Wall" mark 
into a new certification mark.  For like  imported and domestic goods, all bodies and 
agencies would issue the same mark  and charge the same fee. 
− Accept testing reports for products subject  to the International Electrotechnical 
Commission's System for Conformity Testing to Standards for Safety of Electrical 
Equipment ("IECEE CB Scheme") to which China was a party, and simplify the 
procedures for obtaining the new, unified certification mark 
− Shorten the time period needed for importers  to obtain both marks regarding the same 
products,   to no more than  three months . 
(c) Automobiles and Parts 
− Unify its laws, regulations and standards a pplied to domestic and imported automobiles 
and parts. 
− Formulate, publish and implement laws a nd regulations, standards and implementing 
regulations to establish a transparent system  under which all the laws and regulations 
would be applied so as to accord imported pr oducts treatment no less favourable than that 
accorded to like products of national origin. 
(d) Safety and Quality Licence System for Boilers and Pressure Vessels 
− Accord imported products treatment no less favourable than that accorded to products of 
national origin, including fees imposed fo r conformity assessment and the effective 
period of factory certification. 
− Adopt international standards as the basis fo r technical regulations and exempt imported 
products from inspection where like domestic  products were not subject to such 
inspection. 
The Working Party took no te of these commitments. 
197. The representative of China confirmed that, except as otherwise specified in the Draft 
Protocol, China would apply all obligations under the TBT Agreement from the date of accession.  
The Working Party took note of this commitment. WT/ACC/SPEC/CHN/1/Rev.8 
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4. Sanitary and Phytosanitary Measures 
198. Some Members of the Working Party expressed co ncerns in relation to the use by China of 
sanitary and phytosanitary ("SPS") procedures as n on-tariff barriers and raised specific instances 
where they considered that Chin a's measures were not consistent with the WTO Agreement on the 
Application of Sanitary and Phytosanitary Measu res ("SPS Agreement").  Members sought assurances 
that China would only use SPS measure s to the extent necessary to protect human, animal or plant life 
or health, and that such measures would be based fully on scientific principles.  
199. The representative of China stated that pursuan t to the provisions of the SPS Agreement, 
China applied SPS measures only to the extent necess ary to protect the life and health of human 
beings, animals and plants.  He also noted th at most of China's SPS measures were based on 
international standards, guidelines and recommenda tions.  China would not apply SPS measures in a 
manner which would act as a disguised restriction on  trade.  In accordance with the SPS Agreement, 
China would ensure that SPS measures would not be maintained without sufficient scientific 
evidence.  The Working Party to ok note of these commitments.  
200. Members of the Working Party expressed the vi ew that China should comply with the SPS 
Agreement from the date of China's accession and sh ould ensure conformity with the SPS Agreement 
of all its laws, regulations, decrees, requirement s and procedures relating to SPS measures.  In 
response, the representative of China confirme d that China would fully comply with the SPS 
Agreement and would ensure the conformity with the SPS Agreement of all of its laws, regulations, 
decrees, requirements and procedures relating to  SPS measures from the date of accession.  The 
Working Party took note of these commitments.  
201. Members of the Working Party noted that China's notification of laws, regulations and  other 
SPS measures, referred to in the Draft Protoc ol, was provided in document WT/ACC/CHN/33.  
Members of the Working Party agreed that this notif ication did not prejudge the legal status under the 
WTO Agreement of the nature or effects of the notified laws, regulations  and other SPS measures. 
202. The representative of China said that China ha d set up an SPS notification authority and an 
SPS enquiry point which would be notified to the SPS Committee.  SPS measures, including those relating to inspection, had been published in publi cations such as the MOFTEC Gazette.  Information 
could also be gathered from the SPS notification authority or from China's SPS enquiry point.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 57 
 
 
5. Trade-Related Investment Measures 
203. The representative of China confirmed that upon accession, as set forth in the Draft Protocol, 
China would comply fully with the TRIMs Agreemen t, without recourse to Article 5 thereof, and 
would eliminate foreign-exchange balancing an d trade balancing requirements, local content 
requirements and export performance requirements. Chinese authorities would not enforce the terms of contracts containing such requirements.  The allocation, permission or rights for importation and 
investment would not be conditional upon performan ce requirements set by national or sub-national 
authorities, or subject to secondary conditions covering, for example, the conduct of research, the provision of offsets or other forms of industrial compensation including specified types or volumes of business opportunities, the use of local inputs or the transfer of technology.  Permission to invest, 
import licences, quotas and tariff rate quotas would be granted without regard to the existence of 
competing Chinese domestic suppliers.  Consistent  with its obligations under the WTO Agreement 
and the Draft Protocol, China would respect enterp rises' freedom of contract.  The Working Party 
took note of this commitment. 
204. In the context of discussions on the government's  Industrial Policy for the Automotive Sector, 
the representative of China confirmed that this polic y would be amended to ensure compatibility with 
WTO rules and principles.  The Working Party took note of this commitment. 
205. The representative of China added that amendments would be made to ensure that all 
measures applicable to motor vehicle producers restricting the categories, types or models of vehicle 
permitted for production, would grad ually be lifted.  Such measures would be completely removed 
two years after accession, thus ensuring that moto r vehicle producers would be free to choose the 
categories, types and models they produced.  Howeve r, it was understood that category authorizations 
by the government could continue to distinguish be tween trucks and buses, light commercial vehicles, 
and passenger cars (including multi-purpose vehicles a nd sport utility vehicles) .  The Working Party 
took note of this commitment. 
206. The representative of China confirmed that China also agreed to raise the limit within which 
investments in motor vehicle manufacturing could be approved at provincia l government level only, 
from the current level of US$30 million, to US$6 0 million one year after accession, US$90 million 
two years after accession, and US$150 million four years after accession.  The Working Party took 
note of this commitment. 
207. With respect to the manufacture of motor vehi cle engines, the representative of China also 
confirmed that China agreed to remove the 50 pe r cent foreign equity limit for joint-ventures upon 
accession.  The Working Party took note of this commitment. WT/ACC/SPEC/CHN/1/Rev.8 
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6. State Trading Entities 
208. Some members of the Working Party expressed concern that the activities of China's state 
trading enterprises were not sufficiently tran sparent and were not in accordance with WTO 
obligations.  The representative of China indicated, ho wever, that China's stat e trading enterprises had 
full management autonomy and responsibility for th eir own profits and losses and that China had 
undertaken broad and significant commitments to improve the transparency of state trading 
enterprises' operation and the measures relating to such operation.  
209. The same members of the Working Party also st ated that China should ensure that the import 
purchasing practices and procedures of state tradi ng enterprises were fully transparent, and in 
compliance with the requirements of the WTO Agreem ent.  They considered that China should also 
refrain from taking any measure to influence or direct state tradi ng enterprises as to the quantity, 
value, or country of origin of goods purchased or sold, except in accordance with the requirements of 
the WTO Agreement.  Those member s also stated that as part of  China's notification under the 
GATT 1994 and the Understanding on the Interpreta tion of Article XVII of the GATT 1994, China 
should also notify information on state trading, including, in the case of state trading of exported 
goods, domestic procurement prices, contract terms for delivery and financing terms and conditions. 
210. In response, the representative of China stated  that its state trading enterprises had full 
management autonomy and responsibility for their ow n profits and losses.  However, some members 
of the Working Party again stated that China shoul d undertake a commitment to  ensure that all state 
trading enterprises complied with the requirement s of the WTO Agreement.  The representative of 
China noted that a list of products subject to state trading had been provided in  Annex 2A of the Draft 
Protocol.  He also confirmed that information on state trading enterprises, as required by the Draft 
Protocol, would be supplied, consistent with the re quirements of paragraph 332 of this Draft Report. 
211. Members of the Working Party took note of the specific arrangements that would apply for 
fertilizers and crude and processed oil.  A key feat ure of those arrangements related to the annual 
allocation of import quantities.  The differences in  the regimes that would apply to those products 
were noted, in particular in regard to the obliga tion on state enterprises trading in fertilizers to carry 
over to the next year any unused import quantities.  
212. Some members of the Working Party requested  assurances that, for oil products, quantities 
reserved for non-state traders would be allocated in such a manner that they would be fully utilized.  
In this respect, the representative of China confirmed that imports allocated to non-state traders of 
crude and processed oil, as specified in Annex 2A of the Draft Protocol, would be carried over to the 
next year if they were not fully utilized.  In add ition, the representative of China agreed that China  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 59 
 
 
would publish, on a quarterly basis, the requests for imports that had been made by non-state traders, 
as well as the licences granted, and would supply in formation relevant to such traders upon request.  
The Working Party took no te of these commitments. 
213. Some members of the Working Party noted that  prior to accession, some enterprises in China 
were permitted to import goods for their prod uction purposes, including those goods included in 
Annex 2A.  The representative of China confirmed th at, notwithstanding Sectio n 5, paragraph 1, of 
the Draft Protocol, non-state trading enterprises, including private enterprises, would still be permitted 
to import such goods for production purposes and that  national treatment would be provided to such 
imports.  The Working Party took note of these commitments.  
214. Some members of the Working Party expressed c oncerns about supplies of raw materials in 
the textiles sector, and particularly in regard to s upplies of silk, in the light of China's position as the 
major world supplier of silk, currently subject to state trading rights concerning exports. 
215. In this regard, the representative of China c onfirmed that China would progressively abolish 
the system of state trading in respect of silk by measures increasing and extending trading rights, with 
the result that China would remove completely the silk products set out in numbers 10 and 11 of 
Annex 2A2 to the Draft Protocol (list of products subject to state trading on exports) and grant the 
right to trade in such products to  all individuals and enterprises no la ter than 1 January 2005.  Pending 
the implementation of this right, China undertook not to introduce any changes of a more restrictive 
nature to the existing structures in place for the su pply of silk.  The repr esentative of China further 
confirmed that access to supplies of raw materials in the textiles sector would remain at conditions no 
less favorable than for domestic users, and gave hi s assurance that access to supplies of raw materials 
as enjoyed under existing arrangements would not be  adversely affected following China's accession.  
The Working Party took no te of these commitments. 
216. Members of the Working Party noted that dom estic prices for most agricultural commodities 
in China were higher than world prices, and this di fferential allowed China's state trading enterprises 
to import at low prices and then mark up the pr ice when selling the product to wholesalers and 
end-users. Some members expressed concern that th is practice could become more widespread when 
access opportunities were created under TRQs.  Tho se members were particularly concerned that 
mark-ups could be used to reduce the competitiv eness of imported products and limit the range of 
qualities and grades available to end-users in China.  The representative of China stated that currently 
state trading enterprises did not mark up imported products; instead, they only charged a nominal transaction fee.  Consequently, China claimed that its practice was consistent with WTO obligations, WT/ACC/SPEC/CHN/1/Rev.8 
Page 60  
 
did not result in any trade-distorting effect, and that under China's law limits existed on the fees that 
could be charged by state trading enterprises. 
217. The representative of China stated  that China would ensure that no price increase in respect to 
imports, in particular by state trading enterprises, would result in protection beyond that allowed in its 
Schedule of Concessions and Commitments on Goods or  that was not otherwise justified under WTO 
rules.  The Working Party took note of this commitment. 
7. Special Economic Areas 
218. Members of the Working Party noted that th ere was insufficient information available 
concerning special economic areas within China's custom s territory, including border trade regions 
and minority autonomous areas, Special Economic Z ones ("SEZs"), open coastal cities, economic and 
technical development zones and other areas where sp ecial regimes for tariffs, taxes and regulations 
had been established (collectively referred to as "speci al economic areas"), in particular their names, 
geographic boundaries, and relevant laws, regul ations and other measures relating thereto. 
219. In response, the representative of China st ated that since 1979 China had established a 
number of special economic areas where more open po licies were applied.  They included five SEZs, 
14 open coastal cities, six open cities along the Ya ngtze River, 21 provincial capital cities and 13 
inland boundary cities.  Those speci al economic areas enjoyed greater  flexibility in utilizing foreign 
capital, introducing foreign technology and conduc ting economic cooperation overseas.  At present, 
foreign investors were entitled to certain preferential treatment.  
220. The representative of China further stated that  FIEs located in SEZs or the Economic and 
Technical Development Zones of open coastal cities were entitled to a corporate income tax rate of 
15 per cent (the normal income tax was 33 per cent).  Profits remitted abroad by foreign investors 
were exempted from income tax.  The preferential income tax rate of 15 per cent was applicable to 
technology-intensive or knowledge-intensive items  or projects with foreign investment of over 
US$30 million, as well as enterprises that operated in the fields of energy, transport and port 
construction.   
221. The representative of China noted that throughout the customs territory of China, a socialist 
market economy system was applied.  In 1999, the foreign trade volume of SEZs accounted for nearly 
one fifth of the nation's total.  The national laws and regulations on taxation were applicable to SEZs 
in a uniform manner.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 61 
 
 
222. In response to further requests for information, the representative of China indicated that there 
was no plan to establish any new SEZs. The special preferential tariff policies applied to SEZs had 
been eliminated. With the development of Chin a's economic reform and opening up, China would 
implement its tariff policy uniformly throughout its customs territory. Members of the Working Party expressed concern that imported products introduced  from these special economic areas into other 
parts of China's customs territory should be subject to the same treatment in the application of all 
taxes, import restrictions and customs duties and ot her charges as that normally applied to imports 
into the other parts of China's cu stoms territory. The representative of  China stated that China would 
undertake to ensure such non-discriminatory treatment.  The Working Party took note of this commitment. 
223. Some members of the Working Party also rais ed concerns as to whether the assistance 
provided to minority autonomous regions and other areas of economic poverty was consistent with 
WTO requirements.  In response, the representa tive of China confirmed that China had a clear 
commitment to uniform administration of the trade regime within each such area and that, upon accession, China would ensure that such assistan ce would be implemented consistent with WTO 
obligations.  The Working Party t ook note of this commitment. 
224. Some members of the Working Party requested that China take steps to ensure that all 
products imported into the other parts of the cust oms territory of China from special economic areas 
would be subject to the same normal customs du ties and charges as any other product imported into 
the customs territory of China.  In particular , those members requested that China undertake a 
commitment to apply all taxes, charges and measur es affecting imports, including import restrictions 
and customs and tariff charges, that were normally a pplied to imports into the other parts of China's 
customs territory to all imported products, including physically incorporated components, entering China's customs territory from the special economic areas. 
225. The representative of China confirmed that Ch ina would strengthen the uniform enforcement 
of taxes, tariffs and non-tariff measures on trade between its special economic areas and the other 
parts of China's customs territory.  China further confirmed that statistics on trade between China's 
special economic areas and the other parts of its cu stoms territory would be maintained and improved, 
and would be notified to the WTO on a regular basis.  The Working Pa rty took note of these 
commitments. 
226. Some members of the Working Party requested that China notify the WTO Secretariat of all 
the relevant laws, regula tions and other measures relating to its special economic areas.  They asked 
that the notification list and identify all those speci al economic areas.  Those members also requested WT/ACC/SPEC/CHN/1/Rev.8 
Page 62  
 
that China notify the WTO Secretariat promptly, but in any case within 60 days, of any additions or 
modifications to its special economic areas, including  notification of the laws, regulations and other 
measures relating thereto.   
227. The representative of China confirmed that  China would provide information in its 
notifications describing how the special trade, tariff,  and tax regulations app lied were limited to the 
designated special economic areas, including info rmation concerning their enforcement.  The 
Working Party took note of this commitment. 
228. In response to concerns raised by some memb ers of the Working Party, the representative of 
China confirmed that any preferential arrangements provided to foreign invested enterprises located 
within the special economic areas would be provided on a non-discriminatory basis.  The Working Party took note of this commitment.  
8. Transit 
229. The representative of China stated that the cu rrent regulation of transit in China, the 
Regulations of the Customs of the People's Republic  of China on the Supervision and Administration 
of Transit Goods, was consistent with Article V of the GATT 1994. 
9. Agricultural Policies 
230. The representative of China stated that since  China was a country with a vast agricultural 
base, as well as a vast population, agricultural security and food security in particular, was an issue of 
supreme importance. China based its policies on dom estic agricultural supply, especially on balanced 
supply and demand of grains.  Meanwhile, Chin a actively sought international resources as a 
necessary supplement.  
231. While noting this statement, some members of  the Working Party expressed concerns about 
China's linkage of import policies for agriculture , including TRQ allocations, to domestic production 
policy and the sub-national supply and utilization si tuation.  Those members requested that China 
undertake an appropriate commitment to eliminate th ese practices.  In response China confirmed that 
it would base import policies for agriculture on commer cial considerations onl y.  The Working Party 
took note of this commitment. 
232. Some members of the Working Party expressed fu rther concerns in relation to administrative 
guidance provided at the national and sub-national le vel which could have the effect of influencing 
the quantity and composition of agricultural imports .  Those members considered reform of these 
practices toward full WTO consistency as an essen tial element of China's accession.  To ensure  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 63 
 
 
effective market access opportunities were created for imported products, some members requested 
assurances from China that agricultural and tr ade policies would not discriminate in a WTO 
inconsistent manner against impor ted products.  Consistent with China's commitment to uniform 
administration, the representative of China confirme d that, by the date of accession, China would not 
maintain, resort or revert to guidance plans or ad ministrative guidance at the national or sub-national 
level that regulate the quantity, quality or treat ment of imports, or constitute import substitution 
practices or other non-tariff measures, including tho se maintained through state trading enterprises at 
the national or sub-national level.  The Wo rking Party took note of this commitment. 
233. Some members of the Working Party expressed c oncern that large stocks in China of grain 
and cotton had been procured at relatively high prices by state-trading enterprises or other state-
affiliated, state-run, or state-controlled entities a nd noted that exports of these or other government-
purchased products at prices lower than the comparable  price charged for the like product to buyers in 
the domestic market could be challenged as an ex port subsidy or as inconsistent with other WTO 
obligations.  These members requested that China en sure that all entities, including state trading 
enterprises and any other state-affiliated, state-run,  or state-controlled entit y at the national or sub-
national level operated in accordance with China' s WTO obligations, including those on export 
subsidies.  In response, the representative of Chin a confirmed that all entities in China would operate 
in accordance with China's WTO obligations, incl uding those on export subsidies.  Further, the 
representative of China stated that national and sub-national authorities wo uld not provide fund 
transfers or other benefits to any entities in Ch ina that would be inconsistent with its WTO 
obligations, including to offset losses accrued throug h exports. The Working Party took note of these 
commitments. 
234. The representative of China confirmed that by the date of accession, China would not 
maintain or introduce any export subsidies on agricult ural products.  The Working Party took note of 
this commitment. 
235. In implementing Article 6.2 and 6.4 of the Agreement on Agriculture, the representative of 
China confirmed that while China could provide support through government measures of the types 
described in Article 6.2, the amount of such suppor t would be included in China's calculation of its 
Aggregate Measurement of Support ("AMS").  He noted that China's Total AMS Commitment Level 
was set forth in Part IV, Section I of China's Sche dule.  The representative of China further confirmed 
that China would have recourse to a de minimis  exemption for product-specific support equivalent to 
8.5 per cent of the total value of production of a basic agricultural product during the relevant year.  
The representative of China confirmed that China would have recourse to a de minimis  exemption for 
non-product-specific support of 8.5 per cent of the value of China's total agricultural production WT/ACC/SPEC/CHN/1/Rev.8 
Page 64  
 
during the relevant year.  Accordingly, these percentages would constitute China's de minimis  
exemption under Article 6.4  of the Agreement on Ag riculture.  The Working Party took note of these 
commitments. 
236. China's concessions on agricultural tariffs, and commitments on domestic support and on 
export subsidies for agricultural products were  contained in the Schedule of Concessions and 
Commitments on Goods annexed to the Draft Protocol as Annex 8. 
237. Some members of the Working Party noted th at the domestic support tables of China in 
WT/ACC/CHN/38/Rev.3 showed China's base total AMS as zero in DS:4.  They also noted that 
product specific support was negative in DS:5. 
10. Trade in Civil Aircraft 
238. In response to questions from members of th e Working Party, the representative of China 
indicated that China was not in a position to co mmit to joining the Agreement on Trade in Civil 
Aircraft at the present stage. 
239. The representative of China confirmed that Chin a would not impose any provisions of offsets 
or other forms of industrial compensation when pur chasing civil aircraft, including specified types or 
volumes of business opportunities.  The Workin g Party took note of this commitment. 
11. Textiles 
240. Some members of the Working Party proposed a nd the representative of China accepted that 
the quantitative restrictions maintained by WTO Members on imports of tex tiles and apparel products 
originating in China that were in force on the da te prior to the date of China's accession should be 
notified to the Textiles Monitori ng Body ("TMB") as being the b ase levels for the purpose of 
application of Articles 2 and 3 of the WTO Agreement on Textiles and Clothing ("ATC").  For such WTO Members, the phrase "day prior to the date of entry into force of the WTO Agreement", 
contained in Article 2.1 of the ATC, should be deemed  to refer to the day prior to the date of China's 
accession.  To these base levels, the increase in growth  rates provided for in Articles 2.13 and 2.14 of 
the ATC should be applied, as appropriate, from the date of China's accession.  The Working Party 
took note of these commitments. 
241. The representative of China agr eed that the following provision s would apply to trade in 
textiles and clothing products until 31 December 20 08 and be part of the terms and conditions for 
China's accession:  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 65 
 
 
(a) In the event that a WTO Member believed that imports of Chinese origin of textiles and 
apparel products covered by the ATC as of th e date the WTO Agreement entered into force , 
were, due to market disruption, threatening to  impede the orderly development of trade in 
these products, such Member could request consu ltations with China with a view to easing 
or avoiding such market disruption.  The Member requesting consu ltations would provide 
China, at the time of the request, with a detailed factual statement of reasons and 
justifications for its request fo r consultations with current data  which, in the view of the 
requesting Member, showed:  (1) the existence or  threat of market disruption;  and (2) the 
role of products of Chinese origin in that disruption; 
(b) Consultations would be held within 30 days of  receipt of the request.  Every effort would be 
made to reach agreement on a mutually satisfactor y solution within 90 days of the receipt of 
such request, unless extended by mutual agreement; 
(c) Upon receipt of the request for consultations , China agreed to hold its shipments to the 
requesting Member of textile or textile products in the category or categories subject to these 
consultations to a level no greater than 7.5 pe r cent (6 per cent for wool product categories) 
above the amount entered during the first 12 months of the most recent 14 months preceding 
the month in which the request for consultations was made; 
(d) If no mutually satisfactory solution were reached during the 90-day consultation period, 
consultations would continue and the Member requesting consultations  could continue the 
limits under subparagraph (c) for textiles or te xtile products in the category or categories 
subject to these consultations; 
(e) The term of any restraint limit established un der subparagraph (d) would be effective for the 
period beginning on the date of the request for consultations and ending on 31 December of 
the year in which consultations were requested, or where three or fewer months remained in 
the year at the time of the request for cons ultations, for the period ending 12 months after 
the request for consultations; 
(f) No action taken under this provision would remain in effect beyond one year, without 
reapplication, unless otherwise agreed between the Member concerned and China. 
(g)  Measures could not be applied to the same product at the same time under this provision and 
the provisions of Section 16 of the Draft Protocol. 
The Working Party took no te of these commitments. WT/ACC/SPEC/CHN/1/Rev.8 
Page 66  
 
12. Measures Maintained Against China 
242. The representative of China stated that WTO Members should eliminate all discriminatory 
non-tariff measures maintained against Chinese expor ts from the date of China's accession.  In 
response, some members of the Working Party stated  that, in their view, such measures did not need 
to be phased out until such time as China's foreign trade regime fully conformed to WTO obligations. 
243. In light of the above, it was agreed that any prohibitions, quantitative restrictions or other 
measures maintained against imports from China in  a manner inconsistent with the WTO Agreement 
would be listed in Annex 7 to the Draft Protocol.  It was further agreed that all such measures would 
be phased out or otherwise dealt with in accordan ce with mutually agreed terms and timetables as 
specified in said annex. 
13. Transitional Safeguards 
244. With respect to implementation of the product- specific safeguard, the representative of China 
expressed particular concern that WTO Members provide due process and use objective criteria in determining the existence of market disruption or trade diversion, because WTO Members did not 
have wide experience in implementing the provisions of Section 16 of the Draft Protocol.  He stated 
that with respect to trade diversion, WTO Member s needed to apply objective criteria to determine 
whether an action by China or another WTO Memb er under the product-specific safeguard to prevent 
or remedy market disruption caused or threatened to  cause significant diversion of trade.  Such criteria 
should include the actual or imminent increase in ma rket share or volume of imports from China, the 
nature or extent of the action taken by China or the other WTO Member and other similar criteria.  In 
addition, WTO Members should provide an opportuni ty for importers, exporters and all interested 
parties to submit their views on the matter. 
245. Members of the Working Party noted that the Draft Protocol included specific requirements 
that WTO Members needed to follo w in connection with an action under that Section.  Members of 
the Working Party confirmed that in implementing the provisions on market disruption, WTO 
Members would comply with those provisions and the following: 
(a) An action to address market disruption would be taken only after an investigation by the 
competent authorities of the importing WTO Member pursuant to procedures previously 
established and made available to the public. 
(b) The competent authority of the importing Member would publish notice of the 
commencement of any investigation under the product-specific safeguard provisions of the  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 67 
 
 
Draft Protocol and would, within a reasona ble time thereafter, hold a public hearing or 
provide other appropriate means  for the purpo se of permitting interested parties to present 
evidence and their views as to the appropriateness of whether or not to take a measure and to 
respond to the presentations of other parties. 
(c) In determining whether market disruption exis ted, including the causal link between imports 
which were increasing rapidly, either absolutely  or relatively, and any material injury or 
threat of material injury to the domestic indus try,  the competent authorities would consider 
objective factors, including (1) the volume of imports of the product which was the subject 
of the investigation; (2) the effect of impor ts of such product on prices in the importing 
WTO Member's market for the like or direc tly competitive products; (3) the effect of 
imports of such product on the domestic i ndustry producing like or directly competitive 
products. 
(d) The competent authorities would publish any measure proposed to be taken and provide the 
opportunity, including a public hearing, if requested, or provide other appropriate means, for importers, exporters and other interested parties to submit their views and evidence on the 
appropriateness of the proposed measure and whether it would be in the public interest. 
(e) The competent authority would promptly pub lish notice of the decision to apply a measure, 
including an explanation of the basis for the decision and the scope and duration of the measure. 
(f) The period of application of the measure coul d be extended, provided that the competent 
authorities of the importing WTO Member had determined that action continued to be 
necessary to prevent or remedy market disr uption.  The competent authorities of the 
importing WTO Member would publish notice of the commencement of any proceeding to consider whether to extend the duration of an action and would, within a reasonable time 
thereafter, hold a public hearing or provide  other appropriate means for the purpose of 
permitting all interested parties to have an opp ortunity to present evid ence or their views and 
to respond to the presentations of other parties. 
(g) Except for good cause, no investigation under S ection 16 of the Protocol on the same subject 
matter could be initiated less than one year afte r the completion of a previous investigation. 
(h) A WTO Member would apply a measure only for such period of time as was necessary to 
prevent or remedy market disruption. WT/ACC/SPEC/CHN/1/Rev.8 
Page 68  
 
246. Trade diversion referred to an increase in im ports from China of a product into a WTO 
Member as the result of an action by China or othe r WTO Members pursuant to paragraphs 2, 3 or 7 
of Section 16 of the Draft Protocol.  Members of th e Working Party also noted that the Draft Protocol 
required a determination that any trade diversion w as significant and that the action taken to address 
market disruption had caused or threatened to cause the diversion. 
247. Members of the Working Party agreed that objec tive criteria had to be applied in determining 
whether actions to prevent or remedy market di sruption caused or threat ened to cause significant 
diversion of trade.   Among the factors to be examined were:  
(a) the actual or imminent increase in market  share of imports from China in the importing 
WTO Member; 
(b) the nature or extent of the action taken or  proposed by China or other WTO Members;  
(c) the actual or imminent increase in the volume  of imports from China due to the action taken 
or proposed; 
(d) conditions of demand and supply in the im porting WTO Member's market for the products 
at issue; and 
(e) the extent of exports from China to the WTO Member(s) applying a measure pursuant to 
paragraphs 2, 3 or 7 of Section 16 of the Draft Protocol and to the importing WTO Member. 
248. A measure taken to address significant diversions of trade would be terminated not later than 
30 days after the expiration of the action taken by the WTO Member or Members involved against 
imports from China. 
249. If the WTO Member or Members taking an acti on to address market disruption notified the 
WTO Committee on Safeguards of any modification of  an action, the competent authorities of the 
WTO Member addressing trade diversion would dete rmine whether a significant diversion of trade 
continued to exist and determine whether to modi fy, withdraw or keep in place the action taken. 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
A. GENERAL 
1. Overview 
250. The representative of China stated that China ha d made the protection of intellectual property 
rights ("IPRs") an essential component of its reform and opening-up polic y and socialist legal  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 69 
 
 
construction.  The formulation of la ws and regulations in this field could be traced back to the late 
1970s.  Since then, China had joined relevant intern ational conventions and had actively participated 
in the activities sponsored by releva nt international organizations.  It  had intensified its exchanges and 
cooperation with countries throughout the world in the field of IPR protection.  As a result, 
notwithstanding the initial stage of its development, China's IPR protection system aimed at achieving world dimension and world standards.  Lists of ad ministrative rules concerning intellectual property 
rights currently in force in China were presented be low in Table A. The status of ongoing reforms and 
other relevant information was presented in Table B in the following paragraph. 
Table A:  The Administrative Rules of China Concerning Intellectual Property Rights
 
The following three parts were th e administrative rules regarding protection of intellectual property 
right, which were still in force in China. As an impor tant part of China's IPR legal system, these rules 
have a great effect on IPR protection, enforcing the IPR law, etc. 
Part I  Lists of Administrative Rules Regarding Protection of Patent Right Part II  Lists of Administrative Rules Regarding Protection of Trademark Part III  Lists of Administrative Rules Regarding Protection of Copyright 
Part I Lists of Administrative Rules Regarding Protection of Patent Right  
(i)  Regulations Relating to Implementa tion Patent Cooperation Treaty in China 
 (23 November 1993) 
(ii)  Methods on the Showing the Identification of Right of Priority to Applicant made by Patent 
 Office of China (1 March 1988) 
(iii) Regulations on Patent Commissioning (4 March 1991) 
(iv) Opinions of the Patent Office of China concerning the Implementation of the Regulations 
 on Patent Commissioning (19 April 1991) 
(v) Explanation of the Patent Office of  China on Certain Matters Relating to the 
 Commissioning Involving Foreign Interests (16 November 1987) 
(vi) Decree of Patent Office of China (No.26) (20 November 1989) 
(vii) Decree of Patent Office of China (No.27) (21 December 1989) 
(viii) Decree of Patent Office of  China (No.31) (14 March 1991) 
(ix) Procedures for Administrative Reconsideration of Patent Office of the People's Republic of 
 China (for Trial Implementation) (21 December 1992) WT/ACC/SPEC/CHN/1/Rev.8 
Page 70  
 
(x) Methods of Handling the Patent Disputes by the Administrative Authorities for Patent 
 Affairs (4 December 1989) 
Part II Lists of Administrative Rules Regarding Protection of Trademark  
(i) Rules for the Implementation of the Trademark Law of the People's Republic of China  (15 July 1993) 
(ii) Supplementary Provisions Concerning the Punishment of Crimes of Counterfeiting 
 Registered Trademarks made by the Standing Committee National People's Congress 
 (22 February 1993) 
(iii) Circular on the Commodities Demanded to Us e Registered Trademark made by the State 
 Administration for Industry and Commerce (14 January 1988) 
(iv) Circular on the Prohibition from Registering the Other Person's Trademark Abroad without 
 Being Authorized made by State Administration for Industry and Commerce and the  Ministry of Economy and Trade (19 November 1990) 
(v) Interim Provisions on Claims for Priority in Applying for Registration of Trademarks made 
 by State Administration for Industry and Commerce (15 March 1983) 
(vi) Methods of the Application International Re gistration of Trademark of  Madrid made by the 
 State Administration for Industry and Commerce (2 March 1989) 
(vii) Circular on the Stopping Using the Literal of  "Xiang Bin" or "Champagne" in Varieties of 
 Commodities of Alcohol made by the Stat e Administration for Industry and Commerce 
 (26 October 1989) 
(viii) Circular on Printing and distributing " the Rules regarding the Question of Using Trademark 
 in Can Food for Export" (15 October 1991) 
(ix) Regulations on the Control over the Surrogate of Trademark 
(x) Regulations on the Registration of and the Control over the Collective Trademark and 
 Certified Trademark (issued on 30 December 1994, revised on 3 December 1998) 
(xi) Interim Provisions on the Cognizance of and the Control over the Renowned Trademark 
 (issued on 24 August 199, revised on 3 December 1998) 
(xii) Regulations on the Control over the Prin ting of Trademark (issued on 5 September 1996, 
 revised on 3 December 1998) 
Part III Lists of Administrative Rules Regarding Protection of Copyright  
(i) Copyright Law of the People's Republic of China (7 September 1990) 
(ii) Regulations for Implementation of Copy right Law of the People's Republic of China 
 (30 May 1991) 
(iii) Provisions on the Implementation of the In ternational Copyright Treaty (25 September 1992)  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 71 
 
 
(iv) Circular of the Supreme People's Court on Matters regarding Fu rther Implementing the 
 Copyright Law of the People's Republic of China (24 December 1993) 
(v) Circular of the State Press Administration regarding Establishment the Agency of Copyright  Management in Every Provinces Autonomous Regions and Municipalities Directly under the 
 Central Government (5 February 1986) 
(vi) Regulations for Management of the Audio/visual Producers (25 August 1994) 
(vii) Opinions of the National Copyright Admini stration on Questions Relating to Reprinting the 
 Programs in Advance in Broadcast  and Television (12 December 1987) 
(viii) Circular of the National Copyright Administration of Printing and Distribution "Report 
 Relating to Appropriate Handling the Copy right Question in the Process of Culture 
 Communication with Taiwan" and "Interim Provi sions Relating to the Copyright Question of 
 Pressing the Works Written by Taiwan Compatriots" (8 February 1988) 
(ix) Circular of National Copyright Administ ration regarding the Points for Attention of 
 Transferring Copyright to Taiwan's Press Person (26 December 1987) 
(x) Circular of Newspaper Management Departme nt of the Press and Publication Administration 
 of the People's Republic of China on Ques tions Relating to Reprinting the Programs in 
 Advance in Broadcast and Television (30 March 1988) 
(xi) Opinions of National Copyright Administ ration on Matters Relating to Local Work on 
 Copyright Management (5. 1988) 
(xii) Circular of the National Copyright Administration concerning Procedures of Examining and  Verifying the Copyright Trading Contract  Between the Mainland and Hong Kong, Macao 
 and Taiwan (2 November 1988) 
(xiii) Opinions on Certain Matters of the Nati onal Copyright Administration concerning Handling 
 Copyright Cases (27 December 1988) 
(xiv) Opinion of the Press and Publication Administration, the National Copyright Administration  concerning Cooperating in Handling the Reproduc ing without Consent by the Administration 
 of Publishing and Copyright (18 July 1989) 
(xv) Circular of the National Copyright Administration concerning the Standard of Paying 
 Author's Remuneration When the Press Reprin t and Extract the Published Works at Present 
 (27 August 1991) 
(xvi) Interim Provisions of the Standard of Paying Author's Remuneration When the Press Reprint  and Extract the Published Works with the Consent by Law (1 August 1993) 
(xvii) Interim Provisions of the Standard of Paying Author's Remuneration When Perform the 
 Published Works with the Consent by Law (1 August 1993) 
(xviii) Interim Provisions of the Standard of Paying Author's Remuneration When Record the 
 Published Works with the Consent by Law (1 August 1993) WT/ACC/SPEC/CHN/1/Rev.8 
Page 72  
 
(xix) Direction of the Chinese Center of Receiving and Transmitting Author's Remuneration 
 concerning Receiving and Transmitting Remuneration About the Press Extract the Published  Works 
(xx) Circular of the National Copyright Admini stration concerning Enforcing "the Memorandum 
 of Understanding between the Government of the People's Republic of China and the 
 Government of the United States of Ameri ca on the Protection of Intellectual Property" 
 (29 February 1992) 
(xxi) Urgent Circular concerning Strengtheni ng Administration of Reproducing Compact Discs 
 and Laser Discs (12 April 1994) 
(xxii) Circular of Enforcing "Urgent Circul ar concerning Strengthening Administration of 
 Reproducing Compact Discs and Laser Discs" (12 May 1994) 
(xxiii) Circular concerning Registration of the Organization Reproducing Compact Discs and Laser 
 Discs (29 June 1994) 
(xxiv) Cooperate Circular of the Ministry of Judicial and National Copyright Administration 
 concerning Bringing Notary Office into Play in  Dealing with the Infringing Copyright Cases 
 (29 August 1994) 
(xxv) Regulations for the Protection of Copyri ght of Computer Software (4 June 1991) 
(xxvi) Measures of the Registration of Copyright of Computer Software (4 June 1992) 
(xxvii) Guide to Classified Coding of Soft ware in Computer Software's Registration 
(xxviii) The Item and Standard of Registration Expenses of Computer Software (18 April 1992) 
 
251. The representative of China stated that for accession to the WTO Agreement and compliance 
with the TRIPS Agreement, further amendments had been made to the Patent Law.  The amendments 
to the Copyright Law and the Trademark Law, as  well as relevant implementing rules covering 
different areas of the TRIPS Agreement, would also be accomplished upon China's accession.  The 
representative of China stated that laws adopted by the National People's Congress and administrative 
regulations, including implementing rules, issued by  the State Council were applied and enforced by 
the people's courts. The Working Party took note of this commitment.    WT/ACC/SPEC/CHN/1/Rev.8 
 Page 73 
 
 
Table B:  Revision of China's IPR Laws in Conformity with the TRIPS Agreement  
The People's Republic of China had conducted an inte nsive work programme to examine and revise the 
IPR laws, administrative regulations and department  rules relating to the implementation of the WTO 
Agreement and China's accession commitments. A list of China's IPR laws, administrative regulations 
and department rules to be revised and abolished wa s hereby notified to the Working Party. Part I of 
the list contained 8 laws and regulations.  Part II of the list included 4 department rules to be revised or 
abolished for the same reason. This list gave the names of laws, regulations  and department rules, 
reasons for revision or abolishment, and dates of implementation. 
Part I Laws and Administrative Regulations  
Laws and Regulations  Date of Implementation  
1.  Copyright Law of  the People's Republic of 
China Upon accession  
2.  Regulations for the Implementation of the 
Copyright Law of the People's Republic of China Upon accession 
3.  Regulations for the Protection of Computer 
Software Upon accession 
4.  Trademark Law of the People's Republic of 
China Upon accession 
5.  Detailed Rules for the Implementation of the 
Trademark Law of the People's Republic of China Upon accession 
6.  Regulations of the People's Republic of China 
on the Protection of New Varieties of Plants Effective as of 1 October 1997 
7.  Law of the people's Republic of China Against 
Unfair Competition Effective as of 1 December 1993 
8.  Regulations on the Implementation of the 
Integrated Circuit Layout Design To be effective as of 10 October 2001 WT/ACC/SPEC/CHN/1/Rev.8 
Page 74  
 
 
Part II  Department Rules
 
Department Rules  Date of Implementation  
1.  Interim Rules on the Administration of Patents 
in Agriculture, Animal Husbandry and Fisheries To be abolished upon accession 
2.  Notice on the Interim Regulation on the 
Protection of Copyright of Books and Magazines To be abolished upon accession 
3.  Notice on the Issuance of the "Detailed Rules 
of Interim Regulations on the Protection of Copyright of Books and Magazines", "Publication 
Intention Contracts" and  "Publication Contracts" To be abolished upon accession 
4.  Interpretation of Article 15(4) of the "Interim 
Regulation on the Protection Copyright of Books 
and Magazines" To be abolished upon accession 
 
2. Responsible agencies for policy formulation and implementation 
252. The representative of China stated that, at presen t, different agencies were responsible for IPR 
policy formulation and implementation.  The St ate Intellectual Property Office ("SIPO") was 
responsible for patent approval; the Trademarks Office under the State Administration for Industry 
and Commerce ("SAIC") was responsible for trad emarks registration; the Copyright Office was 
responsible for copyright policy making; SAIC was responsible for anti-unfair competition, including 
the protection of trade secrets; the State Drug Administration ("SDA") was responsible for administrative protection of pharmaceuticals; the General Customs Administration was responsible 
for border measures;  the Ministry of Agriculture  and the State Administration of Forestry were 
responsible for protection of plant varieties;  the Ministry of Information Industry was responsible for 
the protection of layout designs of integrated circ uits;  and the State General Administration of the 
People's Republic of China for Quality Supervisio n and Inspection and Quarantine and SAIC were 
responsible for combating counterfeiting activities.   Other agencies like the agency for press and 
publications, the people's courts and police were al so involved in the protection of IPR in China. 
3. Participation in international intellectual property agreements 
253. The representative of China stated that Chin a became a member of the World Intellectual 
Property Organization in 1980. In 1985, China beca me a member of the Paris Convention for the 
Protection of Industrial Property. China was one of the first countries that signed the Treaty on 
Intellectual Property in Respect of Integrated Ci rcuits, the negotiation of which was concluded in  WT/ACC/SPEC/CHN/1/Rev.8 
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1989. In 1989, China became a member of the Madrid Agreement Concerning the International 
Registration of Marks and in 1992, China beca me a member of the Berne Convention for the 
Protection of Literary and Artistic Works.  In 19 93, China became a member of the Convention for 
the Protection of Producers of Phonograms Against Un authorized Duplication of Their Phonograms.  
In 1994, China became a member of  the Patent Cooperation Treaty and a member of the Nice Agreement Concerning the International Classificati on of Goods and Services for the Purposes of the 
Registration of Marks.  In 1995, China became a memb er of the Budapest Treaty on the International 
Recognition of the Deposit of Microorganisms for th e Purposes of Patent Procedure and applied for 
membership in the Protocols of the Madrid Agre ement Concerning the International Registration of 
Marks. In 1996, China became a member of the Locarno Agreement on Establishing an International 
Classification for Industrial Designs; and in 19 97, China became a member of the Strasbourg 
Agreement Concerning the International Patent Cl assification.  Besides the above efforts, China 
participated in the TRIPS negotiations during the Uruguay Round and initialled the Final Act. 
4. Application of national and MFN treatment to foreign nationals 
254. Some members of the Working Party expressed concern that certain provisions of China's 
copyright and trademark laws, as well as China's Rules on Banning the Infringement of Business 
Secrets (23 November 1995) did not provide national treatment to foreign right-holders.  The Rules 
on Banning Infringements of Business Secrets, for exampl e, defined the "owner" of a trade secret as a 
"citizen, corporation, and other organization" and did not explicitly provide protection for foreign 
individuals or organizations.  Some members of the Working Party further stated that national 
treatment should be fully applied, so that copy right enforcement action by local copyright bureaux 
involving foreign right-holders, would no longer require clearance by the National Copyright 
Administration in Beijing.   
255. The representative of China responded that Chin a's IPR laws provided that any foreigner 
would be treated in accordance with any agreement concluded between the foreign country and China, 
or in accordance with any international treaty to wh ich both countries were party, or on the basis of 
the principle of reciprocity.  The representative of China further confirmed that China would modify 
relevant laws, regulations and other measures so as to ensure national and MFN treatment to foreign 
right-holders regarding all intellectual property righ ts across the board in compliance with the TRIPS 
Agreement.  This would include adjustments of th e clearance requirement mentioned in the previous 
paragraph to ensure national treatment.  The Working Party took note of these commitments. WT/ACC/SPEC/CHN/1/Rev.8 
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B. SUBSTANTIVE
 STANDARDS  OF PROTECTION,  INCLUDING  PROCEDURES  FOR  
THE  ACQUISITION  AND  MAINTENANCE  OF INTELLECTUAL  PROPERTY  RIGHTS 
1. Copyright protection 
256. The representative of China stated that the Co pyright Law, which was promulgated in 1990, 
established the basic copyright protection system in  China together with the Implementing Rules of 
the Copyright Law (30 May 1991), the Provisions on the Implementation of the International Copyright Treaty (25 September 1992) and other relate d laws and regulations.  In principle, this 
system was in compliance with the international IPR treaties and practices.  For the protection of 
copyright and neighbouring rights, not only civil and criminal liabilities but also administrative 
liabilities, were provided for in this system.  He nce the infringing activities could be curbed in a 
timely and effective manner and the legitimate ri ghts of the right-holders could be protected. 
257. Some members of the Working Party expressed concerns about the consistency of China's 
current law on the protection of copyright and relate d rights with the TRIPS Agreement.  In particular, 
members noted the need to clarify the rights of  performers and producers to bring them into 
conformity with the requirements of Article 14 of the TRIPS Agreement.  In  addition, improvements 
were needed with respect to enforcement of copy right to provide expressly for provisional measures 
to preserve evidence, including documentary evid ence and for remedies sufficient to deter further 
infringements. 
258. The representative of China responded that, realizing that there were some existing 
differences between China's copyright laws and the TRIPS Agreement, the amendment to the 
Copyright Law had been accelerated.  The proposed amendments would clarify the payment system 
by broadcasting organizations which use the reco rding products and also include the following 
provisions: rental rights in respect of computer programs and movies, mechanical performance rights, rights of communication to the public and relate d protection measures, protection of database 
compilations, provisional measures, increasing the le gitimate compensation amount and strengthening 
the measures against infringing activ ities.  China's copyright regime  including Regulations for the 
Implementation of the Copyright Law and the Provi sions on the Implementation of the International 
Copyright Treaty would be amended so as to ensure  full consistency with China's obligations under 
the TRIPS Agreement.  The Working Party took note of these commitments. 
2. Trademarks, including service marks 
259. The representative of China stated that the Tr ademark Law, its implementing rules and other 
relevant laws, administrative regula tions and department rules const ituted the existing trademark legal 
system in China.  The objective of  these laws was to provide protecti on to right-holders in line with  WT/ACC/SPEC/CHN/1/Rev.8 
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the international conventions a nd prevailing practices regarding intellectual property rights, which 
was embodied both in the regulations on the substa nce and procedures for trademark registration and 
in the protection of trademark exclusive right.  In  order to protect the trademark owner's exclusive 
rights, China's Trademark Law contained not only ci vil and criminal liabilities but also provided for 
administrative punishment of trademark infringers.  This "double-track system" for the protection of exclusive rights in trademarks could prevent tr ademark infringements in a timely and effective 
manner and protect the legitimate rights and interest s of these exclusive rights.  In recent years, 
China's judicial and administrative bodies had stepped up their efforts to protect trademark exclusive rights within their respective authority.  They had se ttled a large number of cases that were influential, 
domestically and abroad, which provided adequate pr otection to the legitimate rights and interests of 
both Chinese and foreign holders of exclusive right s in trademarks, and received a positive response 
from domestic and foreign right-holders. 
260. Some members of the Working Party reitera ted their concerns about whether certain 
provisions of China's trademark law provided nationa l treatment to foreign ow ners of trademarks.  
They noted that China's law required foreign owne rs of trademarks to use designated trademark 
agents, while Chinese nationals were permitted to f ile directly with China's Trademark Office.  
Members also noted that China's trademark law did not consider certain signs as eligible for protection as required under the TRIPS Agreement.   These included names, letters, numerals and 
colours capable of distinguishing goods and services.   In addition, if registrability of a trademark 
depends on use, China's trademark law should prov ide that a non-distinctive mark could qualify for 
registration when it has acquired distinctiveness base d on use.  Members also noted that it was not 
clear under China's law that actual use of a mark was not required before a party could file to register 
a mark.   
261. Some members of the Working Party also rai sed concerns about the protection of well-known 
trademarks in China, in particular those not register ed in China.  China's laws and regulations did not 
specifically state the criteria for determining wh ether a mark was well-known and therefore members 
could not determine if it conformed to the requi rements of Article 16 of the TRIPS Agreement.  
Moreover, while China had provided protection to  "well-known trademarks " owned by nationals, 
such protection had, as yet, not been granted to the well-known trademarks of  foreigners.  Members 
also noted that certain provisions of China's trad emark law needed to be extended to unregistered 
well-known trademarks.   
262. The representative of China stated that with the development of China's market economy and 
the further implementation of the TRIPS Agreement,  China's legislative and law enforcement bodies 
had also realized that the existing trademark law fe ll somewhat short of fulfilling the requirements of WT/ACC/SPEC/CHN/1/Rev.8 
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the TRIPS Agreement and the Paris Convention in a few aspects and were therefore preparing to 
amend the existing trademark law to fully meet  the requirements of the TRIPS Agreement.  
Modifications would mainly be made to the following  aspects: to include the trademark registration of 
three-dimensional symbols, combinations of colour s, alphabets and figures; to add the content of 
collective trademark and certification trademark (i ncluding geographical indications); to introduce 
official symbol protection; to protect well-known trad emarks; to include priority rights; to modify the 
existing trademark right confirmation system and offe r interested parties the opportunity for judicial 
review concerning the confirmation of trademark righ ts;  to crack down on all serious infringements;  
and to improve the system for providing damages for trademark infringement.  The Working Party 
took note of these commitments. 
3. Geographical indications, including appellations of origin 
263. The representative of China stated that the rele vant rules of the SAIC and the State General 
Administration of the People's Republic of Chin a for Quality Supervision and Inspection and 
Quarantine partly provided protection for geographical  indications, including appellations of origin, 
and that the amendments to the trademark law w ould have a specific provision on the protection of 
geographical indications. 
264. Members of the Working Party took note of the progress achieved on providing protection for 
geographical indications and reite rated the importance of China's legislation complying with the 
obligations under the TRIPS Agreement (Articles 22,  23 and 24).  The representative of China shared 
this assessment and reiterated China's intention to fully comply with relevant articles in the TRIPS 
Agreement on geographical indications. The Work ing Party took note of this commitment. 
4. Industrial designs 
265. Some members of the Working Party noted that the industrial design provisions of China's 
patent law appeared to implement substantial por tions of the TRIPS Agreement requirements relating 
to industrial designs.  One notable exception was the area of textile designs.  These members noted 
that designs of WTO Members could be protected  under China's Provisions on the Implementation of 
the International Copyright Treaty as works of applie d art.  Members urged China to incorporate this 
protection into its law and to provide su ch protection to domestic textile designs. 
5. Patents 
266. The representative of China stated that in preparation for its accession, China revised its 
patent law in 1992 for the first time.  China had taken measures to enhance consistency with the  WT/ACC/SPEC/CHN/1/Rev.8 
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TRIPS Agreement in terms of major provisions and protection standards.  In order to increase the 
awareness of the general public on IPR protection, and patent protection in partic ular, to be consistent 
with the TRIPS Agreement, and to build up a sound social environment for the promotion and 
commercialization of inventions, the National Pe ople's Congress approved the second revision of the 
Patent Law on 25 August 2000.  The revised patent law, which woul d take effect on 1 July 2001, 
included the following elements: (1) patent owners  would have the right to prevent others from 
offering for sale the patented product without thei r consent (Article 11);  (2) for utility model and 
design applications or patents, the final decisi on on re-examination and inva lidation would be made 
by the people's courts other than for inventions that  were patented prior to the amendment (Articles 41 
and 46);  (3) patent owners could,  before instituting lega l proceedings, request the people's court to 
take provisional measures such as to order the su spension of infringing acts and to provide property 
preservation (Article 61); and (4) conditions for granting a compulsory licence would be further 
clarified and made consistent  with the TRIPS Agreement. 
267. The representative of China further stated that since its establishment, SIPO had paid great 
attention to strengthening its cont acts and coordination with relevant departments and ministries in the 
field of IPR law enforcement, especially in the areas of settling inter-agency problems and resolving 
key cases.  At the same time, SIPO had taken appropriate measures to improve the performance of local patent authorities in law enforcement.  For example, in June 1999, SIPO convened a nationwide 
working conference, which was attended by re presentatives from local patent administrative 
authorities.  The participants summarized their law enforcement practices over the previous two years 
and also exchanged information on their experiences in their local legislative work with a view to 
intensifying patent protection.  The conference al so called for the introduction of important patent 
cases reporting and recording system. 
268. The representative of China stated that so far as the range of patent protection and protection 
for new plant varieties were concerned, China had already met the requirements of Article 27 of the 
TRIPS Agreement.  When amending the Patent Law in 1992, China modified Article 25 therein with 
reference to the relevant stipulations in the fi nal text of the TRIPS Agreement and expanded the 
coverage of patent protection to food, beverages,  flavourings, pharmaceuticals and materials obtained 
by chemical methods.  The scope of patent exclus ions would be limited to "scientific discoveries, 
rules and methods of intellectual activities, diagnos tic and therapeutic methods for the treatment of 
diseases, animals and plant varieties, as well as materials obtained by the change of nucleus". 
269. He further stated that Article 5 of China's Pate nt Law stipulated that inventions that violate 
laws of China or social morality or prejudice public interest would not be entitled to patent right.  
While literally there was a difference between Article 5 of China's Patent Law and the TRIPS WT/ACC/SPEC/CHN/1/Rev.8 
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Agreement, in practice, during the review of patent  applications, the interpretation of "violating laws 
of China" had been restricted to "if laws of Chin a prohibit the sale of a certain patented product, or 
prohibit the sale of products manufactured by a pate nted method, the granting of patent right cannot 
be denied to this product invention or this i nvention of product manufacturing method by relying on 
Article 5 of the Patent Law".  Hence, in essence, he concluded that there was no difference between 
Article 5 of the Patent Law as applied and the TR IPS Agreement.  Nonetheless, China would amend 
the Implementing Rules of the Patent Law to ensure  that this provision would be implemented in full 
compliance with Article 27.2 of the TRIPS Agreemen t, which stipulated that: "Members may exclude 
from patentability inventions, the prevention within their territory of the commercial exploitation of 
which is necessary to protect ordre public  or morality, including to protect human, animal or plant life 
or health or to avoid serious prejudice to the environment, provided that such exclusion is not made 
merely because the exploitation is prohibited by th eir law".  The Working Party took note of this 
commitment. 
270. Regarding Article 28 of the TRIPS Agreement (rights conferred), the representative of China 
stated that China's patent law had fully complied with the requirements of the TRIPS Agreement for 
the following reasons.  First, in th e 1992 amendment to the Patent La w, Article 11 was modified as 
follows: "any entity or individual is, without prior licensing from the patentee, prohibited from 
making, using or selling patented pr oducts or patented processes, or us ing or selling products directly 
obtained by the patented processes for the purpose of production and operation".  It was also prohibited for any entity or individual to import patent ed products or products directly obtained by 
patented processes for the purpose of production a nd operation.  This mo dification expanded the 
scope of patentees' right, namely the new content of  "the right to prohibit import" and "the effect of 
patented processes is extended to pr oducts directly obtained by pate nted processes".  Second, in 2000, 
when the second amendment was made to the Patent Law, Article 11 was once again modified. A new stipulation was introduced granting patentees the ri ght to prohibit others from offering for sale the 
patented products or products directly obtained by patented processes without the consent of 
patentees.  Therefore, so far as "the right of pa tentees" is concerned, China's Patent Law had fully 
accommodated the requirements of the TRIPS Agreement. 
271. Further to the 1992 amendment, the representative of China stated that China's Patent Law 
provided for compulsory licences based on reasonabl e terms, for public interest and for dependent 
patents.  With regard to the conditions of compul sory licences for dependent patents, the Patent Law 
provided that the latter invention should be tec hnically more advanced than the earlier one.  The 
TRIPS Agreement provides that "the invention claimed in the second patent shall involve an 
important technical advance of considerable ec onomic significance in relation to the invention 
claimed in the first patent" (Article 31(l)(i)).  Since the provisions of the TRIPS Agreement were  WT/ACC/SPEC/CHN/1/Rev.8 
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more transparent and easier to operate, the releva nt expressions contained in the TRIPS Agreement 
were adopted in the new revision.  In addition,  the following restrictive conditions for granting 
compulsory licences contained in the Implementing Rules of the Patent Law of 1992 had been moved 
into the Patent Law in order to make it more au thoritative: the decision of SIPO on the granting of a 
compulsory licence for exploitation would be limite d in terms of its scope and duration; when the 
circumstances which led to such compulsory licence ce ased to exist and were unlikely to recur, SIPO, 
upon the request of the patentee, could terminate th e compulsory licence after examination;  were 
incorporated into the Law (former Article 68 of the Implementing Rules of the Patent Law of 1992 
had now been moved into Article 51 of the revised Patent Law). 
272. The representative of China stated that follo wing the 1992 amendment, the regulations on 
compulsory licensing in China's Patent Law and its implementing rules, as a whole, had fulfilled the 
requirements of the TRIPS Agreement.  However,  some wording and expressions in the Chinese 
regulations were still not identical to the TR IPS Agreement and these regulations still needed 
improvement in respect of the administrative lega l proceedings concerning compulsory licensing.  
Therefore, in the second amendment to the Pate nt Law in 2000, the corresponding amendments and 
modifications to the stipulations on compulsory licensing were mainly made in the following two 
points: (1) Article 53 of the Patent Law was modifi ed from "a patented invention or utility model is 
technically more advanced than the inventions or  utility models which have obtained patent right 
earlier" into "a later invention or utility mode l is an important technical progress with striking 
economic significance as compared to the earlier invention or utility model"; and (2) having been 
subject to appropriate adjustments,  the regulations on the time, scope  and termination of compulsory 
licensing enforcement in Article 68 of the Implem enting Rules of the Patent Law of 1992 were 
integrated into Article 52 of th e amended Patent Law.  Followi ng the above-mentioned amendments, 
China's Patent Law had regulations on compulso ry licensing with clearer structure and improved 
content.  In the representative of China's view, these regulations were fully consistent with the TRIPS 
Agreement.  He also added that up to now China had not issued any compulsory licences for patent 
enforcement. 
273. Some members of the Working Parity noted the improvements in the provisions regarding 
compulsory licensing for patents that the representa tive of China cited.  Some members however, 
requested clarification of the subject matter that would be subject to compulsory licensing under the 
Patent Law. 
274. In response, the representative of  China agreed that still not all the requirements of Article 31 
of the TRIPS Agreement had been incorporated into Chinese law, and that Implementing Rules of the 
Patent Law would therefore be modified so as to ensure that: (1) use without authorization of the right WT/ACC/SPEC/CHN/1/Rev.8 
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holder would only be permitted if, prior to such use,  the proposed user had made efforts to obtain 
authorization from the right-holder on reasonable co mmercial terms and conditi ons (Article 31(b)), 
(2) the right-holder would be paid  adequate remuneration in the circumstances of each case, taking 
into account the economic value of the authorizati on (Article 31(h)); (3) any such use would be 
authorized predominantly for the su pply of the domestic market (Ar ticle 31(f)); and (4) in the case of 
semi-conductor technology, the scope and dura tion of such use would only be for public 
non-commercial use or to remedy a practice determined  after judicial or administrative process to be 
anti-competitive (Article 31(c)). The Working Party took note of these commitments. 
275. Regarding Article 32 of the TRIPS Agreement (revocation/forfeiture), the representative of 
China stated that in light of Articles 41 and 46 of  the amended Patent Law, patent applicants or 
patentees of inventions, as well as applicable util ity models and designs, could institute legal 
proceedings in the people's court if they were not satisfied with the review or nullity decisions made 
by the Patent Review Board.  This modification en abled China's Patent Law to be fully consistent 
with TRIPS regarding administrative decisions which were subject to judicial review.   
276. On the duration of patent right  protection, the representative of  China stated that as early as 
1992 when China made an initial amendment to the Pa tent Law, Article 45 (later converted into 
Article 42 after the second amendment) was modified as:  "the duration of invent ions patent right is 20 
years and the duration of patent right for applicable  utility model and designs is 10 years, counted as 
of the date of application".  Therefore, Chin a's Patent Law had for a long time accorded with 
Articles 26 and 33 of the TRIPS Agreement concerning the duration of patent rights. 
277. Regarding Article 34 of the TRIPS Agreemen t (process patents: burden of proof), the 
representative of China stated that China's Patent Law was modified in 1992 and 2000, and was now 
in full conformity with the TRIPS Agreement.  The amended paragraph 2 of  Article 57 reads: "when 
any infringement dispute relates to a process patent for the manufacture of a new product, any entity or individual manufacturing the identical product sha ll furnish proof to the effect that a different 
process is used in the manufacture of its or his product". 
6. Plant variety protection 
278. The representative of China confirmed that Ch ina was a party to the 1978 text of the 
Universal Convention on the Protection of Plant Varieties ("UPOV").  In March 1997, the State Council formulated and promulgate d the Regulation on the Protection of New Plant Varieties, thus 
offering protection for new plant varieties in a  sui generis form consistent with the requirements of 
the TRIPS Agreement. A unit or an individual that had accomplished the breeding enjoyed an 
exclusive right in their right-granted variety. No unit or individual could, without permission from the  WT/ACC/SPEC/CHN/1/Rev.8 
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owner of the variety rights (referred to as "the  variety rights owner"), produce or market for 
commercial purposes the propagation material of the rights-granted variety, or repeatedly use for 
commercial purposes the propagation material of the rights-granted variety in the production of the 
propagation material of another variety. The conditi ons of non-voluntary licensing were set out in the 
regulation. The period of protection of variety rights , from the date of grant of the rights, would be 
20 years for vines, forest trees, fruit trees and ornamental trees and 15 years for other plants. 
7. Layout designs of integrated circuits 
279. The representative of China stated  that China was one of the first countries to sign the Treaty 
on Intellectual Property in Respect of Integrated Ci rcuits in 1989.  The specific Regulation on the 
Protection of Layout Designs of Integrated Circ uits, which would implement China's obligations 
under Section 6 of the TRIPS Agreement, was is sued in April 2001 and would be effective on 
1 October 2001.  
280. The representative of China stated  that China was strengthening the protection of the layout 
designs to support the rapid development of the inte grated circuit industry. The regulations provided 
protection to layout-designs, according to which the following acts if performed without authorization 
of the right holder were unlawful: importing, se lling or otherwise distributing for commercial 
purposes a protected layout-design, an integrated circuit in which a protected layout-design was 
incorporated, or an article incorporating such an integrated circuit only in so far as it continued to 
contain an unlawfully reproduced layout-design. The exception clause and non-voluntary licensing 
clause were in conformity with Article 37 of TR IPS. The term of protection was 10 years counted 
from the date of filing an application for regi stration or from the first commercial exploitation 
wherever in the world it occurred. In  addition, the protection to the layout-design of integrated circuits 
was in accordance with Article 2 through 7 (other than paragraph 3 of Article 6), Article 12 and 
paragraph 3 of Article 16 of the Treaty on Intellect ual Property in Respect of  Integrated Circuits. 
8. Requirements on undisclosed information, including trade secrets and test data 
281. Some members of the Working Party expressed  concern about China's protection against 
unfair commercial use and disclosure of undisclosed test and other data submitted to authorities in 
China to obtain marketing approval for pharmaceuticals and agricultural chemicals.  They noted that 
China's laws appeared to prohibit the release of  information by government officials but did not 
include provisions regarding the prevention of unfair commercial use, as required under Article 39.3 
of the TRIPS Agreement.  Some members requested  that China specifically provide in its law and 
regulations that it would protect against unfair co mmercial use of undisclosed test or other data 
submitted in support of applications for marketin g approval of pharmaceutical or of agricultural WT/ACC/SPEC/CHN/1/Rev.8 
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chemical products which utilize new chemical entit ies, by providing that no person other than the 
person that submitted such data may, without th e permission of the person initially submitting the 
data, rely on such data in support of an applicati on for product approval for a period of at least six  
years from the date on which marketing approval to the person that submitted the data had been 
granted. 
282. The representative of China stated that Ar ticle 10 of the Anti-unfair Competition Law 
provided that a business operator must not infring e upon trade secrets.  Under the same Article, 
obtaining, using or disclosing another's trade secrets by a third party who clearly knew or ought to have known that the case fell under the unlawful act s listed in the preceding paragraph was deemed 
infringement upon trade secrets.  Trade secrets refe rred to any technology in formation or business 
operation information which was unknown to the public , could bring about econom ic benefits to the 
obligee, had practical utility and about which the obligee had adopted secret-keeping measures.  He 
also stated that Article 219 of the Criminal Law had similar definitions on trade secrets. 
283. The representative of China further confirme d that China would, in compliance with 
Article 39.3 of the TRIPS Agreement, provide eff ective protection against unfair commercial use of 
undisclosed test or other data submitted to authoriti es in China as required in support of applications 
for marketing approval of pharmaceutical or of agricultural chemical products which utilized new 
chemical entities, except where the disclosure of such data was necessary to protect the public, or 
where steps were taken to ensure that the data are protected against unfair commercial use.  This 
protection would include introduction and enactment of  laws and regulations to make sure that no 
person, other than the person who submitted such data, could, without the permission of the person 
who submitted the data, rely on such data in supp ort of an application for product approval for a 
period of at least six years from the date on whic h China granted marketing approval to the person 
submitting the data.  During this period, any second a pplicant for market authorization would only be 
granted market authorization if he submits his own da ta.   This protection of data would be available 
to all pharmaceutical and agricultural products wh ich utilize new chemical entities, irrespective of 
whether they were patent-protected or not.  The Working Party took note of these commitments. 
C. MEASURES
 TO CONTROL  ABUSE  OF INTELLECTUAL  PROPERTY  RIGHTS 
284. The representative of China stated that there we re provisions relating to compulsory licences 
in the Patent Law to prevent abuse of patent right .  He also stated that the Trademark Law provided 
that the trademark registrant may, by concluding a trademark licensing contract, authorize another person to use its registered trademark.  The li censor would supervise the quality of the goods on 
which the licensee used the licenso r's registered trademark and the licensee would guarantee the 
quality of the goods on which the registered trademark was to be used.  WT/ACC/SPEC/CHN/1/Rev.8 
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285. Some members of the Working Party expressed some concerns as to the compatibility of 
China's rules on control of anti-competitive licen sing practices or conditions with the corresponding 
obligations under Article 40 of the TRIPS Agreement.   The representative of China stated in response 
that China's legislation would comply with th ese obligations, notably as to the request for 
consultations with other Members.  He stated th at these rules would apply across the board to all 
intellectual property rights. The Working Party took note of this commitment. 
D. ENFORCEMENT 
1. General 
286. Some members of the Working Party expressed c oncern that there was a continued need for 
additional enforcement efforts by the Government of China.  They also said that China should 
strengthen the legislative framework for the enforcem ent of intellectual property rights for all right-
holders.  The representative of China stated that wh ere an infringement of intellectual property rights 
was found in China, the person concerned could bri ng a lawsuit to a court.  Since 1992, special IPR 
courts have been set up in major cities such as Be ijing and Shanghai on the basis of their specialized 
collegial panels.  According to China's legisla tion, individuals and enterprises would be held 
responsible for all their IPR infringing activities and s ubject to civil and/or criminal liabilities.  Where 
any person violated the IPR of another person and th e circumstances were serious, the person directly 
responsible would be prosecuted for his criminal liability by applying relevant provisions of the 
Criminal Law.  If found guilty, the person directly responsible could be sentenced to a fixed-term 
imprisonment of no more than seven years or be subject to detention or a fine. 
287. Some members of the Working Party further urged China to ensure the vigorous application 
by Chinese authorities of the enforcement legislation in order to considerably reduce the existing high 
levels of copyright piracy and trademark count erfeiting.  Action should include the closure of 
manufacturing facilities as well as markets and retail shops that had been the object of administrative 
convictions for infringing activities.  The representati ve of China stated that the measures for cracking 
down on intellectual property piracy were always severe  in China.  In judicial aspects, courts at all 
levels were continuously paying attention to the trial of IPR cases.  As for administration aspects, the 
administrative authorities at all levels were putting emphasis on strengthening anti-piracy work.  In 
addition, the administrative authorities were also e nhancing the legal publicatio n and education of the 
general public in a bid to ensure that the legal environment of China woul d be able to meet the 
requirements for enforcing the TRIPS Agreemen t.  The Working Party took note of these 
commitments . WT/ACC/SPEC/CHN/1/Rev.8 
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2. Civil judicial procedures and remedies 
288. Some members of the Working Party expressed c oncern about certain practices relating to the 
filing of civil judicial actions that made it diffi cult for intellectual property right-holders to pursue 
their rights in China's courts.  China's system of basing filing fees on the amount of damages requested makes large-scale infringement acti ons unnecessarily costly.  Those members also 
expressed concern  regarding the calculation of damages based on the infri nger's profits.  This, 
combined with China's rules on establishing the level of profits which require evidence of actual sale 
and which disregard inventory and past activity, often resulted in damage amounts inadequate to 
compensate for the injury that th e right-holder has suffered.   
289. The representative of China stat ed that Article 118 of the General Principles of the Civil Law 
provided that if the rights of authorship (copyrights), patent rights, rights of exclusive use of 
trademarks, rights of discovery, rights of invention or rights for scientific and technological research achievements of citizens or juridical persons we re infringed upon by such means as plagiarism, 
alteration or imitation, they had the right to demand that the infringement be stopped, its ill effects be 
eliminated and the damages be compensated for.  He further stated that the Trademark Law, the 
Patent Law and the Copyright Law had similar provisions. 
290. The representative of China further confirmed that, Articles 42 and 43 of the TRIPS 
Agreement would be effectively implemented under the judicial rules of civil procedure.  The 
Working Party took note of this commitment. 
291. The representative of China confirmed that the relevant implementing rules would be 
amended to ensure full compliance with Articles 45 a nd 46 of the TRIPS Agreement, to the effect that 
damages paid by the infringer to the right-holder would be adequate to compensate for the injury 
suffered because of an infringement of that person' s intellectual property right by an infringer who 
knowingly, or with reasonable grounds to know, en gaged in infringing activity.  The Working Party 
took note of this commitment. 
3. Provisional measures 
292. Members of the Working Party noted that th e TRIPS Agreement required that judicial 
authorities have the authority to order prompt a nd effective provisional measures to (1) prevent an 
infringement of intellectual property from occurring, in particular to prevent the distribution or sale of infringing goods, and (2) to preserve the evidence of alleged infringement.  WT/ACC/SPEC/CHN/1/Rev.8 
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293. The representative of China stated that in Ch ina's Civil Procedure Law there were provisions 
on property preservation, but as yet no explicit sti pulations had been provided to authorize the 
people's court to take measures for the prevention of infringements prior to formal institution of a 
lawsuit by a party involved.  In order to enhance the deterrent power of law against infringements and 
to guarantee that the legitimate rights and inter ests of patentees would not suffer from irreparable 
harm as well as to comply with the TRIPS Agreemen t, China, when amending the Patent Law for the 
second time in 2000, introduced Article 61 to regu late provisional measures, which provided as 
follows: "where a patentee or any interested part y who can provide any reas onable evidence that his 
right is being infringed or that such infringement is imminent, and any delay in stopping the acts is 
likely to cause irreparable harm to his or its legiti mate rights and interests, he or it may, before 
instituting legal proceedings, request the people's cour t to order the suspension of related acts and to 
provide property preservation". 
294. Some Members of the Working Party expressed c oncern that Article 61 of the Patent Law did 
not fully incorporate all requirements of Article 44 of the TRIPS Agreement, and that it was still 
unclear whether holders of intellectual property ri ghts other than patents could rely on a similar 
procedure. 
295. The representative of China stated that Article 61 of the Patent Law would be implemented in 
a way fully consistent with Article 50.1-4 of the TR IPS Agreement.  He also stated that "reasonable 
evidence" in Article 61 of the Patent Law would be, through implementing rules, clarified to mean 
"any reasonably available evidence in order to satisfy  with sufficient degree of certainty that the 
applicant is the right-holder and that the applicant' s right is being infringed or that such infringement 
is imminent, and to order the applicant to provide a security or equivalent assurance sufficient to 
protect the defendant and to prevent abuse". Th e Working Party took note of this commitment. 
4. Administrative procedures and remedies 
296. Members of the Working Party noted that most IPR enforcement in China was done through 
administrative actions.  In this connection, some  members expressed concern about the inadequate 
levels of administrative sanctions in China which,  when coupled with the high threshold for initiating 
criminal prosecutions, made IPR enforcement in Chin a difficult.  Administrative sanctions generally 
amounted to small fines and the loss of infringing i nventory.  Members also stressed the need for 
administrative authorities to refer more cases, including those involv ing repeat offenders and willful 
piracy and counterfeiting, to the appropriate authorities for initiation of criminal actions. 
297. The representative of China said that the Tradem ark Law provided that in the event of any 
infringement of the right to the exclusive use of a registered trademark, the infringed right holder WT/ACC/SPEC/CHN/1/Rev.8 
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could request the administrative department for i ndustry and commerce at or above the county level 
for disposition.  The relevant administrative depart ment for industry and commerce had the power to 
order the infringer to stop the infringing act immedi ately and to compensate the infringed right holder 
for its or his losses.  SAIC and its local agencies above the county level could also impose a fine upon 
the infringer.  The Patent Law provided that the patentee and interested party could request the 
administrative authority for patent affairs to handl e the infringing act.  The administrative authority 
could order the infringer to stop the infringing act i mmediately and mediate on damages at the request 
of the parties concerned.  The Copyright Law provi ded that the copyright administration department 
could subject anyone who committed acts of infri ngement to such administrative penalties as 
confiscation of unlawful income from the act or imposition of a fine. 
298. The representative of China stated that most IPR enforcement actions in China resulted in 
administrative measures to address the infringement.  He noted ongoing efforts to strengthen the 
sanctions that were available to administrativ e authorities and the increased attention given to 
enforcement of IPRs.  The representative of China confirmed that the government would continue to 
enhance its enforcement efforts, including through the application of more effective administrative 
sanctions.  Relevant agencies, including the State Administration for Industry and Commerce, the 
State General Administration of the People's Republic of China for Quality Supervision and Inspection and Quarantine and the Copyright Office,  now had the authority to confiscate equipment 
used for making counterfeit and pirated products an d other evidence of infringement.  These relevant 
agencies would be encouraged to exercise th eir authority to seize and preserve evidence of 
infringement such as inventory and documents.  Ad ministrative authorities would have the authority 
to impose sufficient sanctions to prevent or deter further infringement and would be encouraged to 
exercise that authority.  Appropriate cases, incl uding those involving repeat offenders and willful 
piracy and counterfeiting, would be referred to relevant authorities for prosecution under the criminal 
law provisions.  The Working Party took note of these commitments. 
5. Special border measures 
299. The representative of China stated that on 5 July 1995 the State Council of the People's 
Republic of China had issued special legislation in  respect of border measures for enforcement of 
intellectual property rights – the Regulations of th e People's Republic of China Governing Customs 
Protection of Intellectual Property Rights – which ca me into effect on 1 October of the same year.  
According to this legislation, China's Customs offi ces must take measures to intercept importation or 
exportation of goods that were prove d to be infringing the rights of trademarks, patents or copyrights 
legally protected in China.  China's Customs o ffices were granted authority to investigate any 
suspected shipment and confiscate the goods in case infringement was proved.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 89 
 
 
300. Some members of the Working Party expressed c oncerns as to the compatibility of existing 
border measures with obligations under Articles 51 to  60 of the TRIPS Agreement; particularly the 
provisions on suspension of release into free circul ation by customs authorities (Article 51), rules on 
evidence for initiating this procedure (Article 52), requirements on the security needed to protect the 
defendant (Article 53), rules on notice of the susp ension (Article 54) and its duration (Article 55), 
rules on indemnification of the importer in case of wr ongful detention (Article 56) and opportunity for 
the right-holder to have the goods detained inspect ed (Article 57). Moreover some expressed their 
concern as to compatibility of rules on actions ex-o fficio by competent authorities and the conditions 
attached (Article 58), as well as to the remedies pr ovided against infringing good s (Article 59) and the 
quantities subject to the  de minimis rules (Article 60). 
301. In response, the representative of China stat ed that China would provide holders of 
intellectual property rights with procedures related to border measures that complied fully with the 
relevant provisions of the TRIPS Agreement (Articles 51 to 60).  The Working Party took note of this 
commitment. 
6. Criminal procedures 
302. The representative of China stated that Articl es 213 to 220 of the Criminal Law (Crimes of 
Infringing on Intellectual Property Rights) provided that whoever seriously infringes the right-holders' 
rights of registered trademarks, patents, copyrights or trade secrets would be sentenced to fixed-term 
imprisonment and would also be fined. 
303. Some members of the Working Party expressed concerns that criminal procedures could not 
be used effectively to address piracy and counterfeiti ng.  In particular, the monetary thresholds for 
bringing a criminal action, as currently applied, were very high and seldom met.  Those thresholds 
should be lowered so as to permit effective action th at would deter future piracy and counterfeiting.  
In response, the representative of China stated that China's admini strative authority would recommend 
that the judicial authority make necessary adjustme nts to lower the thresholds so as to address these 
concerns.  The Working Party took note of this commitment. 
304. Noting the advanced state of protection for intellectual property rights in China, the 
representative of China confirmed that upon accession China would fully apply the provisions of the 
TRIPS Agreement.  The Working Party took note of this commitment. WT/ACC/SPEC/CHN/1/Rev.8 
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VI. POLICIES AFFECTING TRADE IN SERVICES 
1. Licensing 
305. Some members of the Working Party welcomed the broad-ranging and comprehensive 
commitments that China was undertaking to increase transparency and to provide information to 
governments and service providers on any matter rela ting to the GATS including China's Schedule of 
Specific Commitments.  These members nonetheless e xpressed concerns regarding the lack of 
transparency in China's current ser vices regime, in particular with respect to obtaining, extending, 
renewing, denying and terminating licences and ot her approvals required to provide services in 
China's market and appeals of such actions (hereaf ter referred to as "China 's licensing procedures and 
conditions"). To be consistent with the provisi ons of the WTO Agreement, including the Draft 
Protocol and China's Schedule of Specific Commitm ents, members of the Working Party noted that 
China's licensing procedures and conditions should not in themselves act as a barrier to market access 
and should not be more trade restrictive than nec essary. Those members also expressed the view that 
upon its accession, China should publish (1) a list of authorities responsible for authorizing, approving 
or regulating those service sectors in which Chin a made specific commitments and (2) China's 
licensing procedures and conditions. 
306. The representative of China confirmed that paragraph 331  regarding publication of a list of all 
organizations that were responsible for authorizin g, approving or regulating service activities for each 
service sector, including those organizations dele gated such authority from the central government 
authorities, would apply. The representative of Chin a also confirmed that China would publish in the 
official journal all of China's licensing procedures and conditions upon accession.  The Working Party 
took note of these commitments. 
307. The representative of China also confirme d that upon accession China would ensure that 
China's licensing procedures and c onditions would not act as barriers to market access and would not 
be more trade restrictive than necessary.  In  accordance with China's commitments under the WTO 
Agreement, the Draft Protocol and its Schedule of  Specific Commitments, the representative of China 
confirmed that for those services included in China's Schedule of Specific Commitments, China 
would ensure that:  
(a) China's licensing procedures and conditions we re published prior to becoming effective;  
(b) In that publication, China would specify reas onable time frames for review and decision by all 
relevant authorities in China's licensing procedures and conditions;  
(c) Applicants would be able to request  licensing without individual invitation;   WT/ACC/SPEC/CHN/1/Rev.8 
 Page 91 
 
 
(d) Any fees charged, which were not deemed to  include fees determined through auction or a 
tendering process, would be commensurate with the administrative cost of processing an 
application.  
(e) The competent authorities of China would, after receipt of an application, inform the applicant 
whether the application was considered comple te under China's domestic laws and regulations 
and in the case of incomplete applications, identify the additional information that was 
required to complete the application and provide the opportunity to cure deficiencies;  
(f) Decisions would be taken promptly on all applications;  (g) If an application was terminated or denied, the applicant would be informed in writing and 
without delay the reasons for such action. The applicant would have the possibility of resubmitting, at its discretion, a new applicati on that addressed the reasons for termination or 
denial; 
(h)  If an application was approved, the applicant would be informed in writing and without delay.  
The licence or approval would enable the a pplicant to start the commercial operations upon 
registration of the company's name with SAIC for fiscal and other similar administrative 
purposes.  This registration would be complete d within 2 months of the submission of a 
complete file, as required by public SAIC regulations, and in accordance with China's 
Schedule of Specific Commitments;  
(i) Where China required an examination to li cence professionals, such examinations would be 
scheduled at reasonable intervals.   
The Working Party took no te of these commitments.  
308. Some members of the Working Party also  expressed concern about maintaining the 
independence of regulators from those they regulated . The representative of China confirmed that for 
the services included in China's Schedule of Specific Commitments, relevant regulatory authorities 
would be separate from, and not accountable to, any service suppliers they regulated, except for 
courier and railway transportation services.  For th ese excepted sectors, China would comply with 
other relevant provisions of the WTO Agreement and the Draft Protocol. The Working Party took 
note of these commitments. 
309. The representative of China stat ed that China would consult with WTO Members and develop 
regulations, consistent with Ch ina's Schedule of Specific Commitments and its obligations under 
GATS, on sales away from a fixed location.  The Working Party took note of this commitment. WT/ACC/SPEC/CHN/1/Rev.8 
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310. Some members of the Working Party noted that the World Code of Conduct provided a strong 
ethical basis for regulating sales away from a fixed location.  
311. In response to questions from members of th e Working Party regarding certain terms in 
China's Schedule of Specific Commitments, the representative of China confirmed the following:   
(a) A "master policy" was a policy that provided bl anket coverage for the same legal person's 
property and liabilities located in different places.  A master policy could only be issued by 
the business department of an insurer's head o ffice or that of its authorized province-level 
branch offices.  Other branches were not  allowed to issue master policies. 
(i) For master policy business with the state key construction projects as its subject-
matter insured.  
 If investors on the state key construction projects (i.e., projects that were so listed and 
annually announced by the State Developm ent and Planning Commission) met either 
of the following requirements, they could purchase a master policy from insurers that 
were located in the same place as the investors' legal persons were located. 
 1. The investment on the subject-matter insured were all from China (including 
the reinvestment from the foreign-invested  enterprises in China) and the sum of 
investment of the investor accounted for over 15 per cent of the total investment. 
 2. The investment was partially from abroad, and partially from China 
(including the reinvestment from the foreign- invested enterprises in China) and the 
sum of investment of the Chinese investor accounted for over 15 per cent of the total 
domestic investment. 
 For those projects that drew all investme nt from abroad, every insurer could provide 
coverage in the form of a master policy. 
 (ii) A Master policy covering different subj ect-matters insured of the same legal person. 
 For those subject-matters insured located in different places and owned by the same 
legal person (excluding fi nancial, railway, and post and telecommunications 
industries and enterprises), a master policy could be issued on the basis of either of the following conditions.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 93 
 
 
 1. For the sake of payment of the premium tax, insurance companies 
incorporated where the legal person or accoun ting unit of the insurance applicant was 
located, were allowed to issue a master policy. 
 2. If over 50 per cent of the insurance amount of the subject-matter insured was 
from a larger or medium sized city, then insu rers in that city were allowed to issue a 
master policy, no matter whether the insura nce applicant's legal person or accounting 
unit was located in the city. 
(b) Large scale commercial risk  meant an insurance risk wr itten on any large scale commercial 
enterprise if, upon accession, the aggregate annua l premium exceeded 800 thousand RMB and 
the investment was more than 200 million RM B; one year after accession, if the aggregate 
annual premium exceeded 600 thousand RMB and the investment was more than 180 million 
RMB; two years after accession, if the aggr egate annual premium exceeded 400 thousand 
RMB and the investment was more than 150 million RMB. 
(c) Statutory insurance in China's Schedule of Specific Commitments were limited to the 
following specific categories, and no additional lin es or products would be added:  third party 
auto liability insurance, and driver and ope rator liability for buses and other commercial 
vehicles. 
(d) The representative of China confirmed that any changes to the definition of master policy and 
large scale commercial risk would be consistent with China's Specific Schedule of 
Commitments and obligations under GATS so as to progressively liberalize access to this 
services sector. 
The Working Party took no te of these commitments. 
312. Members of the Working Party welcomed China' s commitment to permit internal branching 
for insurance firms consistent with the phase-out of geographic restrictions.  Some members noted 
that China had scheduled certain qualifications as  limitations under GATS Articles XVI and XVII that 
foreign insurers had to meet to apply for a licen ce to provide services in China.  These qualifications 
related to a minimum period of establishment in a WTO member, total assets and maintenance of a representative office in China.  These qualifications  should not apply to those foreign insurance 
companies established in China seeking authorisati on to establish a branch or sub-branch.   The 
representative of China confirmed that the qualificati ons for foreign insurers applying for a licence to 
enter China's market would not apply to foreign insurers already establishe d in China that were 
seeking authorization to establish branches or sub-branches. [He also confirmed that a branch and a WT/ACC/SPEC/CHN/1/Rev.8 
Page 94  
 
sub-branch was an extension of the parent enterp rise and not a separate legal entity and that China 
would permit internal branching accordingly on that basis. ]  The Working Party took note of these 
commitments. 
2. Choice of Partner 
313. Some members of the Working Party expressed concern regarding the existing practice of 
imposing conditions on the Chinese companies that were allowed to partne r with foreign service 
suppliers.  These members indicated that this could amount to de facto  quotas, as the number of 
potential partners meeting those c onditions might be limited.  The representative of China confirmed 
that a foreign service supplier would be able to pa rtner with any Chinese entity of its choice, including 
outside the sector of operation of the joint ve nture, as long as the Chinese partner was legally 
established in China.  The joint venture as such  should meet the prudential and specific sectoral 
requirements, on the same basis as those for do mestic enterprises and which must be publicly 
available.  The Working Party took note of these commitments. 
3. Modification of the Equity Interest 
314. The representative of China confirmed that the Ch inese and foreign  partners in an established 
joint venture would be able to discuss the modificati on of their respective equity participation levels 
in the joint venture and implement such modification if agreement was reached by both sides and also 
approved by the authorities.  The representative of Ch ina confirmed that such an agreement would be 
approved if consistent with th e relevant equity commitments in China's Schedule of Specific 
Commitments.  The Working Party took note of this commitment. 
4. Prior Experience Requirement for Esta blishment in Insurance Sector  
315. The representative of China confirmed that th e merging, division, restructuring or other 
change of legal form of an insurance company would not impact the prior experience requirements 
included in China's Schedule of Specific Commitm ents if the new entity continued to supply 
insurance services.  The Working Party took note of this commitment . 
5. Inspection Services 
316. In response to questions from members of th e Working Party, the representative of China 
confirmed that China would not maintain requirements which had the effect of acting as barriers to 
the operation of foreign and joint-venture commod ity inspection agencies, unless otherwise specified 
in China's Schedule of Specific Commitments.  Th e Working Party took note of this commitment.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 95 
 
 
6. Market Research   
317. Some members of the Working Party expressed c oncern regarding market research activities. 
In response to questions from members in this r espect, the representative of China confirmed that, 
upon accession, China would remove the prior approval requirement for market research services, 
defined as investigation services designed to secure information on the prospects and performance of 
an organization's products in the market, including market analysis (of the size and other characteristics of a market) and analysis of consumer  attitudes and preferences.  Market research firms 
registered in China, which were engaged in such services, would only be required to file the survey 
plan and the questionnaire form on record in the st atistical agencies of government at or above the 
provincial level.  The Working Part y took note of these commitments.   
7. Legal Services   
318. In response to questions from members of th e Working Party, the representative of China 
clarified that "Chinese national registered lawyer s", as indicated in China's Schedule of Specific 
Commitments, were those Chinese nationals who had obtained a lawyer's certificate and were holding 
a Chinese practising permit and were registered to practice in a Chinese law firm.   
8. Minority Shareholder Rights   
319. With respect to its Schedule of Specific Commit ments, the representative of China confirmed 
that, while China had limited its market access commitm ents in some sectors to permit foreigners to 
hold only a minority equity interest, a minority shareholder could enforce rights in the investment under China's laws, regulations and measures.  Moreover, WTO Members would have recourse to 
WTO dispute settlement to ensure implementation of all commitments in China's GATS schedule.  
The Working Party took no te of these commitments. 
9. Schedule of Specific Commitments 
320. China's Schedule of Specific Commitments, repr oduced in Annex 9 to the Draft Protocol, 
contained the market access commitments of China in respect of Services.
   
VII. OTHER ISSUES 
1. Notifications 321. Members of the Working Party requested that China submit the notifications required in the 
Draft Protocol and Draft Report to the WTO bod y with a mandate covering the subject of the 
notification.  The representative of China confirmed that China would submit its notifications to these WT/ACC/SPEC/CHN/1/Rev.8 
Page 96  
 
bodies, as provided for in Annex 1 to the Draft Protocol.  The Working Party took note of this 
commitment. 
2. Special Trade Arrangements 
322. Some members of the Working Party raised speci fic concerns in relation to some of China's 
special trade arrangements, including barter trad e arrangements, with third countries and separate 
customs territories, which those members considered not  to be in conformity with WTO requirements.  
In response, the representative of China recalled th e commitment undertaken by China in Section 4 of 
the Draft Protocol.  
3. Transparency 
323. Some members of the Working Party expressed concern about the lack of transparency 
regarding the laws, regulations and other measures that applied to matters covered in the WTO 
Agreement and the Draft Protocol.  In particular, some members noted the difficulty in finding and 
obtaining copies of regulations and other measures undertaken by various ministries as well as those 
taken by provincial and other local authorities.  Transparency of regulations and other measures, 
particularly of sub-national authorities, was essen tial since these authorities often provided the details 
on how the more general laws, re gulations and other measures of the central government would be 
implemented and often differed am ong various jurisdictions.  Those members emphasized the need to 
receive such information in a timely fashion so that governments and traders could be prepared to comply with such provisions and could exercise their rights in respect of implementation and 
enforcement of such measures.  The same me mbers emphasized the importance of such pre-
publication to enhancing secure, predictable trading relations.  Those members noted the development 
of the Internet and other means to ensure that information from all government bodies at all levels 
could be assembled in one place and made readily  available.  The creation and maintenance of a 
single, authoritative journal and enquiry point woul d greatly facilitate dissemination of information 
and help promote compliance. 
324. In response, the representative of China noted th at the Government of China regularly issued 
publications providing information on China's foreign trade system, such as the: "Almanac of Foreign 
Economic Relations and Trade" and "The Bulle tin of MOFTEC" published by MOFTEC; "Statistical 
Yearbook of China", published by the State Sta tistical Bureau; "China's Customs Statistics 
(Quarterly)", edited and published by the Customs.  China's laws and regulations of the State Council 
relating to foreign trade were all published, as we re rules issued by departments.  Such laws, 
regulations and rules were available in the "Gazette of the State Council", the "Collection of the Laws 
and Regulations of the People's Republic of Chin a" and the "MOFTEC Gazette".  The administrative  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 97 
 
 
regulations and directives relating to foreign trade were also published on MOFTEC's official website 
(http://www.moftec.gov.cn) and in periodicals. 
325. He further noted that there were no forex restri ctions affecting import or export.  Information 
on forex measures was published by the SA FE and was available on SAFE's website 
(http://www.safe.gov.cn) and via the news media. 
326. The representative of China noted that information concerning the administration of imports 
and exports would be pu blished in the "International Busi ness" newspaper and the "MOFTEC 
Gazette". 
327. He also noted that informati on on China's customs laws and regulations, import and export 
duty rates, and customs procedures was published in the "Gazette of the State Council" and in the press media, and was available upon request.  The procedures concerning application of duty rates, 
customs value and duty determination, drawb ack and duty recovery, as well as the procedures 
concerning duty exemptions and reduction, were also published.  Customs also published monthly 
customs statistics, calculated according to country of  origin and final destination, on the basis of 
eight-digit HS levels. 
328. The representative of China noted that any b ilateral trade agreements concluded between 
China and its trading partners, and protocols on the exchange of goods negotiated under them were 
published in "The Treaty Series of the PRC".  He al so noted that the "Directory of China's Foreign 
Economic Relations and Trade Enterprises" and "China's Foreign Trade Corporations and 
Organizations" were two publications which id entified foreign trade corporations and other 
enterprises in China engaged in foreign trade. 
329. The representative of China stated that the full listing of official journals was as follows:  
Gazette of the Standing Committee of the Nationa l People's Congress of the People's Republic of 
China; Gazette of the State Council of the People's Republic of China; Collection of the Laws of the 
People's Republic of China; Collection of the La ws and Regulations of the People's Republic of 
China; Gazette of MOFTEC of the People's Republic of China; Proclamation of the People's Bank of the People's Republic of China;  and Proclamation of  the Ministry of Finance of the People's Republic 
of China. 
330. The representative of China confirmed that pub lication of all laws, regulations and other 
measures pertaining to or affecting trade in goods, services, TRIPS or the control of forex would 
include the effective date of these measures.  It would also include the products and services affected WT/ACC/SPEC/CHN/1/Rev.8 
Page 98  
 
by a particular measure, identified by appropria te tariff line and CPC classification.  The Working 
Party took note of these commitments. 
331. The representative of China confirmed that China would publish in the official journal, by 
appropriate classification and by service where rele vant, a list of all organizations, including those 
organizations delegated such authority from the national authorities, that were responsible for 
authorizing, approving or regulating services activ ities whether through grant of licence or other 
approval.  Procedures and the conditions for obt aining such licences or approval would also be 
published.  The Working Party took note of these commitments. 
332. The representative of China confirmed that  none of the information required by the 
WTO Agreement or the Draft Protocol to be disclo sed would be withheld as confidential information 
except for those reasons identified in Section 2(C) of the Draft Protocol or unless it would 
demonstrably prejudice the legitimate commercial interests of particular enterprises, public or private.  
The Working Party took note of this commitment. 
333. The representative of China confirmed that China would make available to WTO Members 
translations into one or more of the official languages of the WTO all la ws, regulations and other 
measures pertaining to or affecting trade in goods, ser vices, TRIPS or the control of forex, and to the 
maximum extent possible would make these laws, re gulations and other measures before they were 
implemented or enforced, but in no case later than 90 days after they were implemented or enforced.  
The Working Party took no te of these commitments. 
334. Members of the Working Party also requested that China set up an enquiry point where 
information relating to all laws, regulations, judicial  decisions and administra tive rulings of general 
application and other measures pertaining to or af fecting trade in goods, services, TRIPS or the 
control of forex could be obtained.   
335. The representative of China confirmed that Chin a would establish or designate one or more 
enquiry points where all information relating to th e laws, regulations and other measures pertaining to 
or affecting trade in goods, services, TRIPS or th e control of forex, as well as the published texts, 
could be obtained and would notify the WTO of any enquiry point and its responsibility.  The 
information would include the names of national or sub-national authorities (including contact points) 
responsible for implementing a particular meas ure.  The Working Party took note of these 
commitments.  WT/ACC/SPEC/CHN/1/Rev.8 
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2. Government Procurement 
336. The representative of China stat ed that in order to promote China's government procurement 
regime, the Ministry of Finance promulgated the Interim Regulations on Government Procurement in 
April 1998.  The Interim Regulations were stipulated  in line with the spirit of the WTO Agreement on 
Government Procurement ("GPA") and on the basis of  the relevant provisions of the United Nations 
Model Law on Procurement of G oods, Construction and Services while  making reference to the laws 
and regulations of some WTO Members on govern ment procurement. The policy and procedure s 
regarding government procurement provided for ther ein were consistent with  international practice. 
China stuck to the fundamental principles of being open, fair, equitable, efficient and in the public 
interest when carrying out government procurem ent.  At present, China was formulating its  
Government Procurement Law. 
337. Some members of the Working Party stated that  China should become a Party to the GPA and 
that prior to its accession to the GPA, China should conduct all governme nt procurement in a 
transparent and non-discriminatory manner.  T hose members noted that China's public entities 
engaged exclusively in commercial activities would not be conducting government procurement and 
thus laws, regulations and other measures regula ting these entities' procurement practices would be 
fully subject to WTO requirements. 
338. The representative of China stated that China intended to become  a Party to the GPA and that 
until such time, all government entities at the central and sub-national  level , as well as any of its 
public entities other than those engaged in exclusively commercial activities,  would conduct their 
procurement in a transparent manner, and provide all foreign suppliers with equal opportunity to 
participate in that procurement pursu ant to the principle of MFN treatment , i.e., if a procurement was 
opened to foreign suppliers, all foreign suppliers would be provi ded with equal opportunity to 
participate in that procurement (e.g., through the bi dding process).  Such entities' procurements would 
be subject only to laws, regulations, judicial decisi ons, administrative rulings of general application, 
and procedures (including standard contract clauses)  which had been published and made available to 
the public.  The Working Party took note of these commitments. 
339. Noting China's intention to become a Party to the GPA, some members of the Working Party 
stated that China should, upon accession, become an observer to the GPA, and should initiate 
negotiations for membership in the Agreement by tabling an Appendix 1 offer within two years of 
accession.   WT/ACC/SPEC/CHN/1/Rev.8 
Page 100  
 
340. The representative of China responded that Ch ina would become an observer to the GPA 
upon accession to the WTO Agreement and initiate ne gotiations for membership in the GPA by 
tabling an Appendix 1 offer  as soon as possible.  The Working Pa rty took note of these commitments. 
VIII.  CONCLUSIONS 
341. The Working Party took note of the explanations and statements of China concerning its 
foreign trade regime, as reflected in this Draft Report.  The Working Party took note of the 
commitments given by China in relation to cer tain specific matters which are reproduced in 
paragraphs 18-19, 22-23, 35-36, 40, 42, 46-47, 49, 60 , 62, 64, 68, 70, 73, 75, 78-79, 83-84, 86, 91-93, 
96, 100-103, 107, 111, 115-117, 119-120, 122-123, 1 26-132, 136, 138, 140, 143, 146, 148, 152, 154, 
157, 162, 165, 167-168, 170-174, 177-178, 180, 182, 184-185, 187, 190-197, 199-200, 203-207, 212-213, 215, 217, 222-223, 225, 227-228, 231-235, 239-241, 251, 255, 258, 262, 269, 274, 283, 285, 
287, 290, 291, 295, 298, 301, 303, 304, 306-309, 311-317, 319, 321, 330-333, 335, 338 and 340 of 
this Draft Report and noted that these commitments are incorporated in paragraph 1.2 of the Draft Protocol. 
342. Having carried out the examination of the foreign trade regime of China and in the light of the 
explanations, commitments and concessions made  by China, the Working Party reached the 
conclusion that China should be invited to accede to the Marrakesh Agreement Establishing the WTO 
under the provisions of Article XII.  For this purpo se, the Working Party prepared the Draft Decision 
and Draft Protocol reproduced in the Appendix to  this Draft Report, and took note of China's 
Schedule of Concessions and Co mmitments on Goods (document 
WT/ACC/SPEC/CHN/1/Rev.8/Add.1) and China's Sc hedule of Specific Commitments on Services 
(document WT/ACC/SPEC/CHN/1/Rev.8/Add.1) that we re annexed to the Draft Protocol.  It was 
proposed that these texts be adopted by the Genera l Council when it adopted the Draft Report.  When 
the Draft Decision was adopted, the Draft Protocol  would be open for acceptance by China which 
would become a WTO Member 30 days after it accepte d the said Draft Protocol.  The Working Party 
agreed, therefore, that it had completed its work concerning the negotiations for the accession of China to the WTO Agreement.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 101 
 
 
DRAFT DECISION 
 
 
ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA 
  
Decision of [… November 2001]  
 
  [The Ministerial Conference, 
 
 Having regard to  paragraph 2 of Article XII and paragr aph 1 of Article IX of the Marrakesh 
Agreement Establishing the World Trade Organi zation, and the Decision-Making Procedures under 
Articles IX and XII of the Marrakesh Agreement Establishing the World Trade Organization agreed 
by the General Council (WT/L/93),  
 Taking note  of the application of the People's Republic of China for accession to the 
Marrakesh Agreement Establishing the World Tr ade Organization dated 7 December 1995,   
  Noting  the results of the negotiations directed toward the establishment of the terms of 
accession of the People's Republic of China to th e Marrakesh Agreement Establishing the World 
Trade Organization and having prepared a Protocol on the Accession of the People's Republic of 
China (WT/ACC/…/…),   Decides  as follows: 
 
 The People's Republic of China may accede to  the Marrakesh Agreement Establishing the 
World Trade Organization on the terms and conditions  set out in the Protocol annexed to this 
decision.] 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 102  
 
DRAFT PROTOCOL 
ON THE ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA 
 
 
Preamble 
 
 The World Trade Organization ("WTO"), pursuan t to the approval of the General Council of 
the WTO accorded under Article XII of the Marra kesh Agreement Establishing the World Trade 
Organization ("WTO Agreement"), and the People's Republic of China ("China"), 
  Recalling that China was an original contracting party to the General Agreement on Tariffs 
and Trade 1947, 
 
 Taking note that China is a signatory to the Final Act Embodying the Results of the Uruguay 
Round of Multilateral Trade Negotiations,   Taking note of the Report of the Working Party on the Accession of China to the WTO 
Agreement in document _________ ("Working Party Report"), 
  Having regard to the results of the negotiations con cerning China's membership in the WTO, 
 
 Agree as follows: 
 
Part I - General Provisions 
 1. General  1. Upon accession, China accedes to the WTO Ag reement pursuant to Article XII of that 
Agreement and thereby becomes a Member of the WTO.  
2. The WTO Agreement to wh ich China accedes shall be the WTO Agreement as rectified, 
amended or otherwise modified by such legal inst ruments as may have entered into force before the 
date of accession.  This Draft Protocol, which shall include the commitments referred to in 
paragraph 341 of the Working Party Report, shall be an integral part of the WTO Agreement. 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 103 
 
 
3. Except as otherwise provided for in paragraphs 5. 1, 7.1, 8.1(a), 13.4(b) and 14 of this Draft 
Protocol and in the paragraphs re ferred to in paragraphs 23, 42, 68, 83, 84, 86, 117, 122, 126, 128, 
130, 132, 143, 173, 196, 205, 206, 235, 241, 255, 258, 262, 269, 274, 283, 309, 321 and 333 of the 
Working Party Report, those obligations in th e Multilateral Trade Agreements annexed to the 
WTO Agreement that are to be implemented over a pe riod of time starting with entry into force of 
that Agreement shall be implemented by China as if  it had accepted that Agreement on the date of its 
entry into force. 
 4. China may maintain a measure inconsistent with paragraph 1of Article II of the General 
Agreement on Trade in Services ("GATS") provided that  such a measure is recorded in the List of 
Article II Exemptions annexed to this Draft Protoc ol and meets the conditions of the Annex to the 
GATS on Article II Exemptions. 
 
2. Administration of the Trade Regime 
 
 (A) Uniform Administration 
 
1. The provisions of the WTO Agreement and this Draft Protocol shall apply to the entire customs territory of China, including border trad e regions and minority autonomous areas, Special 
Economic Zones, open coastal cities, economic an d technical development zones and other areas 
where special regimes for tariffs, taxes and regula tions are established (collectively referred to as 
"special economic areas").   2. China shall apply and administer in a uniform , impartial and reasonable manner all its laws, 
regulations and other measures of the central government as well as local regulations, rules and other 
measures issued or applied at the sub-national level (collectively referred to as "laws, regulations and 
other measures") pertaining to or affecting trad e in goods, services, trade-related aspects of 
intellectual property rights ("TRIPS") or the control of foreign exchange. 
 
3. China's local regulations, rules and other measures of local governments at the sub-national level shall conform to the obliga tions undertaken in the WTO Agreement and this Draft Protocol. 
 4. China shall establish a mech anism under which individuals and enterprises can bring to the 
attention of the national authorities cases of non-uniform application of the trade regime. 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 104  
 
 (B) Special Economic Areas 
 
1. China shall notify to the WTO all the relevant  laws, regulations and ot her measures relating to 
its special economic areas, listing these areas by name  and indicating the geographic boundaries that 
define them.  China shall notify the WTO promptly , but in any case within 60 days, of any additions 
or modifications to its special economic areas, incl uding notification of the la ws, regulations and other 
measures relating thereto.   
 2. China shall apply to imported products, including physically incorporated components, introduced into the other parts of China's customs te rritory from the special ec onomic areas, all taxes, 
charges and measures affecting imports, including im port restrictions and customs and tariff charges, 
that are normally applied to imports into th e other parts of China's customs territory. 
 3. Except as otherwise provided for in this Draft Protocol, in providing preferential 
arrangements for enterprises within such special economic areas, WTO provisions on non-
discrimination and national treatment shall be fully observed. 
 
 (C) Transparency 
 
1. China undertakes that only those laws, regul ations and other measures pertaining to or 
affecting trade in goods, services, TRIPS or the cont rol of foreign exchange that are published and 
readily available to other WTO Members, individuals and enterprises, shall be enforced.  In addition, 
China shall make available to WTO Members, upon request, all laws, regulations and other measures 
pertaining to or affecting trade in goods, services, TRIPS or the control of foreign exchange before 
such measures are implemented or enforced.  In emergency situations, laws , regulations and other 
measures shall be made available at the lat est when they are implemented or enforced. 
 2. China shall establish or designate an official  journal dedicated to the publication of all laws, 
regulations and other measures pertaining to or af fecting trade in goods, services, TRIPS or the 
control of foreign exchange and, after publication of  its laws, regulations or other measures in such 
journal, shall provide a reasonable period for comme nt to the appropriate authorities before such 
measures are implemented, except for those laws, regulations and other measures involving national 
security, specific measures setting foreign exchange rates or monetary policy and other measures the 
publication of which would impede law enforcement.   China shall publish this journal on a regular 
basis and make copies of all issues of this journa l readily available to individuals and enterprises. 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 105 
 
 
3. China shall establish or designate an enquiry point where, upon request of any individual, 
enterprise or WTO Member all information relatin g to the measures required to be published under 
paragraph 2(C)1 of this Draft Protocol may be ob tained.  Replies to requests for information shall 
generally be provided within 30 days after receipt of a request.  In exceptional cases, replies may be 
provided within 45 days after receipt of a request.  Notice of the delay and the reasons therefor shall 
be provided in writing to the interested party.  Re plies to WTO Members shall be complete and shall 
represent the authoritative view of the Chinese govern ment.  Accurate and reliable information shall 
be provided to indivi duals and enterprises. 
 
 (D) Judicial Review 
 
1. China shall establish, or designate, and main tain tribunals, contact points and procedures for 
the prompt review of all administrative actions re lating to the implementation of laws, regulations, 
judicial decisions and administrative rulings of gene ral application referred to in Article X:1 of the 
GATT 1994, Article VI of the GATS and the relevant  provisions of the TRIPS Agreement.  Such 
tribunals shall be impartial and in dependent of the agency entrusted with administrative enforcement 
and shall not have any substantial inte rest in the outcome of the matter. 
 2. Review procedures shall include the opportunity for appeal, without penalty, by individuals or 
enterprises affected by any administrative action subject  to review.  If the initial right of appeal is to 
an administrative body, there shall in all cases be th e opportunity to choose to appeal the decision to a 
judicial body.  Notice of the decision on appeal sh all be given to the appe llant and the reasons for 
such decision shall be provided in writing.  The appell ant shall also be informed of any right to further 
appeal. 
 3. Non-discrimination 
 
 Except as otherwise provided for in this Draft Protocol, foreign individuals and enterprises 
and foreign-funded enterprises shall be accorded tr eatment no less favourable than that accorded to 
other individuals and enterprises in respect of:    (a) the procurement of inputs and goods and ser vices necessary for production and the conditions 
under which their goods are produced, marketed or sold, in the domestic market and for 
export;  and 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 106  
 
(b) the prices and availability of goods and ser vices supplied by national and sub-national 
authorities and public or state enterprises, in areas including transportation, energy, basic 
telecommunications, other utilities and factors of production. 
 
4. Special Trade Arrangements 
 
 Upon accession, China shall eliminate or bring into conformity with the WTO Agreement all 
special trade arrangements, including barter trad e arrangements, with third countries and separate 
customs territories, which are not in conformity with the WTO Agreement.  
5. Right to Trade 
 1. Without prejudice to China's right to regulat e trade in a manner consistent with the WTO 
Agreement, China shall progressively liberalize the ava ilability and scope of the right to trade, so that, 
within three years after accession, all enterprises in China shall have the right to trade in all goods 
throughout the customs territory of China, except for those goods listed in Annex 2a which continue 
to be subject to state trading in accordance with this Draft Protocol.  Such right to tr ade shall be the 
right to import and export goods.  All such go ods shall be accorded national treatment under 
Article III of the GATT 1994, especially paragraph 4 ther eof, in respect of their internal sale, offering 
for sale, purchase, transportation, distribution or use,  including their direct access to end-users.  For 
those goods listed in Annex 2b, China shall phase out limitation on the grant of trading rights pursuant 
to the schedule in that Annex.  China shall comple te all necessary legislative procedures to implement 
these provisions during the transition period.  
2. Except as otherwise provided for in this Draft Protocol, all foreign individuals and 
enterprises, including those not invested or register ed in China, shall be accorded treatment no less 
favourable than that accorded to  enterprises in China with resp ect to the right to trade. 
 
6. State Trading 
 
1. China shall ensure that import purchasing pro cedures of state trading enterprises are fully 
transparent, and in compliance w ith the WTO Agreement, and shall refrain from taking any measure 
to influence or direct state trading enterprises as to  the quantity, value, or country of origin of goods 
purchased or sold, except in accord ance with the WTO Agreement. 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 107 
 
 
2. As part of China's notification under the GATT 1994 and the Understanding on the 
Interpretation of Article XVII of the GATT 1994, Ch ina shall also provide full information on the 
pricing mechanisms of its state trading enterprises for exported goods.  
 
7. Non-Tariff Measures 
 
1. China shall implement the schedule for phased  elimination of the measures contained in 
Annex 3.  During the periods specified in Annex 3, the protection afforded by the measures listed in 
that Annex shall not be increased or expanded in si ze, scope or duration, nor shall any new measures 
be applied, unless in conformity with the provisions of the WTO Agreement.  
2. In implementing the provisions of Articles III and XI of the GATT 1994 and the Agreement 
on Agriculture, China shall eliminate and shall not  introduce, re-introduce or apply non-tariff 
measures that cannot be justified under the provisi ons of the WTO Agreement.  For all non-tariff 
measures, whether or not referred to in Annex 3, that are applied after the date of accession, consistent 
with the WTO Agreement or this Draft Protocol, Ch ina shall allocate and otherwise administer such 
measures in strict conformity with the provisi ons of the WTO Agreement, including GATT 1994 and 
Article XIII thereof, and the Agreement on Im port Licensing Procedures, including notification 
requirements. 
 
3. China shall, upon accession, comply with the TRIMs Agreement, without recourse to the 
provisions of Article 5 of the TRIMs Agreement.  Ch ina shall eliminate and cease to enforce trade and 
foreign exchange balancing requirements, local content and export performance requirements made 
effective through laws, regulations or  other measures.  Moreover, China will not enforce provisions of 
contracts imposing such requirements.  Without pr ejudice to the relevant provisions of this Draft 
Protocol, China shall ensure that the distribution of import licences, quotas, tariff-rate quotas, or any 
other means of approval for importation, the right  of importation or investment by national and 
sub-national authorities, is not conditioned on:  whether competing domestic suppliers of such 
products exist;  performance requirements of any kind, such as local content, o ffsets, the transfer of 
technology, export performance or the conduct of  research and development in China.   
 4. Import and export prohibitions and restricti ons, and licensing requirements affecting imports 
and exports shall only be imposed and enforced by the national authorities or by sub-national 
authorities with authorization from the national aut horities.  Such measures which are not imposed by 
the national authorities or by sub-national authoriti es with authorization from the national authorities, 
shall not be implemented or enforced. WT/ACC/SPEC/CHN/1/Rev.8 
Page 108  
 
 
8. Import and Export Licensing 
 1. In implementing the WTO Agreement and provisions of the Agreement on Import Licensing Procedures, China shall undertake the following me asures to facilitate compliance with these 
agreements: 
 
(a) China shall publish on a regular basis the fo llowing in the official journal referred to in 
paragraph 2(C)2 of this Draft Protocol: 
  — by product, the list of all organizations , including those organizations delegated such 
authority by the national authorities, that ar e responsible for authorizing or approving 
imports or exports, whether through grant of licence or other approval; 
  — procedures and criteria for obtaining such import or export licences or other 
approvals, and the conditions for deciding whether they should be granted; 
  — a list of all products, by tariff number, that are subject to tendering requirements, 
including information on products subject to such tendering requirements and any 
changes, pursuant to the Agreement on Import Licensing Procedures; 
  — a list of all goods and technologies whose import or export are restricted or 
prohibited;  these goods shall also be notified to the Committee on Import Licensing; 
 
 — any changes to the list of goods and technologies whose import and export are 
restricted or prohibited. 
  Copies of these submissions in one or more offi cial languages of the WTO shall be forwarded 
to the WTO for circulation to WTO Members and for submission to the Committee on Import 
Licensing within 75 days of each publication. 
 (b) China shall notify the WTO of all licensing a nd quota requirements remaining in effect after 
accession, listed separately by HS tariff line and with the quantities associated with the 
restriction, if any, and the justification for main taining the restriction or its scheduled date of 
termination. 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 109 
 
 
(c) China shall submit the notification of its import licensing procedures to the Committee on 
Import Licensing.  China shall report annually to the Committee on Import Licensing on its 
automatic import licensing procedures, explaini ng the circumstances which give rise to these 
requirements and justifying the need for their con tinuation.  This report shall also provide the 
information listed in Article 3 of the Agreement on Import Licensing Procedures. 
 
(d) China shall issue import licences for a mini mum duration of validity of six months, except 
where exceptional circumstances make this impossi ble.  In such cases, China shall promptly 
notify the Committee on Import Licensing of the exceptional circumstances requiring the 
shorter period of licence validity. 
 
2. Except as otherwise provided for in this Draf t Protocol, foreign individuals and enterprises 
and foreign-funded enterprises shall be accorded tr eatment no less favourable than that accorded to 
other individuals and enterprises in respect of the distribution of import and export licences and 
quotas. 
 9. Price Controls 
 
1. China shall, subject to paragraph 2 below, allow prices for traded goods and services in every 
sector to be determined by market forces, and mu lti-tier pricing practices for such goods and services 
shall be eliminated.  2. The goods and services listed in Annex 4 may be subject to price controls, consistent with the 
WTO Agreement, in particular Article III of the GATT 1994 and Annex 2, para graphs 3 and 4 of the 
Agreement on Agriculture.  Except in exceptional circ umstances, and subject to notification to the 
WTO, price controls shall not be extended to g oods or services beyond those listed in Annex 4, and 
China shall make best efforts to reduce and eliminate these controls. 
 
3. China shall publish in the official journal the list of goods and services subject to state pricing 
and changes thereto.   
10. Subsidies 
 
1. China shall notify the WTO of any subsidy with in the meaning of Article 1 of the Agreement 
on Subsidies and Countervailing Measures ("SCM Agreemen t"), granted or maintained in its territory, 
organized by specific product, including those subsidi es defined in Article 3 of the SCM Agreement.  WT/ACC/SPEC/CHN/1/Rev.8 
Page 110  
 
The information provided should be as specific as possible, following the requirements of the 
questionnaire on subsidies as noted in Article 25 of the SCM Agreement.  
 
2. For purposes of applying Articles 1.2 and 2 of  the SCM Agreement, subsidies provided to 
state-owned enterprises will be viewed as specific if, inter alia, state-owned enterprises are the 
predominant recipients of such subsidies or stat e-owned enterprises receive disproportionately large 
amounts of such subsidies. 
 3. China shall eliminate all subsidy programmes fa lling within the scope of Article 3 of the SCM 
Agreement upon accession.  
11. Taxes and Charges Levied on Imports and Exports 
 
1. China shall ensure that cust oms fees or charges applied or administered by national or sub-
national authorities, shall be in conformity with the GATT 1994. 
 
2. China shall ensure that inte rnal taxes and charges, including value-added taxes, applied or 
administered by national or sub-national authoriti es shall be in conformity with the GATT 1994.   
 
3. China shall eliminate all taxes and charges applied to exports unless specifically provided for 
in Annex 6 of this Draft Protocol or applied in c onformity with the provisions of Article VIII of the 
GATT 1994.  4. Foreign individuals and ente rprises and foreign-funded ente rprises shall, upon accession, be 
accorded treatment no less favourable than that acco rded to other individuals and enterprises in 
respect of the provision of border tax adjustments.  
12. Agriculture 
 1. China shall implement the provisions contained in China's Schedule of Concessions and Commitments on Goods and, as specifically provided in  this Draft Protocol, those of the Agreement 
on Agriculture.  In this context, China shall not maintain or introduce any export subsidies on 
agricultural products. 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 111 
 
 
2. China shall, under the Transitional Review Mechanism, notify fiscal and other transfers 
between or among state-owned enterprises in the agri cultural sector (whether national or sub-national) 
and other enterprises that operate as state tr ading enterprises in the agricultural sector. 
 
13. Technical Barriers to  Trade  
 
1. China shall publish in the official journal all criteria, whether formal or informal, that are the 
basis for a technical regulation, standard or conformity assessment procedure.  2. China shall, upon accession, bring into confor mity with the TBT Agreement all technical 
regulations, standards and conformity assessment procedures. 
 
3. China shall apply conformity assessment pro cedures to imported products only to determine 
compliance with technical regulations and standards that are consistent with the provisions of this 
Draft Protocol and the WTO Agreement. C onformity assessment bodies will determine the 
conformity of imported products with  commercial terms of contracts only if authorized by the parties 
to such contract. China shall en sure that such inspection of products for compliance with the 
commercial terms of contracts does not affect customs clearance or the granting of import licences for such products. 
 
4. (a) Upon accession, China shall ensure that th e same technical regulations, standards and 
conformity assessment procedures are applied to bot h imported and domestic pr oducts.  In order to 
ensure a smooth transition from the current sy stem, China shall ensure that, upon accession, all 
certification, safety licensing, and quality licensi ng bodies and agencies are authorized to undertake 
these activities for both imported and domestic produc ts, and that, one year after accession, all 
conformity assessment bodies and agencies are aut horized to undertake conformity assessment for 
both imported and domestic products.   The choice of bod y or agency shall be at the discretion of the 
applicant.  For imported and domest ic products, all bodies and agencies shall issue the same mark and 
charge the same fee.  They shall also provide th e same processing periods and complaint procedures.  
Imported products shall not be subject to more th an one conformity assessment.  China shall publish 
and make readily available to other WTO Members,  individuals, and enterp rises full information on 
the respective responsibilities of its conformity assessment bodies and agencies.   
 (b) No later than 18 months after a ccession, China shall assign the respective 
responsibilities of its conformity assessment bodies solely  on the basis of the scope of work and type 
of product without any considera tion of the origin of a product.  The respective responsibilities that WT/ACC/SPEC/CHN/1/Rev.8 
Page 112  
 
will be assigned to China’s c onformity assessment bodies will be notified to the TBT Committee 
12 months after accession. 
 14. Sanitary and Phytosanitary Measures 
 
 China shall notify to the WTO all laws, regula tions and other measures relating to its sanitary 
and phytosanitary measures, including product c overage and relevant in ternational standards, 
guidelines and recommendations, within 30 days after accessopm.  
15. Price Comparability in Determining Subsidies and Dumping 
 
 Article VI of the GATT 1994, the Agreement on Implementation of Article VI of the General 
Agreement on Tariffs and Trade 1994 ("Anti-Dumpi ng Agreement") and the SCM Agreement shall 
apply in proceedings involving imports of Chinese or igin into a WTO Member consistent with the 
following: 
 
 (a) In determining price comparability under Article VI of the GATT 1994 and the 
Anti-Dumping Agreement, the importing WTO Member shall use either Chinese prices or costs for the industry under investig ation or a methodology that is not based 
on a strict comparison with domestic prices or costs in China based on the following 
rules: 
 
(i) If the producers under investigation can clearly show that market economy 
conditions prevail in the industry produ cing the like product with regard to 
the manufacture, production and sale of that product, the importing WTO 
Member shall use Chinese prices or cost s for the industry under investigation 
in determining price comparability; 
 
(ii) The importing WTO Member may use a methodology that is not based on a 
strict comparison with domestic prices or costs in China if the producers under investigation cannot clearly show  that market economy conditions 
prevail in the industry producing the lik e product with regard to manufacture, 
production and sale of that product. 
 
 (b) In proceedings under Parts II, III and V of the SCM Agreement, when addressing 
subsidies described in Articles 14(a), 14(b) , 14(c) and 14(d), relevant provisions of  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 113 
 
 
the SCM Agreement shall apply;  however, if there are special difficulties in that 
application, the importing WTO Member may then use methodologies for identifying 
and measuring the subsidy benefit which take into account the possibility that 
prevailing terms and conditions in China ma y not always be available as appropriate 
benchmarks.  In applying such methodologies, where practicable, the importing WTO 
Member should adjust such prevailing te rms and conditions before considering the 
use of terms and conditions prevailing outside China. 
  (c) The importing WTO Member shall notify methodologies used in accordance with 
subparagraph (1) to the Committee on Anti-Dumping Practices and shall notify methodologies used in accordance with sub-paragraph (b) to the Committee on 
Subsidies and Countervailing Measures. 
  (d) Once China has establishe d, under the national law of the importing WTO Member, 
that it is a market economy, the provisions of subparagraph (a) shall be terminated 
provided that the importing Member's nati onal law contain market economy criteria 
as of the date of accession.  In any event, the provisions of subparagraph (a)(ii) shall 
expire 15 years after the date of accession.   In addition, should China establish, 
pursuant to the national law of the importing WTO Member, that market economy 
conditions prevail in a particular i ndustry or sector, the non-market economy 
provisions of sub-paragraph (a) shall no longer apply to that industry or sector. 
 
16. Transitional Product-Specific Safeguard Mechanism  1. In cases where products of Chinese origin ar e being imported into the territory of any 
WTO Member in such increased quantities or under such  conditions as to cause or threaten to cause 
market disruption to the domestic producers of like or directly competitive products, the WTO Member so affected may request consultations  with China with a view to seeking a mutually 
satisfactory solution, including whether the affect ed WTO Member should pursue application of a 
measure under the Agreement on Safeguards.  Any such  request shall be notified immediately to the 
Committee on Safeguards.  2. If, in the course of these bilate ral consultations, it is agreed that imports of Chinese origin are 
such a cause and that action is n ecessary, China shall take such ac tion as to prevent or remedy the 
market disruption.  Any such action shall be no tified immediately to the Committee on Safeguards. 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 114  
 
3. If consultations do not lead to an agreemen t between China and the WTO Member concerned 
within 60 days of the receipt of a request for c onsultations, the WTO Member affected shall be free, 
in respect of such products, to withdraw concessions  or otherwise to limit imports only to the extent 
necessary to prevent or remedy such market di sruption.  Any such action shall be notified 
immediately to the Committee on Safeguards.  
4. Market disruption shall exist whenever imports of an article, like or directly competitive with 
an article produced by the domestic industry, are incr easing rapidly, either absolutely or relatively, so 
as to be a significant cause of material injury, or thre at of material injury to the domestic industry.  In 
determining if market disruption exists, the affect ed WTO Member shall consider objective factors, 
including the volume of imports, the effect of imports on prices for like or directly competitive 
articles, and the effect of such imports on the dom estic industry producing like or directly competitive 
products.  5. Prior to application of a measure pursuant to paragraph 3, the WTO Member taking such 
action shall provide reasonable public notice to all in terested parties and provide adequate opportunity 
for importers, exporters and other interested pa rties to submit their views and evidence on the 
appropriateness of the proposed measure and whet her it would be in the public interest.  The 
WTO Member shall provide written notice of the d ecision to apply a measure, including the reasons 
for such measure and its scope and duration. 
 6. A WTO Member shall apply a measure pursuant to this Section only for such period of time 
as may be necessary to prevent or remedy the market disruption.  If a measure is taken as a result of a relative increase in the level of imports, China has th e right to suspend the application of substantially 
equivalent concessions or obligations under th e GATT 1994 to the trade of the WTO Member 
applying the measure, if such measure remains in ef fect more than two years.  However, if a measure 
is taken as a result of an absolute increase in imports , China has a right to suspend the application of 
substantially equivalent concessi ons or obligations under the GATT 1994 to the trade of the WTO 
Member applying the measure, if such measure remain s in effect more than three years.  Any such 
action by China shall be notified immediately to the Committee on Safeguards.  7. In critical circumstances, where delay would cause damage which it would be difficult to repair, the WTO Member so affected may take a provisional safeguard measure pursuant to a 
preliminary determination that imports have caused or  threatened to cause market disruption.  In this 
case, notification of the measures taken to the Co mmittee on Safeguards and a request for bilateral 
consultations shall be effected immediately thereaf ter.  The duration of the provisional measure shall  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 115 
 
 
not exceed 200 days during which the pertinent requireme nts of paragraphs 1, 2 and 5 shall be met.  
The duration of any provisional measure shall be  counted toward the period provided for under 
paragraph 6. 
 8. If a WTO Member considers that an action taken under para graphs 2, 3 or 7 causes or 
threatens to cause significant diversions of trade in to its market, it may request consultations with 
China and/or the WTO Member concerned.  Such cons ultations shall be held within 30 days after the 
request is notified to the Committee on Safeguards.  If such consultations fail to lead to an agreement 
between China and the WTO Member or Members concerned within 60 days after the notification, the requesting WTO Member shall be free, in re spect of such product, to withdraw concessions 
accorded to or otherwise limit imports from China, to the extent necessary to prevent or remedy such 
diversions.  Such action shall be notified immediately to the Committee on Safeguards. 
 9. Application of this Section will be term inated 12 years after the date of accession. 
 
17. Reservations by WTO Members 
 
 All prohibitions, quantitative restrictions and other measures maintained by WTO Members 
against imports from China in a manner inconsistent  with the WTO Agreement are listed in Annex 7 
at the HS 8-digit level. All su ch prohibitions, quantitative restric tions and other measures shall be 
phased out or dealt with in accord ance with mutually agreed terms and timetables as specified in said 
Annex.  
18. Transitional Review Mechanism 
 1. Those subsidiary bodies
1 of the WTO which have a mandate covering China's commitments 
under the WTO Agreement or this Draft Protocol shall, within one year after accession and in 
accordance with paragraph 18.4 below, review, as a ppropriate to their mandate, the implementation 
by China of the WTO Agreement and of the related provisions of this Draft Protocol.  China shall 
provide relevant information, including information specified in Annex 1A, to each subsidiary body in 
advance of the review.  China can also raise issu es relating to any reservations under Section 17 or to 
any other specific commitments made by other Memb ers in this Draft Protocol, in those subsidiary 
                                                      
1 Council for Trade in Goods, Council for Trade-Re lated Aspects of Intellectual Property Rights, 
Council for Trade in Servi ces, Committees on Balance-of-Payments Rest rictions, Market Access (covering also 
ITA), Agriculture, Sanitary and Phytosanitary Meas ures, Technical Barriers to  Trade, Subsidies and 
Countervailing Measures, Anti-Dumping Measures, Cust oms Valuation, Rules of Origin, Import Licensing, 
Trade-Related Investment Measures, Safeguards, Trade in Financial Services. WT/ACC/SPEC/CHN/1/Rev.8 
Page 116  
 
bodies which have a relevant mandate.  Each subsidiary body shall re port the results of such review 
promptly to the relevant Council established by para graph 5 of Article IV of the WTO Agreement, if 
applicable, which shall in turn repor t promptly to the General Council. 
 2. The General Council shall, within one y ear after accession, and in accordance with 
paragraph 18.4 below, review the implementa tion by China of the WTO Agreement and the 
provisions of this Draft Protocol.  The General C ouncil shall conduct such review in accordance with 
the framework set out in Annex 1B and in the light  of the results of any reviews held pursuant to 
paragraph 18.1.  China also can raise issues rela ting to any reservations under Section 17 or to any 
other specific commitments made by other Members in this Draft Protocol.  The General Council may 
make recommendations to China and to  other Members in these respects. 
 
3. Consideration of issues pursuant to this Sec tion shall be without prejudice to the rights and 
obligations of any Member, including China, under the WTO Agreement or any Plurilateral Trade Agreement, and shall not preclude or be a preconditi on to recourse to consultation or other provisions 
of the WTO Agreement or this Draft Protocol.  
 4. The review provided for in paragraphs 18. 1 and 18.2 will take place after accession in each 
year for eight years.  Thereafter there will be a final review in year 10 or at an earlier date decided by 
the General Council. 
 
Part II - Schedules 
 
1. The Schedules annexed to this  Draft Protocol shall become the Schedule of Concessions and 
Commitments annexed to the GATT 1994 and the Sche dule of Specific Commitments annexed to the 
GATS relating to China.  The staging of concessions  and commitments listed in the Schedules shall 
be implemented as specified in the rele vant parts of the relevant Schedules. 
 
2. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date 
of that Agreement, the applicable date in resp ect of the Schedules of Concessions and Commitments 
annexed to this Draft Protocol shall be the date of accession. 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 117 
 
 
Part III - Final Provisions 
 
1. This Draft Protocol shall be open for accepta nce, by signature or otherwise, by China until 
________________.  2. This Draft Protocol shall enter into force on the thirtieth day following the day of its 
acceptance. 
  3. This Draft Protocol shall be deposited with the Director-General of the WTO. The Director-
General shall promptly furnish a certified copy of th is Draft Protocol and a notification of acceptance 
by China thereof, pursuant to paragraph 1 of Part III of this Draft Protocol, to each WTO Member and 
to China. 
 4. This Draft Protocol shall be registered in accordance with the provisions of Article 102 of the 
Charter of the United Nations. 
 
 Done at [Doha] this [   ] day of [       ] two thousand and one, in a single copy, in the English, 
French and Spanish languages, each text being au thentic, except that a Schedule annexed hereto may 
specify that it is authentic in only one or more of these languages.  WT/ACC/SPEC/CHN/1/Rev.8 
Page 118  
 
ANNEX 1A  
 
INFORMATION
2 TO BE PROVIDED BY CHINA 
IN THE CONTEXT OF THE TRAN SITIONAL REVIEW MECHANISM  
 
 
China is requested to provide information on the following in accordance with Article 18.1 of 
the Draft Protocol of Accession.  The requested information should be provided annually, except in 
those cases where China and the Members agree th at it is no longer required for the review. 
 I. ECONOMIC DATA  
(a) most recently available import and export st atistics by value and volume, by supplier country 
at the HS 8-digit level 
 
(b) current account data on services, by source and destination in line with the statistical 
requirements of the IMF 
 (c) capital account data for inward- and outward-rea lized foreign direct investment by source and 
destination in line with the statistical requirements of the IMF 
 
(d) the value of tariff revenues, non-tariff taxes, and other border charges levied exclusively on 
imports by product or at the highest level of detail possible, but at least by HS heading (4-digit) at the beginning of the review mechanism 
 
(e) the value of export duties/taxes by product   
(f) the volume of trade subject to tariff exemptions  by product or at the highest level of detail 
possible, but at least by HS heading (4-digit)  at the beginning of the review mechanism 
 (g) the value of commissions, mark ups and other fees charged on imports subject to state trading 
or designated trading imposed through government regulation or guidance, if any 
 
(h) the shares of imports and exports accounted for by the trading activities of state-owned 
enterprises  
 (i) annual economic development programmes, Ch ina's five-year programmes and any industrial 
or sectoral programmes or policies (including programmes relating to investment, export, 
import, productions, pricing or other targets, if  any) promulgated by central and sub-central 
government entities  
 (j) annual receipts under the Value-Added Tax (VAT), with separate information for imports and 
domestic products as well as information on VAT rebates 
 
                                                     
 
2 This "information" refers to information other than that required by the general notification  
requirements  for WTO Memb ers.  To avoid duplication, it is unde rstood that Members will accept information 
provided on an annual basis by China to other WTO bodies as satisfying the information requirements in  
Annex 1.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 119 
 
 
II. ECONOMIC POLICIES  
 1. Non-Discrimination (to be notified  to the Council for Trade in Goods) 
 
(a) the repeal and cessation of all WTO inconsis tent laws, regulations and other measures on 
national treatment 
 (b) the repeal or modification to provide fu ll GATT national treatment in respect of laws, 
regulations and other measures applying to internal sale, offering for sale, purchase, transportation, distribution or use of: after sal es service, pharmaceutical  products, cigarettes, 
spirits, chemicals and boiler and pressure v essels (for pharmaceutical products, chemicals and 
spirits there is a reservation of the right to use a transitional period of one year from the date 
of accession in order to amend or repeal relevant legislation) 
 
2. Foreign Exchange and Payments (to be notified to the Committee on Balance-of-
Payments Restrictions) 
 
(a) exchange measures as required under Article  VIII, Section 5 of the IMF's Articles of 
Agreement and such other information on Ch ina's exchange measures as was deemed 
necessary in the context of the tr ansitional review mechanism   
 
3. Investment Regime (to be notified to the Committee on Trade-Related  Investment 
Measures) 
 
(a) completed revisions to investment guidelin es in conformity with the WTO Agreement   
 
4. Pricing Policies (to be notified to the Committee on Subsidies and Countervailing 
Measures) 
 
(a) application of existing or any other pri ce controls and the reason for their use   
 (b) pricing mechanisms of China's state trading enterprises for exported products   III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES  1. Structure and Powers of the Government/Authority of Sub-Central 
Governments/Uniform Administration (to be notified to the General Council) 
 (a) revision or enactment of domestic laws, regul ations and other measures related to China's 
commitments under the WTO Agreement and Draft Protocol, including those of local governments at the sub-national level, that have been promulgated since accession or the 
previous meeting of the relevant body u nder the Transitional Review Mechanism   
 
(b) establishment and operation (upon accession) of the mechanism pursuant to Section 2(A), 
Article 5 of the Draft Protocol under whic h individuals and enterprises can bring cases of 
non-uniform application of the trade regime  to the attention of national authorities  
 
IV. POLICIES AFFECTING TRADE IN GOODS  
 
1. Tariff Rate Quotas (to be notified  to the Committee on Market Access) 
 
(a) administration of TRQs on a transparent, pr edictable, uniform, fair and non-discriminatory 
basis using clearly specified timeframes, administrative procedures and requirements and 
evidence of a consistent national allocati on (and reallocation) policy  including:  WT/ACC/SPEC/CHN/1/Rev.8 
Page 120  
 
  (i) provision of volume/value of the quota or TRQ made available;  (ii) reallocated quota or TRQ applied for;   (iii) the volume/value of requests for allocation or reallocation denied;   (iv) fill rates for the quota or TRQ; 
 (v) for TRQs, the amount of any goods entered at the over quota rate; and 
 (vi) time taken to grant a quota or TRQ allocation.  
2. Non-Tariff Measures including Quantitative Im port Restrictions (to be notified to the 
Committee on Market Access) 
 (a) the introduction, re-introduction or applicati on of any non-tariff measures other than those 
listed in Annex 3 of the Draft Protocol and elimination of non-tariff measures  
 (b) implementation of the schedule for phased elim ination of the measures contained in Annex 3 
 
(c) quota allocation and reallocation in confor mity with WTO requirements, including the 
Agreement on Licensing Procedures following criter ia set out in the Report of the Working 
Party on the Accession of China ("Report ") 
 (d) distribution licences, quotas, tariff rate quotas or any other means of approval for importation 
are not subject to conditions set out in Section 7, Article 3 of the Draft Protocol   
 
3. Import Licensing (to be notified to the Committee on Import Licensing) 
 
(a) implementation of the provisions of the Agreement on Import Licensing Procedures and the 
WTO Agreement applying the measures set out in  Section 8 of the Draft Protocol including 
provision of the time taken to grant an import licence 
 
4. Customs Valuation (to be notified to  the Committee on Customs Valuation) 
 
(a) the use of valuation methods, othe r than the stated transaction value  
 5. Export Restrictions (to be notifi ed to the Council for Trade in Goods) 
 
(a) any restrictions on exports through non-autom atic licensing or other means justified by 
specific product under the WTO Agreement or the Draft Protocol   
 6. Safeguards (to be notified to the Committee on Safeguards)  
(a) implementation of China's Regulation on Safeguards   
 
7. Technical Barriers to Trade (to be notified  to the Committee on Technical Barriers to 
Trade) 
 
(a) notification of acceptance of the Code of Good Practice not later than four months after 
China's accession 
 
(b) periodic review of existing standards of government standardizing bodies and harmonization 
of the same with relevant interna tional standards where appropriate   
 (c) revision of current voluntary national, local a nd sectoral standards so as to harmonize them 
with international standards   
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 121 
 
 
(d) use of the terms "technical regulations" and "standards" according to their meaning under the 
TBT Agreement in China's notifications  under the TBT Agreement, including under 
Article 15.2 thereof and publications referenced  therein, and in modifications of existing 
measures   
 
(e) review of technical regulations every five year s to ensure international standards are used in 
accordance with Article 2.4 of the Agreement and provision for adoption of international 
standards as the basis for technical regulation as part of its notification under Article 15.2 of 
the Agreement 
 
(f) progress report on increase of the use of intern ational standards as the basis for technical 
regulations by ten per cent in five years   
 (g) provision of procedures to implement Article 2.7 of the Agreement    
(h) provision of a list of relevant local gove rnmental and non-governmental bodies that are 
authorized to adopt technical regulations or  conformity assessment procedures as part of 
China's  
notification under Article 15.2 of the Agreement   
 (i) ongoing updates on the conformity assessment bodies that are recognized by China  
(j) enactment and implementation of a new law and relevant regulations regarding assessment 
and control of chemicals for the protection of  the environment in which complete national 
treatment and full consistency with internationa l practices would be ensured within one year 
after China's accession following conditions set out in 3(t) of the TBT Working Party Report   
 
(k) conformity of all assessment bodies and ag encies authorized to undertake conformity 
assessment for both imported and domestic products following conditions outlined in 
Section 15, Article 4(a) of the Draft Protocol one year after accession 
 (l) assignment of the respective responsibilities of China's conformity assessment bodies solely 
on the basis of the scope of work and type of product without any consideration of the origin 
of a product no later than eighteen months after accession 
 (m) notification of the respective responsibiliti es assigned to China's conformity assessment 
bodies to the TBT committee 12 months after accession 
 
8. Trade-Related Investment Measures (to be notified to the Committee on Trade-Related  
Investment Measures) 
 
(a) elimination and cessation of enforcement of   trade and foreign exchange  balancing 
requirements, local content and export pe rformance offsets and technology transfer 
requirements made effective through laws, regulations or other measures 
 
(b) amendments to ensure lifting of all measures applicable to motor vehicle producers restricting 
the categories, types or models of vehicl es permitted for production (to be completely 
removed two years after accession) 
 
(c) increased limits within which investments in  motor vehicle manufacturing could be approved 
at the provincial government at the levels outlined in the Report  
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 122  
 
9. State Trading Entities (to be notified to the Council for Trade in Goods) 
 
(a) progressive abolishment of state trading in respect of silk measures, increasing and extending 
trading rights, granting the right to trade to all individuals no later than 1 January 2005 
 
(b) access to supplies of raw materials in the tex tiles sector at conditions no less favourable than 
for domestic users, and not adversely affected access to supplies of raw materials as enjoyed under existing arrangements  
 (c) progressive increases in access by non state trading entities to trade in fertilizer and oil and 
the filling of quantities available for import by non state trading entities  
 
10. Government Procurement (to be notifi ed to the Council for Trade in Goods) 
 
(a) laws, regulations and procedures  
(b) procurement in a transparent manner and application of the MFN principle  
V. POLICIES AFFECTING TRADE IN SERVIC ES (to be notified to the Council for 
Trade in Services) 
 (a) regularly updated lists of all laws, regula tions, administrative guidelines and other measures 
affecting trade in each service sector or s ub-sector indicating, in each case, the service 
sector(s) or sub-sector(s) they apply to, the date of  publication and the date of entry into force 
 (b) China's licensing procedures and conditions, if  any, between domestic and foreign service 
suppliers, measures implementing the free choice of  partner and list of transport agreements 
covered by MFN exceptions 
 (c) regularly updated lists of the authorities, at all levels of government (including organizations 
with delegated authority) wh ich are responsible for the adoption, implementation and 
reception of appeals for laws, regulations, administrative guidelines and other measures 
affecting trade in services 
 (d) independence of the regulatory authorities from the service suppliers  (e) foreign and domestic suppliers in sectors where specific commitments have been undertaken 
indicating the state of play of licensing applications on sector and sub-sector levels (accepted, 
pending, rejected) 
 
VI. TRADE-RELATED INTELLECTUAL PROPERTY  REGIME (to be notified to the 
Council for Trade-Related Aspects of Intellectual Property Rights) 
 
(a) amendments to Copyright, Trademark and Pate nt Law, as well as relevant implementing rules 
covering different areas of the TRIPS Agreem ent bringing all such measures into full 
compliance with and full application of the TRIPS Agreement and the protection of 
undisclosed information 
 
(b) enhanced IPR enforcement efforts through the application of more effective administrative 
sanctions as described in the Report  
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 123 
 
 
VII. SPECIFIC QUESTIONS IN THE CONTEXT OF THE TRANSITIONAL REVIEW 
MECHANISM (to be notified to the Gen eral Council or relevant subsidiary body) 
 
(a) response to specific questions in the context of the transitional review mechanism received 
from the General Council or a subsidiary body  
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 124  
 
ANNEX 1B 
 
ISSUES TO BE ADDRESSED BY THE GENERAL COUNCIL IN ACCORDANCE 
WITH SECTION 18.2 OF CHINA'S PROTOCOL OF ACCESSION 
  
— Review of the reports and the issues referred to in Section 18.1 of China's Protocol of 
Accession. 
 — Development of China's trade with WTO Memb ers and other trading partners, including the 
volume, direction and composition of trade. 
 — Recent developments and cross-sectorial issues regarding China's trade regime.   The Rule of Procedure o the WTO General Council  shall apply unless specified otherwise.  
China shall submit any information and the documenta tion relating to the review no later than 30 days 
prior to the date of the review.   WT/ACC/SPEC/CHN/1/Rev.8 
 Page 125 
 
 
ANNEX 2A1 
 
PRODUCTS SUBJECT TO ST ATE TRADING (IMPORT) 
 
PRODUCTS NO HS 2000 DESCRIPTION OF PRODUCTS STATE TRADING 
ENTERPRISES 
1 10011000 Durum wheat 
2 10019010 Seeds of Spelt, common wheat & meslin 
3 10019090 Spelt, common wheat & meslin (excl. seed) 
4 11010000 Wheat or meslin flour 
5 11031100 Groats & meal of wheat 
6 11032100 Wheat pellets 
7 10051000 Maize seeds 
8 10059000 Maize (excl. seed) 
9 11022000 Maize (corn) flour 
10 11031300 Groats & meal of maize (corn) 
11 11042300 Other worked grains of maize (corn), nes 
12 10061010 Rice seeds 
13 10061090 Rice in the husk (paddy or rough)(excl. 
seed) 
14 10062000 Husked (brown) rice 
15 10063000 Semi-milled or wholly milled rice 
16 10064000 Broken rice 
17 11023000 Rice flour GRAIN 
18 11031400 Groats & meal of rice China National Cereals, Oil & 
Foodstuff Import and Export Co. 
19 15071000 Crude soya-bean oil 
20 15079000 Soya-bean oil (excl. crude) & fractions 
21 15111000 Crude palm oil 
22 15119000 Palm oil (excl. crude) & liquid fractions 
23 15141010 Crude rape, colza oil & fractions thereof 
VEGETABLE 
OIL 24 15149000 Rape, colza or mustard oil (excl. crude) & 
fractions thereof 1. China National Cereals, Oil & 
Foodstuff Import and Export 
Co. 
2. China National Native 
Products and Animal By-
products Import & Export Co. 
3. China Resources Co. 4. China Nam Kwong National 
Import & Export Co. 
5. China Liangfeng Cereals 
Import & Export Co. 
6. China Cereals, Oil & 
Foodstuff  Co.(Group) 
25 17011100 Raw cane sugar, in solid form 
26 17011200 Raw beet sugar, in solid form 
27 17019100 Cane or beet sugar, containing added 
flavouring or colouring 
28 17019910 Granulated sugar 
29 17019920 Superfine sugar SUGAR 
30 17019990 Other cane or beet sugar, in solid form, nes 1. China National Cereals, Oil & 
Foodstuff Import and Export 
Co. 
2. China Export Commodities 
Base Construction Co. 
3. China Overseas Trade Co. 
4. China Sugar & Wine Co. 
(Group) 
5. China Commerce Foreign 
Trade Co. 
31 24011010 Flue-cured tob acco, not stemmed/stripped 
32 24011090 Tobacco other than flue-cured, not 
stemmed/stripped 
33 24012010 Flue-cured tob acco, partly or wholly 
stemmed/stripped 
34 24012090 Tobacco o/t flue-c ured, partly or wholly 
stemmed/stripped TOBACCO 
35 24013000 Tobacco refuse China National Tobacco Import & 
Export Co. WT/ACC/SPEC/CHN/1/Rev.8 
Page 126  
 
PRODUCTS NO HS 2000 DESCRIPTION OF PRODUCTS STATE TRADING 
ENTERPRISES 
36 24021000 Cigars, cheroots & cigarillos containing 
tobacco 
37 24022000 Cigarettes containing tobacco 
38 24029000 Cigars, cigarillos, cigarettes, etc, not 
containing tobacco 
39 24031000 Smoking tobacco with or without tobacco 
substitutes 
40 24039100 Homogenized or reconstituted tobacco 
41 24039900 Other manufactured tobacco, nes 
42 48131000 Cigarette paper in the form of booklets or 
tubes 
43 48132000 Cigarette paper in rolls of a width ≤5cm 
44 48139000 Cigarette paper, nes 
45 55020010 Cellulose diacetate filament tow3 
46 56012210 Cigarette filter tips 
47 84781000 Machinery for preparing/making up tobacco 
nes TOBACCO 
48 84789000 Parts of machinery for preparing/making up 
tobacco nes China National Tobacco Import & 
Export Co. 
CRUDE OIL 49 27090000 Petroleum oils & oils obtained from 
bituminous minerals, crude 
50 27100011 Gasoline, incl. aviation spirit 
51 27100013 Naphtha 
52 27100023 Kerosenes 
53 27100024 Normal paraffin 
54 27100031 Light diesel oil 
55 27100033 Fuel oil No.5-No.7 PROCESSED 
OIL 
56 27100039 Other fuel oils 1. China National Chemical 
Import & Export Co.  
2. China International United 
Petroleum & Chemicals Co. 
3. China National United Oil Co.4. Zhuhai Zhenrong Company  
                                                      
3 Coverage is limited to cellulose diacetate fila ment tow used in the production of cigarettes.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 127 
 
 
PRODUCTS NO HS 2000 DESCRIPTION OF PRODUCTS STATE TRADING 
ENTERPRISES 
57 31021000 Urea 
58 31022100 Ammonium sulphate 
59 31022900 Double salts & mixtures of ammonium 
sulphate & ammonium nitrate 
60 31023000 Ammonium nitrate 
61 31024000 Mixtures of ammonium nitrate with inorg 
non-fertilizing substances 
62 31025000 Sodium nitrate 
63 31026000 Double salts & mixtures of calcium nitrate 
& ammonium nitrate 
64 31027000 Calcium cyanamide 
65 31028000 Mixtures of urea & ammonium nitrate in 
aqueous or ammoniacal solution 
66 31029000 Mineral or chemical fertilizers, nitrogenous , 
nes 
67 31031000 Superphosphates 
68 31032000 Basic slag 
69 31039000 Mineral or chemical fertilizers, phosphatic, 
nes 
70 31041000 Carnallite, sylvite & other Crude natural 
potassium salts 
71 31042000 Potassium chloride 
72 31043000 Potassium sulphate 
73 31049000 Mineral or chemical fertilizers, potassic, nes
74 31051000 Fertilizers... in packages of a gross 
weight=10kg 
75 31052000 Mineral/chemical fertilizers with nitrogen, 
phosphorus & potassium 
76 31053000 Diammonium hydrogenorthophosphate 
(diammonium phosphate) 
77 31054000 Ammonium dihydrogenorthophosphate 
(monoammonium phosphate) 
78 31055100 Mineral or chemical fertilizers containing 
nitrates & phosphates 
79 31055900 Mineral or chemical fertilizers with nitrogen 
& phosphorus, nes 
80 31056000 Mineral or chemical fertilizers with 
phosphorus & potassium, nes CHEMICAL 
FERTILIZER 
81 31059000 Other fertilizers, nes 1. China National Chemical 
Import & Export Co.  
2. China National Agricultural 
Means of Production Group 
Co.  
82 52010000 Cotton, not carded or combed 
COTTON 83 52030000 Cotton, carded or combed 1. China National Textiles  
Import & Export Co. 
2. Beijing Jiuda Textiles Group 
Co. 
3. Tianjing Textiles Industry 
Supply and Marketing Co. 
4. Shanghai Textiles Raw 
Materials Co. 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 128  
 
 
Product & HS 2000 Volume to non-state traders 
on accession
2) Annual growth in non-state 
trade volume3) 
Oil--processed1) 
(HS 27.10) 4 million tonnes 15 % 
Oil--crude  
(HS 27.09) 7.2 million tonnes 15 % 
 
(1) Excludes LPG, which falls under HS 27 11, and h as not been notified by China as subject to 
state trading.  The present import quota (16.58 million tonnes rising by 15% per year) will be removed on 1 January 2004.  (2) Imports to be effected pursuant to the provisions of the WTO Agreement on Import Licensing Procedures. 
 
(3) This growth rate shall be applied for a period of 10 years following accession, after which 
time it shall be reviewed with interested Member s.  Pending conclusion of the review talks, the 
volume available to non-state importers on that date  shall be increased annually in line with the 
average growth in overall imports of the produc t concerned over the preceding 10 year period. 
 
 However, for processed oil, a review shall be carried out with interested Members by 2004 to 
establish whether the growth rate should be adjusted in the light of the evolution of trade volumes.   WT/ACC/SPEC/CHN/1/Rev.8 
 Page 129 
 
 
ANNEX 2A2 
 
PRODUCTS SUBJECT TO ST ATE TRADING (EXPORT) 
 
PRODUCTS NO HS 2000 DESCRIPTION OF PRODUCTS STATE TRADING 
ENTERPRISES 
1 09021010 Flavoured green tea in packings ≤3kg 
2 09021090 Unflavoured green tea in packings ≤3kg 
3 09022010 Flavoured green tea in packings > 3kg TEA 
4 09022090 Unflavoured green tea in packings > 3kg China National Native 
Products and Animal 
By-Products Import & Export Co 
5 10061010 Rice seeds 
6 10061090 Rice in the husk (paddy or rough)(excl. seed)
7 10062000 Husked (brown) rice 
8 10063000 Semi-milled or wholly milled rice RICE 
9 10064000 Broken rice 
10 10051000 Maize seeds 
11 10059000 Maize (excl. seed) CORN 
12 11042300 Other worked grains of maize (corn), nes 
13 12010010 seeds of soya bean 
14 12010091 Yellow soya beans (excl. seed) 
15 12010092 Black soya beans (excl. seed) 
16 12010093 Green soya beans (excl. seed) SOY BEAN 
17 12010099 Other soya beans (excl. seed), nes 1. China National 
Cereals Oil and 
Foodstuffs Import & Export Co. 
2. Jilin Grain Import & 
Export Co. Ltd. 
18 26110000 Tungsten ores & concentrates 
19 26209010 Ash & residues containing mainly tungsten TUNGSTEN 
ORE 20 26209090 Ash & residues containing other metals or 
metallic compound 
21 28418010 Ammonium paratungstate AMMONIUM  
PARATUNG-
STATES 22 28418040 Ammonium tungstates 
23 28259011 Tungstic acid 
24 28259012 Tungsten trioxides 
25 28259019 Other tungsten oxides & hydroxides, nes 
26 28418020 Sodium tungstate 
27 28418030 Calcium tungstate 
28 28499020 Carbides of tungsten 
29 81011000 Tungsten powders TUNGSTATE 
PRODUCTS 
30 81019100 Tungsten unwrought,incl bars/rods simply 
sintered; waste/scrap 1. China National 
Metals and Minerals 
Import & Export Co. 
2. China National Non-
ferrous Import & 
Export Co. 
3. China Rare Earth and 
Metal Group Co. 
4. China National 
Chemical Import & 
Export Co. 
31 27011100 Anthracite, not agglomerated 
32 27011210 Bituminous coking coal, not agglomerated 
33 27011290 Other bituminous coal, not agglomerated 
34 27011900 Other coal, not agglomerated, nes 
COAL 35 27021000 Lignite, not agglomerated 1. China National Coal 
Industry Import & 
Export Co. 
2. China National 
Metals and Minerals 
Import & Export Co. 
3. Shanxi Coal Import 
& Export Group Co. 
4. Shenhua Group Ltd. 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 130  
 
PRODUCTS NO HS 2000 DESCRIPTION OF PRODUCTS STATE TRADING 
ENTERPRISES 
CRUDE OIL 36 27090000 Petroleum oils & oils obtained from 
bituminous minerals, crude 
37 27100011 Gasoline, incl. aviation spirit 
38 27100013 Naphtha 
39 27100019 Other light oils, nes 
40 27100023 Kerosenes 
41 27100024 Normal paraffin 
42 27100029 Other medium oils, nes 
43 27100031 Light diesel oil 
44 27100033 Fuel oil No.5-No.7 
45 27100039 Other fuel oils 
46 27100053 Lubricating greases 
47 27100054 Lubricating oils 
48 27100059 Other heavy oils & preps thereof, nes PROCESSED 
OIL 
49 27111100 Natural gas, liquefied 1. China National 
Chemical Import & 
Export Co.; 
2. China International 
United Petroleum & 
Chemicals Co. 
3. China National 
United Oil Co. 
50 50010010 Mulberry feeding silk-worm cocoons 
51 50010090 Other silk-worn cocoons suitable for reeling 
52 50020011 Plant reeled (filature silk) 
53 50020012 Steam filature silk, home reeled 
54 50020013 Steam filature silk, doupion 
55 50020019 Other steam filature silk 
56 50020020 Tussah silk 
57 50020090 Other raw silk, nes 
58 50031000 Silk waste, not carded or combed 
59 50039000 Silk waste, carded or combed 
60 50040000 Silk yarn (excl. spun from silk waste), not 
put up for retail sale 
61 50050010 Yarn spun from noil, not put up for retail 
sale SILK 
62 50050090 Yarn spun from other silk waste, not put up 
for retail sale 
63 50071010 Unbleached or bleached woven fabrics of 
noil silk 
64 50072011 Unbleached or bleached woven fabrics of 
mulberry silk, ≥85% silk 
65 50072021 Unbleached or bleached woven fabrics of 
tussah silk, ≥85% silk UN-BLEACHED 
SILK 
66 50072031 Unbleached or bleached woven fabrics of 
spun silk, ≥85% silk China National Silk 
Import & Export Co. 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 131 
 
 
PRODUCTS NO HS 2000 DESCRIPTION OF PRODUCTS STATE TRADING 
ENTERPRISES 
67 52010000 Cotton, not carded or combed 
COTTON 68 52030000 Cotton, carded or combed 1. China National 
Textiles Import & 
Export Co. 
69 52041100 Cotton sewing thread, with ≥85% cotton, 
not put up for retail sale 
70 52051100 Uncombed single cotton yarn, with ≥85% 
cotton, nprs, ≤14mn 
71 52051200 Uncombed single cotton yarn, with ≥85% 
cotton, nprs,>14mn but ≤43mn 
72 52051300 Uncombed single cotton yarn, with ≥85% 
cotton, nprs,>43mn but ≤52mn 
73 52051400 Uncombed single cotton yarn, with ≥85% 
cotton, nprs,>52mn but ≤80mn 
74 52051500 Uncombed single cotton yarn, with ≥85% 
cotton, nprs,>80mn 
75 52052100 Combed single cotton yarn, with ≥85% 
cotton, nprs, ≤14mn 
76 52052200 Combed single cotton yarn, with ≥85% 
cotton, nprs,>14mn but ≤43mn 
77 52052300 Combed single cotton yarn, with ≥85% 
cotton, nprs,>43mn but ≤52mn 
78 52052400 Combed single cotton yarn, with ≥85% 
cotton, nprs,>52mn but ≤80mn 
79 52052600 Combed single cotton yarn, with ≥85% 
cotton, nprs,>80mn but ≤94mn 
80 52053100 Uncombed cabled cotton yarn, with ≥85% 
cotton, nprs, ≤14mn 
81 52053200 Uncombed cabled cotton yarn, with ≥85% 
cotton, nprs,>14mn but ≤43mn 
82 52053300 Uncombed cabled cotton yarn, with ≥85% 
cotton, nprs,>43mn but ≤52mn 
83 52053400 Uncombed cabled cotton yarn, with ≥85% 
cotton, nprs,>52mn but ≤80mn 
84 52053500 Uncombed cabled cotton yarn, with ≥85% 
cotton, nprs,>80mn 
85 52054100 Combed cabled cotton yarn, with ≥85% 
cotton, nprs, ≤14mn 
86 52054200 Combed cabled cotton yarn, with ≥85% 
cotton, nprs,>14mn but ≤43mn 
87 52054300 Combed cabled cotton yarn, with ≥85% 
cotton, nprs,>43mn but ≤52mn 
88 52054400 Combed cabled cotton yarn, with ≥85% 
cotton, nprs,>52mn but ≤80mn 
89 52054600 Combed cabled cotton yarn, with ≥85% 
cotton, nprs,>80mn but ≤94mn COTTON YARN, 
containing 85% or 
more by weight of 
cotton 
90 52071000 Cotton yarn (excl. sewing), put up for retail 
sale, with ≥85% cotton 2. Qingdao Textiles 
United Import & 
Export Co. 
3. Beijing No.2 Cotton 
Mill  
4. Beijing No.3 Cotton 
Mill 
5. Tianjin No.1 Cotton 
Mill 
6. Shanghai Shenda Co. 
Ltd 
7. Shanghai Huashen 
Textiles and Dying 
Co. (Group) 
8. Dalian Huanqiu 
Textiles Group Co. 
9. Shijiazhuang 
Changshan Textiles Group 
10. Luoyang Cotton Mill, 
Henan Province 
11. Songyue Textiles 
Industry Group, 
Henan Province 
12. Dezhou Cotton Mill, 
 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 132  
 
PRODUCTS NO HS 2000 DESCRIPTION OF PRODUCTS STATE TRADING 
ENTERPRISES 
91 52041900 Cotton sewing thread, with<85% cotton, not 
put up for retail sale 
92 52061100 Uncombed single cotton yarn, with<85% 
cotton, nprs, ≤14mn 
93 52061200 Uncombed single cotton yarn, with<85% 
cotton, nprs,>14mn but ≤43mn 
94 52061300 Uncombed single cotton yarn, with<85% 
cotton, nprs,>43mn but ≤52mn 
95 52061400 Uncombed single cotton yarn, with<85% 
cotton, nprs,>52mn but ≤80mn 
96 52061500 Uncombed single cotton yarn, with<85% 
cotton, nprs,>80mn 
97 52062100 Combed single cotton yarn, with<85% 
cotton, nprs, ≤14mn 
98 52062200 Combed single cotton yarn, with<85% 
cotton, nprs,>14mn but ≤43mn 
99 52062300 Combed single cotton yarn, with<85% 
cotton, nprs,>43mn but ≤52mn 
100 52062400 Combed single cotton yarn, with<85% 
cotton, nprs,>52mn but ≤80mn 
101 52062500 Combed single cotton yarn, with<85% 
cotton, nprs,>80mn 
102 52063100 Uncombed cabled cotton yarn, with<85% 
cotton, nprs, ≤14mn 
103 52063200 Uncombed cabled cotton yarn, with<85% 
cotton, nprs,>14mn but ≤43mn 
104 52063300 Uncombed cabled cotton yarn, with<85% 
cotton, nprs,>43mn but ≤52mn 
105 52063400 Uncombed cabled cotton yarn, with<85% 
cotton, nprs,>52mn but ≤80mn 
106 52063500 Uncombed cabled cotton yarn, with<85% 
cotton, nprs,>80mn 
107 52064100 Combed cabled cotton yarn, with<85% 
cotton, nprs, ≤14mn 
108 52064200 Combed cabled cotton yarn, with<85% 
cotton, nprs,>14mn but ≤43mn 
109 52064300 Combed cabled cotton yarn, with<85% 
cotton, nprs,>43mn but ≤52mn 
110 52064400 Combed cabled cotton yarn, with<85% 
cotton, nprs,>52mn but ≤80mn 
111 52064500 Combed cabled cotton yarn, with<85% 
cotton, nprs,>80mn  
COTTON YARN, 
containing less than 
85% by weight of 
cotton 
112 52079000 Cotton yarn (excl. sewing), put up for retail 
sale, with<85% cotton  
13. Wuxi No.1 Cotton 
Mill 
14. Puxin Textiles Mill, 
Hubei Province 
15. Northwest No.1 
Cotton Mill 
16. Chengdu Jiuxing 
Textiles Group Co. 
17. Suzhou Sulun 
Textiles Joint 
Company (Group) 
18. Northwest No.7 
Cotton Mill 
19. Xiangmian Group 
Co., Hubei Province 
20. Handan Lihua 
Textiles Group Co. 
21. Xinjiang Textiles 
Industry Co. (Group) 
22. Anqing Textiles Mill 
23. Jinan No.2 Cotton 
Mill 
24. Tianjin No.2 Cotton 
Mill 
 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 133 
 
 
PRODUCTS NO HS 2000 DESCRIPTION OF PRODUCTS STATE TRADING 
ENTERPRISES 
113 52081100 Unbleached plain cotton weave, with ≥85% 
cotton, ≤100g/m2 
114 52081200 Unbleached plain cotton weave, ≥85% 
cotton, >100g/m2, but ≤200g/m2 
115 52081300 Unbleached 3 or 4-thread twill, with ≥85% 
cotton, ≤200g/m2 
116 52081900 Unbleached wove n cotton fabrics, nes, 
with≥85% cotton 
117 52091100 Unbleached plain cotton weave, with ≥85% 
cotton,>200g/m2 
118 52091200 Unbleached 3 or 4-thread twill, with ≥85% 
cotton WOVEN FABRICS 
OF COTTON, 
containing 85% or 
more by weight of 
cotton 
119 52091900 Unbleached cotton fabrics, with ≥85% 
cotton,>200g/m2, nes 
120 52101100 Unbleached plain cotton weave, with<85% 
cotton, ≤200g/m2 
121 52101200 Unbleached 3 or 4-thread twill, with<85% 
cotton, ≤200g/m2 
122 52101900 Unbleached wove n cotton fabrics, nes, 
with<85% cotton, ≤200g/m2 
123 52111100 Unbleached plain cotton weave, with<85% 
cotton,>200g/m2 
124 52111200 Unbleached 3 or 4-thread twill, with<85% 
cotton,>200g/m2 WOVEN FABRICS 
OF COTTON, 
containing less than 
85% by weight of 
cotton 
125 52111900 Unbleached wove n cotton fabrics, nes, 
with<85% cotton,>200g/m2 25. Jinhua Textiles Mill, 
Shanxi Province 
26. Jinwei Group Co., 
Zhejiang Province 
27. Northwest No.5 Cotton 
Mill 
28. Baoding No.1 Cotton 
Mill 
29. Liaoyang Textiles Mill 
30. Changchun textiles Mill
31. Huaxin Cotton Mill, 
Henan Province 
32. Baotou Textiles Mill 
33. Ninbo Hefeng textiles 
Group Co. 
34. Northwest No.4 Cotton 
Mill 
35. Xinjiang Shihezi Bayi 
Cotton Mill  
126 26171010 Crude antimony ANTIMONY 
ORES 127 26171090 Other antimony ores & concentrates, nes 
ANTIMONY 
OXIDE 128 28258000 Antimony oxides 
129 81100020 Antimony unwrought 
130 81100030 Antimony waste & scrap; powders ANTIMONY 
PRODUCTS 131 81100090 Antimony wrought & articles thereof 1. China National Metals 
and Minerals Import 
& Export Co. 
2. China National Non-
ferrous Import & 
Export Co. 
3. China Rare Earth and 
Metal Group Co. 
132 71061000 Silver powder 
133 71069100 Silver in unwrought forms  
SILVER 134 71069200 Silver in other semi-manufactured forms 1. China Banknote 
Printing and Minting 
Corporation 
2. China Cooper Lead 
Zinc Group 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 134  
 
ANNEX 2B 
 
PRODUCTS SUBJECT TO DESIGNATED TRADING 
 
PRODUCTS NO HS 2000 DESCRIPTION OF PRODUCTS LIBERALIZATION
PROGRAM 
1 40011000 Natural rubber latex, in prim ary forms or in plates, sheets 
or strip 
2 40012100 Smoked sheets of natural rubber 
3 40012200 Technically specified  natural rubber, in primary 
forms/plates, etc NATURAL 
RUBBER 
4 40012900 Other natural rubber, in primary forms or in plates, etc, 
nes Liberalized within 3 
years after the entry 
into force of this Protocol. 
5 44020000 Wood charcoal 
6 44031000 Wood in the rough..., treat ed with paint, stains, creosote, 
etc 
7 44032000 Untreated conifero us wood in the rough... 
8 44034910 Teak wood in the rough 
9 44034990 Other specified tropical wood in the rough 
10 44039100 Oak (Quercus spp.) wood in the rough, (excl. treated) 
11 44039200 Beech (Fagus spp.) wood  in the rough, (excl. treated) 
12 44039910 Nan Mu (Phoebe) wood in the rough, (excl. treated) 
13 44039920 Camphor wood in the rough, (excl. treated) 
14 44039930 Padauk in the rough, (excl. treated) 
15 44039940 Paulownia wood in the rough, (excl. treated) 
16 44039990 Other wood, nes, in the rough, (excl. treated) 
17 44041000 Coniferous hoopwood; split poles, etc; wooden sticks, 
etc; chipwood 
18 44042000 Non-conifrous hoopwood; split poles, wooden sticks, etc; 
chipwood 
19 44050000 Wood wool; wood flour 
20 44061000 Railway or tramway sleepers (cross-ties) of wood, not 
impregnated 
21 44069000 Railway or tramway sleepers (cross-ties) of wood, 
impregnated 
22 44071000 Conifers wood sawn or chipped lengthwise, sliced or 
peeled,thick>6mm 
23 44072400 Baboen, Mahogany, Imbuia & Balsa wood, sawn 
lengthwise...,thick>6mm 
24 44072500 Dark/light Red Meranti & Meranti Bakau, sawn 
lengthwise...,thick>6mm 
25 44072600 White Lauan/Meranti/Seraya, Yelw Meranti&Alan,sawn 
lengthws, thick>6mm 
26 44072910 Teak wood, sawn lengthwise...,thick>6mm 
27 44072990 Other specified tropical woods, sawn 
lengthwise...,thick>6mm 
28 44079100 Oak wood,sawn/chipped lengthwise,sliced/peeled, 
thick>6mm 
29 44079200 Beech wood,sawn/chipped 
lengthwise,sliced/peeled,thick>6mm 
30 44079910 Nan Mu,Camphor or Padauk wood,sawn 
lengthwise..,thick>6mm 
31 44079920 Paulownia wood sawn lengthwise.., thick >6mm TIMBER 
32 44079990 Other wood, nes, sawn lengthwise..., thick>6mm Liberalized within 3 
years after the entry 
into force of this Protocol.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 135 
 
 
PRODUCTS NO HS 2000 DESCRIPTION OF PRODUCTS LIBERALIZATION
PROGRAM 
33 44121300 Plywood with ≥1 outer ply of tropical wood, each 
ply≤6mm thick 
34 44121400 Plywood with ≥1 outer ply of non-coniferous wood, nes, 
each ply≤6mm PLYWOOD 
35 44121900 Plywood, each ply ≤6mm thick, nes Liberalized within 3 
years after the entry 
into force of this Protocol. 
36 51011100 Greasy shorn wool, not carded or combed 
37 51011900 Greasy wool (excl. shorn), not carded or combed 
38 51012100 Degreased shorn wool, not carbonised, not carded or 
combed 
39 51012900 Degreased wool (excl. shorn), not carbonised, not carded 
or combed 
40 51013000 Carbonised wool, not carded or combed 
41 51031010 Noils of wool, not garnetted stock 
42 51051000 Carded wool 
43 51052100 Combed wool in fragments WOOL 
44 51052900 Wool tops & combed wool (excl. in fragments) Liberalized within 3 
years after the entry 
into force of this Protocol. 
45 54023910 Synthetic filament textured yarn of polypropylene, not 
for re 
46 54023990 Other synthetic filament textured yarn, nes, not for retai 
47 54024910 Single synthetic yarn of polypropylrnr, with ≤50turns/m, 
nprs 
48 54024920 Single synthetic yarn of polyurethane, with ≤50turns/m, 
nprs 
49 54024990 Single synthetic yarn, nes, with ≤50turns/m, nprs 
50 54025910 Single synthetic yarn of polypropylrne, with>50turns/m, 
nprs 
51 54025990 Single synthetic yarn, nes, with>50turns/m, nprs 
52 54026910 Multiple or cabled yarn of polypropylene nprs 
53 54026920 Multiple or cabled yarn of polyurethane,nprs 
54 54026990 Multiple or cabled yarn, nes, nprs 
55 55013000 Synthetic filament tow, acrylic or modacrylic 
56 55033000 Acrylic or modacrylic synthetic staple fibres, not carded, 
etc 
57 55063000 Acrylic or modacrylic synthetic staple fibres, carded, etc 
58 55093100 Single yarn, with ≥85% acrylic or modacrylic staple 
fibres, nprs 
59 55093200 Multiple or cabled yarn, ≥85% acrylic/modacrylic staple 
fibres, nprs 
60 55096100 Yarn,<85% acrylic or modacrylic staple fibres, with 
wool..., nprs 
61 55096200 Yarn,<85% acrylic or modacrylic staple fibres, with 
cotton, nprs ACRYLIC 
62 55096900 Yarn,<85% acrylic or modacrylic staple fibres, nes, nprs Liberalized within 3 
years after the entry 
into force of this 
Protocol. WT/ACC/SPEC/CHN/1/Rev.8 
Page 136  
 
PRODUCTS NO HS 2000 DESCRIPTION OF PRODUCTS LIBERALIZATION
PROGRAM 
63 72081000 Flat rlld prod, i/nas, in coil, hr,w ≥600mm, patterns in 
relief 
64 72082500 Flat rlld prod, i/nas, in coil, hr,w ≥600mm, pickled, 
thick≥4.75mm 
65 72082600 Flat rlld prod, i/nas, in coil, hr,w ≥600mm, pickld, 
3mm≤thick<4.75mm 
66 72082700 Flat rlld prod, i/nas, in coil, hr,w ≥600mm, pickled, 
thick< 3mm 
67 72083600 Flat rlld prod, i/nas, in coil, hr,w ≥600mm, thick>10mm 
68 72083700 Flat rlld prod, i/nas, in coil, hr,w ≥600mm, 
4.75mm≤thick<10mm 
69 72083800 Flat rlld prod, i/nas,in coil, hr,w ≥600mm, 
3mm≤thick<4.75mm 
70 72083900 Flat rlld prod, i/nas, in coil, hr,w ≥600mm,thick<3mm 
71 72084000 Flat rlld prod, i/nas, not in coil, hr,w ≥600mm, patterns 
in relief 
72 72085100 Flat rlld prod, i/nas, not in coil, hr,w ≥600mm, 
thick>10mm 
73 72085200 Flat rlld prod, i/nas, not in coil, hr,w ≥600mm, 
4.75mm≤thick<10mm 
74 72085300 Flat rlld prod, i/nas,not in coil, hr,w ≥600mm, 
3mm≤thick<4.75mm 
75 72085400 Flat rlld prod, i/nas, not in coil, hr,w ≥600mm, 
thick<3mm 
76 72089000 Flat rlld prod, i/nas, not further worked than hot rlld, nes 
77 72091500 Flat rlld prod, i/nas, in coil, cr,w ≥600mm,thick ≥3mm 
78 72091600 Flat rlld prod, i/nas,in coil, cr,w ≥600mm, 
1mm<thick<3mm 
79 72091700 Flat rlld prod,i/nas,in 
coil,cr,w≥600mm,0.5mm ≤thick≤1mm 
80 72091800 Flat rlld prod, i/nas, in coil, cr,w ≥600mm,thick<0.5mm 
81 72092500 Flat rlld prod, i/nas, not in coil, 
cr,w≥600mm,thick ≥3mm 
82 72092600 Flat rlld prod, i/nas, not in 
coil,cr,w≥600mm,1mm<thick<3mm 
83 72092700 Flat rlld prod,i/nas,nt in 
coil,cr,w≥600mm,0.5mm ≤thick≤1mm 
84 72092800 Flat rlld prod, i/nas, nt in coil, 
cr,w≥600mm,thick<0.5mm 
85 72099000 Flat rlld prod, i/nas, not in coil, cr,w ≥600mm, nes 
86 72101100 Flat rlld prod,i/nas, plated/coated with 
tin,w≥600mm,thick ≥0.5mm 
87 72101200 Flat rlld prod, i/nas, plated or coated with 
tin,w≥600mm,thick<0.5mm 
88 72102000 Flat rlld prod,i/nas,platd/coatd with lead,w ≥600mm,incl 
terne-plate 
89 72103000 Flat rlld prod, i/nas, electrocly platd/coatd with 
zinc,w≥600mm STEEL 
90 72104100 Flat rlld prod, i/nas, pltd or ctd w zinc, 
corrugated,w ≥600mm, nes Liberalized within 3 
years after the entry 
into force of this Protocol.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 137 
 
 
PRODUCTS NO HS 2000 DESCRIPTION OF PRODUCTS LIBERALIZATION
PROGRAM 
 91 72104900 Flat rlld prod, i/nas, plated or coated with 
zinc,w≥600mm, nes  
92 72105000 Flat rld prod,i/nas,pltd/ctd w chrm oxids/chrom w chrm 
oxide,w≥600mm 
93 72106100 Flat rlld prod, i/nas, platd/coatd wth aluminium-zinc 
alloy,w≥600mm 
94 72106900 Flat rlld prod, i/nas, plated or coated with 
aluminium,w ≥600mm, nes 
95 72107000 Flat rlld prod,i/nas,painted, varnish./coated with 
plastics,w ≥600mm 
96 72109000 Flat rlld prod, i/nas, clad, plated or coated,w ≥600mm, 
nes 
97 72111300 Flat rlld prod,i/nas,hr,rlld on 4 
face,150mm<w<600mm,thick ≥4mm 
98 72111400 Flat rlld prod, i/nas, hr,w<600mm,thick=4.75mm 
99 72111900 Flat rlld prod,i/nas,hr,w<600mm,thick<3mm, myp 
275/thick>3mm 
100 72112300 Flat rld prod,i/nas,cr,w<600mm,containg<0.25% carbon 
101 72112900 Flat rlld prod,i/nas,cr,w<600mm, containg ≥ 0.25% 
carbon 
102 72119000 Flat rlld prod, i/nas,w<600mm, not clad, plated/coated, 
nes 
103 72121000 Flat rlld prod, i/nas,w<600mm, plated/coated with tin, 
nes 
104 72122000 Flat rlld prod, i/nas,w<600mm, electrolically platd/coatd 
with zinc 
105 72123000 Flat rlld prod, i/nas,w<600mm, otherwise platd/coated 
with zinc 
106 72124000 Flat rlld prod,i/nas,w<600mm,painted,varnished/coated 
with plastics 
107 72125000 Flat rlld prod, i/nas,w<600mm, plated or coated, nes 
108 72126000 Flat rlld prod, i/nas,w<600mm, clad 
109 72131000 Bars & rods, i/nas, hr,in irreg wound coils,cntg 
indent,ribs,etc prod d 
110 72132000 Bars & rods, i/nas, hr, in irreg wound coils, of free 
cutting steel 
111 72139100 Bars/rods,i/nas,hr,in irreg wnd coils of circ cross 
sect,dia<14mm 
112 72139900 Bars/rods,i/nas,hr,in irreg wound coils of circular cross 
sect, nes 
113 72141000 Bars & rods, iron or non-alloy steel forged 
114 72142000 Bars&rods,i/nas,hr,hd or he,cntg indent,ribs,etc,prod dur 
rp/tar,nes 
137 72172000 Wire,i/nas,plated or coated with zinc 
138 72173000 Wire,i/nas,plated or coated with other base metals nes 
139 72179000 Wire, iron or non alloy steel, nes 
140 72181000 Ingots & other primary forms of stainless steel 
141 72189100 Semi-finished products of stainless steel, rectangular cros 
section 
142 72189900 Other semi-finished products of stainless steel, nes STEEL 
143 72191100 Flat rlld prod,stainless steel,hr,in coil,w ≥600mm,exce 
10mm thick Liberalized within 3 
years after the entry into force of this 
Protocol. WT/ACC/SPEC/CHN/1/Rev.8 
Page 138  
 
PRODUCTS NO HS 2000 DESCRIPTION OF PRODUCTS LIBERALIZATION
PROGRAM 
144 72191200 Flat rlld prod, stainls steel, hr, in coil,w ≥600mm, 
4.75mm≤th≤10mm 
145 72191300 Flat rlld prod, stainls steel, hr in coil,w ≥600mm, 
3mm≤thick<4.75mm 
146 72191400 Flat rlld prod, stainls steel, hr in 
coil,w≥600mm,thick<3mm 
147 72192100 Flat rlld prod, stainless steel, hr, nic,w ≥600mm, exce 
10mm thick 
148 72192200 Flat rlld prod, stainless steel, hr, nic,w ≥600mm, 
4.75mm≤thick≤10mm 
149 72192300 Flat rlld prod, stainless steel, hr, nic,w ≥600mm, 
3mm≤thick <4.75mm 
150 72192400 Flat rlld prod, stainless steel, hr, nic,w ≥600mm, 
thick<3mm 
167 72230000 Wire of stainless steel 
168 72241000 Ingots & other primary forms of alloy steel, o/t stainless 
169 72249010 Blooms/pieces roughly shapd by forgng, ≥10 t, alloy stl 
o/t stainls 
170 72249090 Semi-finished products of alloy steel o/t stainless, nes 
171 72251100 Flat rlld prd of Si-electricl steel,w ≥600mm, grain-orient 
172 72251900 Flat rlld prd of sillicon-electricl steel,w ≥600mm, nes 
173 72252000 Flat rlld products of high speed steel,w ≥600mm 
174 72253000 Flat rlld prod, as, o/t stainls, in coils, nfw than 
hr,w≥600mm,nes 
175 72254000 Flat rlld prod, as, o/t stainls, nic nfw than hr,w ≥600mm, 
nes 
176 72255000 Flat rlld prod, as, o/t stainls, nfw than cold 
rlld,w≥600mm, nes 
177 72259100 Flat rlld prod, as, o/t stainls,w ≥600mm,electrly coatd 
with zinc 
178 72259200 Flat rlld prod, as, o/t stainls,w ≥600mm,otherwise coatd 
with zinc 
179 72259900 Flat rlld prod, as, o/t stainls,w ≥600mm, nes 
180 72261100 Flat rlld prd, Si-electricl steel,w<,grain-orientd,nes 
181 72261900 Flat rlld prd, silicon-electrical steel,w<600mm, nes 
182 72262000 Flat rlld prod, of high speed steel,w<600mm STEEL 
183 72269100 Flat rlld prod, as, o/t stainless, nfw than hot 
rlld,w<600mm, nes Liberalized within 3 
years after the entry 
into force of this Protocol.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 139 
 
 
PRODUCTS NO HS 2000 DESCRIPTION OF PRODUCTS LIBERALIZATION
PROGRAM 
184 72269200 Flat rlld prod, as, o/t stainless, nfw than cold 
rlld,w<600mm 
185 72269300 Flat rlld prod, as, o/t stainls,w<600mm,electrly coatd 
with zinc 
186 72269400 Flat rlld prod, as, o/t stainls,w<600mm,otherwise coatd 
with zinc 
187 72269900 Flat rlld prod, as, o/t stainless,w<600mm, nes 
188 72271000 Bars & rods, of high speed steel, hr, in irregularly wound 
coils 
189 72272000 Bars & rods, of silico-manganese steel, hr, in irregular 
wound coils 
190 72279000 Bars & rods,alloy s,o/t stainless hr,in irregularly wound 
coils,nes 
191 72281000 Bars & rods of high speed steel, nes 
192 72282000 Bars & rods of silico-manganese steel nes 
193 72283000 Bars & rods,alloy s,o/t stainls nfw than hot 
rld/drawn/extrud, nes 
194 72284000 Bars & rods, as, o/t stainless, not further worked than 
forged 
195 72285000 Bars & rods, as, o/t stainless, not further wkd than cld 
formed/fin 
207 73023000 Switch blades/crossng frogs/point rods/oth crossng 
pieces,iron/stl 
208 73024000 Fish plates & sole plates, iron'steel 
209 73029000 Rail'tramway construction material of iron'steel, nes 
210 73030010 Tube../hollw profile of cast irn, circul cros sec, inside 
dia.≥500mm 
211 73030090 Tubes, pipes & hollow profiles of cast iron, nes 
212 73041000 Pipes, line, i/s, smls, of a kind used for oil'gas pipelines 
213 73042100 Drill pipe,i/s,smls,for use in drilling for oil'gas 
214 73042900 Casings/tubing pipe,i/s,smls,for use in drilling for oil'gas 
215 73043110 Boiler tube/pipe, i/non alloy s, smls, circular cs, cold 
drw/rld 
216 73043120 Geo casng/drill pipe, i/non alloy s, smls,circul cs, cold 
drw/rld 
217 73043190 Tubes, pipe..., i/non alloy s, smls, circular cs,cold dr/rl, 
nes 
218 73043910 Boiler tube/pipe, i/non alloy s, smls, circular cs, not cld 
dr/rl 
219 73043920 Geo casin/drill pipe, i/non alloy s, smls, circ cs, not cld 
dr/rl 
220 73043990 Tubes, pipe..., i/non alloy s, smls, circular cs, not cld 
dr/rl,nes 
221 73044190 Tubes, pipe, stainls steel, smls, circ cros sec , cold d/r, 
nes 
222 73044910 Boiler tube/pipe, stnls s, smls,circular cs, not cold 
draw/rold 
223 73044990 Tubes, pipe.., stnls s, smls,circular cs,not cold dr/rl, nes STEEL 
224 73045110 Boiler tube/pipe, alloy s o/t stnls, smls,circ cros sec, cold 
dr/rl Liberalized within 3 
years after the entry 
into force of this Protocol. WT/ACC/SPEC/CHN/1/Rev.8 
Page 140  
 
PRODUCTS NO HS 2000 DESCRIPTION OF PRODUCTS LIBERALIZATION
PROGRAM 
225 73045120 Geo casing/drill pipe, alloy s o/t stnls,smls, circ cs, cold 
dr/rl 
226 73045190 Tube/pipe., alloy s o/t stnls, smls, circ cs, cold d/r, nes 
227 73045910 Boiler tube/pipe, alloy s o/t stnls, smls, circ cs, not cld 
d/r, nes 
228 73045920 Geo casng/drill pipe, alloy s o/t stnls,smls, circ cs,nt cld 
d/r, nes 
229 73045990 Tube/pipe., alloy s o/t stnls,smls, circ cs, not cold dr/rl, 
nes 
230 73049000 Tubes, pipe & hollow profiles, i's, smls, nes 
231 73051100 Pipe,line,i/s,longitudinally subm arc wld,int/ext 
cs,dia>406.4mm 
232 73051200 Pipe,line,i/s,longitudinally wld w int/ext circ cs,ext 
dia>406.4mm 
233 73051900 Pipe, line,i/s, int/ext circ cross sect, wld, ext 
dia>406.4mm, nes 
234 73052000 Casings,i/s,int/ext circ c sect,wld ext dia>406.4mm,o/g 
drill,nes 
235 73053100 Tubes & pipe, i/s, longitudinally welded, external 
dia>406.4mm, nes 
236 73053900 Tubes & pipe,i/s,welded,riveted'sim closed,ext 
dia>406.4mm,nes 
237 73059000 Tubes & pipe, i/s, riveted'sim closed, ext dia>406.4mm, 
nes 
238 73061000 Pipe,line,i/s,welded,riveted'sim closed,nes,for o/g 
pipeline 
239 73062000 Casing/tubing,i/s,welded,riveted'sim clsd,nes,for o/g 
drilling 
240 73063000 Tubes,pipe & hollow profiles,iron'nas,welded,of circ 
cs,nes 
241 73064000 Tubes,pipe & hollow profiles,stnls steel,welded,of circ 
cs,nes 
242 73065000 Tubes, pipe & hollow profiles,al/s,(o/t stain) wld,of circ 
cs, nes 
243 73066000 Tubes, pipe & hollow profiles, i/s, welded, of non circ cs, 
nes 
244 73069000 Tubes, pipe & hollow profiles, i/s, welded, nes STEEL 
245 73121000 Stranded wire, ropes & cables of i's,not electrically 
insulated Liberalized within 3 
years after the entry 
into force of this Protocol. 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 141 
 
 
ANNEX 3 
 
NON-TARIFF MEASURES SUBJECT TO PHASED ELIMINATION 
 
Table One  
Products Subject to Import Licence, Import Quota and Import Tendering  
 
Serial 
NO HS 2000 DESCRIPTION OF PRODUCTS L Q T Phasing-out 
Period Quota 
Category 
1 17011100 Raw cane sugar, in solid form L Q  upon accession  
2 17011200 Raw beet sugar, in so lid form L Q  upon accession  
3 17019910 Granulated sugar L Q  upon accession  
4 17019920 Superfine sugar L Q  upon accession  
5 24011010 Flue-cured tobacco, not st emmed/stripped L Q  upon accession  
6 24011090 Tobacco other than flue-cured, not 
stemmed/stripped L Q  upon accession  
7 24012010 Flue-cured tob acco, partly or wholly 
stemmed/stripped L Q  upon accession  
8 24012090 Tobacco o/t flue-c ured, partly or wholly 
stemmed/stripped L Q  upon accession  
9 24013000 Tobacco refuse L Q  upon accession  
10 24029000 Cigars, cigarillos, cigarettes, etc, not 
containing tobacco L Q  upon accession  
11 24039100 Homogenized or reconstitu ted tobacco L Q  upon accession  
12 27100011 Gasoline, incl. aviation spirit L Q  2004 1 
13 27100019 Other light oils, nes L Q  2004 1 
14 27100013 Naphtha L Q  2004 1 
15 27100023 Kerosenes L Q  2004 1 
16 27100024 Normal paraffin L Q  2004 1 
17 27100031 Light diesel oil L Q  2004 1 
18 27100033 Fuel oil No.5-No.7 L Q  2004 1 
19 27100039 Other fuel oils L Q  2004 1 
20 28371110 Sodium cyanide L Q  2002 2 
21 31021000 Urea L Q  upon accession   
22 31022100 Ammonium sulphate L Q  2002 3 
23 31022900 Double salts & mixtures of ammonium 
sulphate & ammonium nitrate L Q  2002 3 
24 31023000 Ammonium nitrate L Q  2002 3 
25 31024000 Mixtures of ammonium nitrate with inorg non-
fertilizing substances L Q  2002 3 
26 31025000 Sodium nitrate L Q  upon accession   
27 31026000 Double salts & mixtures of calcium nitrate & 
ammonium nitrate L Q  upon accession   
28 31027000 Calcium cyanamide L Q  upon accession   
29 31028000 Mixtures of urea & ammonium nitrate in 
aqueous or ammoniacal solution L Q  2002 3 
30 31029000 Mineral or chemical fertilizers, nitrogenous, 
nes L Q  2002 3 WT/ACC/SPEC/CHN/1/Rev.8 
Page 142  
 
Serial 
NO HS 2000 DESCRIPTION OF PRODUCTS L Q T Phasing-out 
Period Quota 
Category 
31 31031000 Superphosphates L Q  2002 3 
32 31032000 Basic slag L Q  2002 3 
33 31039000 Mineral or chemical fertilizers, phosphatic, 
nes L Q  2002 3 
34 31041000 Carnallite, sylvite & other Crude natural 
potassium salts L Q  upon accession   
35 31042000 Potassium chloride L Q  upon accession   
36 31043000 Potassium sulphate L Q  2002 3 
37 31049000 Mineral or chemical fertilizers,  potassic, nes L Q  upon accession   
38 31051000 Fertilizers... in packages of a gross 
weight=10kg L Q  2002 3 
39 31052000 Mineral/chemical fertilizers with nitrogen, 
phosphorus & potassium L Q  upon accession   
40 31053000 Diammonium hydrogenorthophosphate 
(diammonium phosphate) L Q  upon accession   
41 31054000 Ammonium dihydrogenorthophosphate 
(monoammonium phosphate) L Q  2002 3 
42 31055100 Mineral or chemical fertilizers containing 
nitrates & phosphates L Q  2002 3 
43 31055900 Mineral or chemical fertilizers with nitrogen & 
phosphorus, nes L Q  2002 3 
44 31056000 Mineral or chemical fertilizers with 
phosphorus & potassium, nes L Q  2002 3 
45 31059000 Other fertilizers, nes L Q  2002 3 
46 39076011 Polyethylene terephthalate slices or chips, high 
viscosity L Q  upon accession   
47 39076019 Other Polyethylene terephthalate slices or 
chips, nes L Q  upon accession   
48 40011000 Natural rubber latex, in primary forms or in 
plates, sheets or strip L Q  2004 4 
49 40012100 Smoked sheets of natural rubber L Q  2004 4 
50 40012200 Technically speci fied natural rubber, in 
primary forms/plates, etc L Q  2004 4 
51 40012900 Other natural rubber, in primary forms or in 
plates, etc, nes L Q  2004 4 
52 40111000 New pneumatic tyres, of rubber of a kind used 
on motor cars L Q  2004 5 
53 40112000 New pneumatic tyres, of rubber of a kind used 
on buses or lorries L Q  2004 5 
54 40119100 New pneumatic tyres, of rubber, nes, of 
herring-bone or similar tread L Q  2002 5 
55 40121010 Retreaded tyres of rubber used on automobiles L Q  2002 5 
56 40122010 Used pneumatic tyres of rubber used on 
automobiles L Q  2002 5 
57 40129020 Solid/cushion rubber tyres, etc, used on 
automobiles L Q  upon accession   
58 40131000 Inner tubes, of rubber of a kind used on motor 
cars, buses or lorries L Q  upon accession   
59 51011100 Greasy shorn wool, not carde d or combed L Q  upon accession  
60 51011900 Greasy wool (excl. shorn), not carded or 
combed L Q  upon accession   WT/ACC/SPEC/CHN/1/Rev.8 
 Page 143 
 
 
Serial 
NO HS 2000 DESCRIPTION OF PRODUCTS L Q T Phasing-out 
Period Quota 
Category 
61 51012100 Degreased shorn wool, not carbonised, not 
carded or combed L Q  upon accession  
62 51012900 Degreased wool (excl. shorn), not carbonised, 
not carded or combed L Q  upon accession  
63 51013000 Carbonised wool, not carded  or combed L Q  upon accession  
64 51031010 Noils of wool, not garn etted stock L Q  upon accession  
65 51051000 Carded wool L Q  upon accession  
66 51052100 Combed wool in fr agments L Q  upon accession  
67 51052900 Wool tops & combed wool (excl. in 
fragments) L Q  upon accession  
68 52010000 Cotton, not carded or  combed L Q  upon accession  
69 52030000 Cotton, carded or co mbed L Q  upon accession  
70 54022000 High tenacity yarn of po lyesters, nprs L Q  upon accession  
71 54023310 Elastic filament of polyesters, not for retail 
sale L Q  upon accession  
72 54023390 Other textured yarn of polyesters, not for retail 
sale L Q  upon accession  
73 54023990 Other synthetic filament textured yarn, nes, 
not for retail L Q  upon accession  
74 54024200 Single yarn of partially oriented polyesters, 
with≤50turns/m, nprs L Q  upon accession  
75 54024300 Single yarn of polyesters, nes, 
with≤50turns/m, nprs L Q  upon accession  
76 54024990 Single synthetic yarn, nes, with ≤50turns/m, 
nprs L Q  upon accession  
77 54025200 Single yarn of polyesters, with>50turns/m, 
nprs L Q  upon accession  
78 54025990 Single synthetic yarn, nes, with>50turns/m, 
nprs L Q  upon accession  
79 54026200 Multiple or cabled yarn of polyesters, nprs L Q  upon accession  
80 54026990 Multiple or cabled yarn, nes, nprs L Q  upon accession  
81 54033310 Single yarn of cellu lose diacetate, not for retail 
sale L Q  upon accession  
82 54041000 Synthetic monofilament of ≥67decitex L Q  upon accession  
83 55012000 Synthetic filament tow of  polyesters L Q  upon accession  
84 55013000 Synthetic filament tow, acrylic  or modacrylic L Q  upon accession  
85 55020010 Cellulose diacetate fila ment tow L Q  upon accession  
86 55032000 Synthetic staple fibres, of polyesters, not 
carded, etc L Q  upon accession  
87 55033000 Acrylic or modacrylic synthetic staple fibres, 
not carded, etc L Q  upon accession  
88 55062000 Synthetic staple fibres, of polyesters, carded, 
etc L Q  upon accession  
89 55063000 Acrylic or modacrylic synthetic staple fibres, 
carded, etc L Q  upon accession  
90 55092100 Single yarn, with ≥85% polyester staple fibres, 
nprs L Q  upon accession  
91 55092200 Multiple or cabled yarn, with ≥85% polyester 
staple fibres, nprs L Q  upon accession  WT/ACC/SPEC/CHN/1/Rev.8 
Page 144  
 
Serial 
NO HS 2000 DESCRIPTION OF PRODUCTS L Q T Phasing-out 
Period Quota 
Category 
92 55093100 Single yarn, with ≥85% acrylic or modacrylic 
staple fibres, nprs L Q  upon accession  
93 55093200 Multiple or cabled yarn, ≥85% 
acrylic/modacrylic st aple fibres, nprs L Q  upon accession  
94 55095100 Yarn,<85% polyester staple fibres, with 
artificial staple fibres, nprs L Q  upon accession  
95 55095200 Yarn,<85% polyester staple fibres, with 
wool/fine animal hair, nprs L Q  upon accession  
96 55095300 Yarn,<85% polyester staple fibres, mixed with 
cotton, nprs L Q  upon accession  
97 55095900 Yarn,<85% polyester staple fi bres, nes, nprs L Q  upon accession  
98 55096100 Yarn,<85% acrylic or modacrylic staple fibres, 
with wool..., nprs L Q  upon accession  
99 55096200 Yarn,<85% acrylic or modacrylic staple fibres, 
with cotton, nprs L Q  upon accession  
100 55096900 Yarn,<85% acrylic or modacrylic staple fibres, 
nes, nprs L Q  upon accession  
101 84073100 Engines, spark-igni reciprocating, f vehcl Ch 
87, ≤ 50cc L Q  2003 6 
102 84073200 Engines, spark-igni reciprocating, for vehcl Ch 
87,>50cc but ≤250cc L Q  2003 6 
103 84073300 Engines, spark-igni reciprocating, f vehcl Ch 
87,>250cc to 1000cc L Q  2003 6 
104 84079090 Other engines, spark-ignition type, nes L Q  2003 7 
105 84082010 Engines, diesel, output ≥132.39kw, for vehicles 
of Ch. 87 L Q  2003 7 
106 84082090 Engines, diesel, of an output<132.39kw, for 
vehicles of Ch 87 L Q  2003 7 
107 84089092 Engines, diesel, nes, 14kw<output<132.39kw   T 2004  
108 84143011 Compressors for refrige/freezer, motor 
power≤0.4kw L Q  upon accession  
109 84143012 Compressors for refrige'freezer,  0.4kw< 
motor power ≤5 kw L Q  upon accession  
110 84143013 Compressors for airconditioner, 0.4kw < 
motor power ≤5kw L Q  upon accession  
111 84143019 Compressors driven by a motor, nes L Q  upon accession  
112 84143090 Compressors driven by a non-motor L Q  upon accession  
113 84145930 Centrifugal ventila tors   T upon accession  
114 84151000 Air conditioning machines window/wall types, 
self-contained L Q  2002 8 
115 84152000 Air conditioning machines used for persons in 
motor vehicles L Q  2002 7 
116 84158110 Air-conditioner nes, with refr ≤4000 Kcal/h 
&cool/heat cycle rev valve L Q  upon accession  
117 84158210 Air-conditioner nes, with refrigerating unit, 
≤4000 Kcal/h L Q  upon accession  
118 84181010 Combined refri -freezers, with separate 
external doors, capacity>500L L Q  upon accession  
119 84181020 Combined refri -freezers, with separate 
external doors, 200L<capacity ≤150L 
 L Q  upon accession   WT/ACC/SPEC/CHN/1/Rev.8 
 Page 145 
 
 
Serial 
NO HS 2000 DESCRIPTION OF PRODUCTS L Q T Phasing-out 
Period Quota 
Category 
120 84181030 Combined refri -freezers, with separate 
external doors, capacity ≤200L L Q  upon accession  
121 84182110 Refrigerators, household type, compression-
type,>150L L Q  upon accession  
122 84182120 Refrigerators, household type, compression-
type,50L<capacity ≤150L L Q  upon accession  
123 84182130 Refrigerators, household type, compression-
type,capacity ≤50L L Q  upon accession  
124 84182200 Refrigerators, household type, absorption-
type, electrical L Q  upon accession  
125 84183010 Freezers of chest type, capacity ≤800L, T≤-40 L Q  upon accession  
126 84183021 Freezers of chest type, 500L<capacity ≤800 L, 
T>-40 L Q  upon accession  
127 84183029 Freezers of chest type,capacity ≤500L, T>-40 L Q  upon accession  
128 84184010 Freezers of upright type,capacity ≤900L, T≤-40 L Q  upon accession  
129 84184021 Freezers of upright type, 500 
L<capacity ≤900L, T> -40 L Q  upon accession  
130 84184029 Freezers of upright type,capacity ≤500L, T> -
40 L Q  upon accession  
131 84185000 Other refrigerating/freezing chests, cabinets, 
display counters, etc L Q  upon accession  
132 84254990 Other hoists, nes   T upon accession  
133 84261910 Ship loading cranes   T upon accession  
134 84261921 Grab ship unloadin g cranes   T upon accession  
135 84261929 Other ship unloadin g cranes   T upon accession  
136 84263000 Portal/pedestal jib cranes   T upon accession  
137 84264110 Self-propelled cranes on tyres   T upon accession  
138 84264190 Other self-propelled machinery with a crane 
on tyres, nes   T upon accession  
139 84281010 Lifts and skip hoists for the transport of 
persons   T 2002  
140 84284000 Escalators & moving wa lkways   T upon accession  
141 84291110 Bulldozers/angledozers, tracked, with engine 
output>235.36 kw   T 2004  
142 84294011 Vibratory road rollers, self-propelled, dead 
weight≥18 t   T 2002  
143 84294019 Other road rollers, self-propelled   T 2004  
144 84305020 Mining shovels, self -propelled   T upon accession  
145 84381000 Bakery mach & machy for the mfg of 
macaroni, spaghetti/sim prods   T upon accession  
146 84391000 Machinery for making pulp of fibrous 
cellulosic material   T 2002  
147 84392000 Machinery for making paper/paperboard   T 2002  
148 84393000 Machinery for finishing paper/paperboard   T 2002  
149 84413090 Mach f make boxes/sim cont, of paper/pboard 
o/t by moulding, nes   T upon accession  
150 84414000 Machines for moulding articles in paper pulp, 
paper/paperboard   T upon accession  WT/ACC/SPEC/CHN/1/Rev.8 
Page 146  
 
Serial 
NO HS 2000 DESCRIPTION OF PRODUCTS L Q T Phasing-out 
Period Quota 
Category 
151 84431910 Offset printing machinery, sheet fed   T 2004  
152 84431990 Offset printing machinery nes   T 2004  
153 84435912 Screen printing machinery, platen screen press   T upon accession  
154 84451110 Textile carding machines, for cotton type 
fibres   T upon accession  
155 84451120 Textile carding m achines, for wool type fibres   T upon accession  
156 84451200 Textile combing m achines   T upon accession  
157 84452020 Rotor spinning frames L Q  upon accession   
158 84454010 Automatic bobbin tex tile winders   T upon accession  
159 84459010 Warping machines   T upon accession  
160 84463020 Rapier looms for weaving fabrics of a 
width>30cm, shuttleless   T upon accession  
161 84463030 Carrier looms for weaving fabrics of width>30 
cm, shuttleless   T upon accession  
162 84501200 Other washing mach, dry linen capacity ≤10kg, 
with built-in dryer L Q  upon accession   
163 84501900 Other washing machines of a dry linen 
capacity≤10kg, nes L Q  upon accession   
164 84522110 Automatic sewing machines, flat-seam type 
,other than book-sewing machines   T upon accession  
165 84522190 Automatic sewing machines, other than book-
sewing machines   T upon accession  
166 84542010 Out furnace refining equipment   T upon accession  
167 84543010 Cold chamber die-castin g machines   T upon accession  
168 84563010 Machine-tools operated by electro-discharge 
processed, numerically controlled   T 2004  
169 84569910 Plasma cutting machines   T 2004  
170 84569990 Machine-tools operated by electro-chem, 
plasma arc..., nes   T 2004  
171 84571010 Machining centres, vertical type   T 2004  
172 84571020 Machining centres, horizontal type   T 2004  
173 84571030 Machining centres, plano type   T 2004  
174 84571090 Machining centres, other type   T 2004  
175 84581100 Horizontal lathes numerically controlled   T 2004  
176 84621090 Forging/die-stamping mach & hammers, not 
numerically contrld   T 2002  
177 84659600 Splitting/slicing'paring mach for 
wood/cork/bne/hrd rubber etc   T upon accession  
178 84714991 Distributed control systems   T 2004  
179 84742010 Crushing/grinding mach for earth/ 
stone/ores/other minerals, to   T upon accession  
180 84742090 Crushing/grinding mach for earth/ 
stone/ores/other minerals   T upon accession  
181 84743100 Concrete'mortar mixers   T 2004  
182 84775900 Mach for moulding ′otherwise forming 
rubber′plastics nes 
   T 2002   WT/ACC/SPEC/CHN/1/Rev.8 
 Page 147 
 
 
Serial 
NO HS 2000 DESCRIPTION OF PRODUCTS L Q T Phasing-out 
Period Quota 
Category 
183 84781000 Machinery for preparing'making up tobacco 
nes   T 2002  
184 84789000 Parts of machinery for preparing'making up 
tobacco nes   T upon accession  
185 84791021 Machines for spreading bituminous concrete   T 2002  
186 84791022 Stabilizer spreading machines   T 2002  
187 84804100 Moulds, injection'compression types, for 
metal'metal carbides   T 2002  
188 84807100 Moulds, injection'compression types, for 
rubber'plastics   T 2002  
189 84834020 Planet decelerators   T upon accession  
190 85042320 Liquid dielectric transformers, handling 
capacity≥400 MVA   T 2004  
191 85172100 Facsimile machines   T 2002  
192 85175090 Other apparatus for carrier-current line 
systems, nes   T upon accession  
193 85184000 Audio-frequency electric amplifiers   T 2002  
194 85199910 Compact disc player s, sound L Q  upon accession  
195 85203210 Magnetic tape recorder-sound player, digital 
audio & cassette-type L Q  upon accession  
196 85203290 Magnetic tape recorder-sound player, digital 
audio type, nes L Q  upon accession  
197 85203300 Magnetic tape recorder-sound player, cassette-
type, nes L Q  upon accession  
198 85203910 Magnetic open-disk recorder -sound player L Q  upon accession  
199 85203990 Magnetic tape recorder-sound reproducing 
apparatus, nes L Q  upon accession  
200 85209000 Magnetic tape recorders & other sound 
recording apparatus, nes L Q  upon accession  
201 85211011 Magnetic video tape recorders, broadcast 
quality L Q  2002 9 
202 85211019 Magnetic video tape recorders, nes L Q  2002 9 
203 85211020 Magnetic video tape reproducers L Q  2002 9 
204 85219010 Laser video compact disk player L Q  2002 10 
205 85219090 Video recording or reproducing apparatus nes L Q  2002 10 
206 85229021 Transport mechanisms of cassette sound 
recorders/reproducers L Q  2002 11 
207 85229030 Parts/accessories of video recordg/reproducg 
apparatus L Q  2002 9 
208 85252011 Satellite earth station for television   T 2004  
209 85252019 Satellite earth station other th an for television   T upon accession  
210 85252022 Portable radio telephone   T 2002  
211 85252029 Other mobile communication equipment, nes   T 2002  
212 85252092 Mobile communication base station   T 2002  
213 85252093 Wireless subscriber communicating 
equipments   T 2002  
214 85173013 Digital mobile communication  switching 
systems T 2002  WT/ACC/SPEC/CHN/1/Rev.8 
Page 148  
 
Serial 
NO HS 2000 DESCRIPTION OF PRODUCTS L Q T Phasing-out 
Period Quota 
Category 
215 85173091 Anological  mobile communication  switching 
systems T 2002  
216 85253010 Television cameras, for special purposes L Q  2002 9 
217 85253091 Television cameras broadcast quality L Q  2002 9 
218 85253099 Television cameras, nes L Q  2002 9 
219 85254010 Still image video camera/oth video camera 
recorder, f special purposes L Q  2002 9 
220 85254020 Still image video camera with a built-in video 
recorder, household L Q  2002 9 
221 85254030 Still image video cameras/oth video camera 
recorders with digital image storage L Q  2002 9 
222 85254090 Still image video cameras/oth video camera 
recorders, nes L Q  2002 9 
223 85271200 Pocket-size radio cassette-players, no need 
externl power L Q  upon accession  
224 85271300 Oth combined radio/sound recorder-player, no 
need extnl power L Q  upon accession  
225 85271900 Other radio broa d receiver operating without 
external power, nes L Q  upon accession  
226 85272100 Combined radio/sound recorder-player, need 
extnl power for motor vehcl L Q  upon accession  
227 85272900 Other radio broad receiver need extnl power 
for motor vehicles, nes L Q  upon accession  
228 85273100 Other combined radio/sound recorder-player 
nes L Q  upon accession  
229 85273200 Radio broad receiver combined with a clock, 
nes L Q  upon accession  
230 85273900 Radio-broadcast recei vers nes L Q  upon accession  
231 85279010 Radio paging receivers   T 2002  
232 85281210 Colour satellite TV  receivers   T 2004   
233 85281291 Colour TV set, screen diagonal ≤ 42 cm L Q  upon accession  
234 85281292 Colour TV set, 42 cm<screen diagonal ≤52cm L Q  upon accession  
235 85281293 Colour TV set, screen diagonal > 52 cm L Q  2002 12 
236 85282100 Colour video monitors L Q  2002 12 
237 85283010 Colour video projectors L Q  2002 12 
238 85291020 Aerials & the parts, for radio or television 
receivers   T 2002  
239 85291090 Aerials & the parts, for other apparatus of 
heading 85.25 to 85.28   T 2004  
240 85299091 High frequency tuners   T 2004  
241 85311090 Burglar or fire alarms & similar apparatus 
   T 2002  
242 85352900 Automatic circuit breakers, for a 
voltage≥72.5KV, nes   T 2004  
243 85401100 Cathode-ray TV picture tubes, including video 
monitor tubes, colour L Q  2002 12 
244 85404000 Color data/graphic display tubes of phosphor 
dot scrn pitch < 0.4mm L Q  2002 12 
245 85445910 Electric cable  without connectors, 
80V<volt ≤1,000 V   T upon accession   WT/ACC/SPEC/CHN/1/Rev.8 
 Page 149 
 
 
Serial 
NO HS 2000 DESCRIPTION OF PRODUCTS L Q T Phasing-out 
Period Quota 
Category 
246 85447000 Optical fibre cables, made up of individually 
sheathed fibres   T upon accession  
247 86040099 Railway/tram maintenance or service vehicles, 
nes   T upon accession  
248 87012000 Road tractors for semi-trailers (truck tractors) L Q  2004 7 
249 87019000 Wheeled tractors nes   T upon accession  
250 87021020 Coaches for transport of passengers at 
aerodrome, diesel L Q  2004 7 
251 87021091 Buses with seats ≥30, diesel L Q  2004 7 
252 87021092 Buses with 20 ≤seats<30, diesel L Q  2005 7 
253 87021093 Buses with 10 ≤seats<20, diesel L Q  2005 7 
254 87029010 Other buses with seats ≥30, nes L Q  2004 7 
255 87029020 Other buses with 20 ≤seats<30, nes L Q  2005 7 
256 87029030 Other buses with 10 ≤seats<20, nes L Q  2005 7 
257 87031000 Snowmobiles, golf cars & sim ilar vehicles L Q  upon accession   
258 87032130 Saloon cars, ≤1000 cc, spark-igni reciprocatng L Q  2005 7 
259 87032190 Cars nes, ≤1000 cc, spark-igni reciprocatng L Q  2005 7 
260 87032230 Saloon cars, >1000cc but ≤1500 cc, spark-igni 
recip L Q  2005 7 
261 87032240 Cross-country cars(4WD), >1000cc 
but≤1500cc, spark-igni recip L Q  2005 7 
262 87032250 Minibuses (seats ≤9), >1000cc 
but≤1500cc,spark-igni recip L Q  2005 7 
263 87032290 Cars nes, >1000cc but ≤1500 cc, spark-igni 
recip L Q  2005 7 
264 87032314 Saloon cars, >1500cc but ≤2500 cc,spark-igni 
recip L Q  2005 7 
265 87032315 Cross-country cars(4WD),>1500cc but ≤2500 
cc,spark-igni recip L Q  2005 7 
266 87032316 Minibuses(seats ≤9), >1500cc but ≤2500 
cc,spark-igni recip L Q  2005 7 
267 87032319 Cars nes, >1500cc but ≤2500 cc,spark-igni 
recip L Q  2005 7 
268 87032334 Saloon cars >2500cc but ≤3000 cc, spark-igni 
recip L Q  2005 7 
269 87032335 Cross-country cars(4WD), >2500cc but ≤3000 
cc, spark-igni recip L Q  2005 7 
270 87032336 Minibuses(seats ≤9), >2500cc but ≤3000 cc, 
spark-igni recip 
 L Q  2005 7 
271 87032339 Cars nes, >2500cc but ≤3000 cc, spark-igni 
recip L Q  2005 7 
272 87032430 Saloon cars, >3000 cc, spark-igni recip L Q  2005 7 
273 87032440 Cross-country cars(4WD), >3000 cc, spark-
igni recip L Q  2005 7 
274 87032450 Minibuses (seats ≤9), >3000 cc, spark-igni 
recip L Q  2005 7 
275 87032490 Cars nes, >3000 cc, spark-igni recip L Q  2005 7 WT/ACC/SPEC/CHN/1/Rev.8 
Page 150  
 
Serial 
NO HS 2000 DESCRIPTION OF PRODUCTS L Q T Phasing-out 
Period Quota 
Category 
276 87033130 Saloon cars, ≤500 cc, diesel L Q  2005 7 
277 87033140 Cross country cars(4WD), ≤1500cc, diesel L Q  2005 7 
278 87033150 Minibuses (seats ≤9), ≤1500cc, diesel L Q  2005 7 
279 87033190 Cars nes, ≤1500cc, diesel L Q  2005 7 
280 87033230 Saloon cars, >1500cc but ≤2500 cc, diesel L Q  2005 7 
281 87033240 Cross country cars(4WD), >1500cc but ≤2500 
cc, diesel L Q  2005 7 
282 87033250 Minibuses (seats ≤9), >1500cc but ≤2500 cc, 
diesel L Q  2005 7 
283 87033290 Cars nes, >1500cc but ≤2500 cc, diesel L Q  2005 7 
284 87033330 Saloon cars, >2500 cc, diesel L Q  2005 7 
285 87033340 Cross country cars(4WD), >2500 cc, diesel L Q  2005 7 
286 87033350 Minibuses (seats ≤9), >2500 cc, diesel L Q  2005 7 
287 87033390 Cars nes, >2500 cc, diesel L Q  2005 7 
288 87039000 Motor cars with seats ≤9, nes L Q  2005 7 
289 87041030 Dumpers designed for off-highway use, with 
motor-driven wheel   T 2004  
290 87042100 Trucks diesel, g.v.w. ≤5 t L Q  2004 7 
291 87042230 Trucks diesel, 5 t < g.v.w.<14 t L Q  2004 7 
292 87042240 Trucks diesel, 14 t ≤ g.v.w.≤20 t L Q  2004 7 
293 87042300 Trucks diesel, g.v.w. >20 t L Q  2004 7 
294 87043100 Trucks spark-igni, g.v.w. ≤5 t L Q  2004 7 
295 87043230 Trucks spark-igni, 5 t<g.v.w. ≤8 t L Q  2002 7 
296 87043240 Trucks spark-igni, g.v.w. > 8 t L Q  2002 7 
297 87049000 Trucks nes L Q  2002 7 
298 87051021 All-road Crane lorr ies with a lifting capacity 
≤50t L Q  2004 13 
299 87051022 All-road Crane lorr ies with a lifting capacity 
>50t, but ≤100t L Q  2004 13 
300 87051023 All-road Crane lorr ies with a lifting capacity 
>100t L Q  2004 13 
301 87051091 Other Crane lorries with a lifting capacity ≤50t L Q  2004 13 
302 87051092 Other Crane lorries with a lifting capacity 
>50t, but ≤100t L Q  2004 13 
303 87051093 Other Crane lorries with a lifting capacity 
>100t L Q  2004 13 
304 87052000 Mobile drilling derricks L Q  2002 7 
305 87053010 Fire fighting vehicles, mounted with scaling 
ladder L Q  2002 7 
306 87053090 Other fire fighting vehicles L Q  2002 7 
307 87054000 Mobile concrete mixers L Q  2002 7 
308 87059020 Mobile radiological units L Q  2002 7 
309 87059030 Mobile environmental monitoring units L Q  2002 7 
310 87059040 Mobile clinics L Q  2002 7  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 151 
 
 
Serial 
NO HS 2000 DESCRIPTION OF PRODUCTS L Q T Phasing-out 
Period Quota 
Category 
311 87059051 Airplane charging vehicles(frequency= 
400Hz) L Q  2002 7 
312 87059059 Other mobile electric generation sets L Q  2002 7 
313 87059060 Mobile refuellers/air-conditioners/deicers used 
for aircraft L Q  2002 7 
314 87059070 Snow-clearance vehicles used for road or 
airfield runways L Q  2002 7 
315 87059080 Oil-well measuring carts, crushing mill carts 
and sand L Q  2002 7 
316 87059090 Special purpose motor vehicles nes L Q  2002 7 
317 87060040 Chassis fit with engines for crane lorries L Q  2004 13 
318 87071000 Bodies for passenger carrying vehicles L Q  2004 7 
319 87111000 Motorcycles with reciprocating piston engine 
≤50 cc L Q  2004 6 
320 87112000 Motorcycles with, 50 cc< piston engine ≤250 
cc L Q  2004 6 
321 87113010 Motorcycles with, 250 cc< piston engine 
≤400cc L Q  2004 6 
322 87113020 Motorcycles with, 400 cc< piston engine 
≤500cc L Q  2004 6 
323 87114000 Motorcycles with, 500 cc< piston engine 
≤800cc L Q  2004 6 
324 87115000 Motorcycles with piston engine >800 cc L Q  2004 6 
325 87119000 Motorcycles with other than a reciprocating 
piston engine L Q  2004 6 
326 87141900 Motorcycle parts nes L Q  2004 6 
327 89012011 Finished oil tankers, loading not exceeding 
100000t   T 2004  
328 89012012 Finished oil tankers, loading exceeding 
100000t,not ex ceeding 300000t   T 2004  
329 89012013 Finished oil tankers, loading exceeding 
300000t   T 2004  
330 89012021 Crude oil tanke rs, loading not exceeding 
150000t   T 2004  
331 89012022 Crude oil ta nkers, loading exceeding 
150000t,not exceeding 30000t   T 2004  
332 89012023 Crude oil tankers, load ing exceeding 300000 t   T 2004  
333 89012031 Liquified petroleum gas carriers, volume with 
20000m3 or less 
   T 2004  
334 89012032 Liquified petroleum gas carriers, volume more 
than 20000m3   T 2004  
335 89012041 Liquified natural  gas carriers, volume with 
20000m3 or less   T 2004  
336 89012042 Liquified natural  gas carriers, volume more 
than 20000m3   T 2004  
337 89012090 Other tankers, nes   T 2004  
338 89013000 Refrigerated vessels other than tankers   T upon accession  
339 89019021 Motor container vessels, capable loading 
standard containers with 6000 or less   T 2004  WT/ACC/SPEC/CHN/1/Rev.8 
Page 152  
 
Serial 
NO HS 2000 DESCRIPTION OF PRODUCTS L Q T Phasing-out 
Period Quota 
Category 
340 89019022 Motor container vessels, capable loading 
standard containers more than 6000   T 2004  
341 89019031 Motor Ro-Ro carriers, loading with 20000t or 
less   T 2004  
342 89019032 Motor Ro-Ro carriers, loading more than 
20000t   T 2004  
343 89019041 Motor bulk carriers, loading not exceeding 
150000t   T 2004  
344 89019042 Motor bulk car riers, loading  exceeding 
150000t,not ex ceeding 300000t   T 2004  
345 89019043 Motor bulk car riers, loading  exceeding 
300000t   T 2004  
346 89019050 Multi-purposes motor  vessels   T 2004  
347 89019080 Other motor vessels, nes   T 2004  
348 89020010 Fishing vessels & factory sh ips, motorized   T upon accession  
349 89040000 Tugs & pusher craft   T 2004  
350 89051000 Dredgers   T 2004  
351 90061010 Electronic colour scanners used for prep 
printing plate/cylinder L Q  upon accession   
352 90065100 SLR cameras for roll film of a width ≤ 35mm L Q  2003 14 
353 90065200 Other cameras for roll film of a width < 35 
mm L Q  2003 14 
354 90065300 Other cameras for roll film of a width of 35 
mm L Q  2003 14 
355 90065900 Photographic, other than cinematographic 
cameras nes L Q  2003 14 
356 90083010 Orthographic image projectors   T upon accession  
357 90121000 Microscopes other than optical microscopes & 
diffraction apparatus L Q  upon accession   
358 90158000 Survey,hydro-/oceano-graphic, 
meteorological, geophysic instrument nes   T upon accession  
359 90181210 B- ultrason ic diagnostic apparatus   T upon accession  
360 90181291 Chromosocope ultrasonic diag nostic apparatus   T upon accession  
361 90184910 Dentists' chairs with de ntal equipment   T upon accession  
362 90189090 Medical/veterinary instruments & appliances, 
nes 
   T upon accession  
363 90221300 X-ray apparatus for dental use 
   T upon accession  
364 90221400 X-ray apparatus for medical, surgical or 
veterinary uses   T upon accession  
365 90221990 X-ray apparatus for ot her uses   T upon accession  
366 90222100 Alpha/beta/gamma radiation apparatus for 
medical/surg/dent/vet uses   T upon accession  
367 90278090 Instruments & apparatus for physical or 
chemical analysis,   T upon accession  
368 90301000 Instruments/apparatus for measur/detecting 
ionising radiations   T upon accession  
369 90304010 Frequency meters, digital, measuring 
range<12.4GHz   T upon accession   WT/ACC/SPEC/CHN/1/Rev.8 
 Page 153 
 
 
Serial 
NO HS 2000 DESCRIPTION OF PRODUCTS L Q T Phasing-out 
Period Quota 
Category 
370 90318010 Optical telecom. And optical fibre 
performance testing instru   T upon accession  
371 90311000 Machines for balancing mechanical parts, nes   T 2004  
372 91011100 Electric wrist-watches mech display, with 
precious mtl case L Q  2003 15 
373 91012100 Wrist-watches, with automatic winding with 
precious mtl case, nes L Q  2003 15 
374 91012900 Wrist-watches, with a case of precious metal, 
nes L Q  2003 15 
375 91021100 Electric wrist- watches with mechanical 
display only L Q  2003 15 
376 91022100 Wrist-watches with automatic winding nes L Q  2003 15 
377 91022900 Wrist-watches, nes L Q  2003 15 
 
Notes: 
 1. "L" stands for "import licence";  "Q" stands for "import quota";  and  "T" stands for "specific import tendering requirements for machinery and electronic 
products". 
 2. The NTMs will be eliminated as of 1 January of each calendar year as specified in the column 
of Phasing-out Period. 
 3. The products covered by the Agreement on Tr ade in Civil Aircraft are not subject to any 
NTMs specified herein. WT/ACC/SPEC/CHN/1/Rev.8 
Page 154  
 
Table Two  
Product Quota 
(Initial Quota Volume/Value and Annual Growth Rate)  
 
Quota Category Product Coverage 
(Serial No in Table One) Unit Initial Quota 
Volume/Value Annual 
Growth 
Rate 
1 Processed oil 12-19 Million Metric Tons  16.58 15% 
2 Sodium cyanide 20 Million Metric Tons  0.018 15% 
3 Chemical fertilizer 22-25, 29-33, 36, 38, 41-45 Million Metric Tons  8.9 15% 
4 Natural rubber 48-51 Million Metric Tons  0.429 15% 
5 Tires of rubber used on 
automobiles 52-56 Million Pi eces  0.81 15% 
6 Motorcycles and key parts 101-103, 319-326 US$ Million  286 15% 
7 Automobiles and key parts 104-106, 115, 248, 250-256, 
258-288, 290-297, 304-316, 318 US$ Million  6000 15% 
8 Air conditioners and 
compressors 114 US$ Million  286 15% 
9 Recording apparatus and 
key parts 201-203, 207, 216-222 US$ Million  293 15% 
10 Magnetic sound and video 
recording apparatus 204, 205 US$ Million  38 15% 
11 Recorders and transport 
mechanisms 206 US$ Million  387 15% 
12 Color TV set and TV 
tuners 235-237, 243, 244 US$ Million  325 15% 
13 Crane lorries and chassis 298-303, 317 US$ Million  88 15% 
14 Cameras 352-355 US$ Million  14 15% 
15 Wrist watches 372-377 US$ Million  33 15% 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 155 
 
 
Table Three  
Products Subject to Import Licence Only 
 
NO HS 2000 DESCRIPTION OF PRODUCTS L Phasing-out 
Period 
1 10011000 Durum wheat L upon accession
2 10019010 Seeds of Spelt, comm on wheat & meslin L upon accession
3 10019090 Spelt, common wheat & me slin (excl. seed) L upon accession
4 10059000 Maize (excl. seed) L upon accession
5 10061010 Rice seeds L upon accession
6 10061090 Rice in the husk (paddy or  rough) (excl. seed) L upon accession
7 10062000 Husked (bro wn) rice L upon accession
8 10063000 Semi-milled or who lly milled rice L upon accession
9 10064000 Broken rice L upon accession
10 15071000 Crude soya-b ean oil L upon accession
11 15079000 Soya-bean oil (excl. cr ude) & fractions L upon accession
12 15081000 Crude ground- nut oil L upon accession
13 15089000 Ground-nut oil (excl. crude) & fractions L upon accession
14 15111000 Crude palm oil L upon accession
15 15119000 Palm oil (excl. crude)  & liquid fractions L upon accession
16 15121100 Crude sunflower-seed & safflower  oil & fractions thereof L upon accession
17 15122100 Crude cotton-seed o il, whether or not gossypol ha s been moved L upon accession
18 15122900 Cotton-seed oil (excl. crud e) & fractions thereof L upon accession
19 15141010 Crude rape, colza oil & fractions thereof L upon accession
20 15141090 Mustard oil & frac tions thereof L upon accession
21 15149000 Rape, colza or mustard oil (excl.  crude) & fractions thereof L upon accession
22 15152100 Crude maize (corn) oil L upon accession
23 15155000 Sesame oil & fractions L upon accession
24 22051000 Vermouth & other wine of fresh grap es, flavoured:<2l containers L upon accession
25 22059000 Vermouth & other wine of fresh grap es, flavoured:>2l containers L upon accession
26 22071000 Undenatured ethyl alcohol, of alcoholic strength ≥80% L upon accession
27 22082000 Spirits from distilled grape wine or marc L upon accession
28 22083000 Whiskeys L upon accession
29 22084000 Rum & tafia L upon accession
30 22085000 Gin & Geneva L upon accession
31 22087000 Liqueurs and cordials L upon accession
32 22089000 Spirituous beverages, nes L upon accession
33 37013090 Photo plates, fl at, unexposed, one side>255mm, nes L upon accession
34 37019100 Colour photo plates/film,  flat, unexposed, nes L upon accession
35 37023100 Colour photo film rolls,unexpsd,unperforatd,w ≤105mm, nes L upon accession
36 37024100 Colour film rl, unexpsd/pe rfor, w>610mm,len>200m L upon accession
37 37024390 Monoch film rl, unexpsd/perfor, w>610mm, length ≤200m,nes L upon accession
38 37024490 Monoch film rl, unexpsd/perfor, 105mm<wid ≤610mm, nes L upon accession
39 37025100 Colour film in rolls, unexposed, width ≤16mm, & length ≤14m, nes L upon accession
40 37025200 Colour film rolls, unexposed, width ≤16mm, length>14m, nes L upon accession
41 37025410 Colour film rl, unexpsd,width=35mm and length ≤2m, L upon accession
42 37025490 Colour film rl, unexpsd, width not ≤35mm, length ≤30m L upon accession
43 37025590 Colour film rl, unexpsd, 16mm<w ≤35mm, length>30m, nes L upon accession
44 37025690 Colour film in  rolls, unexposed, width>35mm, nes L upon accession
45 37029100 Monoch film rl, unexpsd, w ≤16mm,l≤14m, nes L upon accession
46 37031010 Photo paper & pape rboard in rolls, unexposed, width>610mm L upon accession
47 37032010 Other colour photo paper a nd paperboard, unexposed L upon accession
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 156  
 
ANNEX 4 
 
PRODUCTS AND SERVICES SUBJECT TO PRICE CONTROLS 
 
 
Products Subject to State Pricing 
NO HS 2000 DESCRIPTION OF PRODUCTS NOTES 
24011010 Flue-cured tobacco, not stemmed/stripped 1 24012010 Flue-cured tobacco, partly  or wholly stemmed/stripped  
2 25010010 Salt Edible salt 
3 27112100 Natural gas in gaseous state   
29379100 Insulin & its salts 
29411011 Ampicillin 
29411012 Ampicillin trihydrate 
29411019 Other ampicillin & its salts,nes 
29411091 Amoxycillin 
29411092 Amoxycillin trihydrate 
29411093 6-Aminopenicillanic acid 
29411094 Penicillins V 
29411095 Sulfobenzylpenicillins 
29411096 Cloxacillin 
29411099 Other penicillins & derives with a penicillin acid structure; 
29412000 Streptomycins & their derivatives; salts thereof 
29419010 Gentamicin & its derivatives; salts thereof 
30022000 Vaccines for human medicine 
30023000 Vaccines for veterinary medicine 
30066000 Chemical contraceptive preps. based on hormones or 
spermicides 4 
40141000 Sheath contraceptives Pharmaceuticals 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 157 
 
 
Products Subject to Government Guidance Pricing 
NO HS 2000 DESCRIPTION OF PRODUCTS NOTES 
10011000 Durum wheat 
10019010 Seeds of Spelt, common wheat & meslin 
10019090 Spelt, common wheat & meslin (excl. seed) 
10051000 Maize seeds 
10059000 Maize (excl. seed) 
10061010 Rice seeds 
10061090 Rice in the husk (paddy or rough)(excl. seed) 
10062000 Husked (brown) rice 
10063000 Semi-milled or wholly milled rice 
12010010 seeds of soybean 
12010091 Yellow soybeans (excl. seed) 
12010092 Black soybeans (excl. seed) 
12010093 Green soybeans (excl. seed) 1 
12010099 Other soybeans (excl. seed), nes   
15071000 Crude soybean oil 
15079000 Soya-bean oil (excl. crude) & fractions 
15141010 Crude rape, colza oil & fractions thereof 2 
15141090 Mustard oil & fractions thereof   
3 27100011 Gasoline, incl. aviation spirit   
27100023 Kerosenes 4 27100024 Normal paraffin   
27100031 Light diesel oil 
27100033 Fuel oil No.5-No.7 5 
27100039 Other fuel oils Diesel oil 
6 27100039 Other fuel oils Heavy oil 
7 31021000 Urea  
50010010 Mulberry feeding silk-worm cocoons 8 50010090 Other silk-worn cocoons suitable for reeling  
9 52010000 Cotton, not carded or combed  
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 158  
 
Public Utilities Subject to Government Pricing 
NO CPC PUBLIC  UTILITIES 
1 1720 Price of gas for civil use. 
2 1800 Price of tap water. 
3 1710 Price of electricity. 
4 1730 Price of heating power. 
5 1800 Price of water supplied by irrigation works. 
 
 
Service Sectors Subject to Government Pricing 
NO CPC SERVICE NOTES 
1 7511 
7512 
7522 
7521**+7529** Post and 
telecommunication services 
charges. Including postal services charges, 
national and trans-provincial 
telecommunication services 
charges.  
2 964 Entrance fee for tour sites. Referring to significant historical 
relics and natural landscape under protection. 
3 921  922  923 Education services charges.  
  
Service Sectors Subject to Government Governance Pricing 
NO CPC SERVICE NOTES 
1 7214  745** 
731 7111  7112  743 
7131  7139 Transport services charges. Including rail transport of both 
passenger and freight, air transport of freight, port services, and 
pipeline transport. 
2 861   862 
8671  8672 Professional services 
charges. Including architectural and 
engineering services, legal services 
and assets assessment services. 
3 621 Charges for commission 
agents’ services. Referring to commission for 
trademark and advertisement agents.  
4 81339** Charges for settlement, 
clearing and transmission services of banks. Referring to settlement, clearing 
and transmission services of the RMB. 
5 82101 Selling price and renting 
fee of residential apartments.   
6 931 Health related services   
 
Notes:  
 
1. CPC classification is added to the service sectors subject to state pricing in this Annex in accordance with the GATT document MTN.GNS/W/120, 10 July 1991, which provided services sectoral classification for the purpose of services negotiations during the Uruguay Round.  
2. The government pricing in the service sectors wh ich are listed in China's Schedule of Specific 
Commitments shall be applied in a manner consis tent with Article 6 of GATS and the Reference 
Paper on Basic Telecommunication.
 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 159 
 
 
ANNEX 5A 
 
NOTIFICATION PURSUANT TO ARTICLE XXV OF 
THE  AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES 
  
I. SUBSIDIES FROM CENTRAL BUDGET PROVIDED TO CERTAIN STATE-
OWNED ENTERPRISES WHICH ARE RUNNING AT A LOSS 
 
1. Title of the subsidy program
 
 Subsidies provided to certain State-ow ned enterprises which are running at a loss. 
 
2. Period covered by the notification  
 1990-1998. 
 
3. Policy objective and/or purpose of the subsidy  
 To promote restructuring of those State-owne d enterprises which are running at a loss, while 
keeping employment by means of promoting rationalization and maintaining stable 
production and safety of the society(compensation for the lack of social security system). 
 
4. Background and authority for the subsidy  
 Ministry of Finance. 
 
5. Legislation under which it is granted  
 Assistance by budget. 
 6. Form of the subsidy
 
 Grant and Tax Forgiving 
 
7. To whom and how the subsidy is provided  
 Subsidy is provided to severe loss-making State-ow ned enterprises due to either fixed price of 
the products they produce or the increasing cost of exploitation of the resources. 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 160  
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
 
budgeted for that subsidy  
 
Unit: 100 million RMB 
Sector/Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 
Metallurgic industry    1.16    1.46    1.35    3.13    4.07 3.02 5.04 10.96 8.36 
Ferrous-metal industry    0.63    0.86    1.28    1.51    5.80 5.86 4.78 6.58 4.65 
Machinery industry    3.80    5.07   14.61    3.98   14.09 8.34 9.67 11.17 8.38 
Coal industry   55.86    66.70   70 .14   49.80   47.19 12.13 13.21 16.83 14.85 
Oil industry   42.53   54.36   52. 89   28.08    0.00 0.00 0.00 6.78 3.28 
Chemical industry    3.83    4.03    3.70    4.11    6.90 3.47 4.26 5.32 4.96 
Textile industry    1.90    2.39    2.07    3.09    2.65 3.38 6.97 16.41 15.36 
Light industry    6.65    7.88    6.31    9.30    3.99 1.52 2.63 6.82 2.35 
Tobacco industry    0.00    0.00    0.00    0.00   12.00 8.62 9.26 10.25 8.83 
Total of the nine 
sectors  116.36  142.75  152.35  103.00   96.69 46.34 55.92 91.12 71.02 
Other sectors    1.65    1.94    1.99    1.53    1.24 0.42 1.28 4.62 3.67 
Total  118.01  144.69  154.34  104. 53   97.93 46.76 57.2 95.74 74.69 
  
9. Duration of the subsidy and/or any other time-limits attached to it  
 1949-2000.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 Not available. 
 II. SUBSIDIES FROM LOCAL BUDGET PROVIDED TO LOSS MAKING STATE 
OWNED  ENTERPRISES 
 
1. Title of the subsidy program
 
 Subsidies provided to certain State-ow ned enterprises which are running at a loss. 
 
2. Period covered by the notification  
 1990-1999. 
 
3. Policy objective and/or purpose of the subsidy  
 To promote restructuring of those State-owne d enterprises which are running at a loss, while 
keeping employment by means of promoting rationalization and maintaining stable production and safety of the society(compensation for the lack of social security system). 
 
4. Background and authority for the subsidy
 
 Ministry of Finance and local governments. 
 
5. Legislation under which it is granted  
 Assistance by local budget.  
6. Form of the subsidy
 
 Grant and Tax Forgiving 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 161 
 
 
7. To whom and how the subsidy is provided  
 Subsidy is provided to severe loss-making State-ow ned enterprises due to either fixed price of  
the products they produce or the increasing cost of exploitation of the resources and restructuring of 
state owned enterprises. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
Unit:100 million RMB 
 1990 1991 1992 1993 1994 1995 1996 1997 1998 
Beijing   57.69 59.28 63.26 63.11
Tianjin   9.23 8.79 7.29 7.29
Hebei   6.84 5.89 4.76 4.91
Shanxi   5.52 6.05 5.42 5.75
Inner-
Mongolia   3.53 2.77 2.22 2.29
Liaoning   18.02 17.10 16.63 13.14
Jilin   6.07 5.88 5.75 4.02
Heilongjiang   11.77 7.07 5.21 4.47
Shanghai   44.95 45.50 45.88 45.94
Jiangsu   11.75 10.46 8.81 9.15
Zhejiang   25.06 30.10 34.79 37.85
Anhui   4.17 7.11 6.69 5.41
Fujian   2.53 1.40 1.05 0.78
Jiangxi   0.67 0.65 0.52 0.50
Shandong   8.48 8.12 6.37 4.92
Henan   4.27 3.80 3.66 2.66
Hubei   11.60 10.99 10.92 9.83
Hunan   4.57 5.16 4.23 5.18
Guangdong   17.52 17.35 15.39 13.60
Guangxi   2.22 2.01 1.60 1.33
Hainan   0.70 0.43 0.32 0.61
Chongqing   3.18 1.93
Sichuan   5.99 6.37 2.01 1.89
Guizhou   1.48 1.55 2.25 1.46
Yunnan   7.51 7.82 6.49 3.22
Tibet   0.87 1.16 1.19 1.18
Shaanxi   4.67 4.46 4.66 4.09
Gansu   0.47 0.22 0.18 0.56
Qinghai   0.91 0.96 0.51 0.44
Ningxia   0.18 0,16 0.20 0.19
Xingjiang   1.74 1.54 1.27 1.08
Total 460.87 365.55 290.62 306.76 268.29 281.01 280.20 272.75 258.81
 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 162  
 
9. Duration of the subsidy and/or any other time-limits attached to it
 
 1949-2000. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Not available. 
 III. THE PRIORITY IN OBTAINING LOANS AND FOREIGN CURRENCIES BASED 
ON EXPORT PERFORMANCE  
 1. Title of the subsidy program
 
 The priority in obtaining loans and fore ign currencies based on export performance. 
 
2. Period covered by the notification  
 1994-1999.  
3. Policy objective and/or purpose of the subsidy
 
 To promote the exportation of automobiles.   
 
4. Background and authority for the subsidy  
 State Planning Commission. 
 5. Legislation under which it is granted
 
 State Council Circular on Industrial Policy on Automobiles.. 
 
6. Form of the subsidy  
 Priority in obtaining loans and foreign currencies. 
 
7. To whom and how the subsidy is provided  
 Priority is given to: 
 (1) Automotive production enterprises whose export of whole vehicle products has 
reached the percentage points in the vol ume of their sales as indicated in the 
following chart; 
 
Vehicles Types Category Percentages 
M1 3% 
M2 5% Passenger 
Vehicles M3 8% 
N1 5% Freight 
Vehicles N2, N3 4% 
Motorcycles L 10% 
 
 and 
 
 (2) Automobile and motorcycle compone nts manufacturing enterprises whose exports 
account for 10 per cent of their total annual sales. 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 163 
 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 Zero, because no enterprises have reached the le vel for enjoying the priority up till now.   
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 China commits itself to eliminate th is measure by the year of 2000. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Zero. 
 
IV. PREFERENTIAL TARIFF RATES BA SED ON LOCALIZATION  RATE OF 
AUTOMOTIVE PRODUCTION.   
 
1. Title of the subsidy program  
 Preferential tariff rates based on localiza tion  rate of automotive production.   
 
2. Period covered by the notification  
 1994-1999. 
 
3. Policy objective and/or purpose of the subsidy  
 To promote the localization process of automobile industry of China. 
 
4. Background and authority for the subsidy  
 State Planning Commission. 
 
5. Legislation under which it is granted  
 State Council Circular on Industrial Policy on Automobiles. 
 
6. Form of the subsidy  
 Preferential tariff rates. 
 
7. To whom and how the subsidy is provided  
 The preferential tariff rates are granted to  the automotive enterp rises whose localization 
reaches the following ratios: 
 (1) Localization rate reaches 40 per cent,  60 per cent or 80 per cent on products that 
incorporate imported technology on whole vehicles of M Category; 
 (2) Localization rate reaches 50 per cent,  70 per cent or 90 per cent on products that 
incorporate imported technology on whole vehicles of N and L Categories; and 
 (3) Localization rate reaches 50 per cent,  70 per cent or 90 per cent on products that 
incorporate imported technology on automobile and motorcycle assemblies and key 
components. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 Not available.  WT/ACC/SPEC/CHN/1/Rev.8 
Page 164  
 
9. Duration of the subsidy and/or any other time-limits attached to it
 
 China commits itself to phase out this measure by the year of 2000. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 The trade effect is negligible.  
V. PREFERENTIAL POLICIES FO R THE SPECIAL ECONOMIC ZONES 
(EXCLUDING THE PUDONG AREA OF SHANGHAI) 
 1. Title of the subsidy program
 
 Preferential income tax policies for foreign- invested enterprises in the Special Economic 
Zones of Shenzhen, Zhuhai, Shantou, Xiamen, Hainan. 
 
2. Period covered by the notification  
 1984 - now. 
 
3. Policy objective and/or purpose of the subsidy  
 To promote regional development and absorb foreign investment. 
 
4. Background and authority for the subsidy  
 State Administration of Taxation and local taxation authorities.  
5. Legislation under which it is granted
 
 Before 1991, Income Tax Law of the Peopl e’s Republic of China Concerning Chinese-
Foreign Equity Joint Ventures and Income Ta x Law of the People’s Republic of China for 
Foreign Enterprises. 
 After 1991, Income Tax Law of the People’s Re public of China for Enterprises with Foreign 
Investment and Foreign Enterprises. 
 
6. Form of the subsidy  
 Application of preferential income ta x rate, and exemption of income tax. 
 
7. To whom and how the subsidy is provided  
 (1) For foreign-invested enterprises estab lished in the Special Economic Zones and 
foreign enterprises engaging in production and business operation in the Special 
Economic Zones, preferential income tax rate of 15 per cent shall be applied. 
 (2) For foreign-invested productive enterp rises established in the old areas of the cities 
where the Special Economic Zones are located , preferential income tax rate of 24 per 
cent shall be applied; for technology intensive projects, projects having foreign investment more than $ 30 million with a long paying back period, and projects 
within sectors encouraged by the State such  as energy, transportation etc., preferential 
income tax rate may further be reduced to 15 per cent.  
 (3) For enterprises in services sectors with foreign investment more than US$ 5 million 
and operation term over 10 years, income tax for the first year shall be exempted and 
that for the second and third years shall be reduced by 50 per cent, subject to the 
application and approval by the local taxation authorities. The base year shall be the first profit-making year of the enterprises.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 165 
 
 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 The preferential income tax rate applied is 24 or 15 per cent.  
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 1984 - 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Not available.  
VI. PREFERENTIAL POLICIES FOR THE ECONOMIC AND TECHNOLOGY 
DEVELOPMENT AREAS 
 1. Title of the subsidy program
 
 Preferential income tax policies for forei gn-invested enterprises in the economic and 
technology development areas in Dalian,  Qinhuangdao, Tianjin, Yantai, Qingdao, 
Lianyungang, Nantong, Ningbo, Fuzhou, Guangzhou, Zhanjiang, Shanghai (Minhang, 
Hongqiao, Caohejing), Beihai, Shenyang, Wenz hou, Harbin, Changchun, Hangzhou, Wuhan, 
Chongqing, Wuhu, Xiaoshan, Huizhou, Nans ha, Kunshan, Rongqiao, Weihai, Yingkou, 
Dongshan. 
 
2. Period covered by the notification  
 1984 - now. 
 
3. Policy objective and/or purpose of the subsidy  
 To accelerate the opening-up of the re gion and absorb foreign investment. 
 
4. Background and authority for the subsidy  
 State Administration of Taxation and local taxation authorities. 
 
5. Legislation under which it is granted  
 Before 1991, Income Tax Law of the Peopl e’s Republic of China Concerning Chinese-
Foreign Equity Joint Ventures and Income Ta x Law of the People’s Republic of China for 
Foreign Enterprises. 
 After 1991, Income Tax Law of the People’s Re public of China for Enterprises with Foreign 
Investment and Foreign Enterprises. 
 
6. Form of the subsidy  
 Application of preferential income ta x rate, and exemption of income tax.. 
 
7. To whom and how the subsidy is provided  
 (1) For foreign-invested productive en terprises established in the economic and 
technology development areas, preferential in come tax rate of 15 per cent shall be 
applied. 
 (2) For foreign-invested productive enterp rises established in the old areas of the cities 
where the economic and technology development areas are located, preferential WT/ACC/SPEC/CHN/1/Rev.8 
Page 166  
 
income tax rate of 24 per cent shall be applied; for technology intensive projects, 
projects having foreign investment more than $ 30 million with a long paying back 
period, and projects within sectors enc ouraged by the State such as energy, 
transportation etc., preferential income tax rate  may further be reduced to 15 per cent.  
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 The preferential income tax rate applied is 24 or 15 per cent. 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 1984 - 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Not available. 
 
VII. PREFERENTIAL POLICIES FOR TH E SPECIAL ECONOMIC ZONE OF THE 
PUDONG AREA OF SHANGHAI  
 
1. Title of the subsidy program  
 Preferential income tax policies for foreign- invested enterprises in the Special Economic 
Zone of the Pudong area of Shanghai. 
 
2. Period covered by the notification  
 1991 - now. 
 
3. Policy objective and/or purpose of the subsidy  
 To accelerate the opening-up of the re gion and absorb foreign investment. 
 
4. Background and authority for the subsidy  
 State Administration of Taxation and local taxation authorities. 
 
5. Legislation under which it is granted  
 Income Tax Law of the People’s Republic of China for Enterprises with Foreign Investment 
and Foreign Enterprises. 
 6. Form of the subsidy
 
 Application of preferential income ta x rate, and exemption of income tax. 
 
7. To whom and how the subsidy is provided  
 (1) For foreign-invested productive enterp rises established in the Special Economic Zone 
of the Pudong area of Shanghai and for fo reign-invested enterprises established there 
to engage in infrastructure constructions, preferential income tax rate of 15 per cent 
shall be applied. 
 (2) For foreign-invested enterprises establis hed in the Special Economic Zone of the 
Pudong area of Shanghai, engaged in such  energy and transportation construction 
projects as airport, ports, railways, power sta tions etc. with operation term longer than 
15 years, income tax for the first five years shall be exempted and that for the sixth to  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 167 
 
 
the tenth years shall be reduced by 50 pe r cent. The base year shall be the first 
profit-making year of the enterprises. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 The preferential income tax rate applied is 15 per cent. 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 1991 - 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 Not available. 
 
VIII. PREFERENTIAL POLICIES FOR FOREIGN INVESTED ENTERPRISES 
 
1. Title of the subsidy program  
 Preferential income tax policies for fo reign-invested enterprises in China. 
 
2. Period covered by the notification  
 1985 - now. 
 
3. Policy objective and/or purpose of the subsidy  
 To absorb foreign investment and expand economic cooperation. 
 
4. Background and authority for the subsidy  
 State Administration of Taxation and local taxation authorities.  
5. Legislation under which it is granted
 
 Before 1991, Income Tax Law of the Peopl e’s Republic of China Concerning Chinese-
Foreign Equity Joint Ventures and Income Ta x Law of the People’s Republic of China for 
Foreign Enterprises. 
 After 1991, Income Tax Law of the People’s Re public of China for Enterprises with Foreign 
Investment and Foreign Enterprises. 
 
6. Form of the subsidy  
 Application of preferential income ta x rate, and exemption of income tax. 
 
7. To whom and how the subsidy is provided  
 (1) For foreign-invested productive enterprises  with operation term more than 10 years, 
the income tax for the first two years shall be exempted and that for the third to the 
fifth year shall be reduced by 50 per cent. The base year shall be the first 
profit-making year of the enterprises. 
 (2) For Chinese-foreign joint enterprises enga ged in the construction of ports, docks and 
berths, preferential income tax rate of 15 pe r cent shall be applied, and for those with 
operation term longer than 15 years, income  tax for the first five years shall be 
exempted and that for the sixth to the tent h years shall be reduced by 50 per cent. The 
base year shall be the first profit-making year of the enterprises. WT/ACC/SPEC/CHN/1/Rev.8 
Page 168  
 
 (3) For foreign-invested advanced technolog y enterprises, in case that the technologies 
they possess or provide are still regarded as advanced when the initial income tax 
exemption and reduction period expires, income tax reduction of 50 per cent may 
continue to be applied, for another 3 years. 
 (4) For foreign-invested enterprises enga ged in agriculture, forestry and animal 
husbandry, and for foreign-invested enterp rises established in remote areas with less 
developed economic level, inco me tax reduction of 15 to 30 per cent may continue to 
be applied for another ten years after the initial exemption and reduction period 
expires, subject to application and approval of local taxation authorities.  
 (5) For foreign-invested enterprises of indust ries and sectors in which foreign investment 
is encouraged by the State, provincial government may determine whether to reduce 
or exempt the local part of income tax.. 
 (6) For profits of foreign investors which ar e re-invested into the enterprises to increase 
the register capital, or to set up other ne w enterprises with operation term more than 5 
years, 40 per cent of their income tax pa yment for the re-invested profits shall be 
refunded subject to application and approva l from the local taxation authorities. In 
case that the new or the expanded enterprises with the re-investment are hi-tech 
enterprises, or that profits are from forei gn-invested enterprises in Hainan Special 
Economic Zone and re-invested into in frastructure projects or agriculture 
development projects of the same Special Economic Zone, 100 per cent of the paid 
income tax for the re-investment shall be refunded.  
 (7) For dividends, interests, rentals, franchising fees and other forms of income of foreign 
investors who have no commercial establishments in China, preferential income tax 
rate of 20 per cent shall be applied except for profits of foreign investors gained from 
the enterprises they have i nvested in China, which are subject to 100 per cent income 
tax exemption. For franchising fees gained  from provision of special technology to 
scientific research, energy development, transportation development, agriculture, 
forestry and animal husbandry, preferential income tax rate of 10 per cent may be 
applied, subject to applica tion and approval of local taxation authorities; in case that 
the technology is advanced or is provid ed with favorable conditions, income tax 
exemption may be applied. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 The preferential income tax rate a pplied is 20, 15 or 10 per cent. 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 1985- 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Not available. 
 
IX. LOANS FROM THE STATE POLICY BANKS 
 1. Title of the subsidy program
 
 Loans of the State Policy Banks (the State De velopment Bank, the Export and Import Bank of 
China, and the Agriculture Development Bank of China).  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 169 
 
 
 
2. Period covered by the notification  
 For the State Development Bank, 1994 - 1996; 
 For the Export and Import Bank of China, 1991 - 1995  For the Agriculture Development Bank of China., 1994 - 1996. 
 
3. Policy objective and/or purpose of the subsidy
 
 To adjust investment structure.  
 
4. Background and authority for the subsidy  
 There are three State Policy Banks in China: the State Development Bank, the Export and 
Import Bank of China, and the Agriculture Development Bank of China. The three State 
Policy Banks accumulate capital by issuing tr easury bonds to commercial banks and the 
market. Generally the State budget does not provide  interest rate subsidy to the State Policy 
Banks. The interest rates of the State Policy Ba nks loans are usually the same as the market 
interest rates. 
 
5. Legislation under which it is granted  
 None. 
 6. Form of the subsidy
 
 Loans. 
 
7. To whom and how the subsidy is provided  
 Loans from the State Development Bank are mainly  directed to infrastructure constructions in 
energy, transportation, telecommunications and water conservancy, resources development in 
the middle and western parts of China, as well as technology renovation of some enterprises. 
 Loans from the Export and Import Bank of Chin a are mostly directed to guarantee for export 
credit of commercial banks, and a small part is for direct export credit. 
 Loans from the Agriculture Development Bank of  china are mainly provided for purchase and 
storage of agricultural and side-line products, forestry construction and water conservancy 
development. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 RMB 200 billion for the State Development Bank, a nd 9.6 per cent of which is directed to the 
manufacturing industry; 
 RMB 21 billion export credit (mainly sellers' credit) for the Export and Import Bank of 
China; 
 RMB 500 billion for the Agriculture Development of China. 
 9. Duration of the subsidy and/or any other time-limits attached to it
 
 1991 - 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Not available. 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 170  
 
X. FINANCIAL SUBSIDIES FOR POVERTY ALLEVIATION 
 1. Title of the subsidy program
 
 Financial subsidies fo r poverty alleviation. 
 2. Period covered by the notification
 
 For direct allocation of funds, 1991 - now 
 For poverty alleviation loans, 1994 - now. 
 
3. Policy objective and/or purpose of the subsidy  
 To alleviate poverty. 
 
4. Background and authority for the subsidy  
 For direct allocation of funds, State Planning Commission and Ministry of Finance.  For poverty alleviation loans, the Ag riculture Development Bank of China. 
 
5. Legislation under which it is granted
 
 Assistance by budget. 
 
6. Form of the subsidy  
 Direct appropriation and provision of poverty alleviation loans. 
 
7. To whom and how the subsidy is provided  
 The subsidies are provided to regions in Chin a where annual income pe r capita is less than 
RMB 400. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 For direct appropriation from the central budget, the total from 1991 to 2000 is RMB 103.6 
billion (RMB 18.3 billion from 1991 to 1995, RM B 4 billion in 1996, RMB 15.2 billion in 
1997, RMB 17.8 billion for 1998, RMB 24.3 b illion in 1999 and RMB 24.0 billion being 
planned in 2000 ). 
 
 For poverty alleviation loans, RMB 30 billion. 
 9. Duration of the subsidy and/or any other time-limits attached to it
 
 1991 - 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Not available. 
 XI. FUNDS FOR TECHNOLOGY RENOVATION,  RESEARCH AND DEVELOPMENT 
 
1. Title of the subsidy program
 
 Funds for technology renovation, research and development. 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 171 
 
 
2. Period covered by the notification  
 1991 - 1998 
 
3. Policy objective and/or purpose of the subsidy  
 To encourage scientific research and technology  development, and to promote application of 
science and technology in the rural areas.   
 
4. Background and authority for the subsidy  
 Ministry of Finance 
 
5. Legislation under which it is granted  
 State Council Circular No. 99, 1987. 
 
6. Form of the subsidy  
 Grant and loans. 
 
7. To whom and how the subsidy is provided  
 To scientific research ins titutes and some enterprises. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 RMB 301.9 billion (RMB 18.1 billion for 1991, RMB 22.3 billion for 1992, RMB 42.1 billion 
for 1993, RMB 41.5 billion for 1994, RMB 49. 5 billion for 1995 and RMB 52.6 billion for 
1996, RMB 64.3 billion for 1997, RMB 64.1 billion for 1998).  
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 1991 -  
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Not available. 
 
XII. INFRASTRUCTURE CONSTRUCTION FUNDS FOR AGRICULTURAL WATER 
CONSERVANCY AND FLOOD PROTECTING PROJECTS 
 1. Title of the subsidy program
 
 Infrastructure construction funds for agricultural water conservancy projects 
 
2. Period covered by the notification  
 1991 - 1999 
 
3. Policy objective and/or purpose of the subsidy  
 To improve agricultural irrigation systems and flood-defending facilities. 
 
4. Background and authority for the subsidy  
 Ministry of Finance and the Provincial Bureau of Finance 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 172  
 
5. Legislation under which it is granted
 
 Assistance by budget. 
 
6. Form of the subsidy  
 Grant.  
7. To whom and how the subsidy is provided
 
 To key infrastructure projects in water conservancy and flood protection. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 RMB 35.5 billion (RMB 7.5 billion for 1991, RMB 8.5 billion for 1992, RMB 9.5 billion for 
1993, RMB 10 billion for 1994, RMB 11.0 b illion for 1995, RMB 14.1 billion for 1996, RMB 
15.9 billion for 1997, RMB 20.89 b illion for 1998 and 21.36 for 1999). 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 1991 -  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 Not available. 
 XIII. TAX AND TARIFF REFUND FOR EXPORT PRODUCTS 
 1. Title of the subsidy program
 
 Tariff refund for imported contents of export products, and value-adde d tax refund for export 
products. 
 
2. Period covered by the notification  
 1985 - now. 
 
3. Policy objective and/or purpose of the subsidy  
 To alleviate unreasonable tax and ta riff burdens of export enterprises. 
 
4. Background and authority for the subsidy  
 For tariff refund, taxation and customs author ities; and for tax refund, taxation authorities. 
 
5. Legislation under which it is granted  
 State Council Circular No. 43, 1985. 
 
6. Form of the subsidy  
 Tax and tariff refund. 
 7. To whom and how the subsidy is provided
 
 For raw materials, spare parts, assemblies and packing materials imported for the purpose of 
processing and assembling for overseas clients or  manufacturing products for export, tariffs 
shall be exempted, or in the case that tariffs have been collected , refund of the collected tariffs 
shall be made, according to quantities of the final products exported.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 173 
 
 
 For agricultural products subject to the official value-added tax rate of 10%, the refund rate is 
3%. 
 For industrial products subject to the offici al value-added tax rate  of 17%, which take 
agricultural products as their raw materials, the refund rate is 6%. 
 For other products subject to the official valu e-added tax rate of 17%,  the refund rate is 9%. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 No specific statistics available. 
 9. Duration of the subsidy and/or any other time-limits attached to it
 
 1985 -  
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Not available. 
 XIV. TARIFF AND IMPORT DUTIES REDUCTION AND EXEMPTION FOR 
ENTERPRISES 
 1. Title of the subsidy program
 
 Tariff and import duties reduction and exemption for enterprises. 
 
2. Period covered by the notification  
 1985 - 2000. 
 
3. Policy objective and/or purpose of the subsidy  
 To attract foreign investment, to encourag e technology renovations in domestic enterprises, 
and to promote such trade forms as border trad e, processing trade, compensation trade etc.. 
 
4. Background and authority for the subsidy  
 Taxation and customs authorities. 
 
5. Legislation under which it is granted  
 Regulation of import and export tariff of the People’s Republic of China. 
 6. Form of the subsidy
 
 Tariff and import duties reduction and exemption. 
 
7. To whom and how the subsidy is provided  
 China adopted new taxation system on April 1, 1997. Under this new system, all domestic 
enterprises and institutes shall be subject to  tariff and import duties in accordance with 
official rate except for the following few cas es where tariff and import duties reduction and 
exemption are still applied: 
 (1) goods imported for embassies, and offices of international organizations in China, 
donations from foreign governments and international organizations, and goods 
imported by Chinese diplomats, Chinese st udents studying abroad and etc. for 
personal consumption; WT/ACC/SPEC/CHN/1/Rev.8 
Page 174  
 
 (2) imports into the Yangpu Economic Devel opment Area in Hainan Province, a bonded 
area; 
 (3) equipment and materials imported duri ng the period of 1996 to 2000 for drilling, 
petroleum and natural gas exploitation; 
 (4) aircraft imported by domestic civil airlines during the period of 1996 to 2000;  (5) spare parts of cars, of which tariff a nd import duties reduction and exemption shall be 
determined according to the localization rate; 
 (6) materials imported for domestic manufacturing of aircraft. 
  Tariff and import duties reduction and exem ption before April 1, 1996 of imported 
equipment and materials for foreign-inv ested enterprises, for domestic technology 
renovation and infrastructure construction pr ojects, for Special Economic Zones and 
Economic and Technology Development Ar eas, and for border trade, processing 
trade and compensation trade, shall be  terminated except for the following 
transitional period: 
  (1) for foreign-invested enterprises w ith total investment less than US$ 30 
million approved before April 1, 1996, tariff and import duties reduction and 
exemption of their imported equipment and materials shall remain valid within the 
transitional period till December 31, 1996; for those enterprises with total investment 
more than US$ 30 million, the transitional period shall end on December 31, 1997; 
  (2) for industrial projects in such area s as energy, transportation, metallurgical 
industry with total investment more th an RMB 50 million, and for technology 
renovation projects in manufacturing industries with total investment more than RMB 
30 million, which were approved before Ap ril 1, 1996, tariff and import duties for 
their equipment importation shall be subj ect to 50 per cent reduction within the 
transitional period till December 31, 1997; 
  (3) goods imported into the five Special Economic Zones of Shenzhen, Zhuhai, 
Shantou, Xiamen, Hainan, as well as those in to the Pudong area in Shanghai and the 
Industrial Development Zone in Suzhou, sh all be subject to tariff and import duties 
after 1 April 1996 in accordance with the official tariff and import duties rates. 
However, refund of the tariff and import duti es will be applied within the transitional 
period from 1996 to 2000, with the volume decreasing annually. The refund will 
terminate after the year 2000. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 No specific statistics available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 1985 - 2000. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Not available.   WT/ACC/SPEC/CHN/1/Rev.8 
 Page 175 
 
 
XV. PROVISION OF LOW-PRICE INPUTS FOR SPECIAL INDUSTRIAL SECTORS 
 1. Title of the subsidy program
 
 State low pricing for certain percentage of co al for electricity generating, and for certain 
percentage of crude oil.  
 
2. Period covered by the notification  
 1987 - now. 
 
3. Policy objective and/or purpose of the subsidy  
 State pricing for certain percentage of the i ndustrial inputs is to maintain the overall price 
level stable.  
 
4. Background and authority for the subsidy  
 Reform of China's planning economic system began first with the reform of the pricing 
system, and by now 95 per cent of the commod ities and services in China have already been 
determined by the market forces. State pricing remains only for certain percentage of those 
crucial products to maintain the ability of the government to curb the overall price level in 
emergent cases. 
 
5. Legislation under which it is granted  
 Provisional regulation of the People’s Republic of China on Pricing. 
 
6. Form of the subsidy  
 State low pricing for inputs of certain industrial sectors. 
 
7. To whom and how the subsidy is provided  
 37 per cent of coal in 1995 was subject to stat e pricing, and 70 per cent of the land oil 
production was subject to state pricing, price of the remaining 30 per cent as well as of all the 
off-shore oil production was determined by the market.  
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 No specific statistics available. 
 9. Duration of the subsidy and/or any other time-limits attached to it
 
 1987 -  
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Not available. 
 XVI. SUBSIDY TO CERTAIN ENTERPRISES IN THE FORESTRY INDUSTRY 
 
1. Title of the subsidy program
 
 Subsidy to the forestry industry. 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 176  
 
2. Period covered by the notification
 
 1994 - now. 
 
3. Policy objective and/or purpose of the subsidy  
 To encourage full utilization of forest resources.  
4. Background and authority for the subsidy
 
 State Administration of Taxation and local taxation authorities. 
 
5. Legislation under which it is granted  
 Provisional regulation of the People’s Republic of China on Value added Tax. 
 
6. Form of the subsidy  
 Refund of value-added tax.  
7. To whom and how the subsidy is provided
 
 For certain enterprises in the forestry i ndustry, when their products are based on the 
utilization of deficient timber resources, the collected value-added tax shall be refunded. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 No specific statistics available as the quantity is minimal. 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 1994 - 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 Not available. 
 
XVII. PREFERENTIAL INCOME TAX TR EATMENT TO HIGH-TECH ENTERPRISES 
 
1. Title of the subsidy program  
 Preferential Income tax treatment to high-tech enterprises. 
 
2. Period covered by the notification  
 1994 - now. 
 
3. Policy objective and/or purpose of the subsidy  
 To accelerate the development of high-tech industries. 
 
4. Background and authority for the subsidy  
 State Administration of Taxation and local taxation authorities.  
5. Legislation under which it is granted
 
 Provisional regulation of the People’s Repub lic of China on Enterprises Income Tax. 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 177 
 
 
6. Form of the subsidy  
 Income tax reduction and exemption.  
 
7. To whom and how the subsidy is provided  
 For high-tech enterprises in the high-tech de velopment zones approved by the State Council, 
the income tax rate applied shall be reduced  to 15 per cent; for newly-established high-tech 
enterprises, income tax shall be exempted for the first two years since the operation. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 No specific statistics available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 1994 - 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Not available.  
XVIII. PREFERENTIAL INCOME TAX TREATMENT TO ENTERPRISES UTILIZING 
WASTE  
 1. Title of the subsidy program
 
 Preferential income tax treatment to enterprises utilizing waste. 
 
2. Period covered by the notification  
 1993 - now.  
3. Policy objective and/or purpose of the subsidy
 
 To encourage resources recycle. 
 
4. Background and authority for the subsidy  
 State Administration of Taxation and local taxation authorities. 
 
5. Legislation under which it is granted  
 Provisional regulation of the People’s Repub lic of China on Enterprises Income Tax. 
 
6. Form of the subsidy  
 Income tax reduction and exemption.  
 
7. To whom and how the subsidy is provided  
 For enterprises utilizing waste ga s, waste water and solid waste as major production inputs, 
income tax shall be reduced or exempted for five years.  
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 No specific statistics available. 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 178  
 
9. Duration of the subsidy and/or any other time-limits attached to it
 
 1993 - 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Not available. 
 XIX. PREFERENTIAL INCOME TAX TREA TMENT TO ENTERPRISES IN POVERTY 
STRICKEN REGIONS  
 1. Title of the subsidy program
 
 Preferential Income tax treatment to enterprises in poverty stricken regions 
 
2. Period covered by the notification  
 1993 - now.  
3. Policy objective and/or purpose of the subsidy
 
 To alleviate poverty. 
 
4. Background and authority for the subsidy  
 State Administration of Taxation and local taxation authorities. 
 5. Legislation under which it is granted
 
 Provisional regulation of the People’s Repub lic of China on Enterprises Income Tax. 
 
6. Form of the subsidy  
 Income tax reduction and exemption. 
 
7. To whom and how the subsidy is provided  
 For newly-established enterprises in remote regions, poverty stricken regions, and regions 
with ethnic groups residence, income tax sha ll be reduced or exempted for three years. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 No specific statistics available. 
 9. Duration of the subsidy and/or any other time-limits attached to it
 
 1993 -  
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Not available. 
 XX. PREFERENTIAL INCOME TA X TREATMENT TO ENTERPRISES 
TRANSFERRING TECHNOLOGIES 
 1. Title of the subsidy program
 
 Preferential Income tax treatment to enterprises transferring technologies. 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 179 
 
 
2. Period covered by the notification  
 1993 - now. 
 
3. Policy objective and/or purpose of the subsidy  
 To encourage technology transfer and extension.  
4. Background and authority for the subsidy
 
 State Administration of Taxation and local taxation authorities. 
 
5. Legislation under which it is granted  
 Provisional regulation of the People’s Repub lic of China on Enterprises Income Tax. 
 
6. Form of the subsidy  
 Income reduction and exemption.  
7. To whom and how the subsidy is provided
 
 For income of enterprises generated from tr ansferring technologies, or from such relevant 
services as technology consultancy, training and etc., income tax shall be exempted when 
such annual net income is below RMB 300 th ousand; however, in the case that the income 
exceeds RMB 300 thousand, for the part which exceeds RMB 300 thousand, income tax shall 
be applied as usual. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 No specific statistics available. 
 9. Duration of the subsidy and/or any other time-limits attached to it
 
 1993 -  
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Not available. 
 XXI. PREFERENTIAL INCOME TAX TR EATMENT TO DISASTER STRICKEN 
ENTERPRISES 
 
1. Title of the subsidy program
 
 Preferential Income tax treatmen t to disaster stricken enterprises 
 
2. Period covered by the notification  
 1993 - now. 
 
3. Policy objective and/or purpose of the subsidy  
 To bring down disaster losses. 
 
4. Background and authority for the subsidy  
 State Administration of Taxation and local taxation authorities. 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 180  
 
5. Legislation under which it is granted
 
 Provisional regulation of the People’s Repub lic of China on Enterprises Income Tax. 
 
6. Form of the subsidy  
 Income tax reduction and exemption.  
7. To whom and how the subsidy is provided
 
 In case that enterprises suffer from such disasters as fire, flood, tornado, earthquake and etc., 
income tax shall be exempted for one year subj ect to application to and approval from local 
taxation authorities. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 No specific statistics available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 1993 -  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 Not available. 
 XXII. PREFERENTIAL INCOME TAX TREATMENT TO ENTERPRISES WHICH 
PROVIDE JOB OPPORTUNITIES FOR THE UNEMPLOYED 
 
1. Title of the subsidy program
 
 Preferential income tax treatment to enterprises which provide job opportunities for the 
unemployed 
 
2. Period covered by the notification  
 1993 - now 
 
3. Policy objective and/or purpose of the subsidy  
 To increase job opportunities.  
 
4. Background and authority for the subsidy  
 State Administration of Taxation and local taxation authorities. 
 
5. Legislation under which it is granted  
 Provisional regulation of the People’s Repub lic of China on Enterprises Income Tax. 
 
6. Form of the subsidy  
 Income tax reduction and exemption.  
7. To whom and how the subsidy is provided
 
 For newly-established township enterprises, in case that the new jobs they provide in one 
certain year exceed 60 per cent of their total jobs , income tax shall be exempted for a period 
of three years, subject to their application to  and approval from local taxation authorities. In  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 181 
 
 
the same year when the three year exempti on period expires, in case the enterprises provide 
another 30 per cent more job opportunities, inco me tax shall be reduced by 50 per cent for 
another two years, subject to their application to and approval from local taxation authorities.  
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 No specific statistics available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 1993 -  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 Not available. 
 
XXIII STATISTICS OF INCOME TAX REBATE TO ENTERPRISES SUBJET TO 
NOTIFICATION XVII, XVIII, XIX, XX, XXI, XXII 
 
  Unit: 10,000 RMB 
 1995 1996 1997 
Beijing 19424 17492 33156 
Tianjin 12793 6945 632 
Hebei 184 50 5 
Shanxi 11216 1519 1465 
Inner-Mongolia 2525 445 129 
Liaoning 665 477 8515 
Jilin 130 1170 791 
Heilongjiang 1218 734 1345 
Shanghai 41960 110207 63659 
Jiangsu 1343 1369 9 
Zhejiang 41710 42220 61045 
Anhui 14285 17490 23939 
Fujian 2563 12953 15183 
Jiangxi 28 2 0 
Shandong 11586 3737 4277 
Henan 192 918 221 
Hubei 494 994 12230 
Hunan 7019 12179 11915 
Guangdong 10835 165 52 
Guangxi 9013 6211 7716 
Hainan 1194 1371 300 
Chongqing   230 
Sichuan 3548 3777 998 
Guizhou 647 2006 3259 
Yunnan 9027 6418 6563 
Tibet 506 1173 228 WT/ACC/SPEC/CHN/1/Rev.8 
Page 182  
 
 1995 1996 1997 
Shaanxi 7320 4228 1230 
Gansu 7519 251 1073 
Qinghai 357 378 1815 
Ningxia 532 465 2309 
Xingjiang 6633 2812 1354 
Total 226466 260156 265643 
 
XXIV. TARIFF AND VAT EXEMPTION FOR IMPORTED TECHNOLOGY AND 
EQUIPMENT OF THE INVESTERS INVESTING IN AREAS ENCOURAGED BY 
THE GOVERNMENT 
 
1. Title of the subsidy program  
 Tariff and VAT exemption for imported technol ogies and equipment imported by investors 
investing in the industrial areas encouraged by the state. 
 
2. Period covered by the notification  
 1998 - 2000. 
 
3. Policy objective and/or purpose of the subsidy  
 Reduce the investment cost of importing tec hnologies and equipment from abroad, so as to 
attract foreign direct investment a nd promote domestic investment as well. 
 
4. Background and authority for the subsidy  
 The State Council. 
 
5. Legislation under which it is granted  
 The circular No. 37(1997) issued by the State Council.  
 
6. Form of the subsidy  
 Tariff and VAT exemption for imported technologies and equipment. 
 
7. To whom and how the subsidy is provided  
 For foreign investors investing in the enc ouraged industrial areas defined by the "The 
Industrial catalogues for Foreign Direct Inv estment"(jointly issued by SDPC, SETC and 
MOFTEC), their imported technologies and equipm ent can enjoy treatment of tariff and VAT 
exemption. 
 For domestic investors investing in the enc ouraged industrial areas defined by the "The 
Catalogues of Current Priorities of Industrial Sectors, Products and Technologies Encouraged 
by the State" (issued by The State Development Planning Commission), their imported 
technologies and equipment can enjoy treatment of tariff and VAT exemption. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 No specific statistics available. 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 183 
 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 1998 - 2000. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 The importation of technologies and equipment has been encouraged by  the subsidies, no 
specific import volume has been calculated. 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 184  
 
ANNEX 5B 
 
SUBSIDIES TO BE PHASED OUT 
 
 
I. SUBSIDIES PROVIDED TO CERTAI N STATE-OWNED ENTERPRISES WHICH 
ARE RUNNING AT A LOSS 
 
1. Title of the subsidy program
 
 Subsidies provided to certain State-ow ned enterprises which are running at a loss. 
 2. Period covered by the notification
 
 1990-1998. 
 
3. Policy objective and/or purpose of the subsidy  
 To promote structural adjustment of those State-owned enterprises which are running at a 
loss, especially those in coal-mining and oil- drilling sectors, while keeping employment by 
means of promoting rationalization and ma intaining stable production and safety. 
 
4. Background and authority for the subsidy  
 Ministry of Finance. 
 
5. Legislation under which it is granted  
 Assistance by budget. 
 
6. Form of the subsidy  
 Grant and tax forgiving 
 
7. To whom and how the subsidy is provided  
 Subsidy is provided to severe loss-making State-ow ned enterprises due to either fixed price of  
the products they produce or the increasing cost of exploitation of the resources. 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 185 
 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
Unit: 100 million RMB 
 Sector/Year   1990   1991   1992   1993   1994 1995 1996 1997 1998 
Metallurgic industry    1.16    1.46    1.35    3.13    4.07 3.02 5.04 10.96 8.36 
Ferrous-metal industry    0.63    0.86    1.28    1.51    5.80 5.86 4.78 6.58 4.65 
Machinery industry    3.80    5.07   14.61    3.98   14.09 8.34 9.67 11.17 8.38 
Coal industry   55.86    66.70   70 .14   49.80   47.19 12.13 13.21 16.83 14.85 
Oil industry   42.53   54.36   52. 89   28.08    0.00 0.00 0.00 6.78 3.28 
Chemical industry    3.83    4.03    3.70    4.11    6.90 3.47 4.26 5.32 4.96 
Textile industry    1.90    2.39    2.07    3.09    2.65 3.38 6.97 16.41 15.36 
Light industry    6.65    7.88    6.31    9.30    3.99 1.52 2.63 6.82 2.35 
Tobacco industry    0.00    0.00    0.00    0.00   12.00 8.62 9.26 10.25 8.83 
Total of the nine 
sectors  116.36  142.75  152.35  103.00   96.69 46.34 55.92 91.12 71.02 
Other sectors    1.65    1.94    1.99    1.53    1.24 0.42 1.28 4.62 3.67 
Total  118.01  144.69  154.34  104. 53   97.93 46.76 57.2 95.74 74.69 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 1949-2000. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Not available.  
II. THE PRIORITY IN OBTAINING LOANS AND FOREIGN CURRENCIES BASED 
ON EXPORT PERFORMANCE  
 1. Title of the subsidy program
 
 The priority in obtaining loans and fore ign currencies based on export performance. 
 2. Period covered by the notification
 
 1994-1999. 
 
3. Policy objective and/or purpose of the subsidy  
 To promote the exportation of automobiles.   
 
4. Background and authority for the subsidy  
 State Planning Commission. 
 5. Legislation under which it is granted
 
 State Council Circular on Industrial Policy on Automobiles.. 
 
6. Form of the subsidy  
 Priority in obtaining loans and foreign currencies. 
 
7. To whom and how the subsidy is provided  
 Priority is given to: WT/ACC/SPEC/CHN/1/Rev.8 
Page 186  
 
 (1) Automotive production enterprises whose export of whole vehicle products has 
reached the percentage points in the vol ume of their sales as indicated in the 
following chart; 
 
Vehicles Types Category Percentages 
M1 3% 
M2 5% Passenger 
Vehicles M3 8% 
N1 5% Freight 
Vehicles N2, N3 4% 
Motorcycles L 10% 
 
 and 
  (2) Automobile and motorcycle compone nts manufacturing enterprises whose exports 
account for 10 per cent of their total annual sales. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 Zero, because no enterprises have reached the le vel for enjoying the priority up till now.   
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 China commits itself to eliminate th is measure by the year of 2000. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Zero.  
III. PREFERENTIAL TARIFF RATES BASED ON LOCALIZATION  RATE OF 
AUTOMOTIVE PRODUCTION 
 
1. Title of the subsidy program
 
 Preferential tariff rates based on localiza tion  rate of automotive production.   
 
2. Period covered by the notification  
 1994-1999 
 
3. Policy objective and/or purpose of the subsidy  
 To promote the localization process of automobile industry of China. 
 
4. Background and authority for the subsidy  
 State Planning Commission. 
 
5. Legislation under which it is granted  
 State Council Circular on Industrial Policy on Automobiles.  
6. Form of the subsidy
 
 Preferential tariff rates.  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 187 
 
 
 
7. To whom and how the subsidy is provided  
 The preferential tariff rates are granted to  the automotive enterp rises whose localization 
reaches the following ratios: 
 (1) Localization rate reaches 40 per cent,  60 per cent or 80 per cent on products that 
incorporate imported technology on whole vehicles of M Category; 
 (2) Localization rate reaches 50 per cent,  70 per cent or 90 per cent on products that 
incorporate imported technology on whole vehicles of N and L Categories; and 
 (3) Localization rate reaches 50 per cent,  70 per cent or 90 per cent on products that 
incorporate imported technology on automobile and motorcycle assemblies and key 
components. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 Not available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 China commits itself to phase out this measure by the year of 2000. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 The trade effect is negligible. 
 WT/ACC/SPEC/CHN/1/Rev.8 
Page 188  
 
ANNEX 6 
 
PRODUCTS SUBJECT TO EXPORT DUTY 
 
 
NO HS 2000 DESCRIPTION OF PRODUCTS EXPORT 
DUTY 
RATE(%) 
1 03019210 Live eels fry 20.0 
2 05061000 Ossein and bones treated with acid 40.0 
3 05069010 Powder and waste of bones 40.0 
4 05069090 Bones and horn-cores not cut to shape, nes 40.0 
5 26070000 Lead ores & concentrates 30.0 
6 26080000 Zinc ores & concentrates 30.0 
7 26090000 Tin ores & concentrates 50.0 
8 26110000 Tungsten ores & concentrates 20.0 
9 26159000 Niobium & tantalum ores & concentrates 30.0 
10 26171010 Crude antimony 20.0 
11 28047010 Yellow phosphorus (white phosphorus) 20.0 
12 28047090 Phosphorus, nes 20.0 
13 28269000 Potassium fluotantalate 30.0 
14 29022000 Benzene 40.0 
15 41031010 Slabs of goats, fresh or preserved, not tanned 20.0 
16 72011000 Non-alloy pig iron, by wt. ≤0.5% of phosphorus in primary forms 20.0 
17 72012000 Non-alloy pig iron, by wt.>0.5% of phosphorus in primary forms 20.0 
18 72015000 Alloy pig iron 20.0 
19 72021100 Ferro-manganese, containing by weight more than 2% of carbon 20.0 
20 72021900 Ferro-manganese, nes 20.0 
21 72022100 Ferro-silicon, containing by weight more than 55% of silicon 25.0 
22 72022900 Ferro-silicon, nes 25.0 
23 72023000 Ferro-silico-manganese 20.0 
24 72024100 Ferro-chromium containing by weight more than 4% of carbon 40.0 
25 72024900 Ferro-chromium, nes 40.0 
26 72041000 Waste & scrap, cast iron 40.0 
27 72042100 Waste & scrap, stainless steel 40.0 
28 72042900 Waste & scrap, of alloy steel, other than stainless 40.0 
29 72043000 Waste & scrap, of tinned iron or steel 40.0 
30 72044100 Ferrous waste & scrap,i/s,from the mechanical working of mtl, nes 40.0 
31 72044900 Ferrous waste & scrap, iron or steel, nes 40.0 
32 72045000 Remelting scrap ingots, of iron or steel 40.0 
33 74020000 Cu unrefined, Cu anodes for electrolytic refining 30.0 
34 74031100 Cu cathodes & sections of cathodes unwrought 30.0 
35 74031200 Wire bars, Cu, unwrought 30.0 
36 74031300 Billets, Cu, unwrought 30.0 
37 74031900 Refined Cu products, unwrought, nes 30.0 
38 74032100 Cu-zinc base alloys, unwrought 30.0 
39 74032200 Cu-tin base alloys, unwrought 30.0 
40 74032300 Cu-Ni base alloys'Cu-Ni-zinc base alloys, unwrought 30.0 
41 74032900 Cu alloys, unwrought (other than master alloys of heading No 74.05 30.0 
42 74040000 Waste & scrap, Cu'Cu alloy 30.0 
43 74071000 Bars, rods & profiles of refined Cu 30.0 
44 74072100 Bars, rods & profiles of Cu-Zn base alloys 30.0 
45 74072200 Bars,rods & profiles of Cu-Ni'Cu-Ni-Zn base alloys 30.0  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 189 
 
 
NO HS 2000 DESCRIPTION OF PRODUCTS EXPORT 
DUTY 
RATE(%) 
46 74072900 Bars, rods & profiles, Cu alloy nes 30.0 
47 74081100 Wire of refined Cu of which the max cs dimension>6mm 30.0 
48 74081900 Wire of refined Cu of which the max cs dimension ≤6mm 30.0 
49 74082100 Wire, Cu-zinc base alloy 30.0 
50 74082200 Wire, Cu-Ni base alloy'Cu-Ni-zinc base alloy 30.0 
51 74082900 Wire, Cu alloy, nes 30.0 
52 74091100 Plate, sheet & strip of refined Cu, in coil, thick>0.15mm 30.0 
53 74091900 Plate, sheet & strip of refined Cu, not in coil, thick>0.15mm 30.0 
54 74092100 Plate, sheet & strip of Cu-Zn base alloys, in coil, thick>0.15mm 30.0 
55 74092900 Plate, sheet & strip of Cu-Zn base alloys, not in coil, thick> 0.15mm 30.0 
56 74093100 Plate, sheet & strip of Cu-tin base alloys, in coil, thick>0.15mm 30.0 
57 74093900 Plate,s heet & strip of Cu-tin base alloys, not in coil, thick> 0.15m 30.0 
58 74094000 Plate, sheet & strip of Cu-Ni'Cu-Ni-Zn base alloy, thick>0.15mm 30.0 
59 74099000 Plate, sheet & strip of Cu alloy, thick >0.15mm, nes 30.0 
60 75021000 Ni unwrought, not alloyed 40.0 
61 75022000 Ni unwrought, alloyed 40.0 
62 75089010 Electroplating anodes of Ni 40.0 
63 76011000 Al unwrought, not alloyed 30.0 
64 76012000 Al unwrought, alloyed 30.0 
65 76020000 Waste & scrap, Al 30.0 
66 76041000 Bars, rods & profiles, Al, not alloyed 20.0 
67 76042100 Profiles, hollow, Al, alloyed 20.0 
68 76042900 Bars, rods & other profiles, Al alloyed 20.0 
69 76051100 Wire,Al, not alloyed, with a max cross sectional dim>7mm 20.0 
70 76051900 Wire,Al, not alloyed, with a max cross sectional dim ≤7mm 20.0 
71 76052100 Wire, Al alloy, with a maximum cross sectional dim> 7mm 20.0 
72 76052900 Wire, Al alloy, with a maximum cross sectional dim ≤7mm 20.0 
73 76061120 Plate/sheet/strip, Al, not alloyed, rect'sq, 0.30 ≤thickness<0.36 20.0 
74 76061190 Plate/sheet/strip, Al, not alloyed, rect'sq, thick>0.2mm, nes 20.0 
75 76061220 Plate, sheet'strip, Al alloy, rect'sq, thickness<0.28mm 20.0 
76 76061230 Plate, sheet'strip, Al alloy, rect'sq, 0.28mm ≤thickness≤0.35 20.0 
77 76061240 Plate, sheet'strip, Al alloy, rect'sq, 0.35mm<thickness 20.0 
78 76069100 Plate, sheet'strip, Al, not alloyed, >0.2mm thick, nes 20.0 
79 76069200 Plate, sheet'strip, Al alloy, >0.2mm thick, nes 20.0 
80 79011100 Zinc not alloyed unwrought containing by weight ≥99.99% of zinc 20.0 
81 79011200 Zinc not alloyed unwrought containing by weight<99.99% of zinc 20.0 
82 79012000 Zinc alloys unwrought 20.0 
83 81100020 Antimony unwrought 20.0 
84 81100030 Antimony waste & scrap; powders 20.0 
 
Note : 
  China confirmed that the tariff levels include d in this Annex are ma ximum levels which will 
not be exceeded.  China confirmed furthermore that  it would not increase the presently applied rates, 
except under exceptional circumstanc es.  If such circumst ances occurred, China would consult with 
affected members prior to increasing applied tariffs  with a view to finding a mutually acceptable 
solution.  WT/ACC/SPEC/CHN/1/Rev.8 
Page 190  
 
ANNEX 7 
 
RESERVATIONS BY WTO MEMBERS 
  
Argentina :  restrictions maintained on imports from China
  
  Argentina intends to maintain restrictions on certain products originating in China, such as 
textiles and clothing, footwear not used for sporti ng activities and toys, after the accession of China, 
as follows: 
 
PRODUCT HS CODE 
Textiles and Clothing 51.11; 51.12; 51.13; 52.08; 52.09; 52.10; 52.11; 52.12; 53.09; 53.10; 
53.11; 54.07; 54.08; 55.12; 55.13; 55.14; 55.15; 55.16; 56.02; 56.03; 57.01; 57.02; 57.03; 57.04; 57.05; 58.01; 58.02; 58.03; 58.04; 58.05; 58.06; 58.07; 58.08; 58.09; 58.10; 58.11; 59.03; 60.01; 60.02; 61.01; 61.02; 61.03; 61.04; 61.05; 61.06; 61.07; 61.08; 61.09; 61.10; 61.11; 
61.12; 61.13; 61.14; 61.15; 61.16; 61.17; 62.01; 62.02; 62.03; 62.04; 
62.05; 62.06; 62.07; 62.08; 62.09; 62.10; 62.11; 62.12; 62.13; 62.14; 62.15; 62.16; 62.17; 63.01; 63.02; 63.03; 63.04; 63.05; 63.06; 63.07; 63.08; 63.09; 63.10 
Footwear not used for sporting activities 64.01; 64.02; 64.03; 64.04; 64.05 
Toys 95.02; 95.03 
 
Quotas (Resolution 862/1999) :  to be eliminated by 31 July 2002. 
 Specific duties :  phasing out will be in line with the following methodology: 
  1. The base level of specific duties will be that in force at the ti me of the accession of 
China and the ad valorem  equivalent of each specific duty applied to each tariff 
position. 
  2. The transition period will be five year s from the date of accession of China, after 
which a 35% ad valorem  duty will apply. 
 
 3. Duties in excess of 35% will be phased out as follows:    —  First year :  a 10% reduction of the amount in excess of 35% 
  — Second year :  a 20% reduction 
  — Third year :  a 40% reduction 
  — Fourth year :  a 60% reduction 
  — Fifth year :  an 80% reduction 
— Sixth year:  As of 1 January of the sixth year, the ceiling of the 35% 
ad valorem  equivalent to the minimum specific import duties (DIEMs) will 
apply.
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 191 
 
 
European Communities :  phasing-out timetable of industrial (non-textile) quotas  
 
Product HS/CN Code 2001 2002 2003 2004 2005 
ex 6402 99 4 5% 
increase 5% 
increase 10% 
increase 15% 
increase proposed 
removal 
6403 51 6403 59 5% 
increase 10% 
increase 15% 
increase 15% 
increase proposed 
removal 
ex 6403 912 
ex 6403 992 5% 
increase 5% 
increase 10% 
increase 15% 
increase proposed 
removal 
ex 6404 115 5% 
increase 5% 
increase 10% 
increase 15% 
increase proposed 
removal Footwear falling within 
HS/CN codes 
6404 19 10 5% 
increase 5% 
increase 10% 
increase 15% 
increase proposed 
removal 
Tableware, kitchenware of porcelain or china 6911 10 15% 
increase 15% 
increase 15% 
increase 15% 
increase proposed 
removal 
Ceramic tableware or kitchenware 6912 00 15% 
increase 15% 
increase 15% 
increase 15% 
increase proposed 
removal 
 
[Note that previous quotas on glassware and toys were completely  lifted in 1998] 
  
                                                     
 
4 Excluding footwear involving special technology:  shoes which have a cif price per pair of not less 
than ECU 9 for use in sporting activities, with a single- or multi-layer moulded sole, not injected, manufactured 
from synthetic materials specially designed to absorb the impact of vertical or lateral movements and with technical features such as hermetic pads containing gas or fluid, mechanical components which absorb or 
neutralize impact or materials such as low-density polymers. 
5 Excluding: 
(a) footwear which is designed for a sporting activity and has, or has provision for the attachment 
of, spikes, sprigs, stops, clips, bats or the like, with a non-injected sole; 
(b) footwear involving special technology: shoes which have a cif price per pair of not less than 
ECU 9 for use in sporting activities, with a singl e- or multi-layer moulded sole, not injected, 
manufactured from synthetic materials specially designed to absorb the impact of vertical or lateral movements and with technical features such as hermetic pads containing gas or fluid, 
mechanical components which absorb or neutralize impact or materials such as low-density 
polymers. WT/ACC/SPEC/CHN/1/Rev.8 
Page 192  
 
Hungary :  quantitative restrictions maintained on imports from China   
 
 Hungary undertakes to phase out these restrictions  by the year 2005.  The restraint levels are 
based on the import data of the year 1999.  The annual quota growth and the carry over and carry 
forward rates in the case of textiles and clothing  products are included in the notification. 
 
Increase of quotas in per cent Product HS Import from 
China in 1999 2001 2002 2003 2004 2005 
Footwear falling within 
HS codes 6401 
6402 
6403 
6404 
6405  71 000 pairs 
 10 625 000 pairs 
 600 000 pairs 
 4 450 000 pairs 
 2 140 000 pairs 5 
5 
5 
5 
5 5 
5 
5 
5 
5 10 
10 
10 
10 
10 15 
15 
15 
15 
15 proposed removal 
proposed removal 
proposed removal 
proposed removal 
proposed removal 
Overwear 
Flexibility rates:  10% of 
which carry forward shall 
not represent more than 5% 4203, ex 4303, 
ex 4304, 6101, 
6102, 6103, 6104, 
6106, 6110, 6112, 
6113, 6114, 6201, 
6202, 6203, 6204, 
6206, 6210, 6211  15 900 000 $ 6 6 6 6 proposed removal 
Other clothing and 
ready-made clothing 
products 
Flexibility rates:  10% of 
which carry forward shall 
not represent more than 
5% ex 4303, ex 4304, 
6117, 6213, 6214, 
6215, 6301, 6302, 
6304, 6306, 6307, 
9404  4 570 000 $ 6 6 6 6 proposed removal 
 
 
 
   WT/ACC/SPEC/CHN/1/Rev.8 
 Page 193 
 
 
Poland :  anti-dumping measures and safeguard measures   
  Poland intends to continue the application of the below mentioned measures after China's 
accession.  
1. Anti-dumping duties
: 
  PCN 9613 10 00 0 (pocket lighters, gas fuelled, non-fillable)   PCN 9613 20 90 0 (pocket lighters, gas fuelle d refillable, with other ignition system) 
 
 The bringing of these measures into conformity with the WTO Agreement
6 will be effected 
by the end of 2002. 
 2. Safeguard measures
: 
 
 PCN 6402 (other footwear with outer soles and uppers of rubber or plastics).   PCN 6403 (footwear with outer soles of rubber, plastics, leather or composition leather and 
uppers of leather). 
 
 PCN 6404 (footwear with outer soles of rubber, plastics, leather or composition leather and 
upper of textile materials). 
  PCN 6405 (other footwear)  
 PCN 8516 40 10 0 (electric smoothing irons, steam smoothing) 
  PCN 8516 40 90 0 (electric smoothing irons, other)   The phasing out of these measures will be effected by the end of 2004.  
 
 
Slovak Republic :  quantitative restrictions maintained on imports from China  
 
 The Slovak Republic has concluded the bilate rals talks with China over the quantitative 
restrictions on imports of footwear falling with in HS/CN Code 6401, 6402, 6403, 6404 and 6405. 
 
Phasing-out Timetable on Footwear Quotas by the Slovak Republic  
 
HS/CN Code 2001 2002 2003 2004 2005 
6401 to 6405 15% increase 15% in crease 15% increase 15% increase proposed 
removal 
 
                                                      
6 The WTO Agreement as defined in the Draft Protocol on the Accession of China, Section 1, para. 2. WT/ACC/SPEC/CHN/1/Rev.8 
Page 194  
 
Thailand :  quantitative restrictions maintained on imports from China
  
  Thailand intends to maintain the following measures against imports from China after its 
accession to the WTO Agreement:  
 Imports of raw silk (not thrown) under HS 5002 and silk yarn under HS 5004 from China 
shall be subject to:   1. Tariff Rate:  10%  
 2. Local Content Requirement 
   2.1 Import for General Use
:  the importer shall purchase one unit of local raw silk 
or silk yarn for every 1.5 unit of raw silk or silk yarn imported from China. 
 
  2.2 Import of High Quality Silk for Re-export :  the importer shall purchase one 
unit of local raw silk or silk yarn for every 30 unit of raw silk or silk yarn 
imported from China. 
  Thailand intends to maintain the application of the above measures for five years after the 
date of China's accession. 
 
   WT/ACC/SPEC/CHN/1/Rev.8 
 Page 195 
 
 
Turkey :  quantitative restrictions for non-textile products maintained on imports from China   
 
 Turkey maintains quantitative restri ctions on goods specified below. 
 
 CN CODE DESCRIPTION OF GOODS Quota (2000) 
(1) 6402.99 Footwear  110 000 Pairs 
 6403.51) 
6403.59) Footwear  26 826 Pairs 
(1) 
(1) 6403.91) 
6403.99) Footwear  185 742 Pairs 
(2) 6404.11.00.00.00 Footwear  754 350 Pairs 
 6404.19.10.00.11) 
6404.19.10.00.12) 6404.19.10.00.13) Footwear  472 300 Pairs 
 6911.10 Tableware, kitchenware of porcelain or china  15 225 kg 
 6912.00 Ceramic tableware or kitchenware, other than of 
porcelain or china  45 675 kg 
 
 (1) Excluding footwear involving special technology:  shoes which have a c.i.f. price per pair of not 
less than $ 11,5 for use in sporting activities, with a single- or multi-layer moulded sole, not injected, 
manufactured from synthetic materials specially designed to absorb the impact of vertical or lateral movements 
and with technical features such as hermetic pads containing gas or fluid, mechanical components which absorb or neutralize impact or materials such as low-density polymers. 
 (2) Excluding: 
  (a) footwear which is designed for a sporting ac tivity and has, or has provision for the attachment 
of spikes, springs, stops, clips, bats or the like, with a non-injected sole, 
  (b) footwear involving special technology:  shoes which have a c.i.f. price per pair of not less than 
$ 11,5 for use in sporting activities, with a single- or multi-layered moulded sole, not injected, manufactured from synthetic materials specially designed to absorb the impact of vertical or lateral movements and with 
technical features such as hermetic pads containing gas or fluid, mechanical components which absorb or 
neutralize impact or materials such as low-density polymers. 
 
 
 The phasing-out timetable on these restrictions remains to be negotiated between China and 
Turkey.  WT/ACC/SPEC/CHN/1/Rev.8 
Page 196  
 
ANNEX 8 
  
Part I 
 
DRAFT SCHEDULE OF CONCESSIONS AND COMMITMENTS ON GOODS 
 
   
Circulated in document WT/ACC/SPEC/CHN/1/Rev.8/Add.1. 
 
  WT/ACC/SPEC/CHN/1/Rev.8 
 Page 197 
 
 
ANNEX 9 
  
Part II 
 
DRAFT SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES 
 
 
  
Circulated in document WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
 
 
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