. /.  WORLD TRADE  
ORGANIZATION  G/AG/W/65 
24 September 2004  
 
(04-4007) 
Committee on Agriculture Original:   English 
   
CHINA'S TRANSITIONAL REVIEW MECHANISM 
 
Questions to China from the Separate Customs Terri tory of Taiwan, Penghu, Kinmen and Matsu in 
the context of the Transitional Review Mechanis m under Paragraph 18 of the Protocol of Accession 
of the People's Republic of China  
 
  The following communication, dated 27 Augus t 2004, has been received from the Delegation 
of the Separate Customs Territory of Taiwan, Penghu , Kinmen and Matsu, with the request that it be 
circulated to Members, for the purposes of the Tran sitional Review to take place at the Committee's 
meeting on 23 September 2004. 
  
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 We understand that China has made progress in 2004 on the implementation of its TRQs, the 
enactment of relevant regulations and on the alloca tion of quotas.  According to paragraph 116 of the 
Working Party Report, China is committed to TRQs  being administered on a transparent basis.  
  We would appreciate receiving some further information and clarification regarding the 
following points, with particular reference to transparency as it relates to the TRQ on rice: 
 1. Could China please provide information on the fill rate of the rice TRQ in the year 2003. 
 2. We note that 50 per cent of China's rice tariff quota is imported solely by a state trading 
enterprise (STE) and the other 50 per cent is im ported by private sector entities.  Please 
explain how the STE operates in terms of its importation of the government quota and how it 
decides on the trading partners. 
 3. With regard to importation of the rice quota by the private sector, the 2003 
25
th Announcement of China's National Development Reform Commission issued on 
30 September 2003 states that for the year 2004, the private quota is allocated on a first-come, first-served basis according to a company's volume of applications, historical import records 
and processing capacity, or its volume of production, importation and sales. 
  It would be appreciated if China could provide details concerning the following: 
 
(a) Is any information on its rice quota holders made public and on what criteria does 
China base its allocation decisions?  If the repl y to the first part of this question is in 
the affirmative, could China please also a dvise us of the means by which it publicizes 
such information. 
 (b) Are there any other fees, charges, taxes or  premiums collected besides tariff charges 
on each rice importation, and are any fees charged for acquiring the quota?  If so, 
what are the respective amounts? G/AG/W/65 
Page 2  
 
 (c) What are the relevant items and standards of SPS requirements for rice importation to 
China? 
 
(d) We understand that a grain wholesaler or retailer with an annual sales volume above 
100 million RMB would qualify for a private rice quota application.  We would like 
to know the details of how a company s hould go about acquiring the qualification as a 
grain wholesaler or retailer in China.  For example, which competent authority should 
this company apply to for such a qualifica tion and are there any special requirements 
involved? 
 
(e) Do any limitations or conditions apply to imported rice being sold in China's market?  
If so, we would appreciate knowing what they are. 
  
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