RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/CHN/1/Rev.8/Corr.2 
14 September 2001 
 (01-4325) 
Working Party on the 
Accession of China   
 
 
     
 
    
 
DRAFT REPORT OF THE WORKING PARTY 
 
ON THE ACCESSION OF CHINA 
 
Corrigendum
 
 
 WT/ACC/SPEC/CHN/1/Rev.8/Corr.2 
Page 2  
 
This second corrigendum to Rev.8 of the Draft Report provides additional corrections to – and in 
some cases modifies – tho se corrections set out in the first corrigendum, dated 10 September 2001. 
 
Draft Report of the Working Party
 
 Paragraph 79, lines 2 and 3:  dele te "measures covered under Section 2(D)(1) of the Draft Protocol" 
and replace with "the implementation of laws, re gulations, judicial decisions and administrative 
rulings of general application referred to in Ar ticle X:1 of the GATT 1994, Article VI of the GATS 
and the relevant provisions of the TRIPS Agreement".  
Paragraph 101, third line:  revert to original  text, ignoring correction provided in the first 
corrigendum.  Paragraph 111, second line:  revert to original text, ignoring correction provided in the first 
corrigendum. 
 
Paragraph 129, eighteenth line:  change  "paragraph 2(C)2" to "Section 2(C)2". 
 Paragraph 130:  delete and replace with the fo llowing reorganized paragr aph, ignoring reordering 
provided in the first corrigendum.  
"130. The representative of China stated th at China 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 the Agreement on Import Licensing Procedures.  In applying these criteria, China w ould consider the need to allow for equitable 
participation by producers from WTO Members and take into account the need to maximize the 
potential for quota fill. 
 
(a) (i) If the relevant quota quantity exceeded  total requests for quota allocations, all 
requests would be approved. 
 
 (ii) In other cases, the criteria for allocation would be as follows: 
 
 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; 
 
(b) (i) 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 allocated 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. 
  WT/ACC/SPEC/CHN/1/Rev.8/Corr.2 
 Page 3 
 
 
 (ii) In other cases :  
  - 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 absolute amount of its quota allocation; 
 
  - 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 50 per cent; 
   - 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 any quota that had 
not been filled in the previous year, China would give priority consideration 
to requests from enterprises with foreig n ownership greater than 50 per cent. 
 
 (c) In all cases, a quota-holder receiving an in itial allocation 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 allo cation would receive a proportional reduction in 
its quota allocation in the subsequent year unl ess the quantity was returned for reallocation 
by1 September.  
 
The Working Party took no te of these commitments." 
 
Paragraph 159, sixth line:  de lete "not produced by them". 
 Paragraph 237 bis.   [check with Renzo] 
 Paragraph 250, at the end of paragraph: add "Oth er laws, regulations and measures relating to the 
implementation of the TRIPS Agreement had been or would be notified to the WTO and would be 
made available upon request."  Paragraph 274, fifth line:  after "conditions", add ", on the understanding that this requirement could 
be waived in the case of a national emergency or ot her circumstances of extreme urgency or in cases 
of public non-commercial use and subject to the ot her provisions of subparagraph (b) of Article 31".  
Ignore changes contained in first corrigendum.   
Draft Protocol
 
 Section 15, third line:  change "sub- paragraph (b)" to "subparagraph (b)". 
  
Protocol Annexes
 
 Annex 1A, Section III.1(b):  cha nge "Section 2(A), Article 5" to  "Section 2(A), paragraph 4". 
 Annex 1A, Section IV.8(a):  [awaiting confirmation of Secretariat change from China]  
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