WORLD TRADE
ORGANIZATIONG/LIC/W/20
25 September 2003
(03-5083)
Committee on Import Licensing Original:  English
TRANSITIONAL REVIEW MECHANISM1
Communication from the People's Republic of China
The following communication, dated 23 September 2003, has been received from the
Permanent Mission of the People's Republic of China.
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Information required by Annex 1A of the Protocol of Accession
IV. POLICIES AFFECTING TRADE IN GOODS
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 se t out in Section 8 of the Protocol including
provision of the time taken to grant an import licence
Upon accession to WTO, the Chinese government has abided by its commitments, in an effort
to establish and maintain a uniform, transparent, fair and non-discriminatory market access
environment.  Chinese policies on the importation and exportation of goods are consistent with WTO
agreements and China’s commitments upon accession, i.e., most goods are allowed to be imported toand exported from China freely, with the exception of those subject to restrictions such as import
bans, import restrictions, automatic import licensing, import quotas and tariff rate quotas.  With
regard to the commodities referred to in Annex 2 as being under designated trading, we have, in line
with China’s commitment to phase out designated  trading, eliminated the designated trading
restriction on the importation of lumber, which is among the goods listed in Annex 2B, in advance ofthe stipulated time frame.  Designated trading restriction on the importation of the other five kinds of
commodity listed in Annex 2B will be phased out in  a transitional period of three years.  Upon the
conclusion of the three-years’ transitional period, all domestic enterprises will be allowed to import
the goods mentioned above within all Chinese tariff territories.  China has clarified relevant issues to
WTO during the transitional review of the last year.
Since the last transitional review, import regulatory systems of China have not undergone
obvious changes.  In this one-year period, the former MOFTEC promulgated the 2003  Catalogue of
Goods under Automatic Import Licensing Administration and 2003 Catalogue of Commodities under
Import Licence Administration ;  with regard to administration of the importation of agricultural
                                                     
1 Pursuant to Section 18 of the Protocol on the Accession of the People's Republic of China
(WT/L/432).G/LIC/W/20
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products, the former State Development Plan ning Commission (SDPC) promulgated the
Implementing Rules on the Allocation of  Tariff Rate Quotas of 2003 for Major Agricultural Products
and Implementing Rules on the Administration of Im port Tariff Rate Quotas of 2003 for Wool and
Wool Tops ;  with regard to administration of the importation of industrial products, the former SDPC
has issued the Implementing Rules on the Allocation of Im port Quotas of 2003 for Natural Rubber,
the former State Economic and Trade Commission  (SETC) has issued the Total Volume, Allocation
Criteria and Application Procedures for 2003 Import Quotas for Refined Petroleum Products , 2003
Total Import Volume and Application Procedures  for Crude Oil Imported by Non-State Trading
Enterprises , Total Volume, Allocation Criteria and Application Procedures for 2003 Import Quotas
for Automobile Tyres , and Adjustment of 2002 Import Quotas for Refined Petroleum Products,
Automobile Tyres and Crude Oil (Non-State Trading );  the former MOFTEC published the Tentative
Methods for Administration of Importation of Crud e Oil, Refined Petroleum Products and Fertilizers
by State Trading Enterprises , Announcement on  the Qualifications, Application Materials and
Declaration Procedures for the Record of Elig ible Non-State Trading Enterprises Importing Crude
Oil, Refined Petroleum Products and Fertilizers ;  on 1 January 2003, the Chinese government
reduced the regulatory measures on two kinds of products ( auto hoist and motorcycle) subject to
quotas and import licensing, equivalent to 18 tariff lines (8 digits, HS2002), and cut down importquota and licensing restrictions on four kinds of commodities (refined petroleum products, natural
rubbers, auto tyres and auto products two years in advance of the schedule; and also reduced
regulatory measures on nine specific kinds of products, equivalent to 19 tariff lines (8 digits,
HS2002), which represented more than 45 per cent of the total regulatory measures.
In 2003, the Ministry of Commerce (MOC) has published following announcements in
collaboration with the relevant authorities:
1. No. 10 Proclamation,  Catalogue of Wastes Subject to Restricted Importation that can be Used
as Raw Materials (Second Group) , which has amended the 2002 No. 25 Proclamation
Catalogue of Goods under Import Bans  (Fourth Group) ;
2.  No.23 Proclamation, amending the part relating to juncus pith and its products of 2002 No.59
Proclamation 2003 Catalogue of Commodities under Export Licensing Administration ;
3. No. 27 Proclamation, Catalogue of Goods Under Import Bans (Second Group) ;
4. No.31 Proclamation, amending the part relating to electric fans and refined petroleum
products exported through processing trade of 2002 No.59 Proclamation 2003 Catalogue of
Commodities under Export Licensing Administration ;
5. No.32 Proclamation, forbidding the importation of all wood and wood products originating in
Liberia from 7 July 2003 to 7 May 2004;
6. No.45 Proclamation, implementing import and export licensing system on sassafras oil and
diatomic-safrole from 1 September 2003.
MOC also published Total Volume and Application Procedures for 2004 Import Quotas for
Crude Oil Imported by Non-State Trading Enterprises  and Total Volume, Allocation Criteria and
Application Procedures for 2004 Import Quotas for Refined Petroleum Products for Non-State
Trading Enterprises .
According to this year’s adjustment of functi ons and reorganization of authorities under the
State Council and the comments on the original met hods from various areas during the near two-year
time of implementation, MOC has amended the Tentative Methods for the Administration of Import
Tariff Rate Quotas for Agricultural Products .  The amended methods are expected to be published in
September 2003.  The Implementing Rules on the Allocation of 2004 Import Tariff Rate Quotas forG/LIC/W/20
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Major Agricultural Products  formulated on the basis of such amended methods is expected to be
promulgated prior to 30 September 2003.
The above-mentioned regulations and administrative measures have been published on the
China Foreign Trade and Economic Cooperation Gazette and the official website of MOC(www.mofcom.gov.cn), and have been notified to the WTO.  In 2003, China has provided
information with respect to Chinese import and export licensing systems to the Committee on Import
Licensing, including all licensing procedures and quota requirements, as well as the reasons for
maintaining such restrictions and th eir expected date of termination.
2
As indicated by the practices during the period exceeding one year, the import regulatory
mechanisms of China have operated well, and relevant measures have facilitated the importingactivities of enterprises and improved the development of foreign trade.
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2 G/LIC/N/1/CHN/2