WORLD TRADE  
ORGANIZATION  G/LIC/Q/CHN/14 
24 September 2004 
 
 (04-4028) 
Committee on Import Licensing Original:   English 
 
 
 
 
QUESTIONS1 FROM THE SEPARATE CUSTOMS TERRITORY OF TAIWAN,  
PENGHU, KINMEN AND MATSU TO CHINA  
CONCERNING IMPORT LICENSING PROCEDURES2 
 
 
 The following communication, dated 22 September 2004, is being circulated at the request of 
the Delegation of the Separate Customs Terr itory of Taiwan, Penghu, Kinmen and Matsu. 
  
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 The Separate Customs Territory of Taiwan, Pe nghu, Kinmen and Matsu would like to address 
some questions to China regarding its notificati on G/LIC/N/3/CHN/2, "Replies to Questionnaire on 
Import Licensing Procedures".  We noted that the above-mentioned notification was discussed in the 
May 2004 session of the Committee on Import Licensing.  The notification, in our view, still raises a 
number of concerns and requires some clarification.  
 
Questions Concerning Section I. Tariff Rate Quota   
 1. In paragraph 6.II of section I, China states, "T he size of the quota is determined according to 
the commitments in the Tariff Schedule CLII of Ch ina.  Such decision is made once a year."  
Moreover, in paragraph 6.I of the same section stat es that the quotas are allocated to end-users, and 
that "It is not possible to publish the amount allocated to goods from each country before the 
allocation, as end-users' intention of importation source is not predictable." 
 
Would it be possible for China to provide such information as the list of quota importers and 
the quantity of quota allocated after the allocation?    Otherwise, we wonder how Members can judge 
whether China has implemented its commitments in Tariff Schedule CLII? 
 
2. In paragraph 6.V of section I, China states that, "The competent authorities shall process the 
application for the Certificate of Tariff Rate Quot a for Import of Agricultural Products in two months, 
one month for authorized agencies and the other for the SDRC and MOFCOM."  It would be 
appreciated if China could provide further clarif ication of various aspects of these procedures, as 
follows: 
 
(a)  By what procedure and in what se quence do the competent authorities process the 
application? 
(b) Is the application handled on a "single window" basis by the competent authorities?  Or may 
more than one authority accept the application? 
                                                     
 
1 See Understanding on Procedures for th e Review of Notifications (G/LIC/4). 
2 Concerning the notification from China circulated in document G/LIC/N/3/CHN/2. G/LIC/Q/CHN/14 
Page 2 
 
 
 (c) How are the applications delivered to SD RC and MOFCOM for further processing after the 
competent authorities have processed them? 
  
(d) By what procedure and in what genera l sequence do the SDRC and MOFCOM process the 
applications? 
 
(e) Which agency is ultimately responsible for i ssuing the Certificates of Tariff Rate Quota for 
Import of Agricultural Products?  Is it the SD RC, MOFCOM, or the "competent authorities"? 
 
3. In paragraph 14 of section I, China states, "The  Certificate of Tariff Rate Quota for Import of 
Agricultural Products will be valid from issuance  to 31 December of the year. In the case of 
agricultural products subject to TRQ dispatching from the port of departure prior to 31 December of a 
given year and arriving at the port of destination in  next year, end users shall apply for extension of 
the relevant Certificate to the Authorized Agencies which initially granted the Certificate."  Moreover, 
in paragraph 15 of the same section, China states, "If an end-user that does not completely utilize a 
TRQ or uses a portion of a TRQ fails to return the unused quota by 15 [Septe mber], in the allocation 
next year, the quantity will be proportionally de ducted according to the proportion of unused quota."  
 
 Our questions are as follows: 
 (a)   After an extension of the term of validity of  the "relevant Certificate" for agricultural products 
that are dispatched from the port of departure prior to 31 December of a given year and arrive 
at the port of destination in the following year, is the quantity proportionally deducted from the given year’s quota or from the following year's quota? 
 
(b) Since end-users who apply for an extension of the "relevant Certificate"  receive the products 
in the following year, are they penalized through the proportional deduction of unused quota 
in the following year? 
 Questions Concerning Section II. Import Quota
 
 
4. In paragraph 6.II of section II, China states, "The quantity of the quota is determined 
according to the commitments in the Tariff Schedule CLII of China.  Such decision is made once a 
year."  Furthermore, in paragraph 6.III of the same section, China states, "The quantity of quota 
allocated to each entity and list of entities who ha ve been granted quotas is treated as confidential 
business information and th us is not published." 
 
In a similar way to the point raised in Questi on 1 on "Tariff Rate Quota", if the quantity of 
quota allocated to each entity and the list of entiti es that have been granted quotas are treated as 
confidential business information, how can Memb ers know whether China has implemented its 
commitments in Tariff Schedule CLII? 
 
5. In paragraph 6.III, 6.VII, 6.VIII, 6.IX, and pa ragraph 14 of section II, it would appear that 
MOFCOM is responsible solely for applications fo r automatic import licensing and that those wishing 
to apply for a Certificate of Import Quota of Machinery and Electronic Products must file such an application with the State Administration for Impor t and Export Trade of Mechanical and Electronic 
Products of China (SAIETMEP).  China also states  that importation of machinery and electronic 
products requires the "Certificate of Import Quota of Machinery and Electronic Products," which is 
not issued automatically, and then that importers must apply to MOFCOM for the "Licence of Import 
Quota", which is issued automatically. 
  G/LIC/Q/CHN/14 
 Page 3 
 
 
  We would appreciate clarification of the following: 
 
(a) How are the separate responsibilities of  MOFCOM and SAIETMEP distinguished? 
  
(b) What is the procedure for applying for a "License of Import Quota"? 
 Questions Concerning Section IV. Auto matic Import Licence Administration
 
 
6. In paragraph 7.IV of section IV, China stat es that "the Ministry of Commerce is solely 
responsible for the applications for automatic impo rt licence."  Later, in paragraph 9 of the same 
section, China states that those wishing to appl y for a licence to import machinery and electronic 
products subject to automatic import licensing can  submit their applications to SAIETMEP.  
 
 Our questions are again as follows:  
(a) How are the separate responsibilities of  MOFCOM and SAIETMEP distinguished? 
  (b) What is the procedure for applying for an "automatic import licence"? 
 
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