WORLD TRADE
ORGANIZATIONG/MA/W/52
16 October 2003
(03-5487)
Committee on Market Access Original:  English
TRANSITIONAL REVIEW MECHANISM PURSUANT TO PARAGRAPH 18 OF THE
PROTOCOL ON THE ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA
Information Required by Annex 1 of the Protocol
The following communication, dated 15 October 2003, has been received from the Permanent
Delegation of the People's Republic of China.
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1. Tariff Rate Quotas
- Administration of TRQs on a transparent, predictable, uniform, fair and non-discriminatory
basis using clearly specified timeframes, administrative procedures and requirements and
evidence of a consistent national allocation (and reallocation) policy, including:
1.1 Provision of volume/value of the quota or TRQ made available
Import TRQs for year 2003
Products Quantity
Agricultural Products
Wheat 9,052,000 tons
Maize 6,525,000 tons
Rice 4,655,000 tons
Soybean Oil 2,818,000 tons
Rape Seed Oil 1,018,600 tons
Palm Oil 2,600,000 tons
Sugar 1,852,000 tons
Cotton 856,250 tons
Wool 275,750 tons
Wool Top 76,260 tons
Industrial Products
Urea 1,800,000 tons
Diammonium phosphate 5,950,000 tons
NPK 2,980,000 tonsG/MA/W/52
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1.2 Reallocated Quotas or TRQs applied for
On 11 August 2003, NDRC and MOFCOM join tly published No.16 Proclamation of 2003.
The Proclamation sets out that in the case of an end user possessing general trade TRQs does not
foresee to enter into import contracts fulfilling the total amount of TRQs in its possession, or theshipment of the contracted TRQs can not be dispatched from port of departure before
31 December 2003, it shall, prior to 15 September 2003, return the TRQs not expected to be filled to
the local provincial development planning comm issions (authorized agencies by former State
Development Planning Commission). Meanwhile, the Proclamation also set forth specific
requirements for application for TRQs to be re allocated, and states that NDRC and MOFCOM will
reallocate returned TRQs to end users before 30 September 2003.
With respect to fertilizer, MOFCOM accepts ap plications for returned fertilizer TRQs from
15 September to 30 September each year, and completes the reallocation of returned TRQs by
15 October of the current year.
Applications filed and granted for TRQ reallocation
(number of enterprises)
Wheat Maize Rice Soybean
OilVegetable
Seed OilPalm
OilSugar Cotton
Applicants 220 251 171 398 188 1309 100 252
Applications
granted204 218 167 359 168 1195 78 238
1.3. The volume/value of requests for allocation or reallocation denied
Quantity of TRQs in rejected applications
Products Quantity
Agricultural Products
Wheat 8,310,000 tons
Maize 15,542,000 tons
Long grain rice-
1,082,650 tonsRice
Medium and short grain rice-
0 tons
Soybean Oil 8,089,280 tons
Rape Seed Oil 2,340,800 tons
Palm Oil  9,415,500 tons
Sugar 4,861,000 tons
Cotton 1,016,400 tonsG/MA/W/52
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1.4. Fill rates for the quota or TRQ
Imports under TRQ and their fill rates as of 31 August 2003
Product Imported Volume
(ten thousand tons)Rate of
increase
(%)Fill rate
(%)
Wheat 21.5 -58.3 2.4
Maize 0 -93.5 0
Rice 19.1 34.9 4.1
Bean Oil 90.9 337 32.3
Rape-seed Oil 6.1 85 6
Palm Oil 158.1 49.9 60.8
Sugar 55.7 -30.3 30.1
Cotton 62.3 670 72.8
Wool 10.1 -11.9 36.6
Wool Top 1.87 -30.7 24.5
Urea 13.43 -82.4 7.47
NPK 151.35 -13.5 50.7
Diammoniumphosphate198.38 -45.6 33.34
1.5. For TRQs, the amount of any goods entered at the over quota rate
None.
1.6. Time taken to grant a quota or TRQ allocation
NDRC and MOFCOM allocate agricult ural product TRQs in one month.
MOFCOM distributes fertilizer TRQs within two months.
2. Non-tariff measures including Quantitative Import Restrictions
(a) The introduction, re-introduction or application of any non-tariff measures other than those
listed in Annex 3 of the Protocol and elimination of non-tariff measures.
None.
(b) Implementation of the schedule for phased elimination of the measures contained in Annex 3
Chinese government has eliminated 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 import quota and licensing restrictions on four commodities
(processed oil, natural rubbers, auto tyres and auto products) two years in advance of the
schedule; and also reduced regulatory measures on 9 specific kinds of products, equivalent to
19 tariff lines (8 digits, HS2002), a decrease of more than 45%.
(c) Quota allocation and reallocation in conformity with WTO requirements, including the
Agreement on Import Licensing Procedures following criteria set out in the Report of the
Working Party on the Accession of China.G/MA/W/52
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Processed oil and auto tyres: In 2002, the former State Economic and Trade Commission
(SETC) has allocated import quotas for processed oil and auto tyres for 2003 according to
China’s accession commitments. After governmental restructuring in 2003, the administration
of import quotas for processed oil and auto tyres has been transferred to MOFCOM. On
1 September 2003, MOFCOM published proclamations which has adjusted import quotas forprocessed oil and auto tyres as well as crude oil import quotas for non-state trading
enterprises of 2003. MOFCOM has began to accepting returned quotas and applications for
reallocation.
Natural Rubber: According to the growth rate contained in Annex 3, volume of import quotas
for natural rubbers of 2003 is 850,000 tons, which has been fully allocated. Former SDPC, the
authority responsible for allocation of natural rubber quotas, has promulgated Interim
Methods for the Administration of Natural Rubber Quotas . After governmental restructuring
in 2003, the administration of quotas for natural rubbers has been shifted to MOFCOM,
which now allocates import licenses for natural r ubber in light of the import quota license for
natural rubber issued by authorized agencies of former SDPC. Quota holders decide
commercial terms in relation to import of natu ral rubbers at their own discretion, including
specifications, product combinations, pricing and packages. Import quotas become effective
as from 1 January each year, and remain valid through out the calendar year. The provisions
on the return and reallocation of the unused quota contained in the Article 17 and 18 of
Interim Methods for the Administration of Natural Rubber Quota are in conformity of
accession commitments.
Machinery and electronic products: After 2003, MOFCOM is the competent authority for the
administration of import of machinery and electronic products according to relevant laws and
regulations. Currently, regulations and measures with respect to electronic products remain
unchanged. In 2003, MOFCOM has allocated quotas in line with the committed growth rate.
(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, paragraph 3 of the Protocol
According to the relevant regulations, the distribution of import licenses, quotas, TRQs, or
any other means of approval for importation is not subject to the conditions set out in
Section 7, paragraph 3 of the Protocol.
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