./.WORLD TRADE
ORGANIZATIONG/LIC/Q/CHN/9
30 September 2003
(03-5136)
Committee on Import Licensing Original:  English
CHINA'S TRANSITIONAL REVIEW MECHANISM1
Questions from the UNITED STATES to CHINA2
The following communication, dated 25 September 2003, has been received from the
Permanent Mission of the United States.
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Questions related to import licences issued for inspection permits
The United States remains concerned about the licensing procedures provided for in State
General Administration of Quality Supervision and Inspection and Quarantine Procedures (AQSIQ)
Ordinance 7, Administrative Measures for the Entry-Exit Inspection and Quarantine for Grains and
Feed Stuff (effective 1 March 2002) , as well as AQSIQ Decree 25, Administrative Measures for Entry
Animal and Plant Quarantine  (effective 1 September 2002).
Specifically, pursuant to Ordinance 7, AQSIQ requires that importers obtain an import
inspection permit prior to signing an import contract for grain or feed.  Port quarantine authorities
may return or destroy any cargoes without a prio r import inspection permit.  This import inspection
permit is in addition to other import licences, incl uding a TRQ Import Certificate (in the case of TRQ
commodities like wheat) and an Interim Safety Certificate (in the case of certain commodities, as
discussed below), and it does not replace inspection at the port.  Similar procedures apply underAQSIQ Decree 25, pursuant to which importers are required to obtain a quarantine permit for a wide
range of animal and plant products before an import contract can be signed.
Through its implementation of these measures, AQSIQ has taken over effective control of
imports of any agricultural product that requires an import inspection permit, including livestock,poultry, grains, oilseeds, planting seeds, horticultural products, even hides and skins.  The United
States is concerned that AQSIQ is using the procedures provided for by these measures to control the
pace and quantity of agricultural imports, including non-TRQ commodities like soybeans and meat
and poultry products.  The United States is also concerned about reports from traders regarding both
the burdensome nature of the procedures and selective enforcement by AQSIQ.
1. What steps is China taking to ensure that the import process under these measures is
conducted in a fair and equitable manner, as required by Article 1.3 of the Agreement on
Import Licensing Procedures?
2. What steps is China taking to comply with Article 2.2 of  the Agreement on Import Licensing
Procedures and ensure that its administration of the import process for these commodities is
not having trade-restricting effects?
                                                     
1 Pursuant to Section 18 of the Protocol of Acces sion of the People's Republic of China (WT/L/432).
2 See Understanding on Procedures for the Review of Notifications (G/LIC/4).G/LIC/Q/CHN/9
Page 2
3. The United States is concerned that the procedures connected with obtaining import
inspection permits and quarantine permits are trade-restricting and burdensome, despite
China’s obligations under the Agreement on Import Licensing Procedures.
(a) Please explain why import inspection permits are valid for only 90 days from the
issue date and why the validity date of such a licence is often a month later than the
issuance date.
(b) Please explain why AQSIQ  requires an inspection of the facilities of an enterprise
that processes agricultural commodities, since the State Administration of Industry
and Commerce also requires an inspection of those same facilities.  Will oneinspection satisfy both requirements?
(c) Please explain why an importer must re-apply for a new import inspection permit
(rather than have the term of the original one extended) if it has not entered into a
commercial contact and imported the comm odities covered by the import inspection
permit by the expiry date.
(d) Please explain why an importer must specify the commodity weight, country of origin
and port of entry before it has even entered into an import contract.  Please also
explain why an importer must reapply for a licence if the commodity weight changesby more than 10% or if the country of origin or the port of entry changes.
4. Import requirements for GMO products announced by the Ministry of Agriculture in a letter
released on July 16, 2003, appear to be inconsistent with AQSIQ import requirements.  The
Ministry of Agriculture now requires that a supplier’s application for an Interim SafetyCertificate (formerly known as a Safety Certificate) specify the name of the recipient (the
importer), which will also appear in the Interim Safety Certificate itself.  This requirement
implies that a contract exists between the suppl ier and an importer.  At the same time, AQSIQ
continues to require that the importer apply for and receive an import inspection permit before
entering into a contract with the supplier.  To obtain an import inspection permit, the importer
must include an Interim Safety Certificate from the MOA, which requires an existing
contract.  Please explain how suppliers and importers can comply with these apparentlyconflicting requirements.
5. Please explain why AQSIQ requires inspections of the facilities of enterprises that import
processed agricultural goods but does not require inspections of the facilities of domestic
processing enterprises.  How does China justify this discriminatory treatment in light of itsnational treatment obligations under Article 1.2 of the Agreement on Import Licensing
Procedures and Article III of GATT 1994?
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