WORLD TRADE
ORGANIZATIONG/LIC/N/3/CHN/2
9 October 2003
(03-5335)
Committee on Import Licensing Original:  English
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES1
Notification under Article 7.3 of the Agreement on Import Licensing Procedures
PEOPLE'S REPUBLIC OF CHINA
The following communication, dated 1 October 2003, has been received from the delegation
of China.
_______________
Table of contents
I. TARIFF RAT E QUOTA..........................................................................................................1
II. IMPORT QUOTA ................................................................................................................ ....5
III. IMPORT TENDERING.........................................................................................................10IV. AUTOMATIC IMPORT LI CENCE ADMINIS TRATION ...............................................12
I. TARIFF RATE QUOTA
Outline of system
1. For the purpose of administering import of major agricultural products, wool, wool tops and
certain chemical fertilizers on the principles of uniformity, fairness, justice, transparency,
predictability and non-discrimination, according to China’s accession commitment, China implements
the Tariff Rate Quota system for import of major agricultural products and chemical fertilizers.
Among these products, major agricultural products, wool, wool tops and fertilizers were subject to
administration by the former State Development Planning Commission (SDP C).  Fertilizers were
subject to administration by the former State Economic and Trade Commission (SETC).  After
reforms in government agency structures in 2003, authority responsible for the import TRQs for major
agricultural products has been changed from the SDPC to State Reform and Development
Commission (SDRC) and the Ministry of Comm erce (MOFCOM); of which, SDPC and MOFCOM
are jointly responsible for grain (rice, maize and wheat) and cotton and MOFCOM solely responsiblefor other agricultural products, wool and wool tops. Import TRQs for fertilizers now have been shifted
to the administration of MOFCOM.
See answer to question 2 for the coverage of the products concerned.
See answer to question 5 for the relevant regulations governing the TRQ system.
                                                     
1 See document G/LIC/3, Annex, for the Questionnaire.G/LIC/N/3/CHN/2
Page 2
Purposes and coverage of licensing
2. Coverage of TRQ system: products in the Catalogue of Products Subject to Tariff Rate
Quotas Administration . Catalogue of products subject to TRQ system have been notified to the
Committee on Import Licensing Procedures.
3. The system applies to goods originating in and coming from all other WTO Members.
4. The application of TRQ system serves the purpose of restricting quantity of imports.  So far
there are no alternatives to accomplish these purposes.
5.  Tentative Methods for the Administration of Import Tariff Rate Quotas for Agricultural
Products.
Implementing Rules on the Allocation of Ta riff Rate Quota for Import of Important
Agricultural Products for 2003.
Implementation Rules on the Administration of Tariff Rate Quota for Import of Wool and
Wool Tops for 2003.The Pronouncement on the Re-allocation of  the Import Tariff Quota for Important
Agricultural Products for 2003.
Total Amount of Import, Allocation Principles and Application Procedures for the Tariff Rate
Quota on Chemical Fertilizer for 2003.
All the above-mentioned rules of import licensing system are legal requirements which
cannot be abolished by any governmental authority without legal approval procedures.
Procedures
6.I. The total amount, conditions of application, principles and procedures of allocation are
provided in the regulations mentioned in the answer  to question 5, which have been published and are
available in the following publications:  China Fo reign Trade and Economic Cooperation Gazette, the
International Business (daily newspaper), China Economic Journal, Economic Daily, as well as at
MOFCOM website www.mofcom.gov.cn, the Natio nal Development and Reform Commission
website www.sdpc.gov.cn, China Economic Information website www.cei.gov.cn.
The TRQs for major agricultural products, wool and wool tops apply globally, and no
arrangement to allocate certain amount of the TRQ to a designated country.  The quotas are not
allocated to importers, but to end-users directly who import by themselves or entrust other importers
with the importation.  It is not possible to publi sh the amount allocated to goods from each country
before the allocation, as end-users' intention of importation source is not predictable.
The TRQs for chemical fertilizers apply globally, and it is not possible to publish the amount
allocated to goods from each country, since the quotas are allocated directly to the end-users.
II. The size of the quota is determined accordin g to the commitments in the Tariff Schedule CLII
of China.  Such decision is made once a year.  Allocations of quota would be valid for a period of one
calendar year.  There is no such case where the size of quota is determined on a yearly basis but
licences are issued for imports on a six-monthly or quarterly basis.
III. TRQs for major agricultural products, wool, wool tops and chemical fertilizers are not
allocated to domestic producers of like goods.  To ensure that TRQs are utilised for import, various
measures are taken, such as allocating TRQs according to the historical performance, reallocating the
unused TRQs, and punishing end-users that do not return unused TRQs in time. In the case of
products subject to import TRQs dispatching from the port of departure prior to 31 December of aG/LIC/N/3/CHN/2
Page 3
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.  After
getting consent from the importers that obtain quotas, list of quota-holders can be provided to foreign
authority or promoting agencies for export upon request.  The valid period for TRQs for chemical
fertilizers can not be extended.
IV. The time limit for submission of application for TRQ for major agricultural products, wool
and wool tops is 30 days as from the time of announcement of the opening of quotas, and 15 days for
submission of application of TRQ for chemical fertilizers.
V. The competent authorities shall process the application for the Certificate of Tariff Rate
Quota for Import of Agricultural Products in two months, one month for authorized agencies and the
other for the SDRC and MOFCOM; MOFCOM shall process the application for the Certificate of
Tariff Rate Quota for Import of Fertilizers in two months.
VI. As long as the shortest processing period is concerned, the time between the granting of
licences and the date of importation is one working day.
VII. There are different administrative bodies having the authority of granting licences for
different categories of products.  For each category of the products, licence applications are approved
by one single administrative body.  The former SDPC was responsible for the allocation of major
agricultural products, without need for certificates,  stamps or approvals from other agencies.  After
reforms in government agency structures in 2003, the administration of import TRQs for major
agricultural products has been shifted to the SR PC and MOFCOM, as mentioned above.  The former
SETC was responsible for the allocation of chemical fertilizers, without need for certificates, stamps
or approvals from other agencies, except for the proofs to justify the applicant’s lawful operation and
credibility.  After reforms in government agency structures in 2003, the administration of importTRQs for chemicals has been shifted to MOFCOM, as mentioned above.
VIII. In the event that the demand for TRQ cannot be fully satisfied, quota will be allocated to
applicants with import performance.  For those applicants without import performance, quota will be
proportionally allocated based on their processing capacity or business volume.  Maximum quantity
of TRQ allocation per applicant is set. For applicant with import performance, the quantity is made up
of the actual quantity of import and the additional quotas corresponding to the increased amount forthe year.  For new applicant, quotas to be allocated are based on the proportion of the applicant's
production capacity (or business volume) in the total production capacity (or business volume) of all
qualified applicants, multiplied by total amount of quota.  Applications are examined on receipt.
IX. All products administered by China's TRQ system are subject to the requirements of import
licensing procedure, regardless of bilateral quotas or export restraint arrangements where export
permits are issued by exporting countries.  Licences in are not issued automatically.
X. There exists no such case.
XI. Products imported for processing trade are governed by the provisions contained in the
contract for export that the processor has concluded.  As these products are imported as bonded cargo
in nature, they shall be re-exported after processing and shall not be sold in the domestic market.
7.     Not applicable.8. Only failure to meet the published criteria will cause rejection of an application for a licence.
The competent authority will inform the applicant a bout the inappropriate contents in the application
and provide opportunity for the applicant to address them.G/LIC/N/3/CHN/2
Page 4
Eligibility of importers to apply for licence
9. Under the TRQ system, any legal persons, firms and organizations registered with the
Administration of Industry and Commerce, qualified under the conditions stipulated by the relevantrules, are eligible to apply for TRQ.  This registration follows relevant rules of the State
Administration of Industry and Commerce.
Documentational and other requirements for application for licence
10. Applicants for import TRQs for agricultural products are required to submit duplicates of
their business licences, financial statements and taxation records of the last two years, record of thefirm's annual review of the previous year.  Applicants with import performance shall also submit
records of customs declarations of their imports of the previous year.  Proof of production capacity
and proof of sales turnover are also required which are applicable for manufacturers and trading
companies respectively.
    Applicants for import TRQs for chemical fertilizers are required to submit duplicates of their
business licences, financial statements and taxation records of the previous year, copy of the
document on the TRQ allocation of the previous year, records of customs declarations of their imports
of the previous year to prove import performance.
11. Regarding the actual import of major agricultural products and chemical fertilizers subject to
administration of TRQ, importers shall submit the Certificate of Tariff Rate Quota for Import of
Agricultural Products and Certificate of Tariff Rate Quota for Import of Fertilizers.
12. There are no licensing fees or charges for licence and the Certificate of Tariff Rate Quota for
Import of Agricultural Products or Certificate of  Tariff Rate Quota for Import of Fertilizers.
13. No, there is no such requirement for deposit or advance payment.Conditions of licensing
14. 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 gi ven 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.  The Certificate of Tariff Rate Quota for Import of Fertilizers
will be valid for 180 days from the date of issuance.  In the case of Chemical Fertilizer Import TRQnot being completely used, extension of the certificate can be applied to Authorized Agencies which
initially grant the certificate.
15. There is no penalty for non-utilisation or part-utilisation of a TRQ, so long as the unused
quota is returned to the competent authority by 15 September.  If an end-user that does not completelyutilise a TRQ or uses a portion of a TRQ fails to return the unused quota by 15, in the allocation next
year, the quantity will be proportionally deducted according to the proportion of unused quota.
16. No.
17. No other conditions are attached to the granting of a licence.G/LIC/N/3/CHN/2
Page 5
Other procedural requirements
18. As for TRQ products imported for processing trade, processing enterprises shall apply for
Agricultural Product Import Tariff Rate Quota Certificate with Processing Trade Permit.
For imported products covered by the catalogue of products subject to inspection and
quarantine, inspection and quarantine certificate issued by competent quality inspection department
should be provided prior to import.
19. The bank concerned will automatically provide foreign exchanges to importers.  Procedures
in this regard shall comply with the regulations concerned of the State Administration of Foreign
Exchange.
II. IMPORT QUOTA
Outline of system
1. For the purpose of maintaining national security and pubic welfare, establishing or
accelerating the development of certain industry, promoting the development of economy and foreign
trade, according to China’s accession commitment,  China implements Import Quota administration of
natural rubber, processed oil and vehicle tyres (hereafter referred as important industrial products),
and certain electronic and machinery products.  Natu ral Rubber is administered by the former SDPC,
important industrial products are subject to the administration of SETC, other product is in the chargeof the former Ministry of Foreign Trade and Economic Cooperation.  After the reform in government
structure, the administration of products subject to Import Quota are shifted to the Ministry of
Commerce.
See answer to question 2 for the coverage of the products concerned.See answer to question 5 for relevant regulations governing the TRQ system.
Purposes and coverage of licensing
2. Coverage of Import Quota system: products in the Interim measures on the administration of
import quotas of natural rubber , Implementing rules on the administration of import quotas of
important industrial products( Annex 1 to the Rules, Catalogue of tariff items subject to Import Quota
Administration) , Catalogue of machinery and electronic products subject to import restriction for
2003 (products subject to import quotas) .  Catalogue of Products subject to Import Quota have been
notified to the Committee on Import Licensing Procedures.
3. The system applies to goods originating in and coming from all other WTO Members.
4. The application of Import Quota system serves the purpose of restricting quantity of imports.
So far there are no alternatives to accomplish these purposes.
5.    Interim measures on the administration of import quotas of natural rubber
Implementation Rules on the Allocation of Tariff Rate Quota for Import of Natural Rubber for
2003.
Implementing rules on the administration of im port quotas of important industrial products
The allocation methods for import quantity of processed oil under import quota and
application procedures in the year 2003
The allocation methods for import quantity of automobile tyres under import quota and
application procedures in the year 2003G/LIC/N/3/CHN/2
Page 6
Implementation rules on the administration of import quotas of machinery and electronic
products
Catalogue of machinery and electronic products subject to import restriction in 2003
Catalogue of machinery and electronic products cancelled from import restriction in 2003
Circular of the Ministry of Foreign Trade and Economic Cooperation of the People'sRepublic of China No. 36, 2002
All the above-mentioned rules of import licensing system are legal requirements which
cannot be abolished by any governmental authority without legal approval procedures.
Procedures
6.I. The total amount, conditions of application, principles and procedures of quota allocation are
provided in the regulations mentioned in the answer  to question 5, which have been published and are
available in the following publications:  China Fo reign Trade and Economic Cooperation Gazette, the
International Business (daily newspaper), China Economic Journal, Economic Daily, as well as at
MOFCOM website www.mofcom.gov.cn, China Economic Information website www.cei.gov.cn.
The quotas for natural rubber, important industrial products apply globally, and there is no
arrangement to allocate certain amount of the quota to a designated country.  The maximum amount
allocated to each importer is treated as confidential business information and thus is not disclosed.
No maximum quantity of quota of machinery and electronic products for each applicant is set.
The quantity allocated to each importer and list of importers who have been granted quotas is treated
as confidential business information and thus is not published.
II. The quantity of the quota is determined accord ing to the commitments in the Tariff Schedule
CLII of China.  Such decision is made once a year.  Allocations of quota would be valid for a period
of one calendar year.
III. The import entity is legally entitled to choose the country or region from where import is
made, and the State Administration for Import & Export Trade of Mechanical & Electronic Products
of China (SAIETMEP) does not allocate the quota products according to where they origin or come
from, but solely make the allocation according to the composition chosen by the applicant on their
commercial consideration.  As for the applicants qualified for the legal criteria and procedure, those
with actual realized performance (the quota is utilized sufficiently or commercial contract has been
signed to adequately use the quota) and prominent capacity of manufacturing, sales, repairing, and
servicing in China which matches with their applied quantity will be given priority in quota
allocation; as for applicant without import performance, the allocation is made on consideration of thecapacity to manufacture, sale, and provide service.  Unused quotas should be returned in statutory
timeframe if they can’t be utilised in the valid period.  The quantity of quota allocated to each entity
and list of entities who have been granted quotas is treated as confidential business information and
thus is not published.
IV. The time limit for submission of application for import quota for natural rubber is 30 days as
from the time of announcement of the opening of quotas;  for important industrial products, the time
limit is 15 days;  for machinery and electronic products, the time limit is 30 days.
V. The competent authorities shall process the application for the quota for natural rubber in one
month;  for important industrial products and machinery and electronic products, the time needed is
two months.G/LIC/N/3/CHN/2
Page 7
VI. As long as the shortest processing period is concerned, the time between the granting of
licences and the date of importation is one working day.
VII. There are different administrative bodies having the authority of granting licences for
different categories of products.  For each category of the products, licence applications are approvedby one single administrative body.  The former SDPC was responsible for the allocation of natural
rubber;  the former SETC was responsible for the allocation of important industrial products;  the
former MOFTEC was responsible for the allocati on of machinery and electronic products.  After
reforms in government agency structures in 2003, authority responsible for the quotas for natural
rubber, important industrial products, machinery and electronic products has been shifted to the
control of MOFCOM.
VIII. In the event that the demand for quotas fo r natural rubber, important industrial products
cannot be fully satisfied, quota will be allocated to applicants with import performance.  For those
applicants without import performance, quota will be proportionally allocated based on their
processing capacity.  Maximum quantity of quota allocation per applicant is set.  For applicant with
import performance, the quantity is made up of the actual quantity of import and the additional quotasof margin of which corresponds to that of the increased amount for this year.  For new applicant,
quotas to be allocated are based on the proportion of the applicant's production capacity in the total
production capacity of all qualified applicants, multiplied by total amount of quota.  Applications are
examined on receipt.
As for criteria for allocation of import quota for machinery and electronic products, see
answer to question 6.III.  Owing to no legitimate requirement, the SAIETMEP does not apply the
principle of “first come, first served”.  No arrang ement is made in advance for the allocation of quota,
and the allocation is based on the total application.  No maximum quantity each quota applicant can
apply is set.  The usual procedure of quota allocation is to receive the application and make theexamination, then allocate according to the operation performance and capacity, and finally issue the
quota.  No certificate, stamp or approval from other agencies is need.
IX. All natural rubber, important industrial products administered under quota system are subject
to the requirements of import licensing procedure, regardless of bilateral quotas or export restraint
arrangements where export permits are issued by exporting countries.  Licences in are not issued
automatically.
For import of machinery and electronic products administered by China's quota system,
Certificate of Import Quota of Machinery and Electronic Products are required to obtain from the
SAIETMEP, with which to apply for Licence of Import Quota, regardless of bilateral quotas or export
restraint arrangements where export permits are issued by exporting countries.  Certificate of ImportQuota of Machinery and Electronic Products is not issued automatically, but Licence of Import Quota
is issued automatically, unless the applicant does not apply for.
X. There exists no such case.
XI. As for quotas granted for processing trade, since these products are imported as bonded cargo
in nature, they shall be re-exported after processing and shall not be sold in the domestic market.
As for machinery and electronic products subject to import quota that enjoy the treatment of
tariff exemption or unrestricted import and at the same time fall into the category of import restriction,if the products must enter the territory of the People’s Republic of China, import quota application is
to be filed with the SAIETMEP;  if the entry in to the territory of China is not essential, such
procedure will not apply.G/LIC/N/3/CHN/2
Page 8
7. Not applicable.
8. As for natural rubber, only failure to meet the published criteria will cause rejection of an
application for a licence.
As for machinery and electronic products subject to quota, if the application is not in
conformity with the normal criteria and is thus rejected, the competent authority will provide
explanation, but the applicant can not require the co mpetent authority to receive the application, or to
issue quota.  As for the minor errors which do not constitute substantial defect and thus do not
conform to the normal criteria, the competent authority will inform the applicant about the
inappropriate contents in the application and provide opportunity for the applicant to address them.
Eligibility of importers to apply for licence
9. As for natural rubber and import industrial products, under the quota system, any legal
persons, firms and organizations registered with the Administration of Industry and Commerce,
qualified under the conditions stipulated by the rele vant rules, are eligible to apply for licences.  This
registration follows relevant rules of the State Administration of Industry and Commerce.
As for machinery and electronic products, under the present legislation, no individual can
apply for the import of such products, and there is no system, qualification and list of importers
related to the import registration for individuals.  Any legal person or organization registered at theadministrative competent authority, if qualified for the requirement in provisions of related laws,
regulation and administrative measures, can submit application to the SAIETMEP for quota to import
machinery and electronic products subject to import restriction.  The criteria, procedure and fees
related to registration in the provisions set by the competent authority shall be followed.  Consultation
on the list of importers approved or registered can be made to the competent authority.
Documentational and other requirements for application for licence
10. Applicants for quota for natural rubber are required to submit duplicates of their business
licences, financial statements and taxation records of  the last two years, record of the firm's annual
review of the previous year.  Applicants with import performance shall also submit records of
customs declarations of their imports of the previous year.
Applicants for quota for important industrial products are required to submit duplicates of
their business licences, financial statements and taxation records of the previous year.  Applicants
with import performance shall also submit records of customs declarations of their imports of the
previous year.  Applicants for quotas for processed oil are required to provided proof on capacity tosafely store oil.
Applicants for quotas for machinery and elec tronic products shall provide the following
information:  statement of not having been involved in, within a period of three years prior to
applying for import quotas, unlawful behaviours;  duplicates of their business licences otherdocuments on registration and right to operate the business in relevant products;  financial statements
and taxation records of the previous year, proof on the capacities for production, sale, maintenance,
service and supply of parts which fit the amount of the quotas they applied for; and records of
customs declarations of their imports of the previous year.
11. Regarding the actual import of major natural rubber, importers shall submit the import licence
and the certificate of import quota for natural rubbers;  importers of important industrial products shall
submit the import licence obtained with the certificate of import quota for important industrial
products.G/LIC/N/3/CHN/2
Page 9
Regarding machinery and electronic products subject to import quota licensing, importers
shall apply for the licence of import quota by presenting the certificate of import quota of machinery
and electronic products.  This licence shall enable them to proceed with customs-clearing procedures.
Customs authorities will collect the certificate of import quota of machinery and electronic productsfor its record.
12. There are no licensing fees or charges for licence and the Certificate for Quota for Natural
Rubber or Certificate for Quota for Important Industrial Products.
Applicants approved do not need to pay other fees than that charged on the Certificate of
Import Quota of Machinery and Electronic Products itself, which costs RMB 10 yuan, and that oflicence of import quota, for which RMB 20 yuan is needed.
13. No, there is no such requirement for deposit or advance payment.Conditions of licensing
14. The Certificate of Import Quotas for Natural Rubber will be valid from issuance to
31 December of the year.  The licence of import quota obtained with the Certificate of import quotas
for important industrial products is valid for the year being, if import cannot be made by
31 December, the valid period can be extended to 31 March next.
Importers shall apply for the licence of import quota after the issuance of Certificate of Import
Quota of Machinery and Electronic Products on any working day of the same year with the Ministry
of Commerce (Administrative Bureau for Quotas and Licences), or the Certificate will be invalid.
The licence of import quota is issued at the quantity provided in the Certificate of Import Quota ofMachinery and Electronic Products.  The issuance is finished in three days after the application
normally, and will not exceed ten working days.  The licence of import with all information on import
quota of machinery and electronic products is valid for one year, with the extension no longer than
three months for once.  Extension application before 15 December will be approved, extension
application during 16 December to 31 December will be approved if contract is signed but products
have not arrived for certain reason, and the valid period of licence of import quota without signed
contract can’t be extended.
15. There is no penalty for non-utilisation or part-utilisation of a quota for natural rubber.
No penalty will be imposed to importers for non-utilisation or part-utilisation of a quota for
important industrial products, so long as the unused quota is returned to the competent authority by1 September.  If an end-user that does not completely utilise a TRQ or uses a portion of a TRQ fails to
return the unused quota by 1 September, in the allocation next year, the quantity will be deducted
from their import quotas for the next year in proportion to their unused import quota.
No penalty will be imposed to importers for non-utilisation or part-utilisation of a quota for
machinery and electronic products, so long as the unused quota is returned to the competent authority
by 1 September.  If an end-user that does not completely utilise a TRQ or uses a portion of a TRQ
fails to return the unused quota by 1 September, in the allocation next year, the quantity will be
deducted from their import quotas for the next year in proportion to their unused import quota.
16. No.
17. No other conditions are attached to the granting of a licence.G/LIC/N/3/CHN/2
Page 10
Other procedural requirements
18. No other administrative procedures, apart from import licensing and like administrative
procedures, are required prior to importation.
19. The bank concerned will automatically provide foreign exchanges to importers.  Procedures
in this regard shall comply with the regulations of the State Administration of Foreign Exchange of
China.
III. IMPORT TENDERING
Outline of system
1. For the purpose of maintaining national security and pubic welfare, establishing or
accelerating the development of certain industry, promoting the development of economy and foreign
trade, according to China’s accession commitmen t, China implements Import Tendering system to
administrate the import of specific machinery and electronic products.  The import of specific
machinery and electronic products (hereafter referred as specific products) was administered by theformer Ministry of Foreign Trade and Economic Cooperation.  After the reform in government
structure, the administration of import of specific products is shifted to the Ministry of Commerce.
See answer to question 2 for the coverage of the products concerned.
See answer to question 5 for relevant regulations of the TRQ system.
Purposes and coverage of licensing
2. Coverage of Import Tendering system: products in the Catalogue of machinery and electronic
products subject to Import Restriction for 2003 (products subject to special tendering).
3. The system applies to goods originating in and coming from all other WTO Members.4. See the purpose of import tendering system in answer to question 1.  The Import tendering
system does not place restriction on the quantity and value of imports. So far there are no alternatives
to accomplish these purposes.
5.   Measures on administration of import of machinery and electronic products
Implementation rules on the administration of import of specific machinery and electronic
products
Catalogue of machinery and electronic products subject to import restriction in 2003Catalogue of machinery and electronic products cancelled from import restriction in 2003
All the above-mentioned rules of import licensing system are legal requirements which
cannot be abolished by any governmental authority without legal approval procedures.
Procedures
6.  Not applicable.
7.I. The licence is issued soon (within 30 days) after the tendering procedure is finished.G/LIC/N/3/CHN/2
Page 11
II. The licence is issued, to the extent administra tively feasible, within a maximum of ten working
days, which is in strict conformity with th e provisions in the Agreement on Import Licensing
Procedures.
III. No.IV. The import of specific products is solely administered by one administrative agency, no proof,
registration or approval from other agencies is needed.  It was administered by the former Ministry of
Foreign Trade and Economic Cooperation.  After the reform in government structure, the
administration of import of specific products is shifted to the Ministry of Commerce.
8. As for machinery and electronic products subject to import tendering, if the application is not
in conformity with the normal criteria and is thus rejected, the competent authority will provide
explanation, but the applicant cannot require the competent authority to receive the application, or to
issue quota.  As for the minor errors which do not constitute substantial defect and thus do not
conform to the normal criteria, the competent authority will inform the applicant about the
inappropriate contents in the application and provide opportunity for the applicant to address them.
Eligibility of importers to apply for licence
9. As for specific products, the present legislation does not allow any individual to import. So
individual is not allowed to apply for quota for machinery and electronic products, and neither there issystem, qualification and list of importers related to the import registration for individuals.  Any legal
person or organization registered at the administrative competent authority, if qualified for the
requirement in provisions of related laws, regulation and administrative measures, can submit
application to the SAIETMEP for quota to import machinery and electronic products subject to import
restriction.  The criteria, procedure and fees related to registration in the provisions set by thecompetent authority shall be followed. Consultation on the list of importers approved or registered can
be made to the competent authority.
Documentational and other requirements for application for licence
10. Applicants for licences for import of specific products shall provide the following information:
statement of not having been involved in, within a period of three years prior to applying for importquotas, unlawful behaviours;  duplicates of their business licences other documents on registration
and right to operate the business in relevant products;  financial statements and taxation records of the
previous year, proof on the capacities for production, sale, maintenance, service and supply of parts
which fit the specific products they applied for.
11. In the actual import of specific products subject to licensing system, importers shall go
through customs-clearing procedures with the licence for import of machinery and electronic
products.
12. Applicants approved do not need to pay other fees than that charged on the licence for import
of machinery and electronic products itself, which costs RMB 10 yuan.
13. No, there is no such requirement for deposit or advance payment.G/LIC/N/3/CHN/2
Page 12
Conditions of licensing
14. The valid period for Import Licences for Machinery and Electronic Products is one year, and
one extension can be applied for with the Authoriz ed Agencies which initially granted the licence in
the valid period.
15. There is no penalty for non-utilisation of Import Licences for Machinery and Electronic
Products.
16. In line with the provisions of relevant laws a nd regulations, import entities cannot transfer any
certificate concerning the administration of specific products.
17. No other conditions are attached to the granting of a licence.
Other procedural requirements
18. Importers of specific products subject to import tendering should entrust the international
tenders with the international tendering, and apply for Import Licences for Machinery and Electronic
Products with the notices of result of the aforemen tioned international tender(s) issued by competent
authorities concerned.
19. The bank concerned will automatically provide foreign exchanges to importers.  Procedures
in this regard shall comply with the regulations concerned of the State Administration of Foreign
Exchange of the P.R.C.
IV. AUTOMATIC IMPORT LICENCE ADMINISTRATION
Outline of system
1. In accordance with the Foreign Trade Law of the People’s Republic of China and the
Regulation on the Administration of Import and Export of Goods of the People's Republic of China,
and with reference to the relevant requirement set forth in the Agreement on Import LicensingProcedures, China made the Administrative Rule s on Import Licensing of Goods.  The purpose of
implementation of automatic import licence is to monitor the goods import.
See answer to question 2 for the coverage of the products concerned.
See answer to question 5 for relevant regulations of the TRQ system.
Purposes and coverage of licensing
2. Products covered by automatic import licensing:  Products in the Catalogue of Goods under
Automatic Import Licence Administration (three batches).  (Notification was already made to WTO,
document No. G/ LIC/N/1/CHN/1) .
3. The system applies to goods originating in and coming from all other WTO Members.4. See the purpose of special tendering system in answer to question 1.  The system of automatic
import licence administration does not impose any restriction on import quantity or import value.Currently, the automatic import licensing serves the most appropriate measure.
5. Measures on the administration of automatic import licensing of goodsG/LIC/N/3/CHN/2
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Implementation Rules on Auto matic Import Licence Administration on Important Industry
Products;
Implementation rules on administration of au tomatic import licensing of machinery and
electronic products;
Interim Measures for the Administration of Import under State Trading for Crude Oil,
Processed Oil and Chemical Fertilizer
Catalogue of Goods Subject to Automatic Import Licence Administration in 2003
All the above-mentioned rules of import licensing system are legal requirements which
cannot be abolished by any governmental authority without legal approval procedures.
Procedures
6.  Not applicable.
7.I.   Article 8 of Administrative Rules on Automa tic Import Licensing of Goods states that upon
receipt of the applications for licence with co rrect contents and complete form, the competent
authority shall, to the extent administratively feasible, approve and issue the automatic import licenceimmediately, and in exceptional cases within ten working days.
As for machinery and electronic products subject to automatic import licence, Article 6.2 of
Implementation rules on administration of automatic import licensing of machinery and electronic
products states that local competent authority or Administrative Office for Import & Export Trade of
Mechanical & Electronic Products of the relevant ministries shall issue the licence, to the extent
administratively feasible, within a maximum of ten working days on receipt of the application.
II.   Yes.
As for machinery and electronic products, see answer to question 7.1.
III.  Article 13 of the Administrative Rules on Automatic Import Licensing of Goods states that
the period of validity of automatic import licence certificate is six months within the year of issuance.
The purpose is to accurately calculate the number of licences issued and actual import of the year.
As for machinery and electronic products, there is no limit in application period.
IV.   Currently, the Ministry of Commerce is solely responsible for the applications for automatic
import licence.  The applicants may apply to the local department (local authority issuing licence
authorized by the Ministry of Commerce).
8.    Article 12 of Administrative Rules on Automa tic Import Licensing of Goods states that with
regard to goods subject to automatic import licensing of which the import has been temporarily
prohibited or restricted in quantity by the government, any issuance of automatic import licences shall
be ceased as from the effective date of the temporary measures.  The above measure shall be
announced 30 days in advance to ensure such information is available to the applicant.
As for machinery and electronic products, if the application is not in conformity with the
normal criteria and is thus rejected, the competent authority will provide explanation, but the
applicant can’t require the competent authority to receive the application, or to issue quota.  As for the
minor errors which do not constitute substantial defect and thus do not conform to the normal criteria,
the competent authority will inform the applicant a bout the inappropriate contents in the application
and provide opportunity for the applicant to address them.G/LIC/N/3/CHN/2
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Eligibility of importers to apply for licence
9.  Any enterprises with qualification to import are allowed to apply for automatic import
licence.  However, goods subject to designated trading or state trading shall be imported through thedesignated enterprises and state trading enterprises.  The list of such importers is published in the
China Foreign Economic and Trade Gazette.
As for machinery and electronic products, under the present legislation, no individual can
apply for the import of such products, and there is no system, qualification and list of importers
related to the import registration for individuals.  Any legal person or organization registered at the
administrative competent authority, if qualified for the requirement in provisions of related laws,regulation and administrative measures, can submit application to the SAIETMEP for licence to
import machinery and electronic products subject to automatic import licensing.  The criteria,
procedure and fees related to registration in the provisions set by the competent authority shall be
followed.  Consultation on the list of importers approved or registered can be made to the competent
authority.
Documentational and other requirements for application for licence
10.  Article 7 of Administrative Rules on Import Licensing of Goods specifies that importers
applying for automatic import licensing should submit following materials:  applications forautomatic import licensing, import contract, statutory document indicating business scope approved
by competent authorities and other materials required by MOFCOM.  In the case of entrusted import,
entrusted import contract between trustor and importer; in the case of goods of which the use is
specially stipulated, evidentiary materials demonstrating the use of the goods or compliance with state
regulations of end-users.
Following information should be submitted while applying for import of machinery and
electronic products subject to automatic import licence: duplicate of business licence or other
registration documents and statutory documents verifying approved business scope;  other statutory
documents.  And importers should fill out Application for Import of Electromechanical Products
while applying for importing above products.
11.  For machinery and electronic products subject to automatic import licensing, Automatic
Import Licence is needed to go through the customs clearing procedures.
12.   No charges will be collected for the issuance of Automatic Import Licence.
 
Applicants approved do not need to pay other fees than that charged on the automatic import
licence for machinery and electronic products itself, which costs RMB 10 yuan.
13.  No deposit or advance payment are is required for the issuance of automatic import licences.
Licensing requirements
14. Article 13 of Administration Rules of the Peop le’s Republic of China on Import Licensing of
Goods prescribes that the period of validity of automatic import licences is six months.  Automatic
import licences may be extended or renewed upon presentation of the original licence.
The period of validity of automatic import licence for machinery and electronic products is
one year, and such period can be extended once upon application to the authority issuing the licence.G/LIC/N/3/CHN/2
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15. Administrative penalties will not be imposed on importers that have not used
Electromechanical Product automatic import licence.
16.  According to relevant laws and regulations of China, importers may not transfer among
themselves any import certificates concerning machinery and electronic products importadministration.
17.  No other requirements are stipulated for issuance of the licence.Other procedural requirements
18.  None.19. Duplicate of second copy of automatic import licence is “receipt for foreign currency
payment by bank”.  Banks will go through the procedures for sale and payment of foreign exchange
upon presentation of automatic import licence.
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