WORLD TRADE
ORGANIZATIONTN/TE/W/28
30 April 2003
(03-2306)
Committee on Trade and Environment
Special SessionOriginal:  English
PARAGRAPH 31(I) OF THE DOHA DECLARATION – SPECIFIC TRADE OBLIGATIONS
SET OUT IN MULTILATERAL ENVIRONMENTAL AGREEMENTS –
IMPLEMENTATION OF CITES IN HONG KONG, CHINA
Submission by Hong Kong, China
Paragraph 31 (i)
I. INTRODUCTION
1. Hong Kong, China proposed at the Special Session of the Committee on Trade and
Environment (CTESS) in February 2003 that Members might start examining a few multilateralenvironmental agreements (MEAs) sequentially to identify concrete examples of specific trade
obligations (STOs) therein.
1  To follow up on our suggestion, Hong Kong, China has attempted to
examine relevant provisions in the Convention on In ternational Trade in Endangered Species of Wild
Fauna and Flora (CITES) in the light of our implementation experience.  Without prejudice to our
position in the negotiations, we would like to share our observations with Members.  In accordancewith the scope set out in paragraph 31(i) of the D oha Declaration, the ensuing discussions are limited
to trade between Parties to CITES.
II. TRADE OBLIGATIONS IN CITES
2. As an international treaty to protect wildlife against over-exploitation and to prevent
international trade from threatening species with extinction, CITES has been in existence since 1973
with a wide membership.  The Convention was extend ed to Hong Kong back in 1976.  To discharge
fully the obligations under the Convention, a comprehensive regime regulating import, export orpossession of endangered species is implemented by virtue of the Animals and Plants (Protection of
Endangered Species) Ordinance.  Details of our implementation experience are set out in the Annex.
3. In comparison with other MEAs, the trade-related provisions of CITES are relatively simple
and straightforward.  They aim at regulating trade of endangered species of wild fauna and flora
through the granting of import/export permits and certificates under specified conditions.Specifically, Articles III, IV and V of CITES stipulate the conditions for granting the required
permits/certificates.  Article VI of CITES further provides for the way of granting and handling these
permits/certificates.  These Articles specify expl icitly trade measures Parties shall follow for the
protection of endangered species.  Supplementing these provisions, Article XIV of CITES allows
Parties to take stricter domestic measures for, among others, the trade of endangered species.  Ithowever imposes no specific and clear obligation among Parties for action, and allows freedom in the
choice of measures to be taken.
4. While implementation of the trade-related provisions of CITES such as Articles III, IV, V
and VI are relatively straightforward because of their specificity, it is not so for those in Article XIV
                                                     
1 TN/TE/W/24, "Statement by Hong Kong, China at the meeting of the Special Session of the
Committee on Trade and Environment of 12-13 February 2003", Paragraph 31(i), 20 February 2003.TN/TE/W/28
Page 2
because of their non-obligatory and open nature.  In the case of Hong Kong, China, in order to ensure
an appropriate level of protection for the endangered species concerned, we have introduced some
requirements not specifically envisaged under Articles III, IV and V of CITES, but allowable under
Article XIV.  For example, Article IV of CITES only requires prior presentation of either an export
permit or a re-export certificate for the trade of endangered species listed under Appendix II ofCITES, and an import permit is not required.  For the purpose of strengthening import control, the
requirement for an import permit is instituted in Hong Kong, China.  It should be noted that the
additional requirement for an import permit for CITES Appendix II species is not uncommon among
OECD countries.  However, this does not mean that these stricter domestic measures constitute trade
obligations specifically stipulated under CITES.  The concern remains that non-specific trade
measures leave much room for Parties to implement the types of measures they consider necessary,
whether or not considerations like WTO consistency, effectiveness of control and trade facilitationhave been taken into account.  In this respect, Hong Kong, China has been conscious of striking a
balance between control and trade facilitation.  We have recently conducted a comprehensive review
of the stricter domestic measures.  Actions are being taken to streamline the existing control with a
view to further facilitating legal trade.
5. Having examined our implementation of CITES, Hong Kong, China is convinced that an STO
in an MEA should include at least the following el ements: (a) it must be obligatory in nature; (b) it
must specify explicitly the actions which Parties shall take to fulfill the relevant obligations in the
MEA; and (c) it must be a trade measure that affects the free flow of goods.  On (c), we note that the
primary focus of the current discussion on WTO/MEA relationship is to consider the need for and
possible ways of accommodating trade measures taken pursuant to MEAs under relevant WTOdisciplines.  Therefore, we also believe that the trade measure concerned must be hindering the free
flow of goods, contrary to the principles and disciplines in relevant GATT/WTO provisions.  In light
of the foregoing, our preliminary view is that Articles II, III, IV, V and VI of CITES contain STOs,
with the exception of paragraphs 1, 2 and 3 under Article II and paragraph 7 both under Articles IV
and VI.  The need for accommodating these Articles under relevant WTO disciplines is, however, anissue subject to further consideration.
III. THE WAY FORWARD
6. The CTESS has hitherto conducted useful exchanges of views on a host of issues on
paragraph 31(i) of the Doha Declaration.  The time has come for Members to start a pragmatic and
concrete review of a few MEAs and the STOs therein.  A few Members have started working in this
direction in their submissions.  Hong Kong, China would like to contribute to the process by sharing
its implementation experience of CITES.  The exercise demonstrates the possible complications inidentifying and recognizing STOs in MEAs.  This echoes the need to examine each MEA in detail to
look at possible problem areas.  It also shows that it is futile to continue to dwell on debates on
definitional issues.  Hong Kong, China does not believe it is easy to generalize a set of common
criteria for defining STOs from the MEAs.  Nor do we think it is feasible to find a "one-size-fits-all"
solution.  A possible way forward is to screen trade obligations in different MEAs with a view toconsidering whether they are deemed as STOs, and if so, whether some tailor-made solutions are
required.  A detailed examination of the trade-related provisions in a few MEAs represents the first
concrete step towards that direction.  Hong Kong, China firmly believes that through sharing of actual
experience, Members should have a better understanding of STOs across different MEAs.  We hope
that the exercise could help move forward the di scussions on the relationship between WTO rules and
STOs in MEAs.
_______________TN/TE/W/28
Page 3
ANNEX
IMPLEMENTATION OF THE CONVENTION ON INTERNATIONAL TRADE
IN ENDANGERED SPECIES OF WILD FAUNA AND FLORA (CITES)
IN HONG KONG, CHINA
CITES Trade-Related Provisions2Implementation in Hong Kong, China
Article II
/g159 CITES regulates trade in endangered species by
defining conditions under which import and exportpermits may be issued.  The conditions are
differentiated according to a classification system
based on three appendices of protected species.Article II
/g159 The Animals and Plants (Protection of
Endangered Species) Ordinance (the Ordinance)and the Exemption Order made under Section 18
of the Ordinance
3 give effect to CITES by
regulating import, export or possession ofendangered species.
/g159 All trade in endangered species listed under the
Schedules to the Ordinance must meet CITES'requirements. Commercial import, export and
possession of all highly endangered species are
prohibited. Trade in other endangered species issubject to licensing controls .
/g159 The Agriculture, Fisheries and Conservation
Department (AFCD) of the Government ofHong Kong Special Administrative Region
(HKSARG) is the Management Authority and the
Endangered Species Advisory Committeeestablished under the Ordinance is the ScientificAuthority in implementing CITES.
Observation
/g159 Since Article II.4 of CITES specifically
prohibits trade in endangered species in thethree appendices with the exception of cases
where certain conditions are met, it is a specifictrade obligation to be observed by all CITES
Parties.
Article III
/g159 Appendix I includes all species threatened with
extinction which are, or may be, affected by trade.Trade in these species is subject to particularlystrict regulation through both import and exportArticles III, IV and V
/g159 The Schedules to the Ordinance listed all
endangered species listed in CITES AppendicesI, II and III.  Under the Ordinance, no personshall import, export (including re-export) or
                                                     
2 These summary provisions on trade-related measures in the CITES are based on the “Matrix on Trade
Measures Pursuant to Selected Multilateral Environmental Agreements” (WT/CTE/W/160/Rev.1) prepared bythe WTO Secretariat.  They are listed for illustration on ly and trade-related amendments to the CITES after
June 2001 may not be reflected in the table.  For details of CITES provisions and its amendments, please refer to
http://www.cites.org/eng/disc/text.shtml .
3 For details of the Ordinance and the Exemption Order, please refer to
http://www.justice.gov.hk/Home.htm .TN/TE/W/28
Page 4
CITES Trade-Related Provisions2Implementation in Hong Kong, China
permits and re-export certificate which may be
issued only in exceptional circumstances.
/g159 Trade in Appendix I species must meet two
criteria: (a) trade must not be primarily
commercial in nature; and (b) it must not bedetrimental to the species.
/g159 While the species listed in Appendix I are
prohibited for trade for commercial purposes, there
are limited exceptions to th is (details are provided
in Article VII).  The test for exceptions is: whethertrade will be detrimental to the survival of thespecies. Export and import permits are required forsuch exceptions.
Article IV
/g159 Species in Appendix II may become threatened
with extinction unless their trade and the trade inspecies that resemble them is subject to strictregulation.  Trade in Appendix II species isregulated by the issue of export permits which aresubject to both a finding of non-detriment and
legal acquisition.  Under Appendix II, the granting
of import permits is not a condition for import(except for some countries with stricter measuresunder Article XIV).
Article V
/g159 Appendix III covers species identified by an
individual Party as being subject to regulationwithin its jurisdiction and for which it requests thecooperation of other Parties in the control of trade.possess a scheduled species except under and in
accordance with a licence issued by AFCD.Certain exemptions are provided for in
accordance with CITES provisions, such as that
on personal and household effects.
/g159 No licence will be issued unless it is satisfied that
the current CITES provisions are met, includingthose set under the Articles, Resolutions,
Decisions and Notifications.  In practice, no
licence will be issued for commercial import orexport (including re-export) of CITESAppendix I species, except under very specialcircumstances meeting the requirements ofCITES.  For trade in CITES Appendices II
and III species, the specimens must be from
CITES-approved sources.  All import shipmentsmust be accompanied by a CITES export or re-export document issued by the ManagementAuthority of the exporting country.
/g159 The import of CITES Appendix I species and
Appendix II species (except those manufactured
products made from and artificially propagatedplants) require an import licence.  CITESAppendix III species are exempted from suchimport licence requirement under the
Exemption Order.
/g159 The licence requirements for the import of
CITES Appendix II species and the possession ofCITES Appendices I and II species are stricterdomestic measures as allowed for under CITESArticle XIV.
/g159 Both requirements are set for the purpose of
strengthening import control. The former allowsthe authority to examine the export permit (acopy of which is required to be submittedtogether with the licence application as asupporting document) before an import licence is
issued.  In case of doubt, enquiries could be
made to the CITES Secretariat or relevantManagement Authority of the exporting country.Similarly, the latter provides an additionalenforcement means to back up import control incase any illegal item is slipped through the
control.
/g159 To streamline our existing control and to
facilitate legal trade, the Ordinance has recentlybeen reviewed and actions are being taken toremove most of the stricter domestic measures,
including the requirements of a licence for the
import of CITES Appendix II species (other thanlive animals and plants of wild origin) and thepossession of all CITES Appendix II speciesTN/TE/W/28
Page 5
CITES Trade-Related Provisions2Implementation in Hong Kong, China
(other than live animals and plants of wild origin
for commercial purposes).
Observation
/g159 Articles III, IV and V of CITES clearly lay
down the conditions under whichimport/export permits or certificate shall begranted, and hence, trade in the endangered
species concerned shall be  a l l o w e d .   T h e y  a r e
specific trade obligations  with the exception of
perhaps Article IV .7 which is not specific insetting out the procedure for the granting of acertificate for the intro duction from the sea of
CITES Appendix II species.  It is noted that the
stricter domestic measures allowed for under
Article XIV of CITES form part of the regimein regulating the tr ade of the endangered
species concerned.  These stricter domesticmeasures are, however, not specific tradeobligations per se .  Please see Article XIV of
CITES for details.
Article VI
/g159 Regulates the granting of permits and certificates
under Articles III, IV and V, including informationto be contained in a permit, the validity period of a
permit, and the distribution of a permit.Article VI
/g159 The licensing procedures of AFCD fully
complied with the requirements under Article VIof CITES.  For details of the application for
import/export/possession licence for CITES
species, please refer tohttp://www.afcd.gov.hk/conservation/eng/a_licen
ce.htm .
Observation
/g159 Since Article VI of CITES specifies in detail
the way of granting and handling permits and
certificates, they are sp ecific trade obligations
which CITES Parties shall implement, exceptfor Article VI.7 of CITES, which does notoblige Parties to fix a mark on specimen tofacilitate identification.
Article VII
/g159 Lists the Exemptions and Other Special Provisions
Relating to Trade.  This Article provides all theexceptions to the prohibitions of trade inendangered species listed in the three appendices.Article VII
/g159 For endangered species or products in transit, they
must be accompanied by a document issued by theCITES Management Authority of the exportingcountry.  During its stay in Hong Kong, the itemis subject to control by an officer of AFCD so
authorized.
/g159 Commercial trade in pre-Convention specimens
of CITES Appendix I would be allowed in linewith Article VII of CITES.
/g159 As with Article VII of CITES, exemptions applied
with stricter domestic measures, as allowed forTN/TE/W/28
Page 6
CITES Trade-Related Provisions2Implementation in Hong Kong, China
under Article XIV of CITES, include:
− The exemptions concerning personal and
household effects are only limited to
manufactured products and artificiallypropagated plants.  They do not coverspecimens which were acquired by a personoutside his country of usual residence and arebeing imported into that country, including that
is listed in CITES Appendix II.
− On exemptions related to trade in captive-bred
animals or artificially propagated plants, animport licence is required for specimens ofcaptive-bred animals (other than manufacturedproducts).
− Exemptions provided for herbarium and
museum specimens do not cover live plantmaterial.
− Movement (import and re-export) of
specimens of travelling zoo or exhibition
requires a licence.
/g159 Apart from travelling zoo or exhibition, all stricter
domestic measures mentioned under Article VIIof CITES will be removed after legislativeamendment.  The current stricter measure ontravelling zoo or exhibition is not to be removed
because they involve animal health and welfare
issues and are subject to permit requirement underthe Public Health (Animals and Birds) Ordinance.
/g159 In consideration of exemptions, both the
conditions listed under Article VII of CITES andthe Exemption Order will be taken into account.
The conditions are applied equally to all
applications. Anyone could obtain the exemptionsprovided for under the Exemption Order if therequired conditions are met.
Observation
/g159 The exemptions under Article VII of CITES
are specifically set for implementation byParties, unless Article XIV of CITES isinvoked.   There is, however, no need toconsider whether this Article constitutesspecific trade obligation since the requirements
therein do not lead to restrictions in
international trade.TN/TE/W/28
Page 7
CITES Trade-Related Provisions2Implementation in Hong Kong, China
Article VIII
/g159 Parties shall take appropriate measures to enforce
the provisions of the present Convention and to
prohibit trade in specimens in violation of the
Convention.Article VIII
/g159 Any person contravening the Ordinance will be
prosecuted and may be subject to a maximum fine
of HK$5 million, imprisonment for 2 years and
mandatory forfeiture of the specimens uponconviction.
Observation
/g159 Some provisions under Article VIII of CITES
impose certain requirements on Parties.  For
example, Article VIII.1 of CITES obligesCITES Parties to take appropriate measures toenforce the Convention .  Yet, it has not
specified the measures to be taken and istherefore not a speci fic trade obligation.
Similarly, Article VIII.3 of CITES is neither
definite in requiring Parties to allow specimensto pass through formalities with a minimumdelay, nor specific in requiring Parties toensure that all living specimens are properlycared for during transit, holding or shipment.
It is again not a specific trade obligation.   In
fact, there is no need to consider whether the
requirement for proper care is a specific tradeobligation since it does not constituterestrictions to in ternational trade.
Article XIV
/g159 Parties are allowed to take stricter domestic
measures. Appendix II does not require an importpermit but many OECD countries have instituted asystem of import permits for trade in certainspecies and in some instances, with species listed
in Appendix III.Article  XIV
/g159 Stricter domestic measures implemented have
been mentioned as above.  Most of them will beremoved after legal amendments.  The currentrequirement of a possession licence for CITESAppendix I species will however continue in order
to maintain a higher degree of protection to such
species.
Observation
/g159 Since CITES Parties ar e not obliged to take
stricter domestic measures and that an
individual Party is free to determine stricter
domestic measures to be taken, Article XIV ofCITES is not a specific trade obligation.
__________