WT/DS517/1  
G/L/1171  
 
21 December 2016  
(16-7001) Page: 1/2 
  Original: English  
 
 CHINA – TARIFF RATE QUOTAS FOR CERT AIN AGRICULTURAL PRO DUCTS  
REQUEST FOR CONSULTA TIONS BY THE UNITED STATES  
The following communication, dated 15 December 2016 , from the delegation of the United States  
to the delegation of China  and to the Chairperson of t he Dispute Settlement Body, is circulated in 
accordance with Article  4.4 of the DSU.  
 
_______________  
 
 
My authorities have instructed me to request consultations with the Government of the 
People 's Republic of China ( "China ") pursuant to Articles 1 and 4 of the  Understanding on Rules 
and Procedures Governing the Settlement of Disputes  ("DSU") and Article XXII of the General 
Agreement on Tariffs and Trade 1994 ("GATT 1994 ") with respect to China 's administration of its 
tariff-rate quotas (TRQs), including t hose for wheat, short - and medium - grain rice, long grain rice, 
and corn.  
China 's Schedule CLII,  Part I, Section I –B provides for TRQs to permit the importation of 
specified volumes of wheat, short - and medium - grain rice, long grain rice, and corn at low er in-
quota duty rates.  However, China appears to administer TRQs for wheat, short - and medium - 
grain rice, long grain rice, and corn  inconsistently with its WTO obligations.  In particular, China 's 
administration of its TRQs appears to be inconsistent wi th its commitments specified in paragraph 
1.2 of Part I of the Protocol on the Accession of the People 's Republic of China  (WT/L/432)  
("Accession Protocol ") which incorporates the commitments in paragraph 116 of the Report of the 
Working Party on the Acces sion of China  (WT/MIN(01)/3) ( "Working Party Report "), as well as with 
Articles X:3(a), XI:1, and XIII:3(b) of the GATT 1994.  
 
 The legal instruments through which China has established its TRQs for wheat, short - and 
medium - grain rice, long grain rice, a nd corn, include, but are not limited to, the following, 
operating separately or collectively:  
 
 Customs Law of the People 's Republic of China (adopted at the 19th Meeting of the 
Standing Committee of the Sixth National People 's Congress on 22 January  198 7, 
amended  28 December 2013, in Order No. 8)  
 Regulation of the People 's Republic of China on the Administration of the Import and 
Export of Goods (Order of the State Council No. 332, adopted at the 46th executive 
meeting of the State Council on 31 October  2001, effective 1 January 2002)  
 Regulation of the People 's Republic of China on Import and Export Duties  (State Council, 
Order No. 392, adopted at the 26th executive meeting of the State Council on  
29 October  2003, amended 6 February 2016, in Order No. 6 66) 
 Foreign Trade Law of the People 's Republic of China (adopted at the 8th Session of the 
Standing Committee of the Tenth National People's Congress on 6 April 2004, effective 
1 July 2004)  
 
as well as any amendments, or successor, replacement, or impleme nting measures.  
 
 The legal instruments through which China administers its TRQs for wheat, short - and 
medium - grain rice, long grain rice, and corn, include, but are not limited to, the following, 
operating separately or collectively:  
 WT/DS517/1 • G/L/1171  
 
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   Provisional Measure s on the Administration of Import Tariff -Rate Quotas  for Agricultural 
Products  (Ministry of Commerce and National Development and Reform Commission 
2003 Order No. 4 , issued 27 September  2003) 
 Application Criteria and Allocation Principles for Import Tarif f-Rate Quotas for Grains in 
2017 (National Development and Reform Commission 2016 Public Notice No. 23, issued 
10 October 2016)  
 Announcement of Applicant Enterprise Data for Import Tariff -Rate Quotas for Grains in 
2017 (National Development and Reform Comm ission, issued 1 December 2016)  
 Application Criteria and Allocation Principles for Import Tariff -Rate Quotas for Grains in 
2016 (National Development and Reform Commission 2015 Public Notice No. 22, issued 
29 September 2015)  
 Announcement of Applicant Enter prise Data for Import Tariff -Rate Quotas for Grains in  
2016 (National Development and Reform Commission, issued 4 December 2015)  
 Public Notice  on the Reallocation of Import Tariff -Rate Quotas for Agricultural Products in 
2016 (National Development and Refo rm Commission and Ministry of Commerce 2016 
Public Notice No. 19, issued 17 August 2016)  
 Communist Party of China Central Committee and State Council Several Opinions on 
Fulfilling the New Concept of Development to Accelerate Agricultural Modernization and  
Implementing Targets for Comprehensive Prosperity  (Communist Party of China Central 
Committee, State Council, Zhong Fa [2016] No.1, issued 31 December 2015)  
as well as any amendments, or successor, replacement, or implementing measures . 
 
China 's administr ation of its TRQs for wheat, short - and medium - grain rice, long grain 
rice, and corn  appears to be inconsistent with China 's obligations pursuant to paragraph 1.2 of 
Part I of the Accession Protocol, which incorporates the commitments in paragraph 116 of the 
Working Party Report,1 because:  
 
 China has failed to ensure that it administers its TRQs on a transparent bas is; 
 China has failed to ensure that it administers its TRQs on a predictable basis;  
 China has failed to ensure that it administers its TRQs on  a fair basis;  
 China has failed to ensure that it administers its TRQs using clearly specified  
administrative procedures and requirements; and  
 China has failed to ensure that it administers its TRQs using administrative procedures 
and requirements that w ould not inhibit the filling of each TRQ.  
 
China 's administration of its TRQs for wheat, short - and medium - grain rice, long grain 
rice, and corn  appears to be inconsistent with Article X:3(a) of the GATT 1994, because China has 
failed to administer its T RQs in a reasonable manner.   
 
China 's administration of its TRQs for wheat, short - and medium - grain rice, long grain 
rice, and corn  appears to be inconsistent with  Article XI:1 of the GATT 1994, because China 
institutes or maintains prohibitions or restr ictions on its importation of each product other than 
duties, taxes, or other charges.   
 
China 's administration of its TRQs for wheat, short - and medium - grain rice, long grain 
rice, and corn  appears to be inconsistent with Article XIII:3(b) of the GATT 1 994, because China 
has failed to provide public notice of quantities permitted to be imported under each TRQ and 
changes to quantities permitted to be imported under each TRQ.  
  
 We look forward to receiving your reply to the present request and to schedul ing a 
mutually convenient date for consultations.  
 
__________  
                                                
1 As specified in China 's Accession Protocol, Part I, paragraph 1.2 (incorporating commitments 
referenced in paragraph 342 of China 's Working Party Report, including paragraph 116).