G/LIC/Q/CHN/27  
 
5 April 2018 
(18-2077) Page: 1/3 
Committee on Import Licensing  Original: English  
 
IMPORT LICENSING SYS TEM OF CHINA  
QUESTIONS FROM THE E UROPEAN UNION TO CHINA   
 
The following communication, dated 27 March 2018 , is being circulated at the request of the 
delegation of the European Union.  
 
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The EU thanks China for its annual notification circulated as document G/LIC/N/3/CHN/15. 
However, the EU regrets that it refers to the year 2016 and that China has not yet submitted its 
annual notification for the year 2017. The EU would strongly encourage China to comply with its 
notification's requirements.  
 
In the lack of any updated notifications the EU would like to ask China the following clarifications 
referring to the information contained in document G/LIC/N/3/CHN/15:  
 
Non-automatic licences : 
 
According to point 4, second par agraph of the notification, it seems that only two products are 
subject to import licences: (i) ozone depleting and (ii) key used mechanical and electronic 
products (catalogue for commodities subject to import licences in 2016).  
 
EU question No 1 : Could C hina clarify whether this understanding is correct?  
 
The EU is aware that additional products are subject to import licences, i.e. those in the Catalogue 
of restricted solid waste published in July 2017 (32 products), [cf Notice of the general office of th e 
State Council on the printing and distribution of the implementation plan for prohibiting the entry 
of foreign garbage and promoting the reform of solid waste import management system General 
Office of the State Council, July 18 2017 ]. While China could allege that these products are not 
covered in this notification as it refers to the year 2016, the EU is aware that those products were 
already subjects to import licences in the previous year.  
 
EU question No 2 : Could China provide a complete list of prod ucts subject to non -automatic import 
licences? Could China also amend the notification accordingly?  
 
Automatic licences  
 
The EU appreciated Table 1 of the notification, containing the products subject to tariff rate 
quotas.  
However, according to the rules of the Import Licensing Agreement, China should submit the tariff 
codes of all products subject to automatic import licensing and submit precise information in this 
respect.  
 
EU question No 3 : Could China submit the full lis t of products subject to automatic licensing 
procedures as required by Art. 5 of the Import Licensing Agreement?  
 
According to the information available to the EU, it seems that the list of products subject to 
automatic licences is very long and covers pro ducts from the whole HS universe, from agriculture/ G/LIC/Q/CHN/27  
 
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  food/tobacco to fertilisers, different types of machineries and consumer electronics, some toys, 
cars and car parts and other transport means.  
 
EU question No 4 : Could China explain the rationale for req uesting automatic licence for products 
such as artificial filament tow (5502), machineries for the production of pulp (8439) telephones 
(8517), monitors for TVs (8528), video games (9504), printing machines (8443), etc.?  
 
According to point 4 of the notifi cation, the purpose of these automatic licences is to monitoring 
the import and doing trade statistics.  
  
EU question No 5 : Could China describe the peculiarities of these products justifying the 
monitoring? Has China considered any different way for havin g trade statistics on these products?  
 
The EU does not have a translation of the catalogue  for commodities subject to automatic import 
licences  in 2016, but it seems that it does not contain the solid waste products. In any event, the 
EU is aware that the  importation of a list of solid waste products is subject to automatic licences 
according to the catalogue  of non -restricted solid waste of July 2017 (which existed already 
before).  
 
EU question No 6 : Could China clarify why this notification does not con tain the procedures 
applicable to waste products? Is China going to amend it?  
 
In addition, it seems that poultry has also been recently subject to automatic import licences.  
 
EU question No 7 : Could China clarify what is the import procedures regime appl icable to poultry? 
Has been any changes in these last years, meaning since 2016?  
 
In point 5 of the notification, China refers to the following pieces of legislation: Measures for the 
administration of the import of electromechanical products  (2008) and Implementing measures for 
the automatic import licensing of electromechanical products  (2008).  
 
EU question No 8 : Could China clarify why electromechanical products need a specific legislation 
imposing the use of automatic licences? Why these products are treated differently comparing to 
the rest of the products subject to automatic licences?  
 
Procedures  
 
According to the template to be used for the notification:  
 
-  under point 7.a, Members are requested to clarify how far in advance of importation must 
application for a licence be made and whether a licence can be obtained within a shorter 
time-limit or for goods arriving at the port without a licence.  
 
-  under point 7.b, Members are requested to clarify whether a licence can be granted 
immediately on r equest.  
 
China's reply given under point 7 (a) and (b) seem to refer exactly to the same type of licences: 
automatic import licensing.  
 
EU question No 9 : Could China clarify whether it should be understood that the first paragraph 
refers to automatic licen ces and the second one to non -automatic licences?  
 
Point 8 mentions that in the event the State decides to take interim prohibitive measures against 
or to impose interim import quantity restrictions or commodities subject to automatic import 
licensing , issuance of automatic import licences will be ceased from the effective date of interim 
measures . 
 
EU question No 10 : Does this mean that the issuance shall cease from the entry into application  of 
the prohibitive measures?  
 G/LIC/Q/CHN/27  
 
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  EU question No 11 : Could China e xplain which the situation is in relation with non-automatic 
licences ? Shall they be ceased to be issued also in the date of application of the prohibitive 
measures?  
 
EU question No 12 :  Could China explain what happens with the validity period of both types of 
import licences? i.e. if automatic and non -automatic licences issued the day before of the entry 
into application of the prohibitive measures shall have still a validity of six mon ths or one year, 
respectively,  and the importation of the products covered by the licence will be still possible?  
 
The notification does not contain any information about the granting authorities for the automatic 
and non -automatic licences, while there i s for the import tariff rates quota licences. According to 
Article 5.2 of the Import Licensing Agreement, the notification should also contain the information 
on the administrative body(ies) for submission of applications (art. 5.2.c).  
  
EU question No 13 : Could China submit this information?  
 
Procedures applicable for the importation of waste and waste as raw material  
 
Reference is made to the discussion held at the previous meeting of the Committee on Import 
Licensing held on 10 October 2017 where the EU  and other Members raised questions on the 
procedures applicable to the importation of waste and waste as raw material. The EU notes that 
China has not submitted any notification of the new procedures applicable to these products and 
therefore would like t o ask the following:  
 
EU question No 1 4:  The EU would like to know when China will submit the 2017 notification of its 
import licensing procedures, considering that the deadline was 30 September 2017.  
 
EU question No 1 5: The EU would like to know whether China will submit its due notification(s) 
according to Article 5 of the Import Licensing agreement with reference to the new procedures 
recently entered into force (for details see question No 15).  
 
EU question No 1 6: In the lack of the notification, the E U would like to ask China detailed 
information on:  
 
(i) The products subject from 1.1.2018 to a ban that were subject to import restrictions 
under import licences since the end of 2017.  
 
(ii) Changes on the list of products subject from 1.1.2018 to non -automatic im port licences 
(restricted solid waste) and automatic import licences (non -restricted solid waste).  
 
(iii) Changes on the conditions for the issuance of import licences, .i.e. import licences not 
issued any longer to traders but only to processors in China.  
 
 
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