WORLD TRADE  
ORGANIZATION   
WT/DS432/6 
29 June 2012 
 (12-3465) 
 Original:   English 
  
 
CHINA - MEASURES RELATED TO THE EXPORTATION OF  
RARE EARTHS, TUNGSTEN AND MOLYBDENUM 
 
Request for the Establishment of a Panel by the European Union 
 
 
 The following communication, dated 27 June 2012, from the delegation of the 
European Union to the Chairperson of the Dis pute Settlement Body, is circulated pursuant to 
Article 6.2 of the DSU.  
_______________ 
 
  On 13 March 2012, the European Union requested  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 restrictions on the 
exportation from China of va rious forms of rare earths
1, tungsten2 and molybdenum3.  The European 
Union held consultations with China on 25 and 26 April 2012.  Those consultations unfortunately did 
not resolve the dispute. 
I. EXPORT DUTIES 
China subjects various forms of rare earths4, tungsten5 and molybdenum6 to export duties. 
These materials are not listed in Annex 6 of the Pr otocol on the Accession of the People's Republic of 
China  (WT/L/432) ("Accession Protocol") .  
                                                      
1 Forms of rare earths include, but are not limited to, items falling under the eight-digit Chinese 
Customs Commodity Codes identified in the Announcement No. 27 Issuing the 2012 Tariff Implementation 
Program (State Council Customs Tariff Commission, shuiweihui, No. 27, issued 9 December 2011, effective 1 
January 2012) (hereinafter, the 2012 Tariff Implementation Program)  as listed in Annex 1 Section A. Forms of 
rare earths also include but are not limited to items falling under the 10-digit Chinese Customs Commodity 
Codes identified in the Notice on Issuing the "2012 Export Licensing Management Commodities List", Ministry 
of Commerce and General Administration of Customs Notice No. 98 (30 December 2011) (hereinafter the 2012 
Export Licensing Management Commodities List) as listed in Annex 1 Section B. 
2 Forms of tungsten include, but are not limited to, items falling under the eight-digit Chinese Customs 
Commodity Codes identified in the 2012 Tariff Implementation Program as listed in Annex 2 Section A. Forms 
of tungsten also include, but are not limited to, items falling under the 10-digit Chinese Customs Commodity 
Codes identified in the 2012 Export Licensing Management Commodities List  as listed in Annex 2 Section B. 
3 Forms of molybdenum include, but are not limited to, items falling under the eight-digit Chinese 
Customs Commodity Codes identified in the 2012 Tariff Implementation Program  as listed in Annex 3 Section 
A. Forms of molybdenum also include, but are not limited to, items falling under the 10-digit Chinese Customs Commodity Codes identified in the 2012 Export Licensing Management Commodities List as listed in Annex 3 
Section B . 
4 As listed in Annex 1 Section A.   
5 As listed in Annex 2 Section A. 
6 As listed in Annex 3 Section A. WT/DS432/6 
Page 2  
 
  The European Union understands that these Chin ese measures are reflected in the following:  
 
 Customs Law of the People's Republic of China (adopted at the 19
th Meeting of the 
Standing Committee of the Sixth National People's Congress on 22 January 1987, 
amended 8 July 2000) 
 Regulations of the People's Republic of China on Import and Export Duties  (Order of the 
State Council No. 392, adopted at the 26th executive meeting of the State Council on 
29 October 2003, effective 1 January 2004)  
 Announcement No. 27 Issuing the "2 012 Tariff Implementation Program" , (State Council 
Customs Tariff Commission, shuiweihui, No. 27, issued 9 December 2011, effective 
1 January 2012) 
 Announcement No. 79 Regarding the " 2012 Tariff Implementation Program" (General 
Administration of Customs, No.79, issued 22 December 2011, effective 1 January 2012)   
 as well as any annexes or schedules thereto,  amendments, supplements, or extensions; 
replacement measures; renewal meas ures; and implementing measures. 
The European Union considers that these meas ures are inconsistent with Paragraph 11.3 of 
Part I of the Accession Protocol because these m easures constitute taxes and charges applied to 
exports. 
 
II. EXPORT QUOTAS  
China subjects the exportation of various forms of rare earths7, tungsten8 and molybdenum9 to 
quantitative restrictions such as quotas.    
The European Union understands that these Ch inese measures are reflected in the following:
  
 Foreign Trade Law of the People's Republic of China  (adopted as amended at the 8
th 
Session of the Standing Committee of the Tenth National People's Congress on 6 April 2004, effective 1 July 2004)  
 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 forty-sixth executive 
meeting of the State Council on 31 October  2001, effective 1 January  2002)    
 Measures for the Administration of Export Commodities Quotas  (Order of the Ministry of 
Foreign Trade and Economic C ooperation No. 12, issued on 20 December 2001, effective 
1 January 2002) 
 Measures for the Administration of the Organs for Issuing the Licenses of Import and 
Export Commodities (Ministry of Foreign Trade and Economic Cooperation, 
waijingmaopeiguanhanzi, No. 68, 21 Se ptember 1999, amended 12 September 2010)  
 Measures for the Administration of Licensing for the Export of Goods  (Order of the 
Ministry of Commerce No. 11, adopted 7 May 2008, effective 1 July 2008) 
                                                      
7 As listed in Annex 1 Section B. 
8 As listed in Annex 2 Section B. 
9 As listed in Annex 3 Section B.  WT/DS432/6 
 Page 3 
 
 
   Working Rules on Issuing Export Licenses (Ministry of Commerce, shangpeifa No. 398, 9 
October 2008) 
 Rules on the Administration of Import and Export License Certificates (Ministry of 
Commerce, shangwubuling, No. 1, issued 4 February 2012, effective 5 March 2012) 
 Notice on Issuing the "2012 Export Licensing Management Commodities List ," (Ministry 
of Commerce and General Administration of Customs Notice No. 98, 30 December 2011)   
 Announcement Issuing the "2012 Graded Licen se-Issuing List of Commodities Subject to 
Export License Administration," (Ministry of Commerce No. 103, 31 December 2011, 
effective 1 January 2012) 
 2012 Notice on the Total Export Quota Quantity for Agricultural and Industrial Products 
in 2012 (Ministry of Commerce No. 71, issued 31 October 2011, effective 1 January 
2012) 
 Notice Publishing the List of Enterprise Appl ying for the Export Quota for Rare Earths 
and Coke in 2012 (Ministry of Commerce, 14 December 2011) 
 Notice Publishing the List of the State Trading Export Enterprises of Tungsten, Antimony 
and Silver, the Enterprises Exporting and Supplying Tungsten and Antimony, and the 
Enterprises of Applying for the Export Quot as for Indium and Molybdenum in 2012 , 
(Ministry of Commerce, 14 December 2011) 
 2012 Notice on List of Rare Earth Export Enterprises and First-batch Rare Earth Export 
Quota (Ministry of Commerce, shangmaohan, No. 1133, 26 December 2011)  
 2012 Notice on List of Export (Supply) Enterprises and First-batch Export Quota of 
Tungsten, Antimony and Other Nonferrous Metals  (Ministry of Commerce, shangmaohan, 
No. 1131, 26 December 2011)  
 Announcement on 2012 Applica tion Conditions and Procedu res for Qualification for 
Rare Earth Export Quota (Ministry of Commerce, No. 77, 11 November 2011) 
 Announcement Regarding the Qualification Standards of State Owned Tungsten, 
Antimony and Silver Trade and Enterprises, Tungsten and Antimony  Export and Supply 
Enterprises and Declaration Procedures in 2012 (Ministry of Commerce, No. 80, 
11 November 2011) 
 Announcement on Applicati on Conditions and Procedures for 2012 Indium, Molybdenum 
and Tin Export Quotas  (Ministry of Commerce No. 79, 11 November 2011)   
 Notice on the Supplement to the 2012 First Batch of Rare Earth Export Quota (Ministry 
of Commerce No. 618, 16 May 2012) 
 as well as any annexes or schedules thereto,  amendments, supplements, or extensions; 
replacement measures; renewal meas ures; and implementing measures. 
 The European Union considers that these measure s are inconsistent with Article XI:1 of the 
GATT 1994 and China's obligations under the provisions  of Paragraph 1.2 of Part I of the Accession 
Protocol, which incorporates commitments in Pa ragraphs 162 and 165 of the Working Party Report WT/DS432/6 
Page 4  
 
  on the Accession of China (WT/MIN(01)/3) ("Work ing Party Report"), because these measures 
constitute export restrictions other th an duties, taxes or other charges. 
 
III. EXPORT QUOTA ADMINISTRATION AND ALLOCATION 
With respect to the administration and the a llocation, including through export licensing, of 
the export quotas on various forms of rare earths
10, tungsten11 and molybdenum:12  
 1)  China imposes restrictions on the trading ri ghts of enterprises seeking to export various forms 
of rare earths and molybdenum, such as prior export performance and minimum registered capital 
requirements.  
 
The European Union understands that these Chin ese measures are reflected in the following: 
 
 Foreign Trade Law of the People's Republic of China (adopted as amended at the 8
th 
Session of the Standing Committee of the Tenth National People's Congress on 6 April 2004, effective 1 July 2004)   
 
 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 forty-sixth 
executive meeting of the State Council on 31 October 2001, effective 1 January  2002) 
 
 Measures for the Administration of Export Commodities Quotas  (Order of the Ministry 
of Foreign Trade and Economic Cooperation No. 12, issued on 20 December 2001, 
effective 1 January 2002) 
 Measures for the Administration of Licensing for the Export of Goods  (Order of the 
Ministry of Commerce No. 11, adopted 7 May 2008, effective 1 July 2008) 
 Measures for the Administration of the Or gans for Issuing the Licenses of Import and 
Export Commodities (Ministry of Foreign Trad e and Economic Cooperation, 
waijingmaopeiguanhanzi, No. 68, 21 Sept ember 1999, amended 12 September 2010) 
 Working Rules on Issuing Export Licenses  (Ministry of Commerce, shangpeifa No. 398, 
9 October 2008) 
 Rules on the Administration of Import and Export License Certificates (Ministry of 
Commerce, shangwubuling, No. 1, issued 4 February 2012, effective 5 March 2012 
 Notice on Issuing the "2012 Export Licensing Management Commodities List ," (Ministry 
of Commerce and General Administration of Customs Notice No. 98, 
30 December 2011)   
 Announcement Issuing the "2012 Graded License-Issuing List of Commodities Subject to 
Export License Administration ," (Ministry of Commerce, No. 103, 31 December 2011, 
effective 1 January  2012)  
                                                      
10 As listed in Annex 1 Section B. 
11 As listed in Annex 2 Section B. 
12 As listed in Annex 3 Section B.  WT/DS432/6 
 Page 5 
 
 
   2012 Notice on the Total Export Quota Quantity for Agricultural and Industrial Products 
in 2012 (Ministry of Commerce No. 71, issued 31 October 2011, effective 
1 January 2012)  
 Notice Publishing the List of Enterprise Applying for the Export Quota for Rare Earths 
and Coke in 2012 (Ministry of Commerce, 14 December 2011)  
 Notice Publishing the List of the State Tradi ng Export Enterprises of Tungsten, Antimony 
and Silver, the Enterprises Exporting and Sup plying Tungsten and Antimony, and the 
Enterprises of Applying for the Export Quotas for Indium and Molybdenum in 2012 , 
(Ministry of Commerce, 14 December 2011) 
 2012 Notice on List of Rare Earth Export Enterprises and First-batch Rare Earth Export 
Quota (Ministry of Commerce, shangmaohan, No. 1133, 26 December 2011)  
 2012 Notice on List of Export (Supply) Enterprises and First-batch Export Quota of 
Tungsten, Antimony and Other Nonferrous Metals  (Ministry of Commerce, 
shangmaohan, No. 1131, 26 December 2011)  
 Announcement on 2012 Applica tion Conditions and Procedu res for Qualification for 
Rare Earth Export Quota (Ministry of Commerce, No. 77, 11 November 2011)  
 Announcement on Applicati on Conditions and Procedures for 2012 Indium, Molybdenum 
and Tin Export Quotas  (Ministry of Commerce No. 79, 11 November 2011)  
 Notice on the Supplement to the 2012 First Batch of Rare Earth Export Quota (Ministry 
of Commerce No. 618, 16 May 2012) 
 as well as any annexes or schedules thereto,  amendments, supplements, or extensions; 
replacement measures; renewal meas ures; and implementing measures.  
The European Union considers that these measures are inconsistent with Paragraph 5.1 of Part I of the 
Accession Protocol, as well as China's obligations under the provisions of paragraph 1.2 of Part I of 
the Accession Protocol, which incorporates commitmen ts in paragraphs 83 a nd 84 of the Working 
Party Report, because these measures limit the right to trade.  2) China administers these export quotas on va rious forms of rare earths, tungsten and 
molybdenum in a manner that is not uniform, impartial, or reasonable, such as by the use of criteria in 
the application and allocation process that lack definition or do not contain sufficient guidelines or 
standards in how they should be applied.    The European Union understands that the export quotas are administered through the following: 
 
 Foreign Trade Law of the People's Republic of China (adopted as amended at the 8
th 
Session of the Standing Committee of the Tenth National People's Congress on 6 April 2004, effective 1 July 2004)   
 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 forty-sixth 
executive meeting of the State Council on 31 October 2001, effective 1 January 2002)    WT/DS432/6 
Page 6  
 
   Measures for the Administration of Export Commodities Quotas  (Order of the Ministry 
of Foreign Trade and Economic Cooperation No. 12, issued on 20 December 2001, effective 1 January 2002)  
 Measures for the Administration of Licensing for the Export of Goods  (Order of the 
Ministry of Commerce No. 11, adopted 7 May 2008, effective 1 July 2008) 
 Measures for the Administration of the Or gans for Issuing the Licenses of Import and 
Export Commodities (Ministry of Foreign Trad e and Economic Cooperation, 
waijingmaopeiguanhanzi, No. 68, 21 Sept ember 1999, amended 12 September 2010) 
 Working Rules on Issuing Export Licenses  (Ministry of Commerce, shangpeifa No. 398, 
9 October 2008) 
 Rules on the Administration of Import and Export License Certificates (Ministry of 
Commerce, shangwubuling, No. 1, issued 4 February  2012, effective 5 March 2012) 
 Notice on Issuing the "2012 Export Licensing Management Commodities List ," Ministry 
of Commerce and General Administration of Customs Notice No. 98, 30 
December 2011)   
 Announcement Issuing the "2012 Graded License-Issuing List of Commodities Subject to 
Export License Administration ," (Ministry of Commerce No. 103, 31 December 2012) 
 2012 Notice on the Total Export Quota Quantity for Agricultural and Industrial Products 
in 2012 (Ministry of Commerce No. 71, issued 31 October 2011, effective 1 January 
2012)  
 Notice Publishing the List of Enterprise Applying for the Export Quota for Rare Earths 
and Coke in 2012 (Ministry of Commerce, 14 December 2011)  
 Notice Publishing the List of the State Tradi ng Export Enterprises of Tungsten, Antimony 
and Silver, the Enterprises Exporting and Sup plying Tungsten and Antimony, and the 
Enterprises of Applying for the Export Quotas for Indium and Molybdenum in 2012 , 
(Ministry of Commerce, 14 December 2011) 
 2012 Notice on List of Rare Earth Export Enterprises and First-batch Rare Earth Export 
Quota (Ministry of Commerce, shangmaohan, No. 1133, 26 December 2011)  
 2012 Notice on List of Export (Supply) Enterprises and First-batch Export Quota of 
Tungsten, Antimony and Other Nonferrous Metals  (Ministry of Commerce, 
shangmaohan, No. 1131, 26 December 2011)  
 Announcement on 2012 Applica tion Conditions and Procedu res for Qualification for 
Rare Earth Export Quota (Ministry of Commerce, No. 77, 11 November 2011) 
 
 Announcement Regarding the Qualificati on Standards of State Owned Tungsten, 
Antimony and Silver Trade and Enterprises, Tungsten and Antimony Export and Supply 
Enterprises and Declaration Procedures in 2012 (Ministry of Commerce, No. 80, 
11 November 2011) 
  WT/DS432/6 
 Page 7 
 
 
   Announcement on Applicati on Conditions and Procedures for 2012 Indium, Molybdenum 
and Tin Export Quotas  (Ministry of Commerce No. 79, 11 November 2011)  
 Notice on the Supplement to the 2012 First Batch of Rare Earth Export Quota (Ministry 
of Commerce No. 618, 16 May 2012) 
 as well as any annexes or schedules thereto,  amendments, supplements, or extensions; 
replacement measures; renewal meas ures; and implementing measures.  
The European Union considers that China's administration of the export quotas is inconsistent 
with Article X:3(a) of the GATT 1994 and Paragra ph 2(A)(2) of Part I of the Accession Protocol 
because it is done in a manner that is not uniform, impartial, or reasonable. 
 
* * * * * * 
 Accordingly, the European Union respectfully re quests that, pursuant to Article 6 of the DSU, 
the Dispute Settlement Body establish a panel to ex amine this matter, with the standard terms of 
reference as set out in Article 7.1 of the DSU. 
   
_______________ 
 
  WT/DS432/6 
Page 8  
 
  Annex 1 
Rare earths 
Section A  
(List of Chinese Customs Commodity Codes iden tified in the 2012 Tariff Implementation 
Program13) 
 
25309020 26122000 28053011 28053012 
28053013 
28053014 28053015 28053016 28053017 
28053019 
28053021 28053029 28461010 28461020 28461030 28461090 
28469011 28469012 28469013 
28469014 
28469015 28469016 28469017 28469019 
28469021 
28469022 28469023 28469024 28469025 28469026 28469028 
28469029 28469031 28469032 
28469033 
28469034 28469035 28469036 28469039 
28469041 
28469042 28469043 28469044 28469045 28469046 28469048 
28469049 28469091 28469092 
28469093 
28469094 28469095 28469096 28469099 
72029911 
72029919 72029991 72029999 
 
Section B  
(List of Chinese Customs Commodity Codes id entified in the 2012 Export Licensing 
Management Commodities list14) 
 
2530902010 
2530902090 2612200000 2805301100 2805301200 2805301300 
2805301400 
2805301510 2805301590 2805301600 2805301700 
2805301913 
2805301914 2805301915 2805301990 2805302110 2805302190 
2805302910 
2805302990 2846101000 
2846102000 2846103000 2846109010 2846109090 2846901100 
2846901200 
2846901300 2846901400 2846901500 2846901600 
2846901700 
2846901920 2846901930 2846901940 2846901970 2846901980 
2846901991 
2846901992 2846901999 
2846902100 2846902200 2846902300 2846902400 2846902500 
2846902600 
2846902810 2846902890 2846902900 2846903100 
2846903200 
2846903300 2846903400 2846903500 2846903600 2846903900 
2846904100 
2846904200 2846904300 
2846904400 2846904500 2846904600 2846904810 2846904890 
2846904900 
2846909100 2846909200 2846909300 2846909400 
2846909500 
2846909600 2846909910 2846909990 7202999110 7202999191 
7202999199 
                                                      
13 Announcement No. 27 Issuing the 2012 Tariff Implementation Program (State Council Customs 
Tariff Commission, shuiweihui , No. 27, issued 9 December 20 11, effective 1 January 2012). 
14 Notice on Issuing the "2012 Export Licensing Management Commodities List ", Ministry of 
Commerce and General Administration of Customs Notice No. 98 (30 December 2011).  WT/DS432/6 
 Page 9 
 
 
  Annex 2 
 
Tungsten 
 
 Section A  
(List of Chinese Customs Commodity Codes iden tified in the 2012 Tariff Implementation 
Program15) 
 
 
26209910 
28259011 28259012 28259019 28418010 
28418020 28418030 28418040 28418090 
28499020 72028010 72028020 81011000 
81019400 81019700 
 
 
 
Section B  
(List of Chinese Customs Commodity Codes id entified in the 2012 Export Licensing 
Management Commodities list16) 
 
 
2611000000 2620991000 2825901100 2825901200 2825901910 
2841801000 2841802000 2841803000 2841804000 
2849902000 8101100010 8101100090 8101940000 
8101970000 
 
   
                                                      
15 Announcement No. 27 Issuing the 2012 Tariff Implementation Program (State Council Customs 
Tariff Commission, shuiweihui , No. 27, issued 9 December 20 11, effective 1 January 2012). 
16 Notice on Issuing the "2012 Export Licensing Management Commodities List ", Ministry of 
Commerce and General Administration of Customs Notice No. 98 (30 December 2011). WT/DS432/6 
Page 10  
 
  Annex 3 
 
Molybdenum 
 
 Section A  
(List of Chinese Customs Commodity Codes iden tified in the 2012 Tariff Implementation 
Program17) 
 
 
26131000 
26139000 28257000 28417010 
28417090 72027000 81021000 
81029400 81029700  
 
 
 
Section B  
(List of Chinese Customs Commodity Codes id entified in the 2012 Export Licensing 
Management Commodities list18) 
 
 
2613100000 
2613900000 2825700000  2841701000 
2841709000 7202700000  8102100000 
8102940000 8102970000   
 
 
 
 
__________  
                                                      
17 Announcement No. 27 Issuing the 2012 Tariff Implementation Program (State Council Customs 
Tariff Commission, shuiweihui , No. 27, issued 9 December 20 11, effective 1 January 2012). 
18 Notice on Issuing the "2012 Export Licensing Management Commodities List ", Ministry of 
Commerce and General Administration of Customs Notice No. 98 (30 December 2011).