. /.   WORLD TRADE  
ORGANIZATION  G/LIC/Q/CHN/23 
17 October 2008 
 
 (08-5003) 
Committee on Import Licensing Original:   English 
  
 
CHINA'S TRANSITIONAL REVIEW MECHANISM 
 
Questions to CHINA from the UNITED STATES
  
in the context of the Transitional Review Mechanism under  
Paragraph 18 of the Protocol of Accession  
of the People's Republic of China  
 
 
 The following communication, dated 16 October 2008, is being circulated at the request of the delegation of the United States. 
 
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Cotton Registration Scheme 
1. On 5 August 2008, China’s General Administratio n of Quality Supervision, Inspection and 
Quarantine (AQSIQ) issued Notice No. 87-2008, wh ich announced the creation of a new requirement 
that foreign exporters of cotton obtain a registra tion certificate from AQSIQ before engaging in the 
export of cotton to China, or face preshipment inspection requirements.  This notice established a 
starting date for the acceptance of registration a pplications by foreign exporters of cotton of 
15 September 2008 and set a deadline of 15 March 20 09, by which time consignees must provide the 
registration certificate of a foreign exporter of cotton at the port of entry of for a cotton shipment.   
 (a) Please explain the trade objective of this measure. 
 (b) Will applications received after 15 Marc h 2009, whether from existing shippers or 
new shippers, be treated differently from t hose received before that date?  If so, 
please explain.  
 (c) Can China provide a more detailed descr iption of how an exporter qualifies or does 
not qualify for certification? 
 (d) If an exporter does not qualify, will AQSIQ  provide notice of the relevant deficiency 
and provide ample opportunity to rectify it? 
2. AQSIQ Notice No. 87-2008 also imposes an obliga tion in Article II for consignees to include 
a preshipment inspection clause in the contract or purchase agreement for importation of cotton from 
non-registered foreign suppliers.  
 (a) Is specific language required to be included  in the pre-shipment inspection clause?  If 
so, please provide those details. 
 (b) In addition to the pre-shipment insp ection clause, are there any other terms or 
conditions that must be included in the contract or purchase agreement when G/LIC/Q/CHN/23 
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  importers use a non-registered foreign supplier?  For example, are there specific 
standards for cotton quality that must be referenced?  If so, please explain. 
 (c) What are the AQSIQ-designated inspecti on organizations?  What are the procedures 
for an organization to be AQSIQ-designated?  Is the U.S. Department of Agriculture’s Agricultural Marketing Serv ice (AMS) eligible for designation as an 
approved inspection organization?  
 (d) How will AQSIQ handle shipments of cotton from a foreign exporter that has not 
obtained a cotton registration certificate a nd has not included in a contract or 
purchase agreement a pre-shipment inspection clause as required in Article II? 
3. Article III of AQSIQ Notice No. 87-2008 describes a quality credit appraisal system for 
implementation by AQSIQ.  Can China provide more information about this system and its relevant 
provisions?   
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