. /.   WORLD TRADE  
ORGANIZATION  G/MA/W/90 
21 September 2007 
 (07-3953) 
Committee on Market Access Original:   English 
  
 
CHINA'S TRANSITIONAL REVIEW MECHANISM  
 
Communication from Japan
 
  
 The following communication, dated 18 September 2007, is being circulated at the request of 
the Delegation of Japan.  
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 Tariff rates on photographic products
 
 
(a) In the schedules of tariff concessions provided by  China when it joined the WTO, there is a 
commitment to reduce tariffs on photographic product s (HS 37) to 0-53.5% ad valorem duties as of 
2002. However, for 37 items which are about half  of the whole photographic products (including 
ordinary photographic films), the government of China has not applie d the rates committed at the time 
of WTO accession and instead has imposed specific duties of 9-170 Yuan per square meter. When 
converted into ad valorem rates, these specific du ties are extremely high (for example, the committed 
rate for finished 35 mm color negative films is  42%, while the specific duties are over 190%, ad 
valorem duties).  
 Since 2002, Japan has raised these problems and urged China to fulfill its WTO obligations 
on numerous occasions. As a result, in the 2006 revi sion of tariff rates, while specific duties were 
maintained, ad valorem duty equiva lent rates on most of the items were reduced to close to the level 
of the committed rates. However, on some of the ite ms, rates that are more than twice the ad valorem 
duty equivalent rates to which China had committed continued to be levied. 
 
 In the 2007 revision of tariff rates, the duties on eight photographic film products were 
reviewed and reduced to committed levels, while specific duties were maintained. 
 
(b)  Japan would like to urge China: 
 - To adopt ad valorem duties, as Chin a committed when it joined the WTO. 
- If it is difficult to adopt it immediately, to a dopt the system of ‘’ce iling’’ or ‘’cap’’, which 
China has already adopted for other items. 
 
Export Restrictions of Coke
 
 (a) Japan understands that China implements export licensing on export of coke. Since an 
insufficient number of licenses were issued three y ears ago, the export price of Chinese coke soared 
and has left the market disrupted. Japan is grea tly concerned about the i ssuance plan. Since this 
measure is not effective in conjunction with rest rictions on domestic pr oduction or consumption, 
Japan considers that it is not consistent with GATT Article XI and cannot be justified under GATT 
Article XX (g) regarding the conserva tion of exhaustible natural resources. G/MA/W/90 
Page 2  
 
  (b) China explained its measures to restrict  domestic production and consumption of coke. 
However, it is unclear whether those measures have effectively reduced the production and 
consumption of coal, which is an ingredient of  coke. Japan requests that China show us the 
quantitative effect of those measures on domestic pr oduction and consumption of coal.  If there are 
any plans to reform the export licensing me asure, we would like to know the details. 
 
Export Restrictions of Non Ferrous Metals
 
 
(a) Japan understands that China implements an export licensing system on various kinds of non-
ferrous metals: rare-earths, tungsten, antimony , tin, silver, magnesium, bauxite, indium, and 
molybdenum. Indium and molybdenum of these non-fe rrous metals became subject to quantitative 
trade restrictions in June 2007, and the amount of export licenses on the most of other non-ferrous 
metals has been declining.  (b) We would like to ask China to clarify the po licy objective of quantitative restrictions by way 
of its export licensing system on various kinds of no n-ferrous metals: rare-earths, tungsten, antimony, 
tin, silver, magnesium, bauxite, indium, and molybdenum . Also, we would like to ask clarification of 
the legal basis of the restriction under the GATT.   China has explained that resource protection, environmental conservation, and trade surplus 
reduction are the reasons for its quantitative trade r estrictions. In terms of resource protection, we 
would like to ask clarification whether there is a restriction in China for the domestic production or 
consumption of these metals, with some additi onal specific data on their domestic production, 
consumption, and restriction. In terms of environmental conservation and trade surplus reduction, we 
would like to ask clarification of the legal basi s of the quantitative trade restriction under GATT. 
 
 We would like to ask to which WTO committe e and how the Chinese government reports its 
quantitative trade restriction every year.   Also, we would like to ask clarification of the export volume of indium and molybdenum of 
2007, which became subject to quantitati ve trade restrictions in June 2007. 
 
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