WORLD TRADE  
ORGANIZATION  G/MA/W/96 
22 September 2009 
 (09-4440) 
Committee on Market Access Original:   English 
  
 
CHINA'S TRANSITIONAL REVIEW MECHANISM  
 
Communication from Japan
 
  
 The following communication, dated 18 September 2009, is being circulated at the request of 
the Delegation of Japan.  
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Questions and Comments of Japan on the Implementation 
 
by China of its Commitments on Market Access  
  Japan appreciates China's efforts to answer some of the questions asked by members, but 
China has not fully answered quest ions with regards to export r estrictions. It would thus be 
appreciated if China could clarify the following points.  
 
Export Restrictions and Export  Taxes on Non-Ferrous Metals
 
 
(a) Japan understands that China implements an export licensing system on various kinds of non-
ferrous metals: rare-earths, tungsten, antim ony, tin, silver, magnesium, bauxite, indium, 
molybdenum, and zinc. Among these non-ferrous me tals, indium and molybdenum became in 
June 2007 subject to quantitative trade restricti ons, and the amount of the other non- ferrous 
metals which received export licenses, has been declining. Please explain how China justifies 
its export licensing on these non-ferrous metals under the GATT. 
 (b) Japan would like to know if there are restrictions in China on domestic production and/or 
consumption of these metals, with specific quantitative data.  
 (c)  China levies export taxes on many types of non-ferrous metals, and has increased them, six 
times since November 2006, while China committe d to eliminate export taxes for all items 
except for those listed in Annex 6 to its Protocol of the Accession. Please explain the policy 
objectives of these export taxes and how Chin a justifies them under its commitment upon 
accession. 
 (d)  Please describe China’s plans for elimina ting export licensing measures and export taxes. 
 
Export Taxes on Chemical Fertilizers and their Raw Materials
 
 
(a) Japan understands that China has been levy ing a 100% export tax on 32  chemical fertilizers 
items and their raw materials, from 20 Apr il to 30 September 2008. In addition from 
May 2008, 6 items including phosphate rock have been added to the list of items subject to 
the 100% export tax.  Furthermore, on 29 August 2007, China officially announced a raise of 
150% of the export taxes on nitrogen fertilizers and ammonia taking place from 1st September  
to 31 December 2008 and it extended to 31 December 2008 the expiration date of the export G/MA/W/96 
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  taxes on the other chemical fertilizers items. The export taxes on some chemical fertilizers 
and on their raw materials ended in July of th is year (2009). However taxes on some products 
such as potassium chloride and ammonium phosphate have still been levied. As some 
products among them are not listed in Annex 6 to China’s Protocol of the Accession as 
products subject to export duty, this might no t be consistent with China’s commitment upon 
accession to the WTO.  
 (b) Please explain China’s plans for eliminati ng the export taxes on these items. Please also 
describe how China justifies its use of expor t taxes on these items under its commitment upon 
accession. 
 
Export Restrictions and Export Taxes on Coal
 
 
(a) Japan understands that China has been im plementing an export licensing on coal exports. 
While a sufficient number of e xport licenses used to be issued  in terms of China’s export 
amount of coal, the number of issuance has been  decreasing in the last few years. Therefore 
Japan is concerned that this trend might ha mper the trade flow of coal. Since China’s 
domestic production and consumption of coal seem to be expanding, it is unclear that the 
export licensing measures on coal has been adopted in conjunction with restrictions on domestic production and/or consumption as sti pulated in GATT Article XX (g). Thus Japan 
considers that such measures are not consistent with GATT Article XI. Please explain how 
China justifies the export licensing on coal under the GATT. 
 (b) In addition, Japan understands that China has raised export taxes on coking coal and since 
August of this year it has newly levied taxes on steam coal and anthracite, while China is 
committed to eliminate export taxes for items except for those which are listed on Annex 6 in 
China’s Protocol to the Accessi on. Please explain how China justifies its export taxes under 
its commitment upon accession. 
 (c) Please describe any plans to review the e xport licensing measures and imposition of export 
taxes on coal. 
 Export Restrictions and Export Taxes on Coke
 
 
(a) China implements an export licensing on cokes.  Japan is concerned about the negative effects 
of the recent decreases in the number of expor t licenses issued on the trading of cokes.  
 
(b) Japan considers that this measure cannot be  justified under GATT Ar ticle XX (g) regarding 
the conservation of exhaustible natural resour ces, and thus it is not consistent with GATT 
Article XI because this measure is targeti ng only export and has no effect on domestic 
production or consumption. Although China offe red some information about restriction of 
domestic production and consump tion of cokes, it is still unclear whether those measures 
have effectively reduced the pr oduction and consumption of coal, which is an ingredient of 
cokes.  Japan would like China to provide some information about whether or not there is an 
upper limit on domestic product in China corresponding to export restrictions 
 (c)     We note that the WTO regime includi ng panel’s decision would require an even-handed 
position between the export restriction and the dom estic product restriction.  Please clarify the 
difference between the export restriction and the domestic product restriction. 
 (d)  China levies export taxes on cokes whic h have been raised several times since 
November 2006, while China committed to elimin ate export taxes for items except for those 
which are listed in Annex 6 to China’s Protoc ol of the Accession or imposed pursuant to  G/MA/W/96 
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  GATT Article VIII.  Please explain how China ju stifies its export taxes under its commitment 
upon accession and the reason why it increases its expor t taxes in consistency with the GATT 
Article VIII. 
 (e)   Please describe any plans to review the export licensing measures and imposition of export 
taxes. 
 
 
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