. /.  WORLD TRADE  
ORGANIZATION  G/RO/61 
13 October 2005 
 (05-4664) 
  
  
 
REPORT TO THE COUNCIL FOR TRADE IN GOODS 
ON CHINA'S TRANSITIONAL REVIEW  
 
 
1. The Committee on Rules of Origin (CRO), at  its meeting on 23 September 2005, carried out 
the transitional review of China pursuant to para graph 18 of the Protocol on the Accession of the 
People's Republic of China (WT/L/432).  2. Questions on China's rules of origin from  the United States and the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu have  been circulated in documents G/RO/W/102 and 
G/RO/W/105, respectively.  The statements made  at the meeting of 23 September 2005 are to be 
reflected in the minutes of the meeting (G/RO/M/47),  paragraphs 3.1-3.6.  The relevant paragraphs 
which reflect this discussion are annexed.  G/RO/61 
Page 2  
 
3. Transitional review under paragraph 18 of the Protocol of Accession of the People's 
Republic of China (WT/L/432, WT/ACC/CHN/49, G/RO/W/102 and G/RO/W/105)  
 
 3.1 The Chairperson
 noted that in accordance with paragraph 18 of the Protocol of Accession of 
the People's Republic of China, the CRO was to report to the Council for Trade in Goods on the 
outcome of the Review which would then repor t to the General Council.  The Chairperson  drew 
attention to two documents, G/RO/W/102 and 105, containing questions from the United States and 
the Separate Customs Territory of Taiwan , Penghu, Kinmen and Matsu, respectively. 
 
3.2 The representative of China  gave a brief introduction to China's implementation of the 
Agreement on Rules of Origin (the Agreement) th is year and responded to the two written questions 
mentioned above.  Firstly, as Members might have already been aware, Ch ina had introduced new 
rules of origin.  The Regulations of the People's Republic of  China on the Origin of Import and Export 
Goods  became effective as of 1 January, 2005.  Th e Regulations were prom ulgated on 3 September, 
2004, well ahead of its implementation. With that in formation, China drew Members' attention to the 
fact that, in accordance with paragraph 2, Article 5 of the Agreement, Members have no obligation of 
notification with regard to their modified or new rules of origin.  The procedures China applied to introduce those new rules of origin were in full c onformity with the requirements of the Agreement.  
Secondly, the above-mentioned regulations, and their a pplication, fully complied with the Agreement.  
The principles used in the new regulations to determ ine the origin of goods were basically the same as 
those notified to the Committee in document G/RO/53.   She added that interested Members who had 
concerns, or who would like to have a better u nderstanding of the Regulations, might refer to 
document G/RO/M/43 for a detailed explanati on of the origin determination system. 
 3.3 The representative of the United States
 thanked the delegation of China for their explanation 
and for their willingness to engage in the transitio nal review process.  He then commented on the 
point that the Chinese delegation had made about the provisions of the Agreement.  It would appear 
that, in paragraph 102 of the Working Party Report associated with China's Protocol of Accession, there was a commitment with respect to notification of rules of origin.  Given that commitment, he 
questioned whether China was in a position to  notify these regulations to the Committee. 
 
3.4 The representative of China
 stated that there appeared to  be no specific provision in the 
Agreement or in China's Accession Protocol requiri ng China to make a notification.  China noticed 
that their obligation in this regard was to publish or publicise the regulation and, in this regard, the 
regulation was already available on the websites of MOFCOM and the Customs Administration.  If any Member was interested he could also provide relevant copies of these documents. 
 
3.5 The representative of Chinese Taipei
 expressed its appreciation for the answers given by the 
delegation of China in response to questions from Me mbers.  He was pleased to learn from the replies 
that some of the questions related to the re quirements of anti-circumvention and substantial 
transformation had also been addressed.  He would look into the detail of those documents mentioned 
by the delegation of China and looked forward to seeing China's continuing effo rts to carry out further 
liberalization and facilitation of trade in goods and the resulting  increase in market access which this 
would bring about.  3.6 The CRO took note
 of the statements made and agreed  that the Secretariat prepare a short 
factual report under the Chairman's responsibility, toge ther with the minutes of the meeting for further 
detail, to be sent to the Council for Trade in Goods. 
 
__________