. /.  WORLD TRADE  
ORGANIZATION  G/RO/64 
29 October 2007 
 (07-4664) 
Committee on Rules of Origin  
  
 
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 25 October 2007, carried out the 
transitional review of China pursuan t to paragraph 18 of the Protoc ol on the Accession of the People's 
Republic of China (WT/L/432).  2. Questions on China's rules of origin fro m Japan has been circulated in documents 
G/RO/W/108.  The statements made at the meetin g of 25 October 2005 are to be reflected in the 
minutes of the meeting (G/RO/M/49), paragraphs 4.1-4. 4.  The relevant paragraphs which reflect this 
discussion are annexed.  
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 G/RO/64 
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4. Transitional review under paragraph 18 of the Protocol of Accession of the People's 
Republic of China (G/RO/W/108)  
 
4.1 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 a document, G/RO/W/108 containing questions from Japan.  4.2 The representative of Japan
 stated that they had two questions, as follows:  (1)  Japan would 
like China to explain what kind of rules of origin , such as change in tariff classification, value-added 
criterion or other rules, apply for trade remedy pur poses;  and (2) Japan woul d like China to explain 
whether same rules of origin apply for trad e remedy purposes and general trade purposes. 
4.3 The representative of China  replied that he would read out a prepared statement by the head 
of the Chinese delegation on the transitional re view of China by the CRO and thanked the 
Chairperson for allowing him to address the CR O to respond to the questions and comments from 
Japan, which they received prior to the meeting.  With  regard to the rules of origin applied for trade 
remedy purposes pursuant to the regulations of the People's Republic of China on the origin of import 
and export goods, where more than one country or region is concerned in the production of the goods, 
the country or region where the last substantia l transformation has been carried out should be 
determined as the origin of these goods.  And,  the basic criterion to determine substantial 
transformation, as provided in Article 3 of these regul ations, shall be change in tariff classification.  If 
the change in tariff classification is not applicable to  the determination of the origin of the goods such 
criteria as ad valorem  percentages and/or manufacturing or processing operations should be the 
supplementary criteria.  To answer the second ques tion posed by Japan, he co nfirmed that the same 
rules of origin apply to importation of general trade purposes. 
 
4.4 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.  
 
 
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