WORLD TRADE  
ORGANIZATION  G/LIC/N/3/CHN/4 
30 September 2005 
 (05-4346) 
Committee on Import Licensing Original:   English 
  
 
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES
1 
 
Notification under Article 7.3 of the Agreement on Import Licensing Procedures  
 
PEOPLE'S REPUBLIC OF CHINA 
  
 The following communication, dated 27 September 2005, is being circulated at the request of 
the Delegation of the People's Republic of China.  
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China submits its replies to the Questionnaire on Import Licensing Procedures, which reflects the 
status quo of the import licensing regime as a r esult of China’s faithful implementation of its 
accession commitments. 
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Outline of systems
 
 
1. Import licensing in China can be divided into three categories: 
 
(a) import license administration (b) automatic import licensing administration (c) import tariff rate quota administration 
 
Purposes and coverage of licensing
 
 
2. Import license administration is applicable to all the products subject to import restriction. 
Automatic import licensing administration is applicab le to those products free from import restriction, 
however, the importation of which needs monitoring.   Import tariff rate quota administration is 
applicable to products subject to im port tariff rate quota administration.  
  Please refer to China’s 2005 QR notification (to be submitted) for the lists of products subject 
to import license administration and automatic import licensing administration.  Products subject to 
TRQ administration are grain, cotton, vegetable oil, sugar, wool, wool tops and chemical fertilizer.  
 
3. Application of the three categories of import lice nsing is not based on the origin of the products.  
 
                                                     
 
1 See document G/LIC/3, Annex, for the Questionnaire. G/LIC/N/3/CHN/4 
Page 2  
 
 4.  China eliminated all the quantitative rest riction measures on imports on 1 January 2005 and 
the products formerly subject to quantitative restri ctions had been moved into the category of free 
importation or automatic import licensing administration batch by batch.    Import license administration is an administrative measure over products, including chemicals 
that may be used for military wea pons or toxicant and drugs, as well as ozone depleting materials, on 
which import restriction must be a pplied according to the obligations under international Conventions to 
which China is a signatory.        Automatic import licensing administration is an  administrative measure over certain products 
which are free of import restricti ons but monitoring on importation and statistics collection of which are 
deemed necessary.  It is implemented in a way fully consistent with the Agreement on Import Licensing 
Procedures , and there is no restriction in te rms of import quantity or value.  
  Import tariff rate quota admini stration is decided by China and other WTO members within the 
framework of WTO Agreements and the negotiations on China’s accession.  It is an administrative 
measure over certain products  subject to import restrictions, aiming  at better implementation by China 
of its obligations of being a WTO member.  The pr imary categories of products  under administration of 
import tariff rate quota are in the agriculture sector.   5.  The Chinese government has always committed to establishing and maintaining transparent, 
fair and non-discriminatory import licensing procedures.  The fundamental principles governing 
import licensing are contained in the Foreign Trade Law  and the Law on Administrative Licensing .  
Under the two Laws, the State Council of the People’s Republic of China promulgated the 
Regulations on Administration of Import and Export of Goods in the form of State Council Decree, 
through which situations where import licensing pro cedures apply are established.  Pursuant to the 
Regulation, the government body governing foreign tr ade under the State Council, i.e. the Ministry of 
Commerce (MOFCOM) and its predecessor the Minist ry of Foreign Trade and Economic Cooperation 
(MOFTEC), promulgated the Measures on Administration of Import Licenses for Goods and the 
Measures on Administration of Automatic Import Licensing  for Goods  in form of Ministry Decree, 
which set out clearly implementing details of import licensing procedures.  On 10 Dec. 2004, 
MOFCOM published MOFCOM Decree No. 26 and 27 of 2004, which respectively included the 
revised  Measures on Administration of Automatic Import Licensing  for Goods  and  Measures on 
Administration of Import Licenses for Goods  (Notification of these two revised Measures will be 
made as soon as translation is finished).  In accordance with these two Ministry Decrees, MOFCOM 
publishes yearly, in form of Ministry Announcement, the Catalogue of Goods Subject to Import 
License Administration and the Catalogue of Goods Subject to Automatic Import Licensing 
Administration, which list all the commodities subject to import licensing procedures, including 
import license administration and automatic import licensing administration, except for those under tariff rate quota (TRQ) administration.  On 21 Feb. 2005, MOFCOM and the General Customs 
Administration (GCA) jointly published the MOFCOM and GCA Announcement No. 9 of 2005, 
which added iron ore in the Catalogue of Pr oducts subject to Automatic Import Licensing 
Administration.  
 
 As for commodities under TRQ administration , pursuant to the Regulations on Administration 
of Import and Export of Goods, MOFCOM and the National Deve lopment and Reform Commission 
(NDRC) jointly promulgated the Interim Measures on Administration of Tariff Rate Quota for 
Importation of Agricultural Products in form of Ministry Decree , and the former State Economic and 
Trade Commission and the General Administra tion of Customs jointly promulgated the Interim 
Measures on the Administration of Tariff Rate Quota for Importation of Fertilizers in form of 
Ministry Decree.  In accordance with these two Mi nistry Decrees, the quantities of TRQ, allocation 
methods and application conditions of the co mmodities under TRQ administration are published 
annually in form of Ministry Announcement.   G/LIC/N/3/CHN/4 
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 Procedures  
 
6.  Import quota license administration was abo lished on 1 January 2005.  In 2005, products 
under import tariff rate quota administration include gr ain, cotton, vegetable oil, sugar, wool, wool 
tops and chemical fertilizer, the TR Q of which is applied globally.  
 
I.      NDRC promulgated on 30 September 2004 the Quantities, Application Conditions and 
Allocation Methods of Tariff Rate Quota for Importation of Grain and Cotton of 2005  in its 
Announcement No. 58 of 2004.   MOFCOM promulgated on 29 September 2004  Allocation Methods 
of Tariff Rate Quota for Importation of Palm O il, Soybean Oil, Rape Seed Oil and Sugar of 2005  in its 
Announcement No.60 of 2004,  and Implementing Rules on the Administration of Tariff Rate Quota for 
Importation of Wool and Wool Tops of 2005  in its Announcement No.61 of 2004 . MOFCOM also 
promulgated on 8 October 2004  the Quantities, Allocation Principles and Application Procedures of 
Tariff Rate Quota for Import ation of Fertilizers of 2005  in its Announcement No.62 of 2004.  
 
II.      The catalogue and quantities of quota for products under import tariff rate quota 
administration were determined during China’s WT O accession negotiations.  Since accession, China 
has implemented the commitment according to th e scheduled timeframe.  The quantities of import 
tariff rate quota have increased gradually while Import quota license administration was abolished on 
1 January 2005.  
III.      For products under import tariff rate quota administration, TRQ holders should annually 
return, for reallocation, the unfilled tariff rate quota of the calendar year within the scheduled time 
limit.  To ensure that the allocat ed tariff rate quota is used for importation, for TRQ holders who do 
not fully use the tariff rate quota for the year and do not return the unfilled tariff rate quota within the 
scheduled time limit, the quantity of tariff rate quot a they can get for the next year will be deducted 
accordingly. 
 IV. For products under import tariff rate quota administration, the period for submission of 
application is 15 days.  (Excluding those to whic h "first come, first served" is applicable.) 
 V. For products under import tariff rate quota administration, the time for processing the 
application is two months after th e closing date of the period for the submission of application.  
 VI. For products under import tariff rate quota administration, one day remains between the 
granting of the tariff rate quota and the date of the opening of the period of importation. 
 
VII. The consideration of licence application is  effected by one single administrative body. 
  For products under import tariff rate quota administration, according to the variety of products, the applicant should submit the applicati on to entities with authorization of either 
MOFCOM or NDRC to have the application verified .  The entities will then transmit the application 
to either MOFCOM or NDRC. MOFCOM or NDRC w ill, through the entities, allocate to applicants 
import tariff rate quota. Import tariff rate quota holders do not have to acquire a licence.  
 VIII.   The allocation of import tariff rate quota fo r agricultural products is based on the quantity 
applied by each applicant, past import perfo rmance, production capacity and other relevant 
commercial standards, or on the principle of “first come, first served”. The reallocation is based on the 
principle of “first come, first served”, acco rding to published application conditions. 
     The allocation of import tariff rate quota for chemical fertilizers is based on the quantity 
applied by each applicant, past import perfo rmance, capacity of production and operation, quota 
utilization record, application situation of ne w applicants and other relevant factors.  G/LIC/N/3/CHN/4 
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 IX For products under import tariff rate quota administration, no matter whether the exporting 
country issues export permits or not, import licensing  procedures are required and the import licensing 
is not automatic.   X. Not applicable.  
 
XI.  No, except that the appli cant chooses specific pattern of tr ade, such as processing trade, 
under which the import materials and component s and products thereof must be exported. 
 7. There are no quantitative restrictions for products under automatic import licensing 
administration and import license administration.  
 (a) For products under automatic import licensing administration, so long as the content of 
application is authentic as well as the formaliti es complete, the issuing entity should, to the 
extent practicable, grant the licence immediat ely, or under special circumstances, no more 
than 10 days.   
  For products subject to import license administ ration, e.g. narcotic drugs etc, the time for 
granting permit is based on the period necessar y for making a reasonable judgement on the 
justification of the import, but in any case no more than 30 days.  
  
(b) For products under automatic import licensi ng administration, the licence can be granted 
immediately upon request.  
 (c) There are no limitations as to the period of the year during which application for licence 
and/or importation may be made.  
 
(d) The consideration of licence application is effected by one single administrative body.   
 For products under automatic import licensing administration, the applicant only needs to 
submit the application to the entities authorized by MOFCOM. 
  For products under import license administrati on, the applicant should apply to relevant 
competent entities for import permit, according to the different variety of goods.  With the 
import permit granted, the applicant then obtains import licence from entities authorized by MOFCOM.  After obtaining the import permit, import licence will be granted automatically.  The time for granting import licence is no more than three working days, and under special 
circumstances no more than 10 working days. 
 
8. For products under automatic import licensing administration, once the State decides to implement temporary measures to prohibit importation of certain goods or to restrict the quantity of 
importation of certain goods, the granting of automa tic import licence will be ceased automatically on 
the day of entry into force of these temporary measures.  The temporary measures will be published thirty days before their entry into force. 
 
 For products under import license administration, if the justification for importation is believed to be unconvincing, the a pplication may be refused.  The applicant will be given the reason 
of the refusal, and will also be informed of the righ t to, pursuant to laws and regulations, resort to 
administrative review or  initiate administrative lawsuit.  
 
Eligibility of importers to apply for licence
 
 
9. Since 1 July 2004, an automatic registration system has been implemented for any individual or enterprise who intends to conduct import and/or export.  For detailed information, please refer to   G/LIC/N/3/CHN/4 
 Page 5 
 
 
 Measures for Registration of Foreign Trade Operators, published on 25 June 2004 in MOFCOM 
Decree No. 14 of 2004.   
 
 For products under import license administration, automatic import licensing administration and import tariff rate quota administration, except for those under administration of state trading 
which have to be imported via state trading ente rprises, any individual or enterprise can apply for 
import licence so long as they meet the criteria set for different goods as published.  The lists of state 
trading enterprises are published.   
Documentation and other requireme nts for application for licence
  
 
10. For information required to be provided in a pplication for import licence, please refer to the 
Measures on Administration of Import License for Goods  published on 10 December 2004 in 
MOFCOM Decree No. 27 of 2004 . 
 
   For information required to be provided in application for automatic import licence, please 
refer to the Measures on Administration of Automatic Import Licensing for Goods  published on 
10 November 2004 in  MOFCOM and GCA Joint Decree No. 26 of 2004 .  
    For information required to be provided in application for tariff rate quota for importation of 
agricultural products, please refer to the Quantities, Application Cond itions and Allocation Methods 
of Tariff Rate Quota for Importa tion of Grain and Cotton of 2005 published on 30 September 2004 in 
NDRC’s Announcement No. 58 of 2004, the Allocation Methods of Tariff Rate Quota for Importation 
of Palm Oil, Soybean Oil, Rape Seed Oil and Sugar of 2005 published on 29 September 2004 in 
MOFCOM’s Announcement No.60 of 2004 and the Implementing Rules on the Administration of 
Tariff Rate Quota for Importati on of Wool and Wool Tops of 2005 published on 29 September 2004 in 
MOFCOM’s Announcement No.61 of 2004. 
  For information required to be provided in a pplication for tariff rate quota for importation of 
fertilizers, please refer to the  Quantities, Allocation Principles and Application Procedures of Tariff 
Rate Quota for Importation of Fertilizers of 2005 published on 8 October 2004 in MOFCOM’s 
Announcement No.62 of 2004.  
 
11.   For documents required to be provided in actual importation of products under import license 
administration, please refer to the Measures on Administration of Import License for Goods  published 
on 10 December 2004 in MOFCOM Decree No. 27 of 2004. 
 
   For documents required to be provided in  actual importation of products under automatic 
import licensing administration, please refer to the Measures on Administration of Automatic Import 
Licensing for Goods  published on 10 November 2004 in MOFCOM and GCA Joint Decree No. 26 of 
2004.  
   For documents required to be provided in actual importation of products under import tariff 
rate quota administration of agricultural products, please refer to the Interim Measures on 
Administration of Tariff Rate Quota for Importation of Agricultural Products published on 
27 September 2003 in MOFCOM and NDRC Joint Decree No.4 of 2003.  
    For documents required to be provided in actual importation of products under import tariff 
rate quota administration of fertilizers, please refer to the Interim Measures on Administration of 
Tariff Rate Quota for Importation of Fertilizers published on 15 January 2002 in Decree No.27 of 
2002  of the former State Economic and Trade Commission and GCA.  
 12. There are no licensing fees or administrative charges.  G/LIC/N/3/CHN/4 
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 13.   There is no deposit or advance payment requi rement associated with the issuance of licences. 
 
Conditions of licensing
 
 
14. The period of validity for import licence is one year, and the licence is valid only in the 
calendar year for which it is issued.  The period of validity can be extended once and for no more than 
three months.   The period of validity for automatic import licence is six months, and the licence is valid only in the calendar year for which it is issued.  The period of validity cannot be extended. 
    
 The period of validity for import tariff rate quota of agricultural products other than on the 
principle of “first come, first served” is one year, and the licence is valid only in the calendar year for which it is issued.  The period of validity can be  extended, and for no more than two months.  
    
 The period of validity for import tariff rate  quota of agricultural products allocated on the 
principle of “first come, first served” is six months, and the licence is valid only in the calendar year for which it is issued.  The period of validity can  be extended, and for no more than two months. 
     The period of validity for import tariff rate quota of fertilizers is 180 days, and the licence is 
valid only in the calendar year for which it is issued .  The period of validity can be extended, and for 
no more than 180 days. 
 15.   For products under import tariff rate quot a administration, TRQ holders should annually 
return, for reallocation, the unfilled tariff rate quota of the calendar year within the scheduled time 
limit.  To ensure that th e allocated tariff rate quot a are used for importation, for TRQ holders who do 
not fully use tariff rate quota for the year and do not return the unfilled tariff rate quota within the 
scheduled time limit, the quantity of tariff rate quot a they can get for the next year will be deducted 
accordingly.       For products under import license administ ration and automatic import licensing 
administration, there is no punishment on non- or partial-utilization. 
 
16. All the three categories of licences listed above are not transferable.   17.   There are no other conditions a ttached to the issuance of a licence. 
 Other procedural requirements
 
 
18. For products included in the catalogue of prod ucts subject to statutory inspection, inspection 
and quarantine certificate issued by quality superv ision, inspection and quarantine authorities should 
be provided prior to importation.   
19. For products under automatic import licensing administration, the bank will provide foreign 
exchange to applicants on proof of automatic import licence.      For products under import license administration and import tariff rate quota administration, 
foreign exchange will be provided pursuant to relevant regulations of the State Administration of 
Foreign Exchange.  
     Generally foreign exchange is available to cover licences issued. 
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