WORLD TRADE  
ORGANIZATION  G/LIC/N/3/CHN/5 
3 October 2006 
 (06-4726) 
Committee on Import Licensing Original:   English 
  
 
RESPONSES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES
1 
 
Notification pursuant to Article 7.3 of the  
Agreement on Import Licensing Procedures  
 
PEOPLE'S REPUBLIC OF CHINA 
   The following communication, dated 27 September 2006, is being circulated at the request of the Delegation of the People’s Republic of China. 
 
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Outline of System
 
 
1. Import licensing in China can be divided into three categories: 
 
(a) import license administration 
(b) automatic import licensing  
(c) import tariff rate quota administration 
 
Purposes and Coverage of Licensing  
 
2. Import license administration is applicable to al l the products subject to import restriction, 
including chemicals that may be used for milit ary weapons, toxicant or drugs as well as ozone 
depleting materials  
Automatic import licensing is applicable to pr oducts free from import restriction, but the 
importation of which needs monitoring, including poultr y, vegetable oil, wine, tobacco, asbestos, copper 
ore and concentrates, coal, terephthalic acid, plastic raw material, natural rubber , synthetic rubber, waste 
paper, synthetic fiber cloth, cellulose diacetate filame nt tow, copper, aluminium, mechanic and electrical 
products, iron ore, crude oil, processed oil, alumina,  chemical fertilizer, pest icide, sliced or chipped 
polyester, automobile tyre, teryle ne, steel and steel billet.   
 
Import tariff rate quota administra tion is applicable to grain, cotton, sugar, wool, wool top and 
chemical fertilizer.   3. The three licensing system applies to goods coming from all countries. 
4. China eliminated all the quantitative restric tion measures on imports on 1 January 2005 and 
the products formerly subject to quantitative rest rictions were moved in to the category of free 
importation or automatic import licensing.  
                                                     
 
1 See document G/LIC/3, Annex for the Questionnaire. G/LIC/N/3/CHN/5 
Page 2  
 
  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 restrictions must be  applied according to the obligati ons under international Conventions 
to which China is a signatory. 
Automatic import licensing is an  administrative measure over cert ain products which are free of 
import restrictions but monitori ng 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 admi nistration is confirmed by other WTO members within the 
framework of WTO Agreements and the negotiations  on China’s accession. It is an administrative 
measure over certain products subj ect to import restrictions. The primary categories of products under 
administration of import tariff rate quota are in the agriculture sector.  
 
5. The Chinese government has al ways been committed to establishing and maintaining 
transparent, fair and non-discriminatory import li censing 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 th e People’s Republic of China promulgated the 
Regulations on Administration of Import and Export of Goods in form of State Council Decree, 
through which situations where import licensing pr ocedures 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 im port licensing procedures. On 10 December 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 . In accordance with these two Ministry Decrees, 
MOFCOM publishes yearly, in the 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 products subject to im port licensing procedures, including import 
license administration and automatic import licensing,  except for those under tariff rate quota (TRQ) 
administration.  
As for products under TRQ administration , pursuant to the Regulations on Administration of 
Import and Export of Goods, MOFCOM and the National Development 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 Ministry Decr ees, the quantities of TRQ, allocation 
methods and application conditions  of the products under TRQ administration are published annually 
in form of Ministry Announcement.   Procedures
 
 
6. No product is subject to import quota license administration any more.  
On 7 December 2005, MOFCOM published MOFCOM Announcement No. 93 of 2005, which 
abolished the import tariff rate quot a administration on vegetable oil. At  present, products under import 
tariff rate quota administration include grain, cotton, sugar, wool, wool tops and chemical fertilizer, the 
TRQ of which is applied globally.   G/LIC/N/3/CHN/5 
 Page 3 
 
 
  I. NDRC promulgate d on 30 September 2005 the Quantities, Application Conditions and 
Allocation Methods of Tariff Rate Quota for Importation of Grain and Cotton of 2006  in its 
Announcement No. 58 of 2005. MOFCOM promulgated on 26 September 2005 the Application and 
Allocation Methods of Tariff Rate Q uota for Importation of Sugar of 2006  in its Announcement No.64 
of 2005,  and Implementing Rules on the Administration of Tariff Rate Quota for Importation of Wool 
and Wool Tops of 2006  in its Announcement No. 65 of 2005 . MOFCOM also promulgated on 
29 September 2005  the Quantities, Allocation Principles and Application Procedures of Tariff Rate 
Quota for Importation of Fertilizers of 2006 in its Announcement No. 67 of 2005.  
 
II. The tariff rate quota for the next year is issued to end users before 1 January of the year, and the 
tariff rate quota is valid th roughout the whole calendar year. 
 
For the TRQ holder for grain, cotton and sugar,  a TRQ warrant, which should be provided to 
the Customs during Customs clearance, is valid thro ughout the whole calendar year. The TRQ holder is 
entitled to demand an extension fo r the warrant from the competent authority if the original warrant 
expired in case of uncompleted im portation or the business contract  not performed, but the validity 
period of the warrant should not exceed the e nd of February of the next calendar year. 
 For the TRQ holder for wool and wool top, the TR Q warrant is valid for six months within the 
calendar year. However, the TRQ holder is entitled to demand an extension for warrant from the competent authority if the original warrant expire d in case of uncompleted importation or business 
contract not performed. The validity period of warrant should not exceed the end of February of the next 
calendar year.  
For the TRQ holder for chemical fertilizer, the TR Q warrant is valid for six months. However, 
the TRQ holder is entitled to dema nd an extension for the warrant from the competent authority if the 
original warrant expired in case of uncomplete d importation. The extension should not exceed the 
validity period of the Tariff Rate Quota.  
 
III. For products under import tariff rate quota ad ministration, the TRQ holders should annually 
return, for reallocation, the unfilled ta riff rate quota of the calendar year  within the schedul ed time limit. 
To ensure that the allocated 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 tari ff rate quota within the scheduled 
time limit, their next year quantity of tari ff rate quota will be reduced accordingly.  
 IV. For products under import tariff rate quota administration, the period for submission of 
application is 15 days. (Excludi ng those to which first come, fi rst served is applicable.) 
 
V. For products under import tariff rate quota administration, the ti me for processing the 
application is two months after the closing date of the period fo r the submission of application.  
 VI. For products under import tariff rate quota admi nistration, at least one day remains between the 
granting of the tariff rate quota and the date  of the opening of the period of importation. 
 
VII. For products under import tariff rate quota admi nistration, according to the variety of products, 
the applicant should submit the application to entit ies with authorization of either MOFCOM (sugar, 
wool, wool top and chemical fertili zer) or NDRC (grain and cotton) to have the application verified. The 
entities will then transmit the application to either MOFCOM or NDRC. MOFCOM or NDRC will, 
through the authorized entities, alloca te to applicants import tariff ra te quota. Import TRQ holders do not 
have to acquire an import license.   VIII. The allocation of import tari ff rate quota for agricultural pr oducts is based on the number of 
applicants, historical im port performance, production capacity and other relevant comme rcial standards, G/LIC/N/3/CHN/5 
Page 4  
 
  or on the principle of “first come, first served”(wo ol and wool top). The reallocation is based on the 
principle of “first come, first served”, according to published application conditions. 
  The allocation of import tariff rate quota for chemical fertilizers is based on the number of applicants, historical import perfo rmance, capacity of production and operation, quota utilization record 
and other factors such as the number of new applicants.  
 IX. For products under import TRQ administration, no matter whether the exporting country issues 
export permits or not, import licens ing procedures are required and the import licensing is not automatic.  
 
X. Not applicable.  
 XI. The issue of licenses is not on condition that goods should be exported and not sold in the domestic market   
7. There are no quantitative restrictions for products under automatic import licensing and 
import license administration.  
(a) For products under automatic import licensing, so long as the content and format of the 
application are correct, the issuing entity should,  to the extent practicable, grant the license 
immediately, or under special circumstances, no more than 10 working days.   
 For products subject to import li cense administration, e.g. narc otic drugs etc, the time for 
granting permit is based on the period necessary for making a reasonable judgement on the 
justification of the import, but in an y case no more than 10 working days.  
  (b) For products under automatic import licensing administration, the license can be granted 
immediately upon request.  
(c) An Automatic import license is valid within th e calendar year, but no more than six months. 
However, if the holder needs to have the license validity period extended in case of an 
uncompleted importation or a business contract not  performed, he has to apply to the former 
license issuing body again.  
 Import license is valid throughout the whole calend ar year, and no other limitation is attached.  
 
(d) The consideration of license application is e ffected by one single administrative organ.  
 For products under automatic import licensing, th e applicant only has to submit the application 
to the entities authorized by MOFCOM.   For products under import license administra tion, according to the variety of goods, the 
applicant should apply to different government enti ties competent for import permits. With the import 
permit granted, the applicant then obtains import  license from entities authorized by MOFCOM. After 
obtaining the import permit, import license will be granted automatically. The time for granting an 
import license is no more than three working days, and under special circumstances it is no more than 
10 working days.  
8. For products under automatic import licensing, once the State decides to implement 
temporary measures to prohibit the importation of certain goods or to restrict the quantity of importation of certain goods, the granting of auto matic import licenses will be ceased automatically 
on the day of entry into force of these temporar y measures. The temporary measures will be published 
thirty days before their entry into force.  G/LIC/N/3/CHN/5 
 Page 5 
 
 
   For products under import license administration, if the justification for importation is believed 
to be unconvincing, the application may be refused.  The applicant will be given the reason for the 
refusal, and will also be informed of havi ng the right to, pursuant to laws and regulations , apply to 
administrative reconsideration 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 export. For detailed information, please refer to  
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 licensi ng and import tariff 
rate quota administration, except fo r those under state trading admini stration the importation of which 
can only be conducted by state tradin g enterprises, any individual or enterprise can apply for import 
license so long as they meet the criteria set for different goods as pub lished. The lists of state trading 
enterprises are also published.  
 
Documentation and Other Requiremen ts for Application for Licence   
 
10. For information required to be provided in th e application for import license, 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 th e application for automatic import license, please 
refer to the Measures on Administration of Au tomatic 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 the application for ta riff rate quota for importation of 
agricultural products, please refer to the Quantities, Application Cond itions and Allocation Methods of 
Tariff Rate Quota for Importati on of Grain and Cotton of 2006 published on 30 September 2005 in 
NDRC’s Announcement No. 58 of 2005, the Application and Allocation Me thods of Tariff Rate Quota 
for Importation of Sugar of 2006 was published on 26 September 2005 in MOFCOM’s Announcement 
No. 64 of 2005 and the Implementing Rules on the Administration of Tariff Rate Quota for 
Importation of Wool and Wool Tops of 2006 published on 26 September 2005 in MOFCOM’s 
Announcement No. 65 of 2005. 
 
For information required to be provided in the application 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 2006 published on 29 September 2005 in 
MOFCOM’s Announcement No. 67 of 2005.  
 11. For documents required to be provided in th e 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 the actual importa tion of products under automatic 
import licensing, please refer to the Measures on Administration of Au tomatic 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 G/LIC/N/3/CHN/5 
Page 6  
 
  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 ferti lizers, 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. 
13. There is no deposit or advance payment require ment associated with the issue of licenses. 
Conditions of Licensing
 
 
14. An Import license is valid throughout the whol e calendar year, and no other limitation is 
attached. The validity period for a license can be  extended once, but no more than 3 months. 
The validity period for an automatic import license is six months, and the license is valid only in 
the calendar year when it is issued. However, if the holder needs to have the validity period of the 
license extended in case of uncom pleted importation or a business c ontract not performed, he has to 
apply to the former license issuing body again. 
 
 The validity period for the impor t tariff rate quota is one year.  
 
For the TRQ holder for grain, cotton and sugar, a TRQ warrant, which should be provided to 
customs during customs clearance, is valid througho ut the whole calendar ye ar. The TRQ holder is 
entitled to demand an extension fo r the warrant from the competent authority if the original warrant 
expired in case of uncompleted importation or business contract not  performed, but the validity period 
of the warrant should not exceed the end of February of the next calendar year. 
 
For the TRQ holder for wool and wool top, the TR Q warrant is valid for six months within the 
calendar year. However, the TRQ holder is entitled to demand an extension for warrant from the competent authority if the original warrant expired in case of uncompleted importation or a business 
contract not performed. The validity period of the warr ant should not exceed the end of February of the 
next calendar year. 
 
For the TRQ holder for chemical fertilizer, the TRQ warrant is valid for six months. However, 
the TRQ holder is entitled to dema nd an extension for the warrant from the competent authority if the 
original warrant expired in case of uncomplete d importation. The extension should not exceed the 
validity period of the Tariff Rate Quota. 
 
15. For products under import tariff rate quota admi nistration, the 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 allocated tariff rate quot a are used for importation, for the 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, their next year quantity of tariff rate quota will be reduced accordingly.  
 For the products under import license admini stration and automatic import licensing, non-
utilization or a portion of li cense will not be punished. 
 16. All the 3 categories of licenses listed above are not transferable.  
17. There are no other conditions attach ed to the issue of a license.  G/LIC/N/3/CHN/5 
 Page 7 
 
 
  Other Procedural Requirements  
 
18. For products included in the catalogue of products subject to statutory inspection, an 
inspection and quarantine certificate issued by quality supervision, inspection and quarantine 
authorities should be provided prior to importation.  
19. For products under automatic im port licensing, the bank will pr ovide foreign exchange to 
applicants with an automatic import license. 
 For products under import license  administration and import tari ff rate quota administration, 
foreign exchange will be provided pursuant to rele vant regulations of the State Administration of 
Foreign Exchange.  
 
 Generally foreign exchange is available to cover licenses issued.  
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