WORLD TRADE  
ORGANIZATION   
WT/DS431/6 
29 June 2012  
 
(12-3462) 
 Original:   English 
  
 
CHINA - MEASURES RELATED TO THE EXPORTATION OF  
RARE EARTHS, TUNGSTEN AND MOLYBDENUM 
 
Request for the Establishment of a Panel by the United States 
 
 
 The following communication, dated 27 June 2012, from the delegation of the United States to the Chairperson of the Dispute Settlement Body, is  circulated pursuant to Article 6.2 of the DSU. 
 
_______________ 
 
  On 13 March 2012, the United States requested  consultations with the Government of the 
People's Republic of China ("China") pursuant to Articles 1 and 4 of the Understanding on Rules and 
Procedures Governing the Settlement of Disputes  ("DSU") and Article XXII of the General 
Agreement on Tariffs and Trade 1994  ("GATT 1994") with respect to China's restrictions on the 
exportation from China of various forms of rare earths
1, tungsten2 and molybdenum3.  The United 
States held consultations with China on 25 and 26 Ap ril 2012.  Those consultations unfortunately did 
not resolve the dispute. 
I. EXPORT DUTIES 
 China subjects various forms of rare earths4, tungsten5 and molybdenum6 to export duties. 
These materials are not listed in Annex 6 of the Pr otocol on the Accession of the People's Republic of 
China  (WT/L/432) ("Accession Protocol") .  
 
                                                      
1 Forms of rare earths include, but are not limited to, items falling under the eight-digit Chinese 
Customs Commodity Codes identified in the Announcement No. 27 Issuing the 2012 Tariff Implementation 
Program (State Council Customs Tariff Commission, shuiweihui, No. 27, issued 9 December 2011, effective 
1 January 2012) (h ereinafter, the 2012 Tariff Implementation Program)  as listed in Annex 1 Section A. Forms 
of rare earths also include, but are not limited to, items falling under the 10-digit Chinese Customs Commodity 
Codes identified in the Notice on Issuing the "2012 Export Licensing Management Commodities List", Ministry 
of Commerce and General Administration of Customs Notice No. 98 (30 December 2011) (hereinafter, the 2012 
Export Licensing Management Commodities List) as listed in Annex 1 Section B. 
2 Forms of tungsten include, but are not limited to, items falling under the eight-digit Chinese Customs 
Commodity Codes identified in the 2012 Tariff Implementation Program as listed in Annex 2 Section A. Forms 
of tungsten also include, but are not limited to, items falling under the 10-digit Chinese Customs Commodity 
Codes identified in the 2012 Export Licensing Management Commodities List  as listed in Annex 2 Section B. 
3 Forms of molybdenum include, but are not limited to, items falling under the eight-digit Chinese 
Customs Commodity Codes identified in the 2012 Tariff Implementation Program  as listed in Annex 3 Section 
A. Forms of molybdenum also include, but are not limited to, items falling under the 10-digit Chinese Customs Commodity Codes identified in the 2012 Export Licensing Management Commodities List as listed in Annex 3 
Section B . 
4 As listed in Annex 1 Section A.   
5 As listed in Annex 2 Section A. 
6 As listed in Annex 3 Section A. WT/DS431/6 
Page 2  
 
  The United States understands that these Chinese measures are reflected in the following:  
 
 Customs Law of the People's Republic of China (adopted at the 19
th Meeting of the 
Standing Committee of the Sixth National People's Congress on 22 January 1987, 
amended 8 July 2000) 
 Regulations of the People's Republic of China on Import and Export Duties  (Order of the 
State Council No. 392, adopted at the 26th executive meeting of the State Council on 
29 October 2003, effective 1 January 2004)  
 Announcement No. 27 Issuing the "2 012 Tariff Implementation Program"  (State Council 
Customs Tariff Commission, shuiweihui, No. 27, issued 9 December 2011, effective 
1 January 2012) 
 Announcement No. 79 Regarding the " 2012 Tariff Implementation Program" (General 
Administration of Customs, No.79, issued 22 December 2011, effective 1 January 2012)   
 as well as any annexes or schedules thereto,  amendments, supplements, or extensions; 
and implementing measures in force to date. 
 The United States considers that these measures ar e inconsistent with Paragraph 11.3 of Part I 
of the Accession Protocol because these measures co nstitute taxes and charges applied to exports. 
 
II. EXPORT QUOTAS  
 China subjects the exportation of various forms of rare earths7, tungsten8 and molybdenum 9 
to quantitative restrictions such as quotas.   
 The United States understands that these Chin ese measures are reflected in the following:   
 Foreign Trade Law of the People's Republic of China  (adopted as amended at the 8th 
Session of the Standing Committee of the Tenth National People's Congress on 6 April 2004, effective 1 July 2004)  
 Regulation of the People's Republic of China on the Administration of the Import and 
Export of Goods  (Order of the State Council No. 332, adopted at the forty-sixth executive 
meeting of the State Council on 31 October  2001, effective 1 January  2002)    
 Measures for the Administration of Export Commodities Quotas  (Order of the Ministry of 
Foreign Trade and Economic C ooperation No. 12, issued on 20 December 2001, effective 
1 January 2002) 
 Measures for the Administration of the Organs for Issuing the Licenses of Import and 
Export Commodities (Ministry of Foreign Trade and Economic Cooperation, 
waijingmaopeiguanhanzi, No. 68, 21 Se ptember 1999, amended 12 September 2010)  
 Measures for the Administration of Licensing for the Export of Goods  (Order of the 
Ministry of Commerce No. 11, adopted 7 May 2008, effective 1 July 2008) 
                                                      
7 As listed in Annex 1 Section B. 
8 As listed in Annex 2 Section B. 
9 As listed in Annex 3 Section B.  WT/DS431/6 
 Page 3 
 
 
   Working Rules on Issuing Export Licenses (Ministry of Commerce, shangpeifa No. 398, 9 
October 2008) 
 Rules on the Administration of Import and Export License Certificates (Ministry of 
Commerce, shangwubuling, No. 1, issued 4 February 2012, effective 5 March 2012) 
 Notice on Issuing the "2012 Export Li censing Management Commodities List"  (Ministry 
of Commerce and General Administration of Customs Notice No. 98, 30 December 2011)   
 Announcement Issuing the "2012 Graded Licen se-Issuing List of Commodities Subject to 
Export License Administration" (Ministry of Commerce No. 103, 31 December 2011, 
effective 1 January 2012) 
 2012 Notice on the Total Export Quota Quantity for Agricultural and Industrial Products 
in 2012 (Ministry of Commerce No. 71, issued  31 October 2011, effective 1 January 
2012) 
 Notice Publishing the List of Enterprise Appl ying for the Export Quota for Rare Earths 
and Coke in 2012 (Ministry of Commerce, 14 December 2011) 
 Notice Publishing the List of the State Trading Export Enterprises of Tungsten, Antimony 
and Silver, the Enterprises Exporting and Supplying Tungsten and Antimony, and the 
Enterprises of Applying for the Export Quot as for Indium and Molybdenum in 2012 , 
(Ministry of Commerce, 14 December 2011) 
 2012 Notice on List of Rare Earth Export Enterprises and First-batch Rare Earth Export 
Quota (Ministry of Commerce, shangmaohan, No. 1133, 26 December 2011)  
 2012 Notice on List of Export (Supply) Enterprises and First-batch Export Quota of 
Tungsten, Antimony and Other Nonferrous Metals  (Ministry of Commerce, shangmaohan, 
No. 1131, 26 December 2011)  
 Announcement on 2012 Applica tion Conditions and Procedu res for Qualification for 
Rare Earth Export Quota (Ministry of Commerce, No. 77, 11 November 2011) 
 Announcement Regarding the Qualification Standards of State Owned Tungsten, 
Antimony and Silver Trade and Enterprises, Tungsten and Antimony  Export and Supply 
Enterprises and Declaration Procedures in 2012 (Ministry of Commerce, No. 80, 
11 November 2011) 
 Announcement on Applicati on Conditions and Procedures for 2012 Indium, Molybdenum 
and Tin Export Quotas  (Ministry of Commerce No. 79, 11 November 2011)   
 Notice on the Supplement to the 2012 First Batch of Rare Earth Export Quota (Ministry 
of Commerce No. 618, 16 May 2012) 
 as well as any annexes or schedules thereto,  amendments, supplements, or extensions; 
and implementing measures in force to date. 
 The United States considers that these measures are inconsistent with Article XI:1 of the 
GATT 1994 and China's obligations under the provisions  of Paragraph 1.2 of Part I of the Accession 
Protocol, which incorporates commitments in Pa ragraphs 162 and 165 of the Working Party Report WT/DS431/6 
Page 4  
 
  on the Accession of China (WT/MIN(01)/3) ("Work ing Party Report"), because these measures 
constitute export restrictions other th an duties, taxes or other charges. 
III. EXPORT QUOTA ADMINISTRATION AND ALLOCATION 
 With respect to the administration and the a llocation, including through export licensing, of 
the export quotas on various forms of rare earths
10, tungsten11 and molybdenum12:  
 
1)  China imposes restrictions on the trading ri ghts of enterprises seeking to export various forms 
of rare earths and molybdenum, such as prior export performance and minimum registered capital 
requirements.   
The United States understands that these Chinese measures are reflected in the following: 
 Foreign Trade Law of the People's Republic of China (adopted as amended at the 8
th 
Session of the Standing Committee of the Tenth National People's Congress on 6 April 2004, effective 1 July 2004)   
 
 Regulation of the People's Republic of China on the Administration of the Import and 
Export of Goods  (Order of the State Council No. 332, adopted at the forty-sixth 
executive meeting of the State Council on 31 October 2001, effective 1 January  2002) 
 
 Measures for the Administration of Export Commodities Quotas  (Order of the Ministry 
of Foreign Trade and Economic Cooperation No. 12, issued on 20 December 2001, effective 1 January 2002) 
 Measures for the Administration of Licensing for the Export of Goods  (Order of the 
Ministry of Commerce No. 11, adopted 7 May 2008, effective 1 July 2008) 
 Measures for the Administration of the Or gans for Issuing the Licenses of Import and 
Export Commodities (Ministry of Foreign Trad e and Economic Cooperation, 
waijingmaopeiguanhanzi, No. 68, 21 Sept ember 1999, amended 12 September 2010) 
 Working Rules on Issuing Export Licenses  (Ministry of Commerce, shangpeifa No. 398,  
9 October 2008) 
 Rules on the Administration of Import and Export License Certificates (Ministry of 
Commerce, shangwubuling, No. 1, issued 4 February 2012, effective 5 March 2012) 
 Notice on Issuing the "2012 Export Licensing Management Commodities List"  (Ministry 
of Commerce and General Administration of Customs Notice No. 98, 30 
December 2011)   
 Announcement Issuing the "2012 Graded License-Issuing List of Commodities Subject to 
Export License Administration " (Ministry of Commerce, No. 103, 31 December 2011, 
effective 1 January  2012)  
                                                      
10 As listed in Annex 1 Section B. 
11 As listed in Annex 2 Section B. 
12 As listed in Annex 3 Section B.  WT/DS431/6 
 Page 5 
 
 
   2012 Notice on the Total Export Quota Quantity for Agricultural and Industrial Products 
in 2012 (Ministry of Commerce No. 71, issued 31 October 2011, effective 1 January 
2012)  
 Notice Publishing the List of Enterprise Applying for the Export Quota for Rare Earths 
and Coke in 2012 (Ministry of Commerce, 14 December 2011)  
 Notice Publishing the List of the State Tradi ng Export Enterprises of Tungsten, Antimony 
and Silver, the Enterprises Exporting and Sup plying Tungsten and Antimony, and the 
Enterprises of Applying for the Export Quotas for Indium and Molybdenum in 2012 , 
(Ministry of Commerce, 14 December 2011) 
 2012 Notice on List of Rare Earth Export Enterprises and First-batch Rare Earth Export 
Quota (Ministry of Commerce, shangmaohan, No. 1133, 26 December 2011)  
 2012 Notice on List of Export (Supply) Enterprises and First-batch Export Quota of 
Tungsten, Antimony and Other Nonferrous Metals  (Ministry of Commerce, 
shangmaohan, No. 1131, 26 December 2011)  
 Announcement on 2012 Applica tion Conditions and Procedu res for Qualification for 
Rare Earth Export Quota (Ministry of Commerce, No. 77, 11 November 2011)  
 Announcement on Applicati on Conditions and Procedures for 2012 Indium, Molybdenum 
and Tin Export Quotas  (Ministry of Commerce No. 79, 11 November 2011)  
 Notice on the Supplement to the 2012 First Batch of Rare Earth Export Quota (Ministry 
of Commerce No. 618, 16 May 2012) 
 as well as any annexes or schedules thereto,  amendments, supplements, or extensions; 
and implementing measures in force to date. 
The United States considers that these measures are inc onsistent with Paragraph 5.1 of Part I of the 
Accession Protocol, as well as China's obligations under the provisions of paragraph 1.2 of Part I of 
the Accession Protocol, which incorporates commitmen ts in paragraphs 83 a nd 84 of the Working 
Party Report, because these measures limit the right to trade.  2) China administers these export quotas on va rious forms of rare earths, tungsten and 
molybdenum in a manner that is not uniform, impartial, or reasonable, such as by the use of criteria in 
the application and allocation process that lack definition or do not contain sufficient guidelines or 
standards in how they should be applied.   
The United States understands that the export quotas are administered through the following: 
 
 Foreign Trade Law of the People's Republic of China (adopted as amended at the 8
th 
Session of the Standing Committee of the Tenth National People's Congress on 6 April 2004, effective 1 July 2004)   
 Regulation of the People's Republic of China on the Administration of the Import and 
Export of Goods  (Order of the State Council No. 332, adopted at the forty-sixth 
executive meeting of the State Council on 31 October 2001, effective 1 January 2002)    WT/DS431/6 
Page 6  
 
   Measures for the Administration of Export Commodities Quotas  (Order of the Ministry 
of Foreign Trade and Economic Cooperation No. 12, issued on 20 December 2001, effective 1 January 2002)  
 Measures for the Administration of Licensing for the Export of Goods  (Order of the 
Ministry of Commerce No. 11, adopted 7 May 2008, effective 1 July 2008) 
 Measures for the Administration of the Or gans for Issuing the Licenses of Import and 
Export Commodities (Ministry of Foreign Trad e and Economic Cooperation, 
waijingmaopeiguanhanzi, No. 68, 21 Sept ember 1999, amended 12 September 2010) 
 Working Rules on Issuing Export Licenses  (Ministry of Commerce, shangpeifa No. 398, 
9 October 2008) 
 Rules on the Administration of Import and Export License Certificates (Ministry of 
Commerce, shangwubuling, No. 1, issued 4 February  2012, effective 5 March 2012) 
 Notice on Issuing the "2012 Export Licensing Management Commodities List"  (Ministry 
of Commerce and General Administration of Customs Notice No. 98, 30 
December 2011)   
 Announcement Issuing the "2012 Graded License-Issuing List of Commodities Subject to 
Export License Administration"  (Ministry of Commerce No. 103, 31 December 2012) 
 2012 Notice on the Total Export Quota Quantity for Agricultural and Industrial Products 
in 2012 (Ministry of Commerce No. 71, issued 31 October 2011, effective 1 January 
2012)  
 Notice Publishing the List of Enterprise Applying for the Export Quota for Rare Earths 
and Coke in 2012 (Ministry of Commerce, 14 December 2011)  
 Notice Publishing the List of the State Tradi ng Export Enterprises of Tungsten, Antimony 
and Silver, the Enterprises Exporting and Sup plying Tungsten and Antimony, and the 
Enterprises of Applying for the Export Quotas for Indium and Molybdenum in 2012 , 
(Ministry of Commerce, 14 December 2011) 
 2012 Notice on List of Rare Earth Export Enterprises and First-batch Rare Earth Export 
Quota (Ministry of Commerce, shangmaohan, No. 1133, 26 December 2011)  
 2012 Notice on List of Export (Supply) Enterprises and First-batch Export Quota of 
Tungsten, Antimony and Other Nonferrous Metals  (Ministry of Commerce, 
shangmaohan, No. 1131, 26 December 2011)  
 Announcement on 2012 Applica tion Conditions and Procedu res for Qualification for 
Rare Earth Export Quota (Ministry of Commerce, No. 77, 11 November 2011) 
 
 Announcement Regarding the Qualificati on Standards of State Owned Tungsten, 
Antimony and Silver Trade and Enterprises, Tungsten and Antimony Export and Supply 
Enterprises and Declaration Procedures in 2012  (Ministry of Commerce, No. 80, 
11 November 2011) 
  WT/DS431/6 
 Page 7 
 
 
   Announcement on Applicati on Conditions and Procedures for 2012 Indium, Molybdenum 
and Tin Export Quotas  (Ministry of Commerce No. 79, 11 November 2011)  
 Notice on the Supplement to the 2012 First Batch of Rare Earth Export Quota (Ministry 
of Commerce No. 618, 16 May 2012) 
  as well as any annexes or schedules thereto, amendments, supplement s, or extensions; 
and implementing measures in force to date. 
The United States considers that China's admini stration of the export quotas is inconsistent 
with Article X:3(a) of the GATT 1994 and Paragra ph 2(A)(2) of Part I of the Accession Protocol 
because it is done in a manner that is not uniform, impartial, or reasonable.  
* * * * * * 
 Accordingly, the United States respectfully requ ests that, pursuant to Article 6 of the DSU, 
the Dispute Settlement Body establish a panel to ex amine this matter, with the standard terms of 
reference as set out in Article 7.1 of the DSU. 
  
_______________ 
  WT/DS431/6 
Page 8  
 
  Annex 1 
 
Rare earths 
 
Section A  
(List of Chinese Customs Commodity Codes iden tified in the 2012 Tariff Implementation 
Program13) 
 
25309020 26122000 
28053011 
28053012 28053013 28053014 28053015 
28053016 
28053017 28053019 28053021 28053029 28461010 
28461020 
28461030 28461090 
28469011 
28469012 
28469013 28469014 28469015 28469016 
28469017 
28469019 28469021 28469022 28469023 28469024 
28469025 
28469026 28469028 
28469029 
28469031 
28469032 28469033 28469034 28469035 
28469036 
28469039 28469041 28469042 28469043 28469044 
28469045 
28469046 28469048 
28469049 
28469091 
28469092 28469093 28469094 28469095 
28469096 
28469099 72029911 72029919 72029991 72029999 
 
 Section B  
(List of Chinese Customs Commodity Codes id entified in the 2012 Export Licensing 
Management Commodities List14) 
 
2530902010 2530902090 2612200000 
2805301100 
2805301200 2805301300 2805301400 2805301510 
2805301590 
2805301600 2805301700 2805301913 2805301914 2805301915 
2805301990 
2805302110 2805302190 2805302910 2805302990 2846101000 
2846102000 2846103000 
2846109010 
2846109090 2846901100 2846901200 2846901300 
2846901400 
2846901500 2846901600 2846901700 2846901920 2846901930 
2846901940 
2846901970 2846901980 2846901991 2846901992 2846901999 
2846902100 2846902200 
2846902300 
2846902400 2846902500 2846902600 2846902810 
2846902890 
2846902900 2846903100 2846903200 2846903300 2846903400 
2846903500 
2846903600 2846903900 2846904100 2846904200 2846904300 
2846904400 2846904500 
2846904600 
2846904810 2846904890 2846904900 2846909100 
2846909200 
2846909300 2846909400 2846909500 2846909600 2846909910 
2846909990 
7202999110 7202999191 7202999199 
                                                      
13 Announcement No. 27 Issuing the 2012 Tariff Implementation Program (State Council Customs 
Tariff Commission, shuiweihui , No. 27, issued 9 December 20 11, effective 1 January 2012). 
14 Notice on Issuing the "2012 Export Licensing Management Commodities List ," Ministry of 
Commerce and General Administration of Customs Notice No. 98 (30 December  2011).  WT/DS431/6 
 Page 9 
 
 
  Annex 2 
 
Tungsten 
 
Section A  
(List of Chinese Customs Commodity Codes iden tified in the 2012 Tariff Implementation 
Program15) 
 
 26209910 
28259011 
28259012 28259019 28418010 
28418020 
28418030 28418040 28418090 
28499020 
72028010 72028020 81011000 
81019400 
81019700 
 
 
 
Section B  
(List of Chinese Customs Commodity Codes id entified in the 2012 Export Licensing 
Management Commodities List16) 
 
 
2611000000 
2620991000 2825901100 2825901200 2825901910 
2841801000 2841802000 2841803000 2841804000 
2849902000 8101100010 8101100090 8101940000 
8101970000 
 
 
  
                                                      
15 Announcement No. 27 Issuing the 2012 Tariff Implementation Program (State Council Customs 
Tariff Commission, shuiweihui , No. 27, issued 9 December 20 11, effective 1 January 2012). 
16 Notice on Issuing the "2012 Export Licensing Management Commodities List ," Ministry of 
Commerce and General Administration of Customs Notice No. 98 (30 December 2011). WT/DS431/6 
Page 10  
 
  Annex 3 
 
Molybdenum 
 
Section A  
(List of Chinese Customs Commodity Codes iden tified in the 2012 Tariff Implementation 
Program17) 
 
 26131000 
26139000 
28257000 28417010 
28417090 
72027000 81021000 
81029400 
81029700  
 
  Section B  
(List of Chinese Customs Commodity Codes id entified in the 2012 Export Licensing 
Management Commodities List18) 
 
 
2613100000 2613900000 
2825700000  2841701000 
2841709000 
7202700000  8102100000 
8102940000 
8102970000   
 
 
  
__________  
                                                      
17 Announcement No. 27 Issuing the 2012 Tariff Implementation Program (State Council Customs 
Tariff Commission, shuiweihui , No. 27, issued 9 December 20 11, effective 1 January 2012). 
18 Notice on Issuing the "2012 Export Licensing Management Commodities List ," Ministry of 
Commerce and General Administration of Customs Notice No. 98 (30 December 2011).