. /.   WORLD TRADE  
ORGANIZATION  G/C/W/626 
20 October 2009 
 
 (09-5163) 
Council for Trade in Goods Original:   English 
  
 
TRANSITIONAL REVIEW MECHANISM IN CONNECTION WITH PARAGRAPH 18 
OF THE PROTOCOL ON THE ACCESSION 
OF THE PEOPLE’S REPUBLIC CHINA 
 
Questions and Comments from JAPAN to CHINA
 
 
  The following communication, dated 19 Octobe r 2009, has been received from the delegation 
of Japan.  
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1. Export Licensing Measures 
 Japan remains concerned about China’s expor t licensing (E/L) measures on certain materials 
such as fluorite, coal, coke and non-ferrous metals  (rare-earths, tungsten, antimony, tin, silver, 
bauxite, indium, molybdenum and zinc ).  Japan understands that, for mo st of the materials mentioned 
above, China’s total amount of exports  limited by the issuances of the E/L has been declining over the 
past few years.   In response to Japan’s question, China explained in the Trade Policy Review on 21-23 May 
2008, responding to Japan’s question, that “Chi na adopts necessary export restriction on resource-
intensive products in consistent with Article 20 “General Exception”  of GATT 1994, that is to say, 
China implements stringent restriction on domestic  production and consumpti on of resource-intensive 
products while the export restriction is in place. ”.  However, actual data regarding domestic 
production and consumption on the above-mentioned products, has not been provided by China.  
 
(a) Please explain how China justifies its use of export licensing measures on each 
material under Article 20 of the Genera l Agreement on Tariffs and Trade 1994.  
(b) Please provide the data on domestic production and consumption of each material in 
which export licensing measure is applied. 
(c) Please provide some information about wh ether there is a ceiling on domestic 
production of each material in which ex port licensing measure is applied.  
(d) Please clarify the extent of difference between the volume of export restriction and 
the restriction on domestic production.  
(e) Does China have any plans to eliminate or review the export licensing measures? 
Please explain? 
 G/C/W/626 
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  2. Export Taxes 
 Japan remains concerned about China’s impos ition of export taxes on certain raw materials 
and products, including chemical fertilizers and th eir raw materials, non-ferrous metals, coal and 
coke.  The imposition of export taxes on some of th ese products has been raised several times.  
 
 As for the recently raised/introduced expor t duties on chemical fertilizers and their raw 
materials, Japan understands that China has levi ed a 100% export taxes on 32 items effective from 
April 29 to the end of last year.  Six other products  including phosphate rock have also been subject to 
a 100% export tax since May last year.  In additi on, on August 29, 2008, China officially announced 
an increase of the export taxes on nitrogen fertilizer s and ammonia to 150% effective September 30 to 
December 31, 2008.  It also levied export taxes on steam coal and anthracite since August last year.  
  In Section 11.3 of Part I of its Protocol on the Accession, China committed to eliminate all taxes and charges applied to exports unless specifica lly provided for in Annex 6 of this Protocol.  
However, most of the above products are not listed in  Annex 6 of the Protocol and the duties for other 
few items such as phosphate rock are above the expor t duty rate that China committed in Annex 6.  
 
(a) Please explain the purposes of China’s imposition/increase of export taxes on 
chemical fertilizers and their raw materials, non-ferrous metals, coal and coke, respectively.  
(b) Please explain how China justifies its imposition/increase of export taxes in light of 
the commitments that China made in Section 11.3 of Part I of its Protocol of 
Accession. 
(c) Does China have any plans to eliminate or review the export taxes measures? 
3. Export Prohibition 
 Japan remains concerned about China’s export prohibition on natural sand.  China explains 
that the purpose of the prohibition is to conser ve natural resources, and that the production and 
consumption of natural sand is restricted  in parallel with the export prohibition. 
 
(a) Please explain how China justifies its e xport prohibition on natural sand under Article 
XI of the General Agreement on Tariffs and Trade 1994. 
(b) Please explain in detail China’s restrictive measures on domestic production and 
consumption of natural sand. 
(c) Please provide the data on the latest tren d in domestic production and consumption of 
natural sand. 
(d) Does China have any plans to eliminate or review the export prohibition on natural 
sand? 
 
 
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