WORLD TRADE  
ORGANIZATION  G/LIC/17 
9 November 2007 
 
 (07-4864) 
Committee on Import Licensing  
  
 
REPORT TO THE COUNCIL FOR TRADE IN GOODS 
ON CHINA'S TRANSITIONAL REVIEW  
 
 
1. The Committee on Import Licensing, at its meeting on 8 October 2007, carried out the sixth 
transitional review of China pursuant to Paragra ph 18 of the Protocol on the Accession of the People's 
Republic of China (WT/L/432).  2. Written questions in connection with the tr ansitional review of China's import licensing 
system were submitted in advance by the United States. These submissions were circulated in 
documents G/LIC/Q/CHN/21.   
 3. The information provided by China to the Committee on Import Licensing for its meeting on 
8 October 2007, were circulated in document G/LIC/W/30.    4. The statements made at the meeting, wh ere discussions under the transitional review took 
place, are reflected in the minutes of the meeting (G/LIC/M/26, paragraphs 3.1-3.7).  The relevant 
paragraphs which reflect this discussion are annexed. G/LIC/17 
Page 2  
 
3. Sixth Transitional Review Under Paragra ph 18 Of The Protocol On The Accession Of 
The People's Republic Of China (WT/L/432). 
 
3.1 The Chairperson
 recalled that the fifth transitional review of the implementation by China of 
the WTO Agreement and of the related provisions of the Protocol, under paragraph 18 of the Protocol 
of Accession of China (WT/L/432), had been carried out in 2006 by the subsidiary bodies of the 
WTO, including the Committee on Import Licensi ng, which had a mandate covering China's 
commitments under the WTO Agreement or China's Pr otocol of Accession.  The Committee's report 
to the Council for Trade in Goods on that review had been circulated in document G/LIC/15.  The 
Committee would conduct the sixth transitional review at the present meeting.  He also informed the 
Committee that since the last me eting, the Secretariat had received one submission from the United 
States (G/LIC/Q/CHN/21) containing questions on China's import licensing procedures.  The 
Secretariat had also received, after the airgram convening this meeting was issued, a communication 
from China containing information required by para graph IV:3 of Annex 1A of the Protocol of 
Accession which has been circulated in document G/LIC/W/30. 
 
3.2 The representative of the United States  stated that his delegation considered the transitional 
review on ILP an important process regarding China' s accession to this Organization;  his delegation 
looked forward to continuing dialogue with China on the import system for poultry and on import of bulk agriculture commodities
1 as well as on other questions and procedures as they arise.    
 
3.3 The representative of the People's Republic of China  thanked the United States for its 
questions and comments and, in response to the latter, said that:  (i) the purpose of the import 
registration system for poultry was to collect st atistics and to prevent and control potential bird 
influenza.  The local Bureau of Commerce or th e Bureau of Foreign Trade and Economic Cooperation 
was in charge of these applications.  The registra tion certificates were granted automatically if the 
application forms were completed correctly.  Ho wever, those applicants having forged records 
concerning automatic import licences would not be gr anted a certificate.  In view of the above, his 
delegation did not find the system unnecessary, nor tr ade restrictive.  Concerning the statistics 
requested by the US, his delegation would contact th e local agencies after the National holiday to see 
whether these would be available;  (ii) the dr aft administrative measure of reporting information 
publication on import of bulk agriculture commodities had the intention to strengthen market 
transparency in the sector to pr event price fluctuation and to provide market access to small- and 
medium-sized new enterprises.  In the past, his authorities had observed price manipulation by some 
large enterprises which took a large proportion of the market share and distorted the market in a considerable manner.  He also noted that the draft measure was not yet enforced and that his 
delegation would welcome Members' comments to be dealt bilaterally. 
 
3.4 The delegate from the United States
 thanked China's remarks and replies to the US. questions 
and expressed his hope that these would be the start of an ongoing and detaile d dialogue.  With regard 
to the automatic registration form, his delegation understood the need to have some control of 
imports, especially in an area, such as China, where the bird flu epidemic was present.  Nevertheless, 
the US delegation was of the opinion that there might be some other way in which to handle the issue 
without resorting to import licences.  Concerning the draft measure on import reporting on the import 
of bulk agriculture commodities, China was the only country that considered the actual contract price as compared to a price for customs valuation purpo ses.  His delegation also understood the need for 
market transparency as the United States also had some reporting requirements on market transitions in its territory, but wondered whether there were other ways to meet those aims in China without 
resorting to import licensing.  He looked forward to  discussing with China thes e issues in more detail. 
 3.5 The Committee took note
 of the statements made. 
 
                                                      
1 See G/LIC/Q/CHN/21.  G/LIC/17 
 Page 3 
 
 
3.6 The Chairperson  suggested that, to conclude th e Sixth Transitional Review under 
Paragraph 18 of the Protocol of Accession of th e People's Republic of China, a factual report on 
China's transitional review be submitted to the Coun cil for Trade in Goods (CTG).  As had been done 
previously, this factual report would refer to the rele vant paragraphs of the minutes of this meeting as 
well as the oral and written comments and questions submitted to China, and the information received 
from China.  The relevant paragraphs of the minut es which reflected the di scussion would be annexed 
to this report.    3.7 The Committee so agreed
.  The report to the CTG on the sixth transitional review was 
circulated in document G/LIC/17. 
 
 
 
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