. /.   WORLD TRADE  
ORGANIZATION  G/MA/W/93 
23 September 2008 
 
 (08-4473) 
Committee en Market Access Original:   English 
  
 
CHINA'S TRANSITIONAL REVIEW MECHANISM 
 
Questions and Comments of Japan on the Implementation by China 
 
of its Commitments on Market Access  
 
Communication from Japan 
  
 The following communication, dated 22 September 2008, is being circulated at the request of 
the delegation of Japan. 
 
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1. Export Restrictions and Export  Taxes on Non-Ferrous Metal 
(a) Japan understands that China implements an  export licensing system on various kinds of 
non-ferrous metals: rare-earths,  tungsten, antimony, tin, silver, magnesium, bauxite, indium, 
molybdenum, and zinc. Among these non-ferrous  metals, indium and molybdenum became 
subject to quantitative trade restrictions in J une 2007, and the amount of the other non-ferrous 
metals which received export licenses, has been declining. Please explain how China justifies 
its export licensing on these non-ferrous metals under GATT. 
 
(b) Japan would like to seek clarification if there are restrictions in China on domestic production 
and/or consumption of these metals, with specific quantitative data.  
 (c)  China levies export taxes on several types of non-ferrous metals, and has increased them, 
several times since November 2006, while Chin a committed to eliminate export taxes for all 
items except for those listed in Annex 6 to its Protocol of the Accession. Please explain policy 
objectives of the export taxes and how China justifies them under its commitment upon accession. 
 (d) Please describe China’s plans for eliminati ng export licensing measures and export taxes. 
 
2. Export Taxes on Chemical Fertilizers and their Raw Materials 
(a) Japan understands that China has been levy ing a 100% export tax on 32 items of chemical 
fertilizers and their raw materials, from 20
th April  to 30th September  2008. Besides, 6 items 
including phosphate rock have been added to  the list of these items subject to the 100% 
export tax, since May 2008.  
  Furthermore, on 29
th August, China officially announced the increase of export taxes on 
nitrogen fertilizers and ammonia to 150% from September 1st to 31st December  this year, and 
the extension of the expiration date of the export taxes on the other items of chemical 
fertilizers to 31st December. Since 36 products among them are not listed in Annex 6 to G/MA/W/93 
Page 2  
 
  China’s Protocol of the Accession as products subject to export duty, this might not be 
consistent with China’s commitment upon accession to the WTO. 
  (b) Please explain China’s plans for eliminati ng the export taxes on these items. Please also 
describe how China justifies its use of the export taxes on these items under its commitment 
upon accession. 
 
3. Export Restrictions and Export Taxes on Coal 
(a) Japan understands that China has been im plementing an export licensing on coal exports. 
While a sufficient number of e xport licenses used to be issued  in terms of China’s export 
amount of coal, the number of issuance has be en decreasing in the last few years, and 
therefore Japan is concerned that this trend might hamper the trade flow of coal. Since China’s domestic production and consumption of co al seem to be expanding, it is unclear that 
the export licensing measures on coal has been adopted in conjunction with restrictions on domestic production and/or cons umption as stipulated in GATT Article XX (g), and thus 
Japan considers that such measures are not c onsistent with GATT Article XI. Please explain 
how China justifies the export licensing on coal under GATT. 
 (b) In addition, Japan understands that China h as raised export taxes on coking coal and has 
newly levied taxes on steam coal and anthr acite since August this year, while China 
committed to eliminate export taxes for items ex cept for those which are listed in Annex 6 of 
China’s Protocol to the Accessi on. Please explain how China justifies its export taxes under 
its commitment upon accession. 
 (c)  Please describe any plans to review the e xport licensing measures and imposition of export 
taxes on coal. 
 
4. Export Restrictions and Export Taxes on Coke 
(a) China implements an export licensing on exports of cokes. Japan is concerned about negative 
affects of recent decreases in the number of  export licenses issued on the cokes trade. In 
addition, since this measure has not been made effective in conjunction with restrictions on 
domestic production or consumption, Japan c onsiders that it cannot be justified under GATT 
Article XX (g) regarding the conservation of exha ustible natural resources,  and thus it is not 
consistent with GATT Article XI and  
 (b) China explained its measures aimed at rest ricting domestic producti on and consumption of 
cokes. However, it is unclear whether those me asures have effectively reduced the production 
and consumption of coal, which is an ingredient  of cokes. Japan requests China to show us 
the quantitative effect of those measures on domestic production and consumption of coal. 
 (c)  China levies export taxes on cokes whic h have been raised several times since 
November 2006, while China committed to elimin ate export taxes for items except for those 
which are listed in Annex 6 to China’s Protocol of the Accession. Please explain how China 
justifies its export taxes under its commitment upon accession. 
 (d) Please describe any plans to review the export licensing measures and imposition of export 
taxes. 
 
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