WORLD TRADE  
ORGANIZATION  G/TBT/W/270 
10 October 2006 
 (06-4846) 
Committee on Technical Barriers to Trade Original:   English 
  
 
TRANSITIONAL REVIEW MECHANISM IN CONNECTION WITH PARAGRAPH 18  
OF THE PROTOCOL ON THE ACCESSION OF THE PEOPLE’S REPUBLIC OF CHINA 
 
Questions and Comments from Japan to China
 
 
 
 The following communication, dated 6 October 2006, is being circulated at the request of the delegation of Japan
. 
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1. Japan welcomes that, in the fifth year afte r accession, implementation by China of its 
commitments on Technical Barriers to Trade (TBT) h as progressed and entered into a cruising phase.  
The transitional review mechanism (TRM) could be useful for making those transitional efforts more 
efficient and productive, and it is a pleasure for Japan to contribute to this process. 
2. In accordance with Paragraph 18 of the Protoc ol on the Accession of the People’s Republic of 
China, which states that "China shall provide releva nt information to each subsidiary body in advance 
of the review" and in the spirit of cooperation to render the TRM process most efficient and effective, Japan requests China to provide, in advance of th e meeting of the TBT Committee, the responses and 
relevant information to the fo llowing questions and comments. 
I. CCC SYSTEM 
3. Japan would like to raise the China Compulsory  Certification (CCC) system as one of our 
concerns on China’s implementation of its commitments on TBT.  Japan has mainly two concerns on 
CCC system; one is uncertain application of nationa l treatment in conformity assessment procedure, 
and the other is complicated and burdensom e CCC procedure which would create unnecessary 
obstacles to international trade 
A. A
CCREDITATION OF FOREIGN CONFORMITY ASSESSMENT BODIES  
4. Under the CCC system, no foreign conformity assessment bodies (CABs) have been 
accredited by China according to the Article 13 of th e Regulations of the Peoples Republic of China 
on Certification and Accreditation, which permits only Chinese CABs to engage in CCC certification 
activities.  Japan considers that such provision is not consistent with the objective of Article 6.4 of the 
TBT agreement and the China’s commitment in Paragr aph 195 of the Report of the Working Party.  
In this regard, China stated at the previous TR M that foreign CABs may engage in CCC certification 
activities as long as Mutual Recognition Agreement (MRA ) is concluded.  However, Article 6.4 of the 
TBT agreement does not require such a condition.  Therefore Japan would like to request China to 
permit foreign CABs to participate in CCC cer tification activities under conditions no less favourable 
than those accorded to  Chinese CABs in light of Article 6.4 of the TBT agreement. G/TBT/W/270 
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  B. I
NITIAL FACTORY INSPECTION  
5. Japan understands that foreign testing laborat ories are not permitted to conduct an initial 
factory inspection because the Certification Accreditation Administration (CNCA) has designated only Chinese domestic facilities as testing laboratori es for the CCC marking.  Although China stated 
at the previous TRM that China fulfilled its commitm ent of not exceeding 90 days with regard to the 
CCC certification period, in some cases it takes longer period than 90 days (sometimes 6 to 12 
months) for factories located outside of China to  obtain the CCC certification because they need to 
wait for a visit of Chinese auditors for initial factor y inspection.  In order to shorten the time period 
taken for certification, Japan would like to request China to designate foreign testing laboratories to 
conduct an initial factory inspection. 
6. When CCC certified factories manufacture products which are outside the scope of already 
certified product category, they have to apply for a nother initial factory inspection.  Japan would like 
China to abolish the duplicated initial factory inspection because such du plication causes unnecessary 
burden on manufacturers. 
7. Initial factory inspection is conducted upon the comp letion of type test.  Since the necessity of 
initial factory inspection can be determined prior to the type test, Japan would like to request China to 
conduct initial factory inspection in parallel with the type test.  
C. P
ERIODIC FACTORY INSPECTION  
8. All factories manufacturing products to whic h the CCC system is applied are subject to 
inspection by CABs once a year. Such frequent insp ection puts a burden on Japanese manufacturers.  
Japan would like to know the explicit reason for n ecessity of such a frequent inspection and request 
China to reduce the number of inspections according to product type. In par ticular, Japan would like 
China to decrease the frequency of the periodi c factory inspection for low- risk products. 
9. At the previous TRM, China stated that if factories decide to stop manufacturing products 
which are subject to the CCC certification and notif y the CABs of it, the periodical factory inspection 
would be automatically halted.  However, Japan recognizes this procedure does not work properly.  
Therefore, Japan would like to request China to let Administration for Industry and Commerce and its 
subordinate organizations fully abide by the procedure. 
D. CCC  MARK 
10. For the CCC mark labelling, companies are requi red to purchase stickers with the CCC mark 
from CNCA or apply to CNCA for permission to print/impress the CCC mark on their products.  The 
large minimum purchase unit and the restriction on common use of CCC mark with other certified 
product models cause the unnecessary increase of pur chase cost and burden of label management for 
Japanese companies.  Japan would like to know the reason why the purchase and permission to use 
the CCC mark are required. In addition, Japan belie ves that it is possible for CNCA to identify the 
factory manufacturing the products also by introducing the system whereby a certified factory labels its products the CCC mark and the factory’s identif ication number by itself.  Japan would like to 
know whether China intends to introduce su ch a self-marking system in the future. 
E. S
PARE PARTS CERTIFICATION  
11. Spare parts and components to which the CCC sy stem is applied (such as fuse, relay and 
plug) are not subject to the CCC certification in case they are incorporated in final products which are 
exported to China.  However, the CCC certification is required when they are exported as a single unit 
for repair even if they are finally incorporated  in CCC certified final products.  Japan would like to  G/TBT/W/270 
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  request China to exempt single parts and component s which will be ultimately incorporated in CCC 
certified final products from CCC certification. 
II. THE ADMINISTRATION ON THE CONTROL OF POLLUTION CAUSED BY 
ELECTRONIC INFORMATION PRODUCTS 
12. The Administration on the Control of Pollution Caused by Electronic Information Products 
(hereinafter referred to as the “Administration”) promulgated on February 2006, will be enforced 
from March, 2007.  Although some of Japan’s  comments on China’s WTO/TBT Notification 
(G/TBT/CHN/140 dated 26 September 2005) were reflected in the Ad ministration, some concerns 
still remain. 
13. The Administration stipulates the establishment of national and sectoral standards.  Japan 
understands the sectoral standards for the first step  of control will provide threshold levels of 
designated harmful substances, requirements for la belling and etc.  Those national or sectoral 
standards should be based on intern ational standards and should not be trade-restrictive in accordance 
with the TBT Agreement. 
14. Although we have heard that the TBT notifi cations of above-menti oned standards were 
scheduled between late August and early Septembe r of this year, we have not received such 
notifications yet.  Japan, therefore, would like to know when China will make the TBT notification of 
these standards.  Besides, if it is difficult for Chin a to provide a reasonable interval between the TBT 
notification and the enforcement of the Administ ration, Japan would like China to postpone the 
enforcement of the Administration since certain period will be necessary for manufactures, importers 
and retailers to prepare for the new system.  
III. REGISTRATION OF INITIAL IMPORTS OF CHEMICAL PRODUCTS AND 
SYSTEM FOR ENVIRONMENTAL MANAGEMENT ON THE IMPORT AND EXPORT OF TOXIC CHEMICALS 
15. In paragraph 196(a) of the Report of the Working Party on China’s accession to WTO, China 
has committed (i) to enact and implement, within one  year after its accession, a new law and relevant 
regulations regarding assessment and control of chem icals for the protection of the environment, in 
which complete national treatment and full consiste ncy with international practices will be ensured 
and (ii) to ensure that chemicals listed in the “i nventory chemicals” annexed to the above new law and 
its regulations will be exempted from a registra tion obligation, and that a uniform assessment 
procedure will be established for domestic and imported products under the new law and its 
regulations. 
16. To establish a new system, China drafted and published an initial version of the Import and 
Export Registration Regulations of Dangerous Chemicals in September 2002, and an initial version of 
the Provisions on the Environmental Administration of New Chemical Substances in December 2002 
to collect tentative comments from in terested parties in and outside of China.  Japan understands that 
the final version of the draft of the Import a nd Export Registration Regul ations of Dangerous 
Chemicals has not yet been published.  On the other hand, the Provisions on the Environmental 
Administration of New Chemical Substances were  enforced on 15 October 2003, and the detailed 
administrative rules (tentative) were published on 9 December 2003.  
A. R
EGISTRATION OF INITIAL IMPORTS OF CHEMICAL PRODUCTS  
17. We appreciate China’s effort in enforcement of “Provisions on the Environmental 
Administration of New Chemical Substances”.  However, since there are some unclear points in the 
details and several problems as described below, th ey do not seem to be practically implemented. G/TBT/W/270 
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  18. First, Japan understands that the simplified notification is approved only in the case of 
importing chemical substances for the purposes of r esearch and technological development. However, 
requiring the same range of data from all importe rs regardless of import volume would impose an 
excessive economic burden on importers of small amount s and might affect their importation.  China 
answered at the previous TRM that it had been drawing up the detailed management rules including 
that on low-volume chemicals and chemicals with special uses, etc. Japan would like China to 
introduce promptly the simplified notification for importation of small amounts of new chemical substances.  
19. Second, the new regulation has a provision that the eco-toxicological data of new chemical 
substances shall include those obtained through biolog ical tests performed in China using China’s test 
organisms.  On the other hand, in order to enha nce efficiency and speed of assessment as well as to 
avoid unnecessary test using vertebrate animals,  OECD member countries mutually accept testing 
results with using the GLP (Good Laboratory Practice)  system, and its mutual benefits are large for 
member countries.  The GLP system is open to  non-OECD member countries as well, and we 
understand that India has joined the system. Japan asked at the previous TRM whether China would 
join the GLP system or accept the testing results in  which the biological tests are performed out of 
China by non-Chinese test organisms.  China answered  that they had made an effort to improve the 
capacity of testing institutes in order to join th e GLP system.  Japan would like to know the progress 
of China’s preparation to join the GLP system. 
20. Third, certain chemicals (such as certain polymers) are exempted from the notification.  
However, its procedure for exemption of notificatio n is too burdensome. Japan would like to request 
China to simplify its procedure. 
B. C
HINA ’S REGISTRATION SYSTEM FOR ENVIRONMENTAL MANAGEMENT ON THE IMPORT AND 
EXPORT OF TOXIC CHEMICALS  
21. The Chinese State Environment Protection Ag ency, SEPA, announced on 28 December 2005 
via the publication of circular 65 of 2005 that it had revised the “Highly Restricted Imported and 
Exported Toxic Chemicals” list, and that from 1 January 2006 it would be necessary to obtain both a 
Registration Certificate and a Clearance Notification in order to import chemicals contained on the list 
under the “Regulations for Environmental Manageme nt on the Initial Imports of Chemical products 
and the Import and Export of Toxic Chemicals”.  Several chemicals such as dichloromethane and 
chloroform, which are widely used in industry, were added to the revised list of toxic chemicals.  
22. First, Japan considers that China’s “Environmental Management Registration System for the 
Import and Export of Toxic Chemicals” has import restrictive nature, because only foreign exporters 
to China would be required to obtain a Registra tion Certificate from SEPA which would cost 10,000 
US dollars, and a Clearance Notification for import. Japan considers that the regulation system may 
be inconsistent with TBT Agreement. Specifically , Article 2.1 which stipulates treatment no less 
favorable than that accorded to like products of na tional origin, with respect to products imported 
from the territory of any member, Article 2.2 wh ich stipulates the prohibition of unnecessary import 
restrictions and Article 2.9 which stipulates no tification of a proposed technical regulation to 
Members through the Secretariat at an early stag e, as well as provision of  reasonable time for 
Members to submit comments in writing. Japan would like to hear an explanation about our concerns 
mentioned above from China. 
23. Second, Japan would like to ask about a China’ s future action. SEPA released a draft of 
“Import and Export Registration Regulation of Dangerous Chemicals” for public comment in 
September 2002, this regulation has not yet been implemented due to dela yed coordination among 
government agencies.  This new draft regulation clearly stipulates (in Article 33) the abolition of the present “Regulation for Environmental Management on the Initial Imports of Chemical Products and  G/TBT/W/270 
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  the Import and Export of Toxic Chemicals” simultane ously with enforcement of the new regulation.  
Japan strongly welcomes  immediate implementation of this new regulation by China. Japan would 
like to know the schedule for the implementation of new regulation. 
24. Third, Japan has heard from SEPA that it had added 158 highly en vironmentally toxic 
chemicals selected from 4,200 chemi cals listed on the “Regulation of Dangerous Chemicals” to the 
“Highly Restricted Imported and Exported Toxic Chemicals” list. Japan would like to ask China 
whether it has a plan to add any other chemicals on the list.  If yes, Japan would like to know the 
schedule. 
IV. THE TECHNICAL REGULATION OF WIRELESS LAN (WAPI) 
25. In terms of consistency with the TBT Agreement, Japan is c oncerned with a new technical 
regulation of wireless LAN (WAPI) that China is pl anning to introduce into the domestic market.  
26. China’s relevant authority is reported to ma ke public the WAPI algorithm so that foreign 
manufacturers can enter the wireless LAN market in Ch ina.  However, it is also reported that China’s 
relevant authority will disclose to domestic manufac turers the technical content of WAPI 6 months 
before foreign manufacturers can obtain this informa tion from China’s relevant authority.  If this is 
indeed true, Japan is concerned that such a measure might be inconsistent with Article 2.1 of the TBT 
Agreement because China see ms to give preferential treatment to  products of national origin.  Japan 
would like China to provide the detailed informat ion and the reason why China will take such a 
measure. 
27. WAPI is incompatible with relevant interna tional standards such as WPA (Wi-Fi Protected 
Access) developed by IEEE and the Wi-Fi alliance.  In addition, WAPI is not international standard, 
either.  As there would be a possibility that the t echnical regulation of WAPI might be inconsistent 
with 2.2 and 2.4 of the TBT Agreement due to the lack of compatibility, Japan would like China to 
explain its view on this point.  
 
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