WORLD TRADE
ORGANIZATIONG/MA/W/39
19 September 2002
(02-5012)
Committee on Market Access Original:  English
CHINA'S TRANSITIONAL REVIEW MECHANISM
Information provided by China in accordance with
Annex 1A of the Protocol on the Accession of the People's Republic of China
The following communication, dated 18 September 2002, has been received from the
Permanent Mission of China.
_______________
1. Tariff Rate Quotas
(a) administration of TRQs on a transparent, predictable, uniform, fair and non-
discriminatory basis using clearly specified timeframes, administrative procedures andrequirements and evidence of a consistent national allocation (and reallocation) policy
including:
In order to administer TRQs in a transparent, predictable, uniform, fair and non-
discriminatory manner, the competent agencies of China have promulgated a series of regulations and
measures on the TRQs administration on agricultural and industrial products, which explicitly provide
for the timeframe of utilization of TRQs, administrative procedures and requirements as well asprocedures concerning allocation and reallocation.
The State Development Planning Commissi on (SDPC) has promulgated the following
regulations and measures:
- the Interim Measures on Administration of Tariff Rate Quota for Import of Agricultural
products;
- the Tariff Rate Quantity, Application Condi tions and Allocation Principles for Import of
Major Agricultural Products in Year 2002;
- the Implementing Rules on Administration of Tariff Rate Quota for Import of Wool and Wool
Tops in Year 2002; and
- the Circular on Reallocation of Tariff Rate Quota for Import of Major Agricultural Products
in Year 2002.
The State Economic and Trade Commission (SETC) has promulgated the following
regulations and measures:
- the Interim Measures on Administration of Tariff Rate Quota for Import of Fertilizers; andG/MA/W/39
Page 2
- the Circular on Publication of Allocation Principles and Application Procedures for Tariff
Quota Quantity of Fertilizers in Year 2002.
(i) provision of volume/value of the quota or TRQs made available
The quantities of TRQs for 2002 are as follows:
Unit: million mt
Product Quantity
Agricultural
products
Wheat 8.468
Corn 5.85
Rice 3.99
Soybean oil 2.518
Rape-seed oil 0.879
Palm oil 2.4
Sugar 1.764
Cotton 0.8185
Wool 0.2645
Industrial products
Wool tops 0.0725
Urea 1.3
DAP 5.67
NPK 2.835
(ii)  reallocated quota or TRQs applied for
As provided for in the Circular on Reallocation of Tariff Rate Quota for Import of Major
Agricultural Products in Year 2002 issued by SD PC on 9 August 2002, if the end-users with quota
allocation foresee that they could not contract for their total quota quantity before 31 December, or
that although the contracts have been signed, the shipment cannot be made before the end of the year,
they shall return the unused portion of the quota qu antity to the authorized agencies of SDPC by 15
September. Applications for quota reallocation have to meet certain conditions. SDPC will reallocate
the quotas returned to end-users by 30 September.
With respect to fertilizer, in accordance with the SETC Interim Measures on Administration
of Tariff Rate Quotas for Import of Fertilizers, the SETC shall receive applications for quota
reallocation from 15 September to 30 September and shall reallocate the quotas returned by 15
October.
(iii) the volume/value of requests for allocation or reallocation denied
The volume of requests for allocation denied is as follows:G/MA/W/39
Page 3
Unit: million mt
Product Quantity
Agricultural
products
Wheat 16.78
Corn 28.6
RiceLong grain: 1.9575
Short and medium: -
0.2525
Soybean oil 8.38
Rape-seed oil 3.39
Palm oil 9.47
Sugar 6.58
Cotton 0.35
(iv)  fill rates for the quota or TRQs
The import volume and fill rates of TRQs by 31 July 2002 are as follows: 
Product Import volume
(million mt)Growth rate
(%)Fill rate
(%)
Wheat 0.5 131.2 5.9
Corn 0.007 -57 0.1
Rice 0.131 -2.8 3.3
Soybean oil 0.087 75.8 3.4
Rape-seed oil 0.02 -46.1 2.2
Palm oil 0.814 5.6 34
Sugar 0.7 19.5 40
Cotton 0.062 216.2 7.6
Wool 0.099 -21 37
Wool tops 0.022 -22.9 30
Urea 0.68 Not available 51.1
DAP 1.33 45.8 23.5
NPK 2.19 65.5 77.2
(v) for TRQs, the amount of any goods entered at the over quota rate
 None.
(vi) time taken to grant a quota or TRQs allocation
SDPC: one month.
SETC: two months.
2. Non-Tariff Measures including Quantitative Import Restrictions
(a) the introduction, re-introduction or app lication of any non-tariff measures other than
those listed in Annex 3 of the Protocol  and elimination of non-tariff measures
    None.G/MA/W/39
Page 4
(b) implementation of the schedule for phased elimination of the measures contained in
Annex 3
Beginning from 1 January 2002, China has eliminated all the non-tariff measures which are
due for elimination upon accession or as of 1 January 2002 on such products as polyester fibre, acrylic
fibres, polyester fillet, tobacco and its products, cellul ose diacetate filament tow, colour television sets
and TV kinescope, radios, tape recorders and their main parts, audio and video tape duplication
equipment, refrigerators and their compressor, reco rding equipment and its key parts, air conditioners
and compressors, open-end spinning machines, spirits, colour sensitive materials, automobiles and
key parts and vehicle tires. In addition, China has eliminated the NTMs for three tariff lines
(847431008529109 and 90311000) on 15 January 2002, three years earlier than the phase-out timetable in Annex 3. As a result, the total number of 8-digit tariff lines subject to quantitative restrictions
has been reduced from 502 to 170.
(c)  quota allocation and reallocation in conformity with WTO requirements, including the
Agreement on Licensing Procedures followin g criteria set out in the Report of the
Working Party on the Accession of China
Processed oil and automobile tires
The import quotas for processed oil and automobile tires have been allocated in accordance
with relevant commitments of China. SETC issued the Circular on the Adjustment of Import Quotas
for Processed Oil and Automobile Tires in Year 2002 on 13 August 2002. At present, SETC has
begun to receive unused quotas and applications for reallocation. The import volume of processed oil
for the fist half of this year is 7.94 million mt, a decrease of 24.3% compared with the same period of
last year.
Natural rubber
In accordance with the growth rate in Annex 3, the quota quantity for natural rubber for 2002
is 0.567 million mt and the quantity actually allocated is 0.567 million mt. The Interim Measures on
Administration of Import Quota for Natural Rubber was promulgated by SDPC which is responsible
for the allocation of quotas for natural rubber. MO FTEC is responsible for issuing import licenses
according to the Natural Rubber Import Quota Certif icate issued by SDPC. All commercial terms of
import of natural rubbers, such as product specifications, product mix, pricing and packaging are at
the sole discretion of quota holders. The Certificate is valid for the calendar year starting from 1
January.
Machinery and electronic products
The State Administration of Import and Export of Machinery and Electronic Products
(SAIEMEP) has fully implemented the relevant commitments of China, including quota quantity,
annual growth rate and product coverage. SAIEME P has promulgated a series of regulations and
measures on the administration of import quotas and tendering for machinery and electronic products.
The administration regime is based on the principle of uniformity, transparency, openness and non-
discrimination. The competent agencies include SA IEMEP and its authorized agencies at provincial
level or in other government agencies. SAIEMEP publishes the total quota quantity for the next year
by 31 July and receives applications for quota allocations from 1 August to 31 August. The quota isallocated by 31 October. SAIEMEP reallocates the unused quota returned in time within 10 working
days starting from 1 September. In order to ensure efficient quota allocation and full utilization of
quotas, SAIEMEP authorizes local agencies to veri fy the documents submitted by applicants. After
verification, the applicants shall apply for Import Quota Certificate at SAIEMEP according to relevantG/MA/W/39
Page 5
timeframe and procedures, and then apply for import license at MOFTEC. The import license shall be
issued within three working days, with a maximum period of ten days in exceptional situations.
(d) distribution licences, quotas, tariff rate quotas or any other means of approval for
importation are not subject to conditions set out in Section 7, paragraph 3 of theProtocol
According to the relevant regulations on administration of import licenses, quotas and TRQs,
the distribution of import licenses, quotas, TRQs, or  any other means of approval for importation are
not subject to the conditions set out in Section 7, paragraph 3 of the Protocol.
__________