CHINA - MEASURES RELATED TO THE EXPORTATION OF RARE EARTHS, TUNGSTEN AND MOLYBDENUM
Document: Request for Consultations by Japan
Date: 15 March 2012
Document codes: WT/DS433/1; G/L/984
Complainant: Japan
Respondent: China
Third parties: Brazil, Canada, Colombia, EU, India, South Korea, Norway, Oman, Saudi Arabia, Taiwan, U.S., Vietnam, Argentina, Australia, Indonesia, Turkey, Peru, Russia
Dispute stage: Appellate Body
Agreements cited: Art. XI:1  GATT 1994Part I, para. 1.2, Part I, para. 11.3, Part I, para. 5.1,   Protocol of AccessionArt. X:3(a)  GATT 1994

CHINA - MEASURES RELATED TO THE EXPORTATION OF
RARE EARTHS, TUNGSTEN AND MOLYBDENUM

Request for Consultations by Japan

 The following communication, dated 13 March 2012, from the delegation of the Japan to the
delegation of China and to the Chairperson of the Dispute Settlement Body, is circulated in
accordance with Article 4.4 of the DSU.

My authorities have instructed me to request consultations with the Government of the
People's Republic of China ("China") pursuant to Articles 1 and 4 of the Understanding on Rules and
Procedures Governing the Settlement of Disputes ("DSU") and Article XXII of the General
Agreement on Tariffs and Trade 1994 ("GATT 1994") with respect to China's restrictions on the
export of various forms of rare earths
1, tungsten2 and molybdenum3.

1 Forms of rare earths include, but are not limited to, items falling under the following eight-digit
Chinese Customs Commodity C odes, as identified in the Announcement No. 27 Issuing the 2012 Tariff
Implementation Program (State Council Customs Tariff Commission, shuiweihui, No. 27, issued 9 December
2011, effective 1 January 2012) (hereinafter, the 2012 Tariff Implementation Program ): 25309020, 26122000,
28053011, 28053012, 28053013, 28053014, 28053015, 28053016, 28053017, 28053019, 28053021, 28053029,
28461010, 28461020, 28461030, 28461090, 28469011, 28469012, 28469013, 28469014, 28469015, 28469016,
28469017, 28469019, 28469021, 28469022, 28469023, 28469024, 28469025, 28469026, 28469028, 28469029,
28469031, 28469032, 28469033, 28469034, 28469035, 28469036, 28469039, 28469041, 28469042, 28469043,
28469044, 28469045, 28469046, 28469048, 28469049, 28469091, 28469092, 28469093, 28469094, 28469095,
28469096, 28469099, 72029911, 72029919, 72029991, 7202 9999, 72051000. Forms of rare earths also include
but are not limited to items falling under the following 10-digit Chinese Customs Commodity Codes, as
identified in the Notice on Issuing the “2012 Export Licensing Management Commodities List,” Ministry of
Commerce and General Administration of Customs Noti ce No. 98 (December 30, 2011), (hereinafter the 2012
Export Licensing Managem ent Commodities List) : 2530902010, 2530902090, 2612200000, 2805301100,
2805301200, 2805301300, 2805301400, 2805301510, 2805301590, 2805301600, 2805301700, 2805301913,
2805301914, 2805301915, 2805301990, 2805302110, 2805302190, 2805302910, 2805302990, 2846101000,
2846102000, 2846103000, 2846109010, 2846109090, 2846901100, 2846901200, 2846901300, 2846901400,
2846901500, 2846901600, 2846901700, 2846901920, 2846901930, 2846901940, 2846901970, 2846901980,
2846901991, 2846901992, 2846901999, 2846902100, 2846902200, 2846902300, 2846902400, 2846902500,
2846902600, 2846902810, 2846902890, 2846902900, 2846903100, 2846903200, 2846903300, 2846903400,
2846903500, 2846903600, 2846903900, 2846904100, 2846904200, 2846904300, 2846904400, 2846904500,
2846904600, 2846904810, 2846904890, 2846904900, 2846909100, 2846909200, 2846909300, 2846909400,
2846909500, 2846909600, 2846909910, 2846909990, 7202991100, 7202991200, 7202991900, 7202999110,
7202999191, 7202999199, 7202999900. Forms of rare earths may also include the following Chinese Customs
Commodity Codes listed in the Announcement Regarding Export Declarations for Rare Earth Products
(General Administration of Customs, No. 37, issued May 27, 2011, effective June 1, 2011): 25309020,
26122000, 280530, 2846, 32065000, 36069011, 36069019, 38249099, 72029911, 72029912, 72029919,
72029991, 72029999, 72044900, 72051000, 72052100, 85051110.

China imposes export duties on various forms of rare earths, tungsten and molybdenum.
China imposes quantitative restrictions such as quot as on the export of various forms of rare
earths, tungsten and molybdenum.
China imposes additional requirements and proce dures in connection with the administration
of the quantitative restrictions on various forms of rare earths, tungsten and molybdenum, including
but not limited to fees and formalities, restrictions on the right to export such as prior export
experience requirements and minimum capital requirement s, and other conditions that appear to treat
foreign-invested entities differently from domestic entities.
China imposes other restrictions such as licensing requirements on the export of various
forms of rare earths, tungsten and molybdenum, including in connection with the administration of the
quantitative restrictions that China imposes on the expor t of various forms of rare earths, tungsten and
molybdenum.
China maintains a minimum export price system for the export of various forms of rare
earths, tungsten and molybdenum and also requires the examination and approval of export contracts
and export prices, including in connection with the administration and collection of the export duties
for various forms of rare earths, tungsten and molybdenum.
China administers all these export restrictions on various forms of rare earths, tungsten and
molybdenum and the requirements and procedures in connection with these export restrictions
through, inter alia , its ministries and other organizations under the State Council and various
chambers of commerce and industry associations. Fu rthermore, it appears that China administers
these export restrictions on various forms of rare earths, tungsten and molybdenum and the
requirements and procedures in connection with th ese export restrictions in a manner that is not
uniform, impartial, reasonable, or transparent.
It appears that China imposes and administers these restrictions on exports of various forms
of rare earths, tungsten and molybdenum also through measures that are not published.
The legal instruments through which China impos es and administers these restrictions on
exports of various forms of rare earths, tungsten and molybdenum, operating separately or
collectively, include but are not limited to:

2 Forms of tungsten include, but are not limited to, items falling under the following eight-digit Chinese
Customs Commodity Codes, as identified in the 2012 Tariff Implementation Program : 26209910, 28259011,
28259012, 28259019, 28418010, 28418020, 28418030, 28418040, 28418090, 28499020, 72028010, 72028020,
81011000, 81019400, 81019700. Forms of tungsten also include, but are not limited to, items falling under the
following 10-digit Chinese Customs Commodity Codes, as identified in the 2012 Export Licensing Management
Commodities List : 2611000000, 2620991000, 2825901100, 2825901200, 2825901910, 2841801000,
2841802000, 2841803000, 2841804000, 2849902000, 3824300010, 7202801000, 7202802000, 8101100010,
8101100090, 8101940000, 8101970000.
3 Forms of molybdenum include, but are not limited to, items falling under the following eight-digit
Chinese Customs Commodity Codes, as identified in the 2012 Tariff Implementation Program : 26131000,
26139000, 28257000, 28417010, 28417090, 72027000, 81021000, 81029400, 81029700. Forms of
molybdenum also include, but are not limited to, items falling under the following 10-digit Chinese Customs
Commodity Codes, as identified in the 2012 Export Licensing Management Commodities List : 2613100000,
2613900000, 2825700000, 2841701000, 2841709000, 7202700000, 8102100000, 8102940000, 8102970000,
8102990000.

 Foreign Trade Law of the People's Republic of China (adopted as amended at the 8 th Session
of the Standing Committee of the Tenth National People's Congress on 6 April 2004, effective
1 July 2004)
 Customs Law of the People's Republic of China (adopted at the 19 th Meeting of the Standing
Committee of the Sixth National People's Congress on 22 January 1987, amended 8 July
2000)
 Regulations of the People's Republic of China on Import and Export Duties (Order of the
State Council No. 392, adopted at the 26 th executive meeting of the State Council on 29
October 2003, effective 1 January 2004)
 Regulation of the People's Republic of China on the Administration of the Import and Export
of Goods (Order of the State Council No. 332, adopted at the 46th executive meeting of the
State Council on 31 October 2001, effective 1 January 2002)
 Notice on Issuing the "2012 Export Li censing Management Commodities List" (Ministry of
Commerce and General Administration of Cu stoms, No. 98, issued 30 December 2011,
effective 1 January 2012)
 Measures for the Administration of Licenses for the Export of Goods (Order of the Ministry of
Commerce No. 11, adopted 7 May 2008, effective 1 July 2008)
 Measures for the Administration of Export Commodities Quotas (Order of the Ministry of
Foreign Trade and Economic Cooperation No. 12 , issued on 20 December 2001, effective 1
January 2002)
 Measures for the Administration of the Organs for Issuing the Licenses of Import and Export
Commodities (Ministry of Foreign Trade and Economic Cooperation,
waijingmaopeiguanhanzi, No. 68, 21 September 1999 amended 12 September 2010)
 Working Rules on Issuing Export Licenses (Ministry of Commerce, shangpeifa, No. 398, 9
October 2008)
 Rules on the Administration of Import and Export License Certificates (Ministry of
Commerce, shangwubuling, No.1, issued 4 February 2012, effective 5 March 2012)
 Announcement No. 27 Issuing the "2 012 Tariff Implementation Program" , (State Council
Customs Tariff Commission, shuiweihui, No. 27, issued 9 December 2011, effective 1
January 2012)
 Announcement No. 79 Regarding the "2012 Tariff Implementation Program" (General
Administration of Customs, No. 79, issued 22 December 2011, effective 1 January 2012)
 2012 Notice on the Total Export Quota Quantity for Agricultural and Industrial Products in
2012 (Ministry of Commerce No. 71, issued 31 October 2011, effective 1 January 2012)
 2012 Notice on List of Export (Supply) Ent erprises and First-batch Export Quota of
Tungsten, Antimony and Other Nonferrous Metals (Ministry of Commerce, shangmaohan,
No. 1131, 26 December 2011)

 Notice Publishing the List of the State Trading Export Enterprises of Tungsten, Antimony and
Silver, the Enterprises Exporting and Supplying Tungsten and Antimony, and the Enterprises
of Applying for the Export Quotas for Indium and Molybdenum in 2012 (Ministry of
Commerce, 14 December 2011)
 Announcement on Application Conditions and Procedures for 2012 Indium, Molybdenum and
Tin Export Quotas (Ministry of Commerce No. 79, 11 November 2011)
 Announcement Regarding the Qualification Standa rds of State Owned Tungsten, Antimony,
and Silver Trade and Export Enterprises, T ungsten and Antimony Export and Supply
Enterprises and Declaration Procedures in 2012 (Ministry of Commerce No. 80, 11
November 2011)
 2012 Notice on List of Rare Earth Export Enterprises and First-batch Rare Earth Export
Quota (Ministry of Commerce, shangmaohan, No. 1133, 26 December 2011)
 Announcement on 2012 Application Conditions and Procedures for Qualification for 2012
Rare Earth Export Quota (Ministry of Commerce No. 77, 11 November 2011)
 Notice Publishing the List of Enterprise Applying for the Export Quota for the Rare Earth
and Coke in 2012 (Ministry of Commerce, 14 December 2011)
 Announcement Regarding Export Declar ations for Rare Earth Products, (General
Administration of Customs, No. 37, issued 27 May 2011, effective 1 June 2011)
 Announcement Issuing the “2012 Graded License-Issuing List of Commodities Subject to
Export License Administration” (Ministry of Commerce No. 103, 31 December 2011)
 State Council's Reply on Relevant Ques tions Regarding Work Report on Developing
Examination of Export Pricing and Conti nuing Examination of Import Pricing (State Council
Letter No. 95 of 1994)
 Notice Regarding Printing and Distribution of Several Regulations for Personnel
Management of Chambers of Co mmerce for Importers and Exporters (Ministry of Foreign
Trade and Economic Cooperation, 23 September 1994)
 Provisional Measures on Customs Pri ce Examination for Exported Products (Order of the
General Administration of Customs No. 51, 22 January 1995, effective 1 February 1995)
 Implementing Regulations for the Measures on Customs Price Examination for Exported
Products (General Administration of Customs, 31 December 1994, effective
1 February 1995)
 Measures for the Administration over Fo reign Trade and Economic Social Organisations
(Ministry of Foreign Trade and Economic Cooperation, 26 February 1991)
 PRC Customs Rules on Determination of Dutiable Value of Import and Export Goods
(General Administration of Customs, No. 148, 28 March 2006)
 Charter of the China Chamber of Commerce of Metals, Minerals, and Chemicals Importers
and Exporters (2010)

 China Tungsten Industry Association Charter (2008)
 China Nonferrous Metals Industry Association Charter (2011)
 Unpublished measures through which China imposes and administers these export restrictions
as well as any amendments, supplements, extensi ons, replacement measures, renewal measures,
related measures, or implementing measures.
 China's measures appear to be incons istent with the following provisions:
 Articles VII, VIII, X, and XI of the GATT 1994, and,
 Paragraphs 2(A)2, 2(C)1, 5.1, 5.2, 7.2, 8.2 an d 11.3 of Part I of the Protocol on the Accession
of the People's Republic of China (WT/L/432)(“Accession Protocol”), as well as China's
obligations under the provisions of paragraph 1. 2 of Part I of the Accession Protocol (which
incorporates commitments in paragraphs 83, 84, 162, and 165 of the Report of the Working
Party on the Accession of China)(WT/MIN(01)/3).
China's measures also appear to nullify or impa ir the benefits accruing to Japan directly or
indirectly under the cited agreements.
Japan reserves the right to address additional measu res and claims regarding the above matters in
the course of the consultations.
Japan looks forward to receiving China's reply in due course to this request for consultations.
Japan is ready to consider with China mutually convenient dates for consultations in Geneva.