CHINA – MEASURES RELATED TO THE EXPORTATION OF VARIOUS RAW MATERIALS
Document: Request for Consultations by Mexico
Date: 26 August 2009
Document codes: WT/DS398/1; G/L/892
Complainant: Mexico
Respondent: China
Third parties: Argentina, Brazil, Canada, Chile, Colombia, Ecuador, EU, India, Japan, South Korea, Norway, Taiwan, Turkey, Saudi Arabia, U.S.
Dispute stage: Appellate Body
Agreements cited: Art. VIII:1, VIII:4, X:1, X:3, XI:1  GATT 1994Part I, para. 1.2, Part I, para. 5.1, Part I, para. 5.2, , Part I, para. 8.2  Protocol of Accession

CHINA – MEASURES RELATED TO THE EXPORTATION
OF VARIOUS RAW MATERIALS

Request for Consultations by Mexico

 The following communication, dated 21 August 2009, from the delegation of Mexico to the
delegation of China and to the Chairman of the Dis pute Settlement Body, is ci rculated in accordance
with Article 4.4 of the DSU.

 The Government of Mexico hereby requests 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 restraints on the export
from China of various forms of bauxite
1, coke2, fluorspar3, magnesium4, manganese5, silicon carbide6,
silicon metal7, yellow phosphorus8, and zinc9 (the "materials").

 China imposes quantitative restrictions on the export of bauxite, coke, fluorspar, silicon
carbide, and zinc.

1 Bauxite includes but is not limited to items falling under the following HS numbers, as listed in
Attachment 1 of Notice "2009 Export Licensing Management Commodities List" (Ministry of Commerce and
General Administration of Customs, Notice (2008) No. 100, January 1, 2009) ("2009 Export Licensing List")
and/or Table 7 of Notice Regarding the 2009 Tariff Implementation Program (State Council Tariff Policy
Commission, shuiweihui (2008) No. 40, January 1, 2009) ("2009 Export Duty List"): 2508300000/25083000,
2606000000/26060000, 26204000.
2 Coke includes but is not limited to items falling under the following HS numbers, as listed in the 2009
Export Licensing List and/or the 2009 Export Duty List: 2704001000/27040010.
3 Fluorspar includes but is not limited to items falling under the following HS numbers, as listed in the
2009 Export Licensing List and/or the 2009 Export Duty List: 2529210000/25292100, 2529220000/25292200.
4 Magnesium includes but is not limited to items fa lling under the following HS numbers, as listed in
the 2009 Export Licensing List and/or the 2009 Export Duty List: 81041100, 81041900, 81042000.
5 Manganese includes but is not limited to items falling under the following HS numbers, as listed in
the 2009 Export Licensing List and/or the 2009 Export Duty List: 26020000, 8111001010/81110010,
8111001090/81110010.
6 Silicon carbide includes but is not limited to items falling under the following HS numbers, as listed
in the 2009 Export Licensing List and/or the 2009 Export Duty List: 2849200000, 3824909910.
7 Silicon metal includes but is not limited to items falling under the following HS numbers, as listed in
the 2009 Export Licensing List and/or the 2009 Export Duty List: 28046900.
8 Yellow phosphorus includes but is not limited to items falling under the following HS numbers, as
listed in the 2009 Export Licensing List and/or the 2009 Export Duty List: 28047010.
9 Zinc includes but is not limited to items falling under the following HS numbers, as listed in the 2009
Export Licensing List and/or the 2009 Export Duty List: 2608000001/26080000, 2608000090/26080000,
7901119000/79011190, 7901120000/79011200, 7901200000/79012000, 79020000, 26201100, 26201900.

 China also imposes export duties on bauxite, coke, fluorspar, magnesium, manganese, silicon
metal, yellow phosphorus, and zinc.

 China imposes additional requirements and pro cedures in connection with the export of the
materials, including, but not limited to, restricting the right to export based on, for example, prior
export experience; establishing criteria that foreig n-invested enterprises must satisfy in order to
export that are different from those that domestic en tities must satisfy; and requiring exporters to pay
fees. China administers these requirements and procedures through its ministries and other
organizations under the State Council as well as chambers of commerce.

 China maintains a minimum export price sy stem for the materials and requires the
examination and approval of export contracts and export prices. China administers this system and
these requirements through its ministries and other organizations under the State Council as well as
chambers of commerce.

 The measures through which China imposes these restraints on exports include but are not
limited to:
10

• Foreign Trade Law of the People's Republic of China (adopted at the 8 th Session of
the Standing Committee of the Tenth National People's Congress on 6 April 2004,
promulgated on 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 Nati onal People's Congress on 22 January 1987,
amended 8 July 2000);

• Regulation of the People's Republic of China on the Administration of the Import and
Export of Goods (passed at the 46th executive meeting of the State Council on
31 October 2001, 1 January 2002);

• Measures for the Administration of Licence for the Export of Goods (Order of the
Ministry of Commerce (2008) No. 11, 1 July 2008);

• Measures for the Administration of E xport Commodities Quotas (Order of the
Ministry of Foreign Trade and Econom ic Cooperation No. 12, adopted on
20 December 2001, 1 January 2002);

• Measures of Quota Bidding for Export Co mmodities (Decree of the Ministry of
Foreign Trade and Economic Cooperation No. 11, adopted on 20 December 2001,
1 January 2002);

• Measures for the Administration of the Organs for Issuing the Licences of Import and
Export Commodities (Ministry of Fore ign Trade and Econom ic Cooperation,
waijingmaopeiguanhanzi (1999) No. 68, 21 September 1999);

10 There also appear to be unpublished measures through which China imposes these restraints on
exports.

• Regulations of the People's Republic of Ch ina on Import and Export Duties (Order of
the State Council (2003) No. 392, adopted at the 26 th executive meeting of the State
Council on 29 October 2003, 1 January 2004);

• Provisional Measures on Customs Price Examination for Exported Products (Order of
the General Administration of Customs (1995) No. 51, 1 February 1995);

• Implementing Regulations for the Measures on Customs Price Examination for
Exported Products (General Administration of Customs, 1 February 1995);

• Measures for the Administration over Foreign Trade and Economic Social
Organizations (Ministry of Foreign Trade and Economic Cooperation,
26 February 1991);

• Interim Regulations of the Ministry of Foreign Trade and Ec onomic Cooperation on
Punishment for Conduct at Exporting at Lower-than-Normal Price (Ministry of
Foreign Trade and Economic Cooperation, 20 March 1996);

• Working Rules on Issuing Export Licences (Ministry of Commerce, shangpeifa
(2008) No. 398, 9 October 2008);

• Rules on the Administration of Import and Export Licence Certificates (Ministry of
Foreign Trade and Economic Coopera tion, waijingmaopeizi (1999) No. 87,
6 December 1999);

• Implementation Rules of Export Quota Biddi ng for Industrial Products (Ministry of
Foreign Trade and Economic Cooperation, 8 November 2001);

• Charter of the China Chamber of Commerc e of Metals, Minera ls and Chemicals
Importers and Exporters;

• Notice Regarding 2009 Export Quota Amounts for Agricultural and Industrial
Products (Ministry of Commerce, Notice (2008) No. 83, 1 January 2009);

• Notice Regarding Passing Down the 2009 First Batch Regular Trade Coke Export
Quota (Ministry of Commerce, shangmaohan (2008) No. 140, 1 January 2009);

• 2009 Coke Export Quota Declaration Cond itions and Declaration Procedures
(Ministry of Commerce, Notice (2008) No. 76, 13 October 2008);

• Notice "2009 Export Licensing Management Commodities List" (Ministry of
Commerce and General Administration of Customs, Notice (2008) No. 100,
 1 January 2009);

• Announcement of the Ministry of Commerce Issuing the "2009 Graded
Licence-Issuing List of Commodities Subject to Export Licence Administration"
(Ministry of Commerce, Notice (2008) No. 124, 1 January 2009);

• Announcement Regarding Printing "Working Rules on Issuing Export Licences"
(Ministry of Commerce, shangpeifa (2008) No. 398, 9 October 2008);

• Announcement of Ministry of Commerce on Matters regarding the First Bidding for
Export Quotas of Industrial Products in 2009 (Ministry of Commerce, Announcement
(2008) No. 85, 30 October 2008);

• Announcement of Ministry of Commerce on the Notice for the Second Invitation for
the Bidding for Industrial Product Export Quotas in 2009 (Ministry of Commerce,
Announcement (2009) No. 42, 9 June 2009);

• Circular of the Ministry of Foreign Trade and Economic Cooperation on Distribution
of the "Implementation Rules of Expor t Quota Bidding for Industrial Products"
(Ministry of Foreign Trade and Economic Cooperation, issued on 8 November 2001);

• Notice Regarding the 2009 Tariff Implemen tation Program (State Council Tariff
Policy Commission, shuiweihui (2008) No. 40, 1 January 2009);

• Notice Regarding the Trial Administration of 36 Types of Products such as Citric
Acid (Ministry of Commerce and General Administration of Customs, Notice (2003)
No. 36, 29 November 2003);

• Notice Regarding Printing and Distributi on of Several Regulations for Personnel
Management of Chambers of Commerce fo r Importers and Exporters (Ministry of
Foreign Trade and Economic Cooperation, 23 September 1994);

• Notice for the Adjustment of the Catalogue of Export Products Subject to Price
Review by Customs (Ministry of Forei gn Trade and Economic Cooperation and the
General Administration of Customs, waijingmaomaofa (2002) No. 187, 1 May 2002);

• Quotas of Fluorspar Lump (Powder) of 2009 (Committee for the Invitation for bid for
Export Commodity Quotas, 11 December 2008);

• Quotas of Bauxite of 2009 (Committee fo r the Invitation for bid for Export
Commodity Quotas, 10 December 2008);

• Quotas of Silicon Carbide of 2009 (Committe e for the Invitation for bid for Export
Commodity Quotas, 11 December 2008);

 as well as any amendments, replacements, related measures, or implementing measures.

 China's measures appear to be incons istent with the following provisions:

• Articles VIII, X, and XI of the GATT 1994; and

• Paragraphs 5.1, 5.2, 8.2, and 11.3 of Part I of the Protocol on the Accession of the
People's Republic of China ("Accession Pr otocol"), as well as China's obligations
under the provisions of paragraph 1.2 of Pa rt 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).

 China's measures also appear to nullify or impair the benefits accruing to Mexico directly or
indirectly under the cited agreements.

 Mexico reserves the right to raise additional f actual matters and legal claims during the course
of the consultations.

 Mexico looks forward to receiving China's reply in order to fix a mutually convenient date for
consultations.