CHINA – TARIFF RATE QUOTAS FOR CERTAIN AGRICULTURAL PRODUCTS REQUEST FOR THE ESTABLISHMENT OF A PANEL BY THE UNITED STATES
Document: REQUEST FOR THE ESTABLISHMENT OF A PANEL
Date: 21 August 2017
Document codes: WT/DS517/6
Complainant: U.S.
Respondent: China
Third parties: Australia, Brazil, Canada, Ecuador, EU, Guatemala, India, Indonesia, Japan, Kazakhstan, South Korea, Norway, Russia, Singapore, Taiwan, Ukraine, Vietnam
Dispute stage: Panel
Agreements cited: Part I, para. 1.2  Protocol of AccessionArt. X:3(a), XI:1, XIII:3(b)  GATT 1994

CHINA – TARIFF RATE QUOTAS FOR CERTAIN AGRICULTURAL PRODUCTS
REQUEST FOR THE ESTABLISHMENT OF A PANEL BY THE UNITED STATES
The following communication, dated 18 August 2017, from the delegation of the United States to
the Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.

On 15 December 2016, the United States requested 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 administration of its
tariff-rate quotas ("TRQs"), including those for wheat, short - and medium- grain rice, long grain
rice, and corn. The parties consulted on 9 February 2017, but the consultations did not resolve
the dispute.

The United States considers that China administers TRQs for wheat, short - and medium - grain
rice, long grain rice, and corn inconsistently with its WTO obligations. In particular, China
administers each of its TRQs for wheat, short - and medium- grain rice, long grain rice, and corn
inconsistently with its commitme nts specified in paragraph 1.2 of Part I of the Protocol on the
Accession of the People's Republic of China (WT/L/432) ("Accession Protocol"), which incorporates
the commitments in paragraph 116 of the Report of the Working Party on the Accession of China
(WT/MIN(01)/3) ("Working Party Report "), as well as with Articles X:3(a), XI:1, and XIII:3(b) of
the GATT 1994.

The legal instruments through which China has established its TRQs for wheat, short - and
medium- grain rice, long grain rice, and corn includ e, but are not limited to, the following,
operating separately or collectively:

 Customs Law of the People 's Republic of China (adopted at the 19th Meeting of the
Standing Committee of the Sixth National People 's Congress on 22 January 1987,
amended 28 December 2013, in Order No. 8)

 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)

 Regulation of the People 's Republic of China on Import and Export Duties (State Council,
Order No. 392, adopted at the 26th executive meeting of the State Council on 29 October
2003, amended 6 February 2016, in Order No. 666)

 Foreign Trade Law of the People 's Republic of China (adopted at the 8th Session of the
Standing Committee of the Tenth National People's Congress on 6 April 2004, effective
1 July 2004)

as well as any amendments, or successor, replacement, or implementing measures.

The legal instruments through which China administers each of its TRQs for wheat, short - and
medium- grain rice, long grain rice, and corn include, but are not limited to, the following,
operating separately or collectively:

 Provisional Measures on the Administration of Import Tariff-Rate Quotas for Agricultural
Products (Ministry of Commerce and National Development and Reform Commission 2003
Order No. 4, issued 27 September 2003)

 Public Notice on Authorized Agencies for Agricultural Product Import Tariff-Rate Quotas
(Ministry of Commerce and National Development and Reform Commission, Public Notice
No. 54, issued 15 October 2003)

 Application Criteria and Allocation Principles for Import Tariff-Rate Quotas for Grains in
2017 (National Development and Reform Commission 2016 Public Notice No. 23, issued
10 October 2016)

 Announcement of Applicant Enterprise Data for Import Tariff-Rate Quotas for Grains in
2017 (National Development and Reform Commission, issued 1 December 2016)

 Public Notice on the Reallocation of Import Tariff-Rate Quotas for Agricultural Products in
2017 (National Development and Reform Commission and Ministry of Commerce 2017
Public Notice No. 11, issued 11 August 2017)

 Application Criteria and Allocation Principles for Import Tariff-Rate Quotas for Grains in
2016 (National Development and Reform Commission 2015 Public Notice No. 22, issued
29 September 2015)

 Announcement of Applicant Enterprise Data for Import Tariff-Rate Quotas for Grains in
2016 (National Development and Reform Commission, issued 4 December 2015)

 Public Notice on the Reallocation of Import Tariff-Rate Quotas for Agricultural Products in
2016 (National Development and Reform Commission and Ministry of Commerce 2016
Public Notice No. 19, issued 17 August 2016)

as well as any amendments, or successor, replacement, or implementing measures.

The United States considers that:

(1) China has acted inconsistently with its obligations pursuant to paragraph 1.2 of Part I of
the Accession Protocol because China does not administer each of its TRQs for wheat,
short- and medium- grain rice, long grain rice, and corn on a transparent, predictable, or
fair basis, using clearly specified administrative procedures and requirements that would
not inhibit the filling of each TRQ.

(2) China administers each of its TRQs for wheat, short- and medium- grain rice, long grain
rice, and corn inconsistently with Article X:3(a) of the GATT 1994, because China has
failed to administer each TRQ in a reasonable manner.

(3) China administers each of its TRQs for wheat, short- and medium- grain rice, long grain
rice, and corn inconsistently with Article XI:1 of the GATT 1994, because China institutes
or maintains prohibitions or restrictions on the importation of each product other than
duties, taxes, or other charges.

(4) China administers each of its TRQs for wheat, short- and medium- grain rice, long grain
rice, and corn inconsistently with Article XIII:3(b) of the GATT 1994, because China does
not provide public notice of quantities permitted to be imported under each TRQ and
changes to quantities permitted to be imported under each TRQ.

Accordingly, the United States respectfully requests that, pursuant to Article 6 of the DSU, the
Dispute Settlement Body establish a panel to examine this matter, with standard terms of
reference as set out in Article 7.1 of the DSU.