CHINA – TARIFF RATE QUOTAS FOR CERTAIN AGRICULTURAL PRODUCTS REQUEST FOR CONSULTATIONS BY THE UNITED STATES
Document: REQUEST FOR CONSULTATIONS BY
Date: 21 December 2016
Document codes: WT/DS517/1; G/L/1171
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 CONSULTATIONS BY THE UNITED STATES
The following communication, dated 15 December 2016, from the delegation of the United States
to the delegation of China and to the Chairperson of t he 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 administration of its
tariff-rate quotas (TRQs), including those for wheat, short- and medium- grain rice, long grain rice,
and corn.
China's Schedule CLII, Part I, Section I –B provides for TRQs to permit the importation of
specified volumes of wheat, short - and medium- grain rice, long grain rice, and corn at low er in-
quota duty rates. However, China appears to administer TRQs for wheat, short- and medium-
grain rice, long grain rice, and corn inconsistently with its WTO obligations. In particular, China's
administration of its TRQs appears to be inconsistent wi th its commitments 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, include, 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 198 7,
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 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:
WT/DS517/1 • G/L/1171

 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)
 Application Criteria and Allocation Principles for Import Tarif f-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)
 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 Enter prise 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 Refo rm Commission and Ministry of Commerce 2016
Public Notice No. 19, issued 17 August 2016)
 Communist Party of China Central Committee and State Council Several Opinions on
Fulfilling the New Concept of Development to Accelerate Agricultural Modernization and
Implementing Targets for Comprehensive Prosperity (Communist Party of China Central
Committee, State Council, Zhong Fa [2016] No.1, issued 31 December 2015)
as well as any amendments, or successor, replacement, or implementing measures.

China's administr ation of its TRQs for wheat, short- and medium - grain rice, long grain
rice, and corn appears to be inconsistent with China 's obligations pursuant to paragraph 1.2 of
Part I of the Accession Protocol, which incorporates the commitments in paragraph 116 of the
Working Party Report,1 because:

 China has failed to ensure that it administers its TRQs on a transparent basis;
 China has failed to ensure that it administers its TRQs on a predictable basis;
 China has failed to ensure that it administers its TRQs on a fair basis;
 China has failed to ensure that it administers its TRQs using clearly specified
administrative procedures and requirements; and
 China has failed to ensure that it administers its TRQs using administrative procedures
and requirements that would not inhibit the filling of each TRQ.

China's administration of its TRQs for wheat, short- and medium - grain rice, long grain
rice, and corn appears to be inconsistent with Article X:3(a) of the GATT 1994, because China has
failed to administer its TRQs in a reasonable manner.

China's administration of its TRQs for wheat, short- and medium - grain rice, long grain
rice, and corn appears to be inconsistent with Article XI:1 of the GATT 1994, because China
institutes or maintains prohibitions or restr ictions on its importation of each product other than
duties, taxes, or other charges.

China's administration of its TRQs for wheat, short- and medium - grain rice, long grain
rice, and corn appears to be inconsistent with Article XIII:3(b) of the GATT 1 994, because China
has failed to provide public notice of quantities permitted to be imported under each TRQ and
changes to quantities permitted to be imported under each TRQ.

 We look forward to receiving your reply to the present request and to schedul ing a
mutually convenient date for consultations.