WORLD TRADE
ORGANIZATIONWT/MIN(01)/31
10 November 2001
(01-5314)
MINISTERIAL CONFERENCE
Fourth Session
Doha, 9-13 November 2001
REPORT OF THE WORKING PARTY
ON THE ACCESSION OF CHINA
                                                     
1 This document reprints the documents distributed as WT/ACC/CHN/49 on 1 October 2001 and
WT/ACC/CHN/49/Corr.1 in English only on 5 October 2001.WT/MIN(01)/3
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TABLE OF CONTENTS
I. INTRO DUCTION ................................................................................................................. ...1
1. Documentation Provided....................................................................................................... ...1
2. Introductory  Statements ...................................................................................................... ....1
II. ECONOMIC POLICIES..........................................................................................................31. Non-Discrimination (includi ng national treatment) ..............................................................3
2. Monetary and Fiscal Policy................................................................................................... ...5
3. Foreign Exchange and Payments ............................................................................................5
4. Balance-of-Payments Measures...............................................................................................7
5. Investment Regime ............................................................................................................ .......8
6. State-Owned and State-Invested Enterprises.........................................................................9
7. Pricing Policie s ............................................................................................................. ...........10
8. Competitio n Policy........................................................................................................... .......12
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES....................................13
1. Structure and Powers of the Government ............................................................................13
2. Authority of Sub-National Governments..............................................................................13
3. Uniform Administration of the Trade Regime.....................................................................144. Judicial Review .............................................................................................................. .........15
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................15
A. TRADING RIGHTS ............................................................................................................... ..15
1. General...................................................................................................................... ...............15
2. Designated Trading........................................................................................................... ......17
B. IMPORT RE GULATIO N.........................................................................................................18
1. Ordinary Customs Duties...................................................................................................... .18
2. Other Duties and Charges..................................................................................................... .19
3. Rules of  Orig in .............................................................................................................. ..........19
4. Fees and Charges for Services Rendered..............................................................................205. Application of Internal Taxes to Imports .............................................................................20
6. Tariff Exemptions............................................................................................................ .......20
7. Tariff Rate  Quotas ........................................................................................................... .......21
8. Quantitative Import Restrictions, including Prohibitions and Quotas..............................23
9. Import Licensing............................................................................................................. ........27
10. Customs Valuation........................................................................................................... .......28
11. Other Customs Formalities................................................................................................... .29
12. Preshipment Inspec tion...................................................................................................... ....29WT/MIN(01)/3
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13. Anti-Dumping, Countervailing Duties..................................................................................29
14. Safeguards .................................................................................................................. .............32
C. EXPORT RE GULATI ONS ......................................................................................................32
1. Customs Tariffs, Fees and Charges for Services Rendered, Application of
Internal Taxes to Exports...................................................................................................... .32
2. Export Licensing and Export Restrictions ...........................................................................32
3. Export Subsidies ............................................................................................................. ........33
D. INTERNAL POLICIES AFFECTI NG FOREIGN TRADE  IN GOODS.................................34
1. Taxes and Charges Levied on Imports and Exports ...........................................................34
2. Industrial Policy, including Subsidies...................................................................................34
3. Technical Barriers to Trade.................................................................................................. .35
4. Sanitary and Phytosanitary Measures..................................................................................405. Trade-Related Investment Measures ....................................................................................40
6. State Trading Entities....................................................................................................... ......41
7. Special Economic Areas ....................................................................................................... ..43
8. Transit...................................................................................................................... ................44
9. Agricultural  Poli cies ........................................................................................................ .......44
10. Trade in Ci vil Ai rcraft ..................................................................................................... ......46
11. Textiles .................................................................................................................... .................46
12. Measures Maintained  Against China....................................................................................47
13. Transitional Safeguards ..................................................................................................... ....47
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................49
A. GENE RAL...................................................................................................................... ..........49
1. Overview..................................................................................................................... .............49
2. Responsible agencies for policy formulation and implementation.....................................53
3. Participation in international in tellectual proper ty agreements ........................................54
4. Application of national and MFN treatment to foreign nationals......................................54
B. SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES
FOR THE ACQUISITION AND MAINTENANCE OF INTELLECTUAL
PROPERTY RIGHTS...............................................................................................................5 5
1. Copyright protection ......................................................................................................... .....55
2. Trademarks, including service marks...................................................................................55
3. Geographical indications, includ ing appellations of origin.................................................56
4. Industrial designs........................................................................................................... .........56
5. Patents...................................................................................................................... ................57
6. Plant variet y protection..................................................................................................... .....59
7. Layout designs of integrated circuits ....................................................................................60WT/MIN(01)/3
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8. Requirements on undisclosed information, including trade secrets and test data............60
C. MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROP ERTY RIGHTS ...........61
D. ENFORC EMENT.................................................................................................................. ...61
1. General...................................................................................................................... ...............61
2. Civil judicial proced ures and remedies.................................................................................62
3. Provisiona l meas ures ......................................................................................................... .....62
4. Administrative procedures and remedies.............................................................................63
5. Special border measures...................................................................................................... ...64
6. Criminal procedures.......................................................................................................... .....64
VI. POLICIES AFFECTING TRADE IN SE RVICES..............................................................65
1. Licensing.................................................................................................................... ..............65
2. Choice of Partner ............................................................................................................ ........68
3. Modification of the Equity Interest.......................................................................................68
4. Prior Experience Requirement for Establishment in Insurance Sector ............................68
5. Inspection  Services.......................................................................................................... ........68
6. Market Research.............................................................................................................. .......68
7. Legal Services............................................................................................................... ...........69
8. Minority Shareholder Rights.................................................................................................6 9
9. Schedule of Specific Commitments .......................................................................................69
VII. OTHER ISSUES ............................................................................................................... ......69
1. Notifica tions................................................................................................................ .............69
2. Special Trade Arrangements .................................................................................................693. Transparency ................................................................................................................. .........69
4. Government Procurement......................................................................................................7 1
VIII. CONCLUSIONS ............................................................................................................... ......72
DRAFT DECI SION................................................................................................................. ............73
DRAFT PROT OCOL................................................................................................................. .........74
ANNEX 1A ....................................................................................................................... ....................86
ANNEX 1B....................................................................................................................... .....................92
ANNEX 2A 1 ...................................................................................................................... ...................93
ANNEX 2A 2 ...................................................................................................................... ...................97
ANNEX 2B....................................................................................................................... ...................103
ANNEX 3 ........................................................................................................................ ....................116
ANNEX 4 ........................................................................................................................ ....................137
ANNEX 5A ....................................................................................................................... ..................141
ANNEX 5B....................................................................................................................... ...................164WT/MIN(01)/3
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ANNEX 6 ........................................................................................................................ ....................167
ANNEX 7 ........................................................................................................................ ....................170
ANNEX 8 ........................................................................................................................ ....................176
ANNEX 9 ........................................................................................................................ ....................177WT/MIN(01)/3
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I. INTRODUCTION
1. At its meeting on 4 March 1987, the Council established a Working Party to examine the
request of the Government of the People's Republic of China ("China") (L/6017, submitted on
10 July 1986) for resumption of its status as a GATT contracting party, and to submit to the Council
recommendations which may include a Draft Protocol on the Status of China.  In a communication
dated 7 December 1995, the Government of China applied for accession to the Marrakesh AgreementEstablishing the World Trade Organization ("WTO Agreement") pursuant to Article XII of the WTO
Agreement.  Following China's application and pursuant to the decision of the General Council on
31 January 1995, the existing Working Party on China's Status as a GATT 1947 Contracting Party
was transformed into a WTO Accession Working Party, effective from 7 December 1995.  The terms
of reference and the membership of the Working Party are reproduced in document
WT/ACC/CHN/2/Rev.11 and Corr.1.
2. The Working Party on China's Status as a Contracting Party met on 20 occasions between
1987 and 1995 under the Chairmanship of H.E. Mr. Pierre-Louis Girard (Switzerland).  The Working
Party on the Accession of China met on 22 March 1996, 1 November 1996, 6 March 1997,
23 May 1997, 1 August 1997, 5 December 1997, 8 April 1998, 24 July 1998, 21 March 2000,
23 June 2000, 27 July 2000, 28 September 2000, 9 November 2000, 8 December 2000,
17 January 2001, 4 July 2001, 20 July 2001 and 17 September 2001 under the same Chairman.  Atmeetings held on 9 November 2000, 8 December 2000 and 17 January 2001, Mr. Paul-Henri Ravier,
Deputy Director-General of the WTO, served as Acting Chairman.
1. Documentation Provided
3. The Working Party had before it, to serve as a basis for its discussion, a Memorandum on
China's Foreign Trade Regime (L/6125) and questions posed by members of the Working Party on theforeign trade regime of China, together with replies of the Chinese authorities thereto.  In addition, the
Government of China made available to the Working Party a substantial amount of documentation,
which is listed in document WT/ACC/CHN/23/Rev.1.
2. Introductory Statements
4. In statements to the GATT 1947 Working Party and subsequently to the Working Party on the
Accession of China, the representative of China stated that China's consistent efforts to resume its
status as a contracting party to GATT and accession to the WTO Agreement were in line with its
objective of economic reform to establish a socialist market economy as well as its basic national
policy of opening to the outside world.  China's WTO accession would increase its economic growth
and enhance its economic and trade relations with WTO Members.
5. Members of the Working Party welcomed China's accession to the WTO Agreement and
considered that its accession would contribute to a strengthening of the multilateral trading system,
enhancing the universality of the WTO, bringing mutual benefits to China and to the other Members
of the WTO, and ensuring the steady development of the world economy.
6. The representative of China said that China had a territory of 9.6 million square kilometres
and, at the end of 1998 a population of 1.25 billion.  Since 1979, China had been progressively
reforming its economic system, with the objective of  establishing and improving the socialist market
economy.  The reform package introduced in 1994, covering the banking, finance, taxation,
investment, foreign exchange ("forex") and foreign trade sectors, had brought about major
breakthroughs in China's socialist market economy.  State-owned enterprises had been reformed by a
clear definition of property rights and responsibilities, a separation of government from enterprise,
and scientific management.  A modern enterprise system had been created for the state-owned sector,WT/MIN(01)/3
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and the latter was gradually getting on the track of growth through independent operation, responsible
for its own profits and losses.  A nation-wide unified and open market system had been developed.
An improved macroeconomic regulatory system used indirect means and market forces to play a
central role in economic management and the allocation of resources.  A new tax and financial system
was functioning effectively.  Financial policy had been separated from commercial operations of the
central bank, which now focussed on financial regulation and supervision.  The exchange rate of theChinese currency Renminbi (also "RMB") had been unified and remained stable.  The Renminbi had
been made convertible on current account.  Further liberalization of pricing policy had resulted in the
majority of consumer and producer products being subject to market prices.  The market now played a
much more significant role in boosting supply and meeting demand.
7. The representative of China further noted that as a result, in 1999, the Gross Domestic
Product ("GDP") of China totaled RMB 8.2054 trillion yuan (approximately US$ 990 billion).  In
1998, the net per capita income for rural residents was RMB 2,160 yuan (approximately US$ 260),and the per capita dispensable income for urban dwellers was RMB 5,425 yuan (approximately
US$ 655).  In recent years, foreign trade had grown substantially.  In 1999, total imports and exports
of goods reached US$ 360.65 billion, of which exports stood at US$ 194.93 billion, and imports,
US$ 165.72 billion. Exports from China in 1998 accounted for 3.4 per cent of the world's total.
8. The representative of China stated that although important achievements have been made in
its economic development, China was still a developing country and therefore should have the right to
enjoy all the differential and more favourable treatment accorded to developing country Members
pursuant to the WTO Agreement.
9. Some members of the Working Party indicated that because of the significant size, rapid
growth and transitional nature of the Chinese economy, a pragmatic approach should be taken indetermining China's need for recourse to transitional periods and other special provisions in the WTO
Agreement available to developing country WTO Members.  Each agreement and China's situation
should be carefully considered and specifically addressed.  In this regard it was stressed that this
pragmatic approach would be tailored to fit the specific cases of China's accession in a few areas,
which were reflected in the relevant provisions set forth in China's Draft Protocol and Working PartyReport.  Noting the preceding statements, Members reiterated that all commitments taken by China in
her accession process were solely those of China and would prejudice neither existing rights and
obligations of Members under the WTO Agreement nor on-going and future WTO negotiations and
any other process of accession.  While noting the pragmatic approach taken in China's case in a few
areas, Members also recognized the importance of differential and more favourable treatment fordeveloping countries embodied in the WTO Agreement.
10. At the request of interested members of the Working Party, the representative of China agreed
that China would undertake bilateral market access negotiations with respect to industrial and
agricultural products, and initial commitments in services.
11. Some members of the Working Party stated that in addition to undertaking market access
negotiations in goods and services, close attention should also be paid to China's multilateral
commitments, in particular China's future obligations under the Multilateral Agreements on Trade inGoods and the General Agreement on Trade in Services ("GATS").  This was of vital importance to
ensure that China would be able to take full benefit of WTO membership as quickly as possible, as
well as to ensure that the value of any market access conditions undertaken were not adversely
affected by inconsistent measures such as some types of non-tariff measures.
12. The representative of China stated that the achievement of balance between rights and
obligations was the basic principle in its negotiation of WTO accession.WT/MIN(01)/3
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13. Some members of the Working Party expressed concern over discrepancies in statistical
information supplied by the Government of China on trade volume/value.  Members and China
pursued this issue separately in an Informal Group of Experts on Export Statistics.
14. The Working Party reviewed the foreign trade regime of China.  The discussions and
commitments resulting therefrom are contained in paragraphs 15-342 below and in the Draft Protocol
of Accession ("Draft Protocol"), including the annexes.
II. ECONOMIC POLICIES
1. Non-Discrimination (including national treatment)
15. Some members expressed concern regarding the application of the principle of non-
discrimination in relation to foreign individuals and enterprises (whether wholly or partly foreign
funded).  Those members stated that China should enter a commitment to accord non-discriminatory
treatment to all foreign individuals and enterprises and foreign-funded enterprises in respect of the
procurement of inputs and goods and services necessary for production of goods and the conditionsunder which their goods were produced, marketed or sold, in the domestic market and for export.  In
addition, those members said that China should also enter a commitment to guarantee non-
discriminatory treatment in respect of the prices and availability of goods and services supplied by
national and sub-national authorities and public or state enterprises, in areas including transportation,
energy, basic telecommunications, other utilities and factors of production.
16. Some members of the Working Party also raised concerns over China's practice of
conditioning or imposing restrictions upon participation in the Chinese economy based upon the
nationality of the entity concerned.  Those members in particular raised concerns over such practices
in relation to the pricing and procurement of goods and services, and the distribution of import and
export licences.  Members of the Working Party requested that China enter into a commitment not tocondition such practices on the nationality of the entity concerned.
17. In response, the representative of China emphasized the importance of the commitments that
the government was undertaking on non-discrimination.  The representative of China noted, however,
that any commitment to provide non-discriminatory treatment to Chinese enterprises, including
foreign-funded enterprises, and foreign enterprises a nd individuals in China, would be subject to other
provisions of the Draft Protocol and, in partic ular, would not prejudice China's rights under the
GATS, China's Schedule of Specific Commitments or commitments undertaken in relation to trade-
related investment measures.
18. The representative of China further confirmed that China would provide the same treatment to
Chinese enterprises, including foreign-funded enterprises, and foreign enterprises and individuals inChina.  China would eliminate dual pricing practices  as well as differences in treatment accorded to
goods produced for sale in China in comparison to those produced for export.  The Working Party
took note of these commitments.
19. The representative of China confirmed that, consistent with China's rights and obligations
under the WTO Agreement and the Draft Protocol, China would provide non-discriminatory treatment
to all WTO Members, including Members of the WTO that were separate customs territories.  The
Working Party took note of this commitment.
20. Some members of the Working Party expressed concern about certain provisions of Chinese
laws, regulations, administrative notices and other requirements which could, directly or indirectly,
result in less favourable treatment of imported products in contravention of Article III of the General
Agreement on Tariffs and Trade ("GATT 1994").  Such requirements included product registrationWT/MIN(01)/3
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and certification, internal taxation, price and profit controls and all distinct forms of licensing for
imports, and distribution or sale of imported goods.  Even where such requirements existed in relation
to domestically produced goods, those members reiterated that any de facto or de jure less favourable
treatment of imported goods had to be eliminated in order to ensure full conf ormity with the principle
of national treatment.
21. Some members of the Working Party drew China's attention to the variety of types of
requirements which could contravene Article III of the GATT 1994.  Specific reference was made to
the procedures, charges and conditions for granting of business licences, whether to import, distribute,
re-sell or retail goods of non-Chinese origin.  Reference was also made to taxes and fiscal provisions
whose impact depended, directly or indirectly, upon the Chinese or non-Chinese origin of the goods
imported or traded.  Those members drew the attention of China to its obligation to ensure that
product testing and certification requirements, including procedures for in situ inspections, posed no
greater burden – whether financial or practical - on goods of non-Chinese origin than on domestic
goods.  Those members underlined that conformity assessment procedures and standards, including
safety and other compliance requirements, had to respect the terms of the WTO Agreement on
Technical Barriers to Trade ("TBT Agreement") as well as Article III of the GATT 1994.
22. The representative of China confirmed that the full respect of all laws, regulations and
administrative requirements with the principle of non-discrimination between domestically producedand imported products would be ensured and enforced by the date of China's accession unless
otherwise provided in the Draft Protocol or Report.  The representative of China declared that, by
accession, China would repeal and cease to apply all such existing laws, regulations and other
measures whose effect was inconsistent with WTO rules on national treatment.  This commitment was
made in relation to final or interim laws, administrative measures, rules and notices, or any other formof stipulation or guideline. The Working Party took note of these commitments.
23. In particular, the representative of China confirmed that measures would be taken at national
and sub-national level, including repeal or modifi cation of legislation, to provide full GATT national
treatment in respect of laws, regulations and other measures applying to internal sale, offering for
sale, purchase, transportation, distribution or use of the following:
– After sales service (repair, maintenance and assistance), including any conditions applying to
its provision, such as the MOFTEC third Decree of 6 September 1993, imposing mandatory
licensing procedures for the supply of after-sales service on various imported products;
– Pharmaceutical products, including regulations, notices and measures which subjected
imported pharmaceuticals to distinct procedures and formulas for pricing and classification,
or which set limits on profit margins attainable and imports, or which created any other
conditions regarding price or local content which could result in less favourable treatment of
imported products;
– Cigarettes, including unification of the licensing requirements so that a single licence
authorized the sale of all cigarettes, irrespective of their country of origin, and elimination of
any other restrictions regarding points of sale for imported products, such as could be
imposed by the China National Tobacco Corporation ("CNTC"). It was understood that in thecase of cigarettes, China could avail itself of a transitional period of two years to fully unify
the licensing requirements.  Immediately upon accession, and during the two year transitional
period, the number of retail outlets selling imported cigarettes would be substantially
increased throughout the territory of China;
– Spirits, including requirements applied under China's "Administrative Measures on Imported
Spirits in the Domestic Market", and other provisions which imposed distinct criteria andWT/MIN(01)/3
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licensing for the distribution and sale of different categories of spirits, including unification of
the licensing requirements so that a single licence authorized the sale of all spirits irrespective
of their country of origin;
– Chemicals, including registration procedures applicable to imported products, such as those
applied under China's "Provisions on the Environmental Administration of Initial Imports of
Chemical Products and Imports and Exports of Toxic Chemical Products";
– Boilers and pressure vessels, including certification and inspection procedures which had to
be no less favourable than those applied to goods of Chinese origin, and fees applied by the
relevant agencies or administrative bodies, which had to be equitable in relation to those
chargeable for like products of domestic origin.
The representative of China stated that in the cases of pharmaceuticals, spirits and chemicals cited
above, China would reserve the right to use a transitional period of one year from the date of
accession in order to amend or repeal the relevant legislation.  The Working Party took note of thesecommitments.
2. Monetary and Fiscal Policy
24. The representative of China stated that through the reform and opening up in the last two
decades, China had established a fiscal management system which was compatible with the principles
of a market economy.  With respect to fiscal revenue, a taxation system with a value-added tax as themain element had been established since the taxation reform in 1994. With respect to fiscal
expenditure, over recent years the government had, in line with the public fiscal requirement generally
exercised by market economies, strengthened its adjustment of the structure of expenditure and given
priority to public needs so as to ensure the normal operations of the government.
25. The representative of China further stated that in recent years, while pursuing proactive fiscal
policy, China had implemented proper monetary policy and had taken a series of adjusting and reform
measures which included lowering the interest rate for loans from financial institutions, improving the
system of required deposit reserves and lowering the ratio of required reserves, positively increasing
the input of base money and encouraging the commercial banks to expand their credit.
26. In respect of future fiscal policy, the representative of China noted that the Government of
China would further improve its taxation system and would continue to improve the efficiency of
fiscal expenditure through implementing reform measures such as sectoral budget, centralized
payment by the national treasury and zero base budget, as well as improving management of fiscal
expenditure. With respect to future monetary policy, the central bank would continue to pursue a
prudent policy, maintain the stability of RMB, promote interest rate liberalization and establish amodern commercial banking system.
3. Foreign Exchange and Payments
27. Some members of the Working Party raised concerns about China's use of forex controls to
regulate the level and composition of trade in goods and services.  In response, the representative of
China stated that China was now a member of the International Monetary Fund ("IMF") and that
recently its system of forex had undergone rapid change.  Significant moves had been taken to reform,
rationalize and liberalize the forex market.  The practice of multiple exchange rates in swap centreshad been abolished.  China had already unified its forex market and removed many of the restrictions
on the use of forex.WT/MIN(01)/3
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28. Outlining the historical development of China' s forex reform, the representative of China
stated that the purpose of China's forex reform was to reduce administrative intervention and increase
the role of market forces.  From 1979, a forex retention system was applied in China, although forex
swap was gradually developing.  In early 1994, official RMB exchange rates were unified with the
market rates. The banking exchange system was adopted and a nationwide unified inter-bank forex
market was established, with conditional convertibility of the Renminbi on current accounts.  Since1996, foreign invested enterprises ("FIEs") were also permitted into the banking exchange system,
and the remaining exchange restrictions on current accounts were eliminated. On 1 December 1996,
China had formally accepted the obligations of Article VIII of the IMF's Articles of Agreement,
removing exchange restrictions on current account transactions.  Accordingly, since then the
Renminbi had been fully convertible on current accounts.  It was confirmed by the IMF in its Staff
Report on Article IV Consultations with China in 2000 that China had no existing forex restrictions
for current account transactions.
29. The representative of China stated that the State Administration of Foreign Exchange
("SAFE") was under the auspices of the People's Bank of China ("PBC"), and was the administrative
organ empowered to regulate forex.  Its main functions were to monitor and advise on balance-of-
payments and forex matters.  SAFE was also requir ed to draft appropriate regulations and monitor
compliance.  He further noted that domestic and foreign banks, and financial institutions could engagein forex business, with the approval of the PBC.
30. In response to requests from members of the Working Party for further information, the
representative of China added that for forex payments under current accounts, domestic entities
(including FIEs) could purchase forex at market exchange rates from designated banks or debit their
forex accounts directly upon presentation of valid documents.  For payments such as pre-payment,commission, etc., exceeding the proportion or limit, the entities could also purchase forex from the
banks upon meeting the bona fide test administered by SAFE.  Forex for personal use by individuals
could be purchased directly from the banks upon presentation of valid documents (within a specified
limit).  For amounts exceeding the limit, individuals able to prove their need for additional forex
could purchase it from the banks.  He also noted that current account forex receipts owned bydomestic entities had to be repatriated into China, some of which could be retained and some sold to
the designated banks at market rates.  A verification system for forex payment (imports) and forex
receipt (exports) had also been adopted.
31. Concerning the exchange rate regime in particular, the representative of China noted that
since the unification of exchange rates on 1 January 1994, China had adopted a single and managedfloating exchange rate regime based on supply and demand.  PBC published the reference rates of
RMB against the US dollar, the HK dollar and Japanese yen based on the weighted average prices of
forex transactions at the interbank forex market during the previous day's trading. The buying and
selling rates of RMB against the US dollar on the inter-bank forex market could fluctuate within 0.3
per cent of the reference rate. For the HK dollar and Japanese yen, the permitted range was 1 per cent.
Designated forex banks could deal with their clients at an agreed rate.  Under such contracts the
exchange rate of the US dollar was required to be within 0.15 per cent of the reference rate, whereasfor the HK dollar and Japanese yen, the permitted range was 1 per cent.  The exchange rates for other
foreign currencies were based on the rates of RMB against the US dollar and cross-exchange rates of
other foreign currency on the international mark et. The permitted margin between the buying and
selling rate could not exceed 0.5 per cent.
32. The representative of China further noted that since 1 January 1994, designated forex banks
had become major participants in forex transactions.  On 1 April 1994, the China Foreign Exchange
Trading System was set up in Shanghai and branches were opened in dozens of cities.  The Foreign
Exchange Trading System had adopted a system of membership, respective quotation, concentrated
trading and forex market settlement.  Designated forex banks dealt on the inter-bank market accordingWT/MIN(01)/3
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to the turnover position limit on banking exchange stipulated by SAFE and covered the position on
the market. Depending on its macro-economic objectives, the PBC could intervene in the forex open
market in order to regulate market supply and demand, and maintain the stability of the RMB
exchange rate.
33. The representative of China noted that since 1 July 1996, forex dealing of the FIEs was
carried out through the banking exchange system.  He further noted that to encourage foreign directinvestment, China had granted national treatment to FIEs in exchange administration.  Accordingly,
FIEs were allowed to open and hold forex settlement accounts to retain receipts under current
accounts, up to a maximum amount stipulated by SAFE.  Receipts in excess of the maximum amount
were required to be sold to designated forex bank s.  No restrictions were maintained on the payment
and transfer of current transactions by FIEs, a nd FIEs could purchase forex from designated forex
banks or debit their forex accounts for any payment under current transactions, upon the presentation
of valid documents to the designated forex banks or SAFE for the bona fide test.  FIEs could alsoopen forex accounts to hold foreign-invested capital, and they could sell from these accounts upon the
approval of SAFE.  FIEs  could also borrow forex directly from domestic and overseas banks, but
were required to register with SAFE afterwards, and obtain approval by SAFE for debt repayment and
services.  FIEs could make payments from their forex accounts or in forex purchased from designated
forex banks after liquidation, upon approval by SAFE according to law.
34. The representative of China further noted that the laws and regulations mentioned above
were:  Law of the People's Republic of China on Chinese-Foreign Equity Joint Venture;  Law of the
People's Republic of China on Chinese-Foreign Contractual Joint Venture;  Regulations on the
Exchange System of the People's Republic of China; and Regulations on the Sale and Purchase of and
Payment in Foreign Exchange.
35. The representative of China stated that China would implement its obligations with respect to
forex matters in accordance with the provisions of the WTO Agreement and related declarations and
decisions of the WTO that concerned the IMF.  The representative further recalled China's acceptance
of Article VIII of the IMF's Articles of Agreement, which provided that "no member shall, without the
approval of the Fund, impose restrictions on the making of payments and transfers for currentinternational transactions".  He stated that, in accordance with these obligations, and unless otherwise
provided for in the IMF's Articles of Agreement, China would not resort to any laws, regulations or
other measures, including any requirements with respect to contractual terms, that would restrict the
availability to any individual or enterprise of fore x for current international transactions within its
customs territory to an amount related to the forex infl ows attributable to that individual or enterprise.
The Working Party took note of these commitments.
36. In addition, the representative of China stated that China would provide information on
exchange measures as required under Article VIII, Section 5 of the IMF's Articles of Agreement, and
such other information on its exchange measures as was deemed necessary in the context of the
transitional review mechanism.  The Working Party took note of this commitment.
4. Balance-of-Payments Measures
37. Some members of the Working Party stated that China should apply balance-of-payments
("BOPs") measures only under the circumstances provided for in the WTO Agreement and not as a
justification for imposition of restrictions on imports for other protectionist purposes.  Those members
stated that measures taken for BOPs reasons should have the least trade disruptive effect possible and
should be limited to temporary import surcharges, import deposit requirements or other equivalent
price-based trade measures, and those measures should not be used to provide import protection forspecific sectors, industries or products.WT/MIN(01)/3
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38. Those members of the Working Party further stated that any such measures should be notified
pursuant to the Understanding on the Balance-of-Payments Provisions of the GATT 1994 ("BOPs
Understanding") to the General Council not later than  the imposition of the measures, together with a
time schedule for their elimination and a programme of external and domestic policy measures to be
used to restore BOPs equilibrium.  Those members also stated that following deposit of such a
notification, the Committee on Balance-of-Payments Restrictions ("BOPs Committee") should meetto examine the notification.  It was noted that paragraph 4 of the BOPs Understanding would be
available to China in the case of "essential products".  Some members stated that the BOPs
Committee should review the operation of any BOPs measures taken by China, if so requested by
China or a WTO Member.
39. Some other members of the Working Party considered that, in respect of measures taken for
BOP purposes, China should enjoy the same rights as those accorded to other developing country
WTO Members, as provided in GATT Article XVIII:B and the BOPs Understanding.
40. In response, the representative of China stated that China considered that it should have the
right to make full use of WTO BOPs provisions to protect, if necessary, its BOPs situation.  He
confirmed that China would fully comply with the provisions of the GATT 1994 and the BOPs
Understanding.  Further to such compliance, China would give preference to application of price-
based measures as set forth in the BOPs Understanding.  If China resorted to measures that were notprice-based, it would transform such measures into  price-based measures as soon as possible.  Any
measures taken would be maintained strictly in accordance with the GATT 1994 and the BOPs
Understanding, and would not exceed what was necessary to address the particular BOPs situation.
The representative of China also confirmed that measures taken for BOPs reasons would only be
applied to control the general level of imports and not to protect specific sectors, industries orproducts, except as noted in paragraph 38.  The Working Party took note of these commitments.
5. Investment Regime
41. The representative of China stated that since the inception of the reform and opening up
policy in the late 1970's, China had carried out a series of reforms of its investment regime. The
highly centralized investment administration under the planned economy had been progressivelytransformed into a new pattern of diversification of investors, multi-channelling of capital sources and
diversification of investment modalities. The gove rnment encouraged foreign investment into the
Chinese market and had uninterruptedly opened and expanded the scope for investment. At the same
time, the Government of China also encouraged the development of the non-state-operated economy
and was speeding up the opening of areas for non-st ate investment. With China's programme in the
establishment of its market economy, the construction projects of various enterprises utilizing free
capital and financed by the credit of the enterprise would be fully subject to the decision-making of
the enterprise concerned and at their own risk. The commercial banks' credit activities to all kinds of
investors would be based on their own evaluation and decision-making, and would be at their own
risk.  The business activities of intermediate invest ment agencies would be fully subject to the market
and would provide service at the instruction of the investors. These agencies would break up their
administrative relations with government agencies and the service activities financed by thegovernment would also be subject to the terms a nd conditions agreed in the contracts concerned.
42. The representative of China further stated that China had promulgated investment guidelines
and that the Government of China was in the process of revising and completing these guidelines.
Responding to concerns raised by certain members of the Working Party, he confirmed that these
investment guidelines and their implementation would be in full conformity with the WTO
Agreement.  The Working Party took note of this commitment.WT/MIN(01)/3
Page 9
6. State-Owned and State-Invested Enterprises
43. The representative of China stated that the state-owned enterprises of China basically
operated in accordance with rules of market economy.  The government would no longer directly
administer the human, finance and material resources, and operational activities such as production,
supply and marketing.  The prices of commodities produced by state-owned enterprises were decided
by the market and resources in operational areas were fundamentally allocated by the market.  Thestate-owned banks had been commercialized and lending to state-owned enterprises took place
exclusively under market conditions.  China was furthering its reform of state-owned enterprises and
establishing a modern enterprise system.
44. In light of the role that state-owned and state-invested enterprises played in China's economy,
some members of the Working Party expressed concerns about the continuing governmental influence
and guidance of the decisions and activities of such enterprises relating to the purchase and sale of
goods and services. Such purchases and sales should be based solely on commercial considerations,without any governmental influence or application of discriminatory measures.  In addition, those
members indicated the need for China to clarify its understanding of the types of activities that would
not come within the scope of Article III:8(a) of GATT 1994.  For example, any measure relating to
state-owned and state-invested enterprises importing materials and machinery used in the assembly of
goods, which were then exported or otherwise made available for commercial sale or use or for non-governmental purposes, would not be considered to be a measure relating to government procurement.
45. The representative of China emphasized the evolving nature of China's economy and the
significant role of FIEs and the private sector in the economy.  Given the increasing need and
desirability of competing with private enterprises in the market, decisions by state-owned and state-
invested enterprises had to be based on commercial considerations as provided in the WTOAgreement.
46. The representative of China further confirmed that China would ensure that all state-owned
and state-invested enterprises would make purchases and sales based solely on commercial
considerations, e.g., price, quality, marketability and availability, and that the enterprises of other
WTO Members would have an adequate opportunity to compete for sales to and purchases from theseenterprises on non-discriminatory terms and conditions.  In addition, the Government of China would
not influence, directly or indirectly, commercial decisions on the part of state-owned or state-invested
enterprises, including on the quantity, value or country of origin of any goods purchased or sold,
except in a manner consistent with the WTO Agreement.  The Working Party took note of these
commitments.
47. The representative of China confirmed that, without prejudice to China's rights in future
negotiations in the Government Procurement Agreement, all laws, regulations and measures relating
to the procurement by state-owned and state-invested enterprises of goods and services for
commercial sale, production of goods or supply of services for commercial sale, or for non-
governmental purposes would not be considered to be laws, regulations and measures relating to
government procurement. Thus, such purchases or sales would be subject to the provisions of
Articles II, XVI and XVII of the GATS and Arti cle III of the GATT 1994.  The Working Party took
note of this commitment.
48. Certain members of the Working Party expressed concern about laws, regulations and
measures in China affecting the transfer of technol ogy, in particular in the context of investment
decisions.  Moreover, these members expressed concern about measures conditioning the receipt of
benefits, including investment approvals, upon t echnology transfer.  In their view, the terms and
conditions of technology transfer, particularly in the context of an investment, should be agreedWT/MIN(01)/3
Page 10
between the parties to the investment without gove rnment interference.  The government should not,
for example, condition investment approval upon technology transfer.
49. The representative of China confirmed that China would only impose, apply or enforce laws,
regulations or measures relating to the transfer of technology, production processes, or other
proprietary knowledge to an individual or enterprise in its territory that were not inconsistent with the
WTO Agreement on Trade-Related Aspects of Intellectual Property Rights ("TRIPS Agreement") andthe Agreement on Trade-Related Investment Measures ("TRIMs Agreement").  He confirmed that the
terms and conditions of technology transfer, production processes or other proprietary knowledge,
particularly in the context of an investment, woul d only require agreement between the parties to the
investment.  The Working Party took note of these commitments.
7. Pricing Policies
50. Some members of the Working Party noted that China had made extensive use of price
controls, for example in the agricultural sector.  Those members requested that China undertakespecific commitments concerning its system of state pricing.  In particular, those members stated that
China should allow prices for traded goods and services in every sector to be determined by market
forces, and multi-tier pricing practices for such goods and services should be eliminated.  Those
members noted, however, that China expected to ma intain price controls on the goods and services
listed in Annex 4 to the Draft Protocol, and stated that any such controls should be maintained in amanner consistent with the WTO Agreement, in particular Article III of the GATT 1994 and Annex 2,
paragraphs 3 and 4, of the Agreement on Agriculture.  Those members noted that except in
exceptional circumstances, and subject to notification to the WTO Secretariat, price controls should
not be extended to goods or services beyond those listed in Annex 4, and China should make its best
efforts to reduce and eliminate those controls.  They also asked that China publish in the appropriateofficial journal the list of goods and services subject to state pricing and changes thereto.
51. Some members of the Working Party expressed the view that price controls and state pricing
in China also encompassed "guidance pricing" and  regulation of the range of profits that enterprises
could enjoy.  Such policies and practices would also  be subject to China's commitments.  In their
view, price controls should be adopted only in extraordinary circumstances and should be removed assoon as the circumstances justifying their adoption were addressed.
52. The representative of China said that China currently applied a mechanism of market-based
pricing under macro-economic adjustment.  He noted that national treatment was applied in the areas
of government pricing for all imported goods.  There were presently three types of prices:
government price, government guidance price and ma rket-regulated price.  The government price was
set by price administration authorities and could not be changed without the approval of these
authorities. Products and services subject to government pricing were those having a direct bearing on
the national economy and the basic needs of the people's livelihood, including those products that
were scarce in China.
53. The representative of China stated that when government prices or government guidance
prices needed to be adjusted or reset, the agencies or operators concerned should apply or propose to
the competent pricing authorities for that purpose.  There was not a fixed time frame for theadjustment of government prices or government guidance prices. Competent agencies or operators
could, in the light of market changes and according to relevant provisions of the Price Law, submit
applications or proposals to the competent pricing au thorities for pricing or adjustment of the original
prices.  The government pricing authorities would, in the light of such factors as market demand and
supply, operational costs, effect on consumers as well as the quality of services, determine specificprices for the services concerned, or set guidance prices and floating ranges within which operators
could determine specific prices.  When setting prices for public utilities, important public welfareWT/MIN(01)/3
Page 11
services and goods subject to natural monopolies and services which were of vital interest to the
general public, government pricing authorities would hold public hearings and invite consumers,
operators and other concerned parties to comment and debate on the necessity and impact of a price
adjustment.  The prices of important services were subject to the approval of the State Council.   This
mechanism had helped to significantly improve the rationality and transparency of government
pricing.  All enterprises, regardless of their nature and ownership, were free to participate in suchhearings and voice their opinions and concerns which would be taken into consideration by the
competent pricing authorities. Meanwhile, government pricing was product- or service-specific,
regardless of the ownership of the enterprises concerned.  All the enterprises and individuals enjoyed
the same treatment in terms of participating in  the process of setting government prices and
government guidance prices.
54. The representative of China added that the government guidance price mechanism was a more
flexible form of pricing.  The price administration authorities stipulated either a basic price or floatingranges. The floating range of guidance pricing was generally 5 per cent to 15 per cent.  Enterprises
could, within the limits of the guidance and taking into account the market situation, make their own
decisions on prices.  With market-regulated prices, enterprises were free to set prices in accordance
with supply and demand to the extent permitted by generally applicable laws, regulations and policies
concerning prices.
55. The representative of China stated that in formulating government prices and government
guidance prices, the following criteria were taken into account:  normal production costs, supply and
demand situation, relevant government policies and prices of related products. When fixing prices of
consumer goods, consideration was given to the limits of consumers' purchasing power.  He noted
that due to the continued reform of China's price system, the share of government prices had droppedsubstantially and that of market-regulated prices had increased;  of social retailing products, the share
of government prices was about 4 per cent, that of government guidance prices 1.2 per cent, and that
of market-regulated prices 94.7 per cent.  For agri cultural products, the share of government prices
was 9.1 per cent, government guidance prices 7.1 per cent, and market-regulated 83.3 per cent.  For
production inputs, the share of government prices was 9.6 per cent, that of government guidanceprices 4.4 per cent, and market-regulated prices 86 per cent.  The share of directly government-
controlled prices had been much reduced.  China's price system was becoming increasingly
rationalized, creating a relatively fair marketplace for all enterprises to compete on an equal footing.
56. The representative of China recalled that Annex 4 of the Draft Protocol contained a
comprehensive listing of all products and services presently subject to government guidance pricingand government pricing.  He stated that the services subject to price controls were listed in Annex 4
by their respective CPC codes.
57. Some members of the Working Party requested additional information on the specific
activities subject to government pricing or government guidance pricing.  In particular, those
members requested information on professional services, educational services, and charges for
settlement clearing and transmission services of ba nks.  In response, the representative of China stated
that "The Administrative Rules on Intermediate Services" promulgated in 1999 by six centralgovernment agencies led by the State Development and Planning Commission ("SDPC") dealt with
government pricing on intermediate services such as inspection authentication, notarization and
arbitration and services which were in limited supply due to their special requirements.  For legal
services, the Interim Regulation on Charges and Fees of Legal Services, jointly promulgated by the
SDPC and the Ministry of Justice stipulated that for law firms practising Chinese law, charges andfees for the following activities were subject to the approval of the SDPC: (1) representing a client in
a civil case, including an appeal; (2) representing a client in a case contesting an administrative
agency's decision; (3) providing legal advice to crim inal suspects, acting for a client in connection
with an appeal or prosecution, applying for bail, representing a defendant or victim in a criminal case;WT/MIN(01)/3
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and (4) representing a client in an arbitration.  For foreign legal service providers engaged in activities
such as those listed in China's GATS schedule, the foreign legal service providers would determine
the appropriate charges and fees which would not be subject to government pricing or guidance
pricing.
58. The representative of China noted that regulations also existed for the other services included
in Annex 4.  Government pricing and guidance pricing covered auditing services.  For architecturalservices, advisory and pre-design architectural services and contract administration activities were
subject to government pricing or government guidance pricing.  For engineering services, advisory
and consultative services, engineering design services for the construction of foundations and building
structures, design services for mechanical and electrical installations for buildings, construction of
civil engineering works, and industrial processes and production were subject to government pricing
or government guidance pricing. Primary, secondary and higher education services were subject to
government pricing.
59. The representative of China further explained that charges for settlement, clearing and
transmission services of banks referred to in Annex 4 related to the charges and fees collected by
banks for the services provided to enterprises and individuals when the banks conducted currency
payments and transmission and fund settlements by using clearance methods such as bills and notes,
collections and acceptances.  These mainly included commission charges of bills, cashier's cheques,cheques, remittances, entrusted collections of payment, and collections and acceptances of banks.
60. The representative of China confirmed that it would publish in the official journal the list of
goods and services subject to state pricing and changes thereto, together with price-setting
mechanisms and policies.  The Working Party took note of these commitments.
61. The representative of China confirmed that the official journal providing price information
was the Pricing Monthly of the People's Republic of China, published in Beijing.  It was a monthly
magazine listing all products and services priced by the State.  He further stated that China would
continue to further its price reform, adjusting the catalogue subject to state pricing and further
liberalize its pricing policies.
62. The representative of China further confirmed that price controls would not be used for
purposes of affording protection to domestic industries  or services providers.  The Working Party took
note of this commitment.
63. Some members of the Working Party expressed a concern that China could maintain prices
below market-based ones in order to limit imports.
64. In response, the representative of China confirmed that China would apply its current price
controls and any other price controls upon accession in a WTO-consistent fashion, and would take
account of the interests of exporting WTO Members as provided for in Article III:9 of the GATT
1994.  He also confirmed that price controls would not have the effect of limiting or otherwise
impairing China's market-access commitments on goods and services.  The Working Party took note
of these commitments.
8. Competition Policy
65. The representative of China noted that the Government of China encouraged fair competition
and was against acts of unfair competition of all kinds. The Law of the People's Republic of China on
Combating Unfair Competition, promulgated on 2 September 1993 and implemented on
1 December 1993, was the basic law to maintain the order of competition in the market. In addition,
the Price Law, the Law on Tendering and Bidding, the Criminal Law and other relevant laws alsoWT/MIN(01)/3
Page 13
contained provisions on anti-monopoly and unfair co mpetition. China was now formulating the Law
on Anti-Monopoly.
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
1. Structure and Powers of the Government
66. The representative of China informed members of the Working Party that in accordance with
the Constitution and the Law on Legislation of the People's Republic of China, the National People'sCongress was the highest organ of state power.  Its permanent body was its Standing Committee.  The
National People's Congress and its Standing Committee exercised the legislative power of the State.
They had the power to formulate the Constitution and laws.  The State Council, i.e., the Central
People's Government of China, was the executive body of the highest organ of state power.  The State
Council, in accordance with the Constitution and relevant laws, was entrusted with the power to
formulate administrative regulations.  The minist ries, commissions and other competent departments
(collectively referred to as "departments'') of th e State Council could issue departmental rules within
the jurisdiction of their respective departments an d in accordance with the laws and administrative
regulations.  The provincial people's congresses and their standing committees could adopt local
regulations.  The provincial governments had the power to make local government rules.  The
National People's Congress and its Standing Comm ittee had the power to annul the administrative
regulations that contradicted the Constitution and laws as well as the local regulations thatcontradicted the Constitution, laws and administrative regulations.  The State Council had the power
to annul departmental rules and local government rules that were inconsistent with the Constitution,
laws or administrative regulations.  These features of the Chinese legal system would ensure an
effective and uniform implementation of the obligations after China's accession.
67. The representative of China stated that China had been consistently performing its
international treaty obligations in good faith.  According to the Constitution and the Law on the
Procedures of Conclusion of Treaties, the WTO Agreement fell within the category of "important
international agreements" subject to the ratification by the Standing Committee of the National
People's Congress.  China would ensure that its laws  and regulations pertaining to or affecting trade
were in conformity with the WTO Agreement and with its commitments so as to fully perform its
international obligations.  For this purpose, China had commenced a plan to systematically revise its
relevant domestic laws.  Therefore, the WTO Agreement would be implemented by China in an
effective and uniform manner through revising its existing domestic laws and enacting new ones fully
in compliance with the WTO Agreement.
68. The representative of China confirmed that administrative regulations, departmental rules and
other central government measures would be promulgated in a timely manner so that China's
commitments would be fully implemented within the relevant time frames.  If administrative
regulations, departmental rules or other measures were not in place within such time frames,
authorities would still honour China's obligations under the WTO Agreement and Draft Protocol.  The
representative of China further confirmed that th e central government would undertake in a timely
manner to revise or annul administrative regulations or departmental rules if they were inconsistent
with China's obligations under the WTO Agreement and Draft Protocol.  The Working Party tooknote of these commitments.
2. Authority of Sub-National Governments
69. Several members of the Working Party raised concerns about the continued presence of
multiple trade instruments used by different levels of government within China.  Those members
considered that this situation resulted in a lessening  of the security and predictability of access to the
Chinese market. These Members raised specific concerns regarding the authority of sub-nationalWT/MIN(01)/3
Page 14
governments in the areas of fiscal, financial and budgetary activities, specifically with respect to
subsidies, taxation, trade policy and other issues covered by the WTO Agreement and the Draft
Protocol.  In addition, some members expressed conc erns about whether the central government could
effectively ensure that trade-related measures introduced at the sub-national level would conform to
China's commitments in the WTO Agreement and the Draft Protocol.
70. The representative of China stated that sub-national governments had no autonomous
authority over issues of trade policy to the extent  that they were related to the WTO Agreement and
the Draft Protocol.  The representative of China confirmed that China would in a timely manner annul
local regulations, government rules and other loca l measures that were inconsistent with China's
obligations.  The representative of China further confirmed that the central government would ensure
that China's laws, regulations and other measures, including those of local governments at the sub-
national level, conformed to China's obligations undertaken in the WTO Agreement and the Draft
Protocol.  The Working Party took note of these commitments.
3. Uniform Administration of the Trade Regime
71. Some members of the Working Party stated that it should be made clear that China would
apply the requirements of the WTO Agreement and its other accession commitments throughout
China's entire customs territory, including border trade regions, minority autonomous areas, Special
Economic Zones ("SEZs"), open coastal cities, economic and technical development zones and otherspecial economic areas and at all levels of government.
72. Those members of the Working Party also raised concerns about whether China's central
government would be sufficiently informed about non-uniform practices and would take necessary
enforcement actions.  Those members stated that China should establish a mechanism by which any
concerned person could bring to the attention of the central government cases of non-uniformapplication of the trade regime and receive prompt and effective action to address situations in which
non-uniform application was established.
73. The representative of China confirmed that the provisions of the WTO Agreement, including
the Draft Protocol, would be applied uniformly throughout its customs territory, including in SEZs
and other areas where special regimes for tariffs, taxes and regulations were established and at alllevels of government.  The Working Party took note of this commitment.
74. In response to questions from certain members of the Working Party, the representative of
China confirmed that laws, regulations and other measures included decrees, orders, directives,
administrative guidance and provisional and interi m measures.  He stated that in China, local
governments included provincial governments, including autonomous regions and municipalities
directly under the central government, cities, counties and townships.  The representative of China
further stated that local regulations, rules and other measures were issued by local governments at the
provincial, city and county levels acting within their respective constitutional powers and functions
and applied at their corresponding local level.  Townships were only authorized to implement
measures.  Special economic areas were also authorized to issue and implement local rules and
regulations.
75. The representative of China further confirmed that the mechanism established pursuant to
Section 2(A) of the Draft Protocol would be operative upon accession.  All individuals and entities
could bring to the attention of central government authorities cases of non-uniform application of
China's trade regime, including its commitments under the WTO Agreement and the Draft Protocol.
Such cases would be referred promptly to the responsible government agency, and when non-uniform
application was established, the authorities would act promptly to address the situation utilizing theremedies available under China's laws, taking into consideration China's international obligations andWT/MIN(01)/3
Page 15
the need to provide a meaningful remedy.  The individual or entity notifying China's authorities would
be informed promptly in writing of any decision and action taken.  The Working Party took note of
these commitments.
4. Judicial Review
76. Some members of the Working Party stated that China should designate independent
tribunals, contact points, and procedures for the prompt review of all administrative actions relating tothe implementation of laws, regulations, judicial decisions and administrative rulings of general
application referred to in Article X:1 of the GATT 1994, including administrative actions relating to
import or export licences, non-tariff measures and tariff-rate quota administration, conformity
assessment procedures and other measures.  These members sought explicit confirmation that certain
types of measures, such as decisions relating to standards and chemical registration, would be subject
to judicial review.  Some members of the Working Party also stated that the administrative actions
subject to review should also include any actions required to be reviewed under the relevantprovisions of the TRIPS Agreement and the GATS.  These members stated that such tribunals should
be independent of the agencies entrusted with administrative enforcement of the matter and should not
have any substantial interest in the outcome of the matter.
77. Those members of the Working Party stated that such review procedures should include the
opportunity for appeal, without penalty, by individuals or enterprises affected by any administrativeaction subject to review.  If an initial right of appeal were to an administrative body, there should be
an opportunity to choose to make a further appeal to a judicial body.  Any decision by any appellate
body and the reasons therefore would be communicated in writing to the appellant, together with
notification of any right to further appeal.
78. The representative of China confirmed that it would revise its relevant laws and regulations so
that its relevant domestic laws and regulations would be consistent with the requirements of the WTO
Agreement and the Draft Protocol on procedures for judicial review of administrative actions.  He
further stated that the tribunals responsible for such reviews would be impartial and independent of
the agency entrusted with administrative enforcement, and would not have any substantial interest in
the outcome of the matter.  The Working Party took note of these commitments.
79. In response to questions from certain members of the Working Party, the representative of
China confirmed that administrative actions related to the implementation of laws, regulations,
judicial decisions and administrative rulings of general application referred to in Article X:1 of the
GATT 1994, Article VI of the GATS and the relevant  provisions of the TRIPS Agreement included
those relating to the implementation of national tr eatment, conformity assessment, the regulation,
control, supply or promotion of a service, including the grant or denial of a licence to provide a
service and other matters, and that such administrative actions would be subject to the procedures
established for prompt review under Section 2(D)(2 ) of the Draft Protocol, and information on such
procedures would be available through the enquiry point that China would establish upon accession.
The Working Party took note of these commitments.
IV. POLICIES AFFECTING TRADE IN GOODS
A. TRADING RIGHTS
1. General
80. Some members of the Working Party noted that China was in the process of liberalizing the
availability of the right to import and export goods  from China, but that such rights were now only
available to some Chinese enterprises (totalling 35,000).  In addition, foreign-invested enterprises hadWT/MIN(01)/3
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the right to trade, although this was restricted to the importation for production purposes and
exportation, according to the enterprises' scope of  business.  Those members stated their view that
such restrictions were inconsistent with WTO requirements, including Articles XI and III of GATT
1994, and welcomed China's commitment to progressively liberalize the availability and scope of the
right to trade so that within three years after accession all enterprises would have the right to import
and export all goods (except for the share of products listed in Annex 2A to the Draft Protocolreserved for importation and exportation by state trading enterprises) throughout the customs territory
of China.  Those members requested that China provide detailed information on the process and
criteria that it would use to increase the number of enterprises with trading rights and the scope of
products that enterprises could import and export during the transition period.
81. Some members of the Working Party also noted China's commitment to accord foreign
enterprises and individuals, including those not invested or registered as enterprises in China, no less
favorable treatment than that accorded enterprises in  China with respect to the right to trade except as
otherwise provided for in the Draft Protocol. Members of the Working Party requested that China
provide detailed information regarding the process fo r such enterprises and individuals to obtain the
right to import and export goods.
82. Some members of the Working Party expressed concerns that after the transition period any
linkage between an enterprise's scope of business or business licence and the right to trade wouldconstitute a restriction on the right to import and export.  Those members noted that within three years
after accession, China would have to permit all enterprises in China to trade in all goods throughout
the customs territory of China (except as otherwise provided in the Draft Protocol).
83. The representative of China confirmed that during the three years of transition, China would
progressively liberalize the scope and availability of trading rights.
(a) The representative of China confirmed that, upon accession, China would eliminate for both
Chinese and foreign-invested enterprises any e xport performance, trade balancing, foreign
exchange balancing and prior experience requirements, such as in importing and exporting,
as criteria for obtaining or maintaining the right to import and export.
(b) With respect to wholly Chinese-invested enterp rises, the representative of China stated that
although foreign-invested enterprises obtained limited trading rights based on their approved
scope of business, wholly Chinese-invested en terprises were now required to apply for such
rights and the relevant authorities applied a threshold in approving such applications.  In
order to accelerate this approval process and increase the availability of trading rights, the
representative of China confirmed that China would reduce the minimum registered capitalrequirement (which applied only to wholly Chin ese-invested enterprises) to obtain trading
rights to RMB 5,000,000 for year one, RMB 3,000,000 for year two, RMB 1,000,000 for
year three and would eliminate the examination and approval system at the end of the phase-
in period for trading rights.
(c) The representative of China also confirmed that during the phase-in period, China would
progressively liberalize the scope and availability of trading rights for foreign-invested
enterprises.  Such enterprises would be granted new or additional trading rights based on thefollowing schedule.  Beginning one year after accession, joint-venture enterprises with
minority share foreign-investment would be gran ted full rights to trade and beginning two
years after accession majority share foreign-invested joint-ventures would be granted full
rights to trade.
(d) The representative of China also confirmed that within three years after accession, all
enterprises in China would be granted the right to trade. Foreign-invested enterprises wouldWT/MIN(01)/3
Page 17
not be required to establish in a particular form or as a separate entity to engage in importing
and exporting nor would new business licence encompassing distribution be required to
engage in importing and exporting.
The Working Party took note of these commitments.
84. (a) The representative of China reconfirmed that China would eliminate its system of
examination and approval of trading rights within three years after accession.  At that time,China would permit all enterprises in China and foreign enterprises and individuals,
including sole proprietorships of other WTO Members, to export and import all goods
(except for the share of products listed in A nnex 2A to the Draft Protocol reserved for
importation and exportation by state trading enterprises) throughout the customs territory of
China.  Such right, however, did not permit importers to distribute goods within China.
Providing distribution services would be done in accordance with China's Schedule of
Specific Commitments under the GATS.
(b) With respect to the grant of trading rights to foreign enterprises and individuals, including
sole proprietorships of other WTO members, the representative of China confirmed that
such rights would be granted in a non-discriminatory and non-discretionary way.  He further
confirmed that any requirements for obtaining trading rights would be for customs and fiscal
purposes only and would not constitute a barrier to trade.  The representative of Chinaemphasized that foreign enterprises and individuals with trading rights had to comply with
all WTO-consistent requirements related to importing and exporting, such as those
concerning import licensing, TBT and SPS, but confirmed that requirements relating to
minimum capital and prior experience would not apply.
The Working Party took note of these commitments.
2. Designated Trading
85. The representative of China stated that China would adjust and expand its list of enterprises
under its designated trading regime annually during the transition period, leading up to full
implementation of the commitment contained in Annex 2B.  The current criteria for enterprises under
the designated trading regime included registered capital, import and export volume and the importvolume of products subject to designated trading in the previous year, bank credit rating and profits
and losses.
86. Members of the Working Party noted China's commitment that it would phase out the
limitation on the grant of trading rights for goods specified in Annex 2B of its Draft Protocol within
three years after accession.  In responding to questions raised by some members of the Working Party,the representative of China confirmed that China would progressively liberalize the right to trade in
such goods by increasing the number of designated entities permitted to import goods in each of the
three years of the transition period specified in Annex 2B.  The representative of China added that
China would eliminate import and export volume as a criterion for obtaining the right to trade these
products, reduce minimum capitalization requirements and extend the right to register as designated
importing and exporting enterprises to enterprises that used such goods in the production of finished
goods and enterprises that distributed such goods in China.  At the end of three years, all enterprisesin China and all foreign enterprises and individua ls would be permitted to import and export such
goods throughout the customs territory of China.  During the transition period, none of the criteria
applicable under the designated trading regime would constitute a quantitative restriction on imports
or exports.  The Working Party took note of these commitments.WT/MIN(01)/3
Page 18
B. IMPORT REGULATION
1. Ordinary Customs Duties
87. Members of the Working Party welcomed China's decision to bind tariffs for all products in
its schedule on market access for goods.  This action would increase the certainty and predictability of
this aspect of China's trade regime.  Members also noted the substantial unilateral tariff reductions
made in many sectors by China in recent years.
88. The representative of China provided members of the Working Party with a copy of the
Customs Import and Export Tariff of the People's Republic of China ("Customs Tariff") and related
laws and regulations.  He noted that the Customs Tariff of China was a charge imposed on imported
goods. The purpose of levying tariffs was twofold:  (a) to regulate imports so as to promote and
support domestic production;  and (b) to serve as an important source of revenue for the treasury of
the central government.  China's tariff policy was to promote economic reform and opening of the
economy.  The basic principles for establishing dut y rates were as follows.  Duty-free or low duty
rates were applied to imported goods which were needed for the national economy and the people's
livelihood but which were not produced sufficiently domestically.  Import duty rates on raw materials
were generally lower than those on semi-manufactured or manufactured products.  For parts or
components of machinery, equipment and instrument s which were not produced domestically, or at a
sufficiently high standard, the import duty was lower than the duty on finished products.  Higher dutyrates were applied to products which were produced domestically or which were considered non-
essential for the national economy and the people's livelihood.   A higher duty was applied to
imported products, the equivalent of which were produced domestically and the local manufacturer of
which needed protection.
89. The representative of China said that China had adopted the Harmonized Commodity
Description and Coding System ("HS") as from 1 January 1992 and joined the International
Convention on the Harmonized Commodity Description and Coding System in the same year.  There
were 21 sections, 97 chapters and 7062 eight-digit tariff headings based on the six-digit HS'96 version
in the Customs Tariff for the year 2000.  Tariff rates were fixed by the State Council.  Partial
adjustment to the duty rates was subject to deliberation and final decision by the State Council TariffCommission.  The simple average of China's import duties in 2000 was 16.4 per cent.  Among the
7062 tariff headings, tariff rates for 525 headings were below 5 per cent, 1488 were between 5 per
cent (inclusive) and 10 per cent (exclusive), 2022 between 10 per cent (inclusive) and 15 per cent
(inclusive) and 3027 were above 15 per cent.  Information on tariff rates for specific products and
import statistical data for recent years had been provided to the Working Party.
90. He also noted that currently there were two columns of import duty rates: general rates and
preferential rates.  The preferential rates applied to imports originating in countries and regions with
which China had concluded reciprocal tariff agreements, whereas the general rates applied to imports
from other sources.
91. The representative of China confirmed that for wood and paper products, the same rates of
duty, including the rates applied under a preference programme, customs union or free-trade area,
would be applied to all imports of wood and pape r products.  The Working Party took note of this
commitment.
92. The representative of China confirmed that upon accession China would participate in the
Information Technology Agreement ("ITA") and would eliminate tariffs on all information
technology products as set out in China's schedule.  Furthermore, upon accession, China would
eliminate all other duties and charges for ITA products.  The Working Party took note of thesecommitments.WT/MIN(01)/3
Page 19
93. Certain members of the Working Party expressed particular concerns about tariff treatment in
the auto sector.  In response to questions about the tariff treatment for kits for motor vehicles, the
representative of China confirmed that China had no tariff lines for completely knocked-down kits for
motor vehicles or semi-knocked down kits for motor vehicles.  If China created such tariff lines, the
tariff rates would be no more than 10 per cent.  The Working Party took note of this commitment.
94. Without prejudice to its rights to participate in the WTO process, the representative of China
confirmed China's commitment to support the tariff liberalization proposal outlined in
WT/GC/W/138/Add.1 (22 April 1999) and that it would participate fully in any tariff liberalization
initiative based on this proposal that WTO Members might accept for implementation.
95. China undertook bilateral market access negotiations on goods with members of the Working
Party.  The results of those negotiations were contained in the Schedule of Concessions and
Commitments on Goods and formed Annex 8 to the Draft Protocol.
2. Other Duties and Charges
96. The representative of China confirmed that China had agreed to bind at zero other duties and
charges in its Schedule of Concessions and Commitments, pursuant to Article II:1(b) of the GATT
1994.  The Working Party took note of this commitment.
3. Rules of Origin
97. Some members of the Working Party requested information about the adoption and
application of rules of origin in China, whether in the context of free trade agreements or otherwise,
and also requested China to confirm that its rules of origin for both preferential and non-preferential
trade complied fully with the WTO Agreement on Rules of Origin.
98. The representative of China noted that the criteria for making the determination of substantial
transformation was:  (a) change in tariff classification of a four-digit tariff line in the Customs Tariff;or (b) the value-added component was 30 per cent or more in the total value of a new product.
99. He further noted that under current arrangements, and in accordance with the criteria outlined
above, when an imported product was processed and manufactured in several countries, the country of
origin of the product was determined to be the last country in which the product underwent substantial
transformation.  The rules of origin applied for statistical purposes were the same.
100. The representative of China stated that China's rules of origin for import and export were non-
preferential rules of origin.  Once the international harmonization of non-preferential rules of origin
was concluded, China would fully adopt and apply the internationally harmonized non-preferential
rules of origin.  A mechanism that met the requirements of Articles 2(h) and 3(f), and Annex II,
paragraph 3(d) of the Agreement, which required provision upon request of an assessment of theorigin of an import or an export and outlined the terms under which it would be provided, would be
established in China's legal framework by the date of accession.  The Working Party took note of
these commitments.
101. The representative of China further stated that China would not use the rules of origin as an
instrument to pursue trade objectives directly or indirectly.  He also confirmed that China would apply
rules of origin equally for all purposes.  The Working Party took note of these commitments.
102. The representative of China confirmed that from the date of accession, China would ensure
that its laws, regulations and other measures relatin g to rules of origin would be in full conformity
with the WTO Agreement on Rules of Origin and that  it would implement such laws, regulations andWT/MIN(01)/3
Page 20
other measures in full conformity with that Ag reement.  The Working Party took note of this
commitment.
4. Fees and Charges for Services Rendered
103. Members of the Working Party noted that as a condition of accession, China should undertake
a commitment to ensure conformity of customs fees and charges with Article VIII of the GATT 1994.
The representative of China confirmed that China would comply with Article VIII of GATT 1994 inthis regard.  The Working Party took note of this commitment.
5. Application of Internal Taxes to Imports
104. Some members of the Working Party expressed concern that some internal taxes applied to
imports, including a value-added tax ("VAT") were not administered in conformity with the
requirements of the GATT 1994, particularly Article III.  Those members of the Working Party noted
that China appeared to permit the application of discriminatory internal taxes and charges to imported
goods and services, including taxes and charges applied by sub-national authorities.  Those membersrequested that China reaffirm that all such internal  taxes and charges would be in conformity with the
requirements of the GATT 1994.
105. In response, the representative of China noted that there were three major types of taxes
levied on products and services:  (a) VAT levied on goods and services for processing, maintenance
and assembling;  (b) the Consumption Tax on some se lected consumer products;  and (c) the Business
Tax on providing services, transferring intangible assets and selling real estate.   Both the VAT and
the Consumption Tax were applicable to entities importing goods.  VAT and the Consumption Tax on
imported goods were collected by General Customs Administration ("Customs") at the point of entry.
He noted that VAT was  reimbursed once goods were exported.  Exported goods were exempted from
the Consumption Tax.
106. He further noted that the State Council determined all policies concerning the levying of VAT
and the Consumption Tax, adjustment of tax types and tax rates (tax value), as well as the tax
exemption of VAT, the Consumption Tax and the Business Tax.  The laws and regulations were
interpreted and implemented by the Ministry of Finance and the State Administration of Taxation.
VAT and the Consumption Tax were levied and administered by the State competent departments oftaxation, while the Business Tax was collected and administered by the local competent departments
of taxation.
107. The representative of China confirmed that from the date of accession, China would ensure
that its laws, regulations and other measures relating to internal taxes and charges levied on imports
would be in full conformity with its WTO oblig ations and that it would implement such laws,
regulations and other measures in full conformity with those obligations.  The Working Party took
note of this commitment.
6. Tariff Exemptions
108. The representative of China stated that the tariff exemption policy of China was developed
and implemented in accordance with the Customs Law of the People's Republic of China and the
Regulations of the People's Republic of China on Import and Export Duties. The coverage of specific
tariff reduction or exemption was provided for by the State Council. All the tariff reductions andexemptions were applied on an MFN basis.WT/MIN(01)/3
Page 21
109. The representative of China noted that in accordance with international practices and
provisions of China's Customs Law, import duty reductions or exemptions were available for the
following goods:
(a) A consignment of goods, on which customs duties were estimated below RMB 10 yuan;
(b) advertising articles and samples, which were of no commercial value;
(c) goods and materials, which were rendered gratis by international organizations or foreign
governments;
(d) fuels, stores, beverages and provisions for use en route loaded by any means of transport,
which were in transit across the border;
(e) exported goods being replaced;
(f) goods damaged prior to Customs release;
(g) goods covered by international treaties providing for tariff reductions and exemptions which
China had entered into or acceded to;
(h) goods temporarily imported;
(i) goods imported under inward processing programmes;
(j) goods imported at zero cost for replacement purposes;
(k) domestic- or foreign-funded projects encouraged by the government;
(l) articles for scientific research, education and the disabled.He noted that goods so imported were required to be put under Customs supervision and control. The
Customs duty was required to be recovered if such goods were sold, transferred or used for other
purposes during the time period of supervision and control.
110. Some members of the Working Party expressed concerns over the availability and application
of tariff reductions and exemptions for a variety of enterprises and other entities, including statetrading enterprises, state-owned enterprises, foreig n-invested enterprises and not-for-profit entities.
Similar concerns also existed for exemptions from application of other duties, taxes and charges.
These members noted the negative effect such reductions or exemptions could have on revenues and
predictability and certainty in application of tariff and other trade measures.
111. The representative of China confirmed that  upon accession, China would adopt and apply
tariff reductions and exemptions so as to ensure MFN treatment for imported goods.  The Working
Party took note of this commitment.
7. Tariff Rate Quotas
112. Several members of the Working Party expressed concern over the lack of transparency,
uniformity and predictability of China's administration of its tariff rate quota ("TRQ") regime.  Thosemembers requested that China enter a commitment to administer TRQs in a simple, transparent,
timely, predictable, uniform, non-discriminatory, and non-trade restrictive manner, and in a way that
would not cause trade distortions.  Those members as ked that China ensure that its TRQ arrangementsWT/MIN(01)/3
Page 22
be no more administratively burdensome than absolutely necessary, and also expressed the hope that
China would move as quickly as possible to a market-based TRQ allocation process.
113. Those members of the Working Party also raised concerns regarding the administration of
China's TRQ system and the practices of state trading enterprises in relation to importing such
products.  These concerns included the current lack of transparent regulations for administering
TRQs;  use of administrative guidance;  distortions introduced into the market due to allocationsbased on government determinations of sub-national supply and utilization rather than consumer
preferences and end-user demand;  failure to establish and publish annual TRQ quantities;  trade-
restrictive and non-competitive practices of state trading enterprises;  and general uncertainty,
inconsistency and discrimination in trade of bulk commodities.  Those members expressed similar
concerns about the operation of China's TRQ system for products subject to designated trading.
Those members requested that China reduce tariffs for commodities subject to TRQs, enter into
access commitments for these commodities, improv e the administration of the TRQ regime, and
ensure that trade would not be distorted by unjustified government regulation.  Certain members of
the Working Party also requested that a number of specified products be removed from China's TRQ
system and that, upon import, these products be subject only to tariffs.
114. The representative of China noted that in 1996, for the first time, China published a list of
import products subject to TRQs, together with the tariff rates applicable to imports both in and out ofquota.  Allocation of TRQ was based on historical pe rformance and administration of the state trading
regime, although China had also tried several other ways of administration, including import at
applied tariff rates, first-come-first-served at the point of entry.  China was trying to simplify the TRQ
administration regime and procedures in a bid to facilitate use, enhance efficiency and implement
further reform.
115. The representative of China further noted that, in undertaking market-oriented reform in the
agricultural sector, China had made progress in freeing agricultural products from state pricing and in
guiding farmers to adjust the structure of agricultural production based on the demands of the market.
In connection with that reform process, in the bi lateral negotiations with Members, China committed
that, upon accession, it would eliminate TRQs on a number of products and subject these only totariffs.  The products concerned were barley, soybeans, rapeseed, peanut oil, sunflower seed oil, corn
oil, and cottonseed oil.  In addition, China would replace quantitative import restrictions on sugar,
cotton and three types of fertilizers (DAP, NPK and urea) by TRQs.  The Working Party took note of
these commitments.
116. The representative of China stated that upon accession, China would ensure that TRQs were
administered on a transparent, predictable, uniform, fair and non-discriminatory basis using clearly
specified timeframes, administrative procedures and requirements that would provide effective import
opportunities;  that would reflect consumer prefer ences and end-user demand;  and that would not
inhibit the filling of each TRQ.  China would apply TRQs fully in accordance with WTO rules and
principles and with the provisions set out in China's Schedule of Concessions and Commitments on
Goods.  The Working Party took note of these commitments.
117. The representative of China confirmed that for the goods listed in Annex 2 of the Draft
Protocol that were subject to a TRQ, China would also apply the provisions of its Schedule relating to
TRQ administration and related commitments in the Draft Protocol, including the grant of trading
rights to non-state trading entities to import the TRQ allocations set aside for importation by such
entities.  For products in Annex 2 of the Draft Protocol that were subject to designated trading, the
representative of China confirmed that China would ensure that additional enterprises granted tradingrights in accordance with China's commitments to phase out designated trading would not be
disadvantaged in the allocation of TRQ.  The Working Party took note of these commitments.WT/MIN(01)/3
Page 23
118. Some members of the Working Party expressed the view that allocation decisions were based,
in large part, on government-determined provincial  supply and utilization rather than on commercial
market criteria that reflected consumer preferences and end-user demand.  Those members expressed
concern that China's stated intention to allocate quota to sub-national authorities and to authorize
those authorities to then allocate that quota to end-users in separate processes would add an
unnecessary, burdensome step in the procedures and reduce the likelihood that quotas would be filled.Further, those members stated that China's stated intention with regards to TRQ procedures would not
be consistent with China's commitments to uniform administration of its trade regime.  Those
members sought confirmation that China would not establish a separate process of allocation to
sub-national authorities, as well as confirmation that all allocation and reallocation decisions would be
made by a single, central authority in China.
119. The representative of China confirmed that the role of sub-national bodies would be limited to
purely administrative operations, such as receiving applications from end-users and forwarding themto the central authority;  receiving queries and transmitting these to the central authority;  reporting on
allocation and reallocation decisions made by the central authority and providing information
regarding such allocations and reallocations upon request;  checking the information in the
applications to verify that it met the published criteria;  notifying applicants of any deficiencies in
their applications;  and providing applicants with an opportunity to cure deficiencies in theirapplications.  After the central authority decided on allocations of quota to end-users, the sub-national
bodies would issue TRQ certificates accordingly.  The representative of China also confirmed that
China would administer a consistent national allocation (and reallocation) policy for TRQs, that it
would not establish a separate process of allocation to sub-national authorities and that decisions
regarding all allocations and reallocations to end-users would be made by a single, central authority.The Working Party took note of these commitments.
120. The representative of China further confirmed that China would grant to any enterprise
possessing the right to trade any product pursuant to Section 5 of the Draft Protocol, the right to
import goods in Annex 2A of the Draft Protocol that were subject to a TRQ or to an agreed volume of
imports by non-state trading enterprises.  Such right to import would not extend to the quantity ofgoods specifically reserved for importation by state trading enterprises.  Any enterprise possessing the
right to trade pursuant to Section 5 of the Draft Protocol would also have the right to import that
portion of a TRQ reallocated to non-state trading enterprises pursuant to the agreed rules on TRQ
administration.  The representative of China also confirmed that for goods in Annex 2A of the Draft
Protocol subject to a TRQ, any enterprise granted the right to trade, pursuant to Section 5 of the DraftProtocol, would be permitted to import such goods at the out-of-quota rate.  The Working Party took
note of these commitments.
8. Quantitative Import Restrictions, including Prohibitions and Quotas
121. In response to requests for information from members of the Working Party, the
representative of China noted that China prohibited or restricted the importation of certain
commodities, including weapons, ammunition and explosives, narcotic drugs, poisons, obscene
materials and those foodstuffs, medicines, animals and plants which were inconsistent with China's
technical regulations on food, medicines, animals and plants.
122. Some members of the Working Party noted that there were a large number of non-tariff
measures in existence in China, both at the national and sub-national levels, which appeared to have a
trade restrictive or trade distorting effect.  Those members requested that China undertake a
commitment to eliminate and not to introduce, re-introduce or apply non-tariff measures other thanthose specifically identified and subject to phased elimination in Annex 3 to the Draft Protocol.  The
representative of China confirmed that China would not introduce, re-introduce or apply non-tariffWT/MIN(01)/3
Page 24
measures other than listed in Annex 3 of the Draft Protocol unless justified under the WTO
Agreement.  The Working Party took note of this commitment.
123. Some members of the Working Party also raised concerns that many non-tariff measures were
imposed by sub-national authorities in China on a non-transparent, discretionary and discriminatory
basis.  Those members of the Working Party asked that China undertake a commitment to ensure that
non-tariff measures would only be imposed by the central government or by sub-national authoritieswith clear authorization from the central governme nt.  Actions lacking authorization from the national
authorities should not be implemented or enforced.  The representative of China clarified that only the
central government could issue regulations on non-tariff measures and that these measures would be
implemented or enforced only by the central government or sub-national authorities with
authorization from the central government.  He further stated that sub-national authorities had no right
to formulate non-tariff measures.  The Working Party took note of these commitments.
124. Some members of the Working Party noted that China had provided a list of non-tariff
measures in respect of which China was prepared to commence phased elimination, contained in
Annex 3 of the Draft Protocol.  Those members stated that China should eliminate the measures listed
in accordance with the schedule provided in Annex 3, during the periods specified in Annex 3.  For
measures subject to phased elimination, China s hould provide for growth in the quota over the
relevant period specified in Annex 3.  Those members also noted that the protection afforded by themeasures listed in Annex 3 should not be increased or expanded in size, scope, or duration, nor any
new measures be applied, unless justified under the provisions of the WTO Agreement.
125. Those members of the Working Party noted that all non-tariff measures administered by
China, whether or not referred to in Annex 3 of the Draft Protocol, which were applied after China's
accession, should be allocated and otherwise administered in strict conformity with the provisions ofthe WTO Agreement, including Article XIII of the GATT 1994 and the Agreement on Import
Licensing Procedures, including notification requirements.
126. The representative of China stated that China had modified Annex 3 on the basis of the
comments raised by certain members of the Workin g Party.  He confirmed that only the machinery
and electronic products listed in Annex 3 were subject to specific tendering requirements and thatthese requirements would be administered pursuant to Chapter III of the Regulation entitled "Interim
Measures for Import Administration of Machinery and Electronics Products" (approved by the State
Council on 22 September 1993 and promulgated in Order No. 1 by the State Economic and Trade
Commission and Ministry of Foreign Trade and Economic Cooperation on 7 October 1993).  He also
confirmed that Annex 3 contained all of the products subject to quotas, licences and such tenderingrequirements in China and  that, during the relevant phase-out period, China would implement the
growth rates for quotas as indicated in Annex 3.  The Working Party took note of these commitments.
127. Some members of the Working Party requested  information on how China would implement
the quota and licensing requirements for products listed in Annex 3, in particular the procedures and
criteria for grant of quota allocations and licensing during the phase-out period for these restrictions.
Those members expressed concerns about requirements for obtaining a licence or quota allocation
which often required approvals from various authorities within an organization as well as approvalfrom both the central and sub-national level.  Those members sought a transparent, streamlined
system that would issue quota allocations and licences through a simple, consolidated approval
process that would ensure full use of the quota and its equitable distribution among importers.  Those
members also requested information on how China would establish the value of imports for those
products whose quota was established in terms of value of imports.  The representative of Chinaconfirmed that the administration of quotas and import licences would be consistent with the WTO
Agreement, including Article XIII of the GATT 1994 and the Agreement on Import Licensing
Procedures. The allocation of quotas and issuance of import licences would go through a simple andWT/MIN(01)/3
Page 25
transparent procedure, so as to ensure the full utilization of quota.  He further stated that the
establishment of value of imports would be based on the information collected by the Customs
authorities and provisions of the WTO Customs Valuation Agreement.    For quota quantities
specified in terms of value, China would determine the value of any shipment based on the c.i.f. ship
value listed on the bill of lading.  The Working Party took note of these commitments.
128. The representative of China confirmed that the products currently covered under the HS
categories listed in Annex 3 as of the date of accession were the only products that would be subject
to these quotas during the agreed phase-out periods.  Any non-tariff measures covering additional
products would need to be justified under the WTO Agreement.  Further, the representative of China
stated that for products listed in Annex 3 as bein g subject to quota and licensing requirements, any
entity that will possess the right to trade in the quota year, including enterprises possessing trading
rights to import such products or inputs for production purposes under a particular quota category,
could apply for a quota allocation and licence to import products listed in Annex 3.  The WorkingParty took note of these commitments.
129. The representative of China further confirmed that for products listed in Annex 3, China's
system for quota allocation and licensing would ensure that those entities with quota allocations
would also receive any necessary import licence.   This system would conform to WTO rules,
including the WTO Agreement on Import Licensing Procedures, and would be transparent, timely,responsive to market conditions and would minimize the burden on trade.  Applications for a quota
allocation would need to be submitted to only one organization, at one level (central or sub-national)
for approval.  The relevant organization would then issue an import licence based on the quota
allocation, in most cases within 3 working days and,  in exceptional cases, within a maximum of 10
working days after a request for the licence.  A licence would be issued for the full amount of the
quota and would be valid for the calendar year issued.  Such licence would be extended once, upon
request,  for up to 3 months, if the request was made before 15 December of the current quota year.
Imports occurring under an extended licence would be counted against the relevant quota amount for
the year in which the allocation took place.  The representative of China confirmed that the relevant
organization for issuing quota allocations and licen ces, amount of quota, including the growth in
quota provided for in Annex 3, the eight-digit tariff codes and full descriptions of all products covered
by each quota and procedures for application for a quota allocation and licence, including the
beginning and end date of the application period a nd any other relevant procedures or criteria, would
be published in the official journal referred to in Section 2(C)(2) of the Draft Protocol at least 21 days
prior to the beginning of the application period.  Such application period would be from 1-31 August.Quotas would be allocated to applicants no later than 60 days after closure of the application period.
The Working Party took note of these commitments.
130. The representative of China stated that China would allocate quotas in accordance with the
following criteria and procedures which would be published in advance and would be applied in
conformity with WTO requirements, including th e Agreement on Import Licensing Procedures.  In
applying these criteria, China would consider the need to allow for equitable participation by
producers from WTO Members and take into account the need to maximize the potential for quotafill.
(a) (i) If the relevant quota quantity exceeded total requests for quota allocations, all
requests would be approved.
(ii) In other cases, the criteria for allocation would be as follows:
Historical  performance of applicants where relevant (in cases in which average
imports over the 3-year period immediately prior to the year of China's accession, forWT/MIN(01)/3
Page 26
which data was available, amounted to less than 75 per cent of the relevant quota, it
would be necessary to take into account other criteria inter alia  as set forth below);
– Production or processing capacity, in the case of intermediate products and
raw materials;
– Experience and ability in producing,  importing,  marketing, or servicing in
international markets, in the case of finished products or products destined
for wholesale or retail distribution;
(b) (i) In cases in which average imports over the 3-year period immediately prior to the
year of China's accession, for which data was available, exceeded 75 per cent of the
relevant quota, applicants that had not previously been allocated quota would beallocated 10 per cent of the total quota in the first year and the majority of any quota
growth in any subsequent year.
(ii) In other cases :
– In the first year, 25 per cent of the total quota would be allocated to
applicants that had not previously been allocated quota;  however, an
applicant that had imported under a quota on the relevant products in the year
prior to China's accession would not receive a decrease in the absolute
amount of its quota allocation;
– In the second year, for the amount of the quota growth as well as an amount
equivalent to the amount of any quota that had not been filled in the previous
year, China would give priority consideration to requests from enterprises
with foreign ownership equal to or less than 50 per cent;
– In the third and fourth year, if relevant, for the amount of the quota growth as
well as an amount equivalent to the amount of any quota that had not been
filled in the previous year, China would give priority consideration to
requests from enterprises with foreign ownership greater than 50 per cent.
(c) In all cases, a quota-holder receiving an initial allocation that had fully utilized or contracted
for its quota allocation would, upon application, receive an allocation in the following year
for a quantity no less than the quantity imported in the previous year.  A quota-holder that did
not import its full allocation would receive a proportional reduction in its quota allocation in
the subsequent year unless the quantity was returned for reallocation by 1 September.
The Working Party took note of these commitments.
131. The representative of China confirmed that all commercial terms of trade, including product
specifications, product mix, pricing, and packaging, would be at the sole discretion of the quota
holder, so long as the products are within the relevant quota category.   Allocations would be valid for
any article or mixture of articles subject to the same quota as specified in Annex 3 of the Draft
Protocol.  Allocations would be valid for a period  of one calendar year from the opening of the quota
import period.  However, if the holder of a quota allocation had not contracted for import of the total
quantity allocated to the holder by 1 September,  the holder was to immediately return the unused
portion of the allocation to the relevant authorit y which would reallocate the quota immediately, if
unfilled requests were pending, or otherwise within 10 days after receipt of a request for an allocation.
The relevant organization would publish notice of the availability of additional allocations after
collecting any unused quotas returned by the quota holders.  Licences for goods imported underWT/MIN(01)/3
Page 27
reallocated quota would be extended once, upon request,  for up to 3 months, if the request was made
before 15 December of the current quota year.  Imports occurring under an extended licence would be
counted against the relevant quota amount for the year in which the re-allocation took place.  The
Working Party took note of these commitments.
9. Import Licensing
132. The representative of China confirmed that the list of all entities responsible for the
authorization or approval of imports would be upda ted and republished in the official journal, the
MOFTEC Gazette, within one month of any change thereto.  The Working Party took note of this
commitment.
133. In response to requests for additional information about its system of import licensing, the
representative of China said that the import licensing system was administered without discrimination
among countries or regions.  In 1984, the State Council had promulgated the "Interim Regulations on
Licensing System for Import Commodities", and MOFTEC and Customs had issued "Detailed Rulesfor the Implementation of the Interim Regulations on Licensing System for Import Commodities".
The Interim Regulations were uniformly implemented throughout China.  In 1999, of the total import
value of US$ 165.7 billion, imports subject to licensing represented 8.45 per cent, covering US$ 14
billion.  MOFTEC determined which products should  be subject to import licensing according to the
relevant provisions of the "Foreign Trade Law".
134. The representative of China further stated that in 1993, China had applied import restrictions
to 53 product categories.  By 1999, the number had been reduced to 35.  Products covered were (1)
Processed oil; (2) Wool;  (3) Polyester fibre;  (4) Acrylic fibres;  (5) Polyester fillet;  (6) Natural
rubber;  (7) Vehicles tyres;  (8) Sodium cyanide;  (9) Sugar;  (10) Fertilizer;  (11) Tobacco and its
products;  (12) Acetate tow;  (13) Cotton;  (14) Motor vehicles and their key parts;  (15) Motorcyclesand their engines and chassises; (16) Colour television sets and TV kinescope;  (17) Radios, tape
recorders and their main parts;  (18) Refrigerators and their compressor;  (19) Washing machines;
(20) Recording equipment and its key parts;  (21) Cameras and their bodies (without lenses);  (22)
Watches;  (23) Air conditioners and their compressor;  (24) Audio and video tape duplication
equipment;  (25) Crane lorries and their chassises;  (26) Electronic microscopes;  (27) Open-endspinning machines;  (28) Electronic colour scanners;  (29) Grain;  (30) Vegetable oil;  (31) Wine;
(32) Colour sensitive material;  (33) Chemical under supervision and control that were used for
chemical weapon;  (34) Chemicals used to produce narcotics;  and (35) Laser disc production
facilities.  He also noted that in 1999, there were 13 commodity categories which were imported by
the foreign trade companies designated by MOFTEC. These categories were as follows:  (1)Processed oil;  (2) Fertilizer; (3) Tobacco; (4) Vegetable oil; (5) Grain; (6) Natural rubber; (7) Wool;
(8) Acrylic fibers; (9) Sugar; (10) Cotton; (11) Crude oil; (12) Steel; and (13) Plywood.
135. Concerning the granting and administration of import licences, the representative of China
said that the examination and approval of the lice nce took two to three working days.  Applications
for import licences could be submitted to the Qu ota and Licence Administrative Bureau of MOFTEC,
or Special Commissioner Offices in 16 provin ces, or Commissions of Foreign Economic Relations
and Trade of various provinces, autonomous regions, and municipalities directly under the centralgovernment and those with independent budgetary st atus. Licensing agencies authorized by MOFTEC
could issue import licences on the basis of import documents submitted by the applicants,  approved
by the competent departments. A licence could not be bought, sold or transferred, and was valid for
one calendar year.  Import licences could be extended once for up to three months.
136. Some members of the Working Party expressed concern that China's Provisional Procedures
for the Administration of Automatic Registration for the Import of Special Commodities
(13 August 1994), in particular the criteria for approval of registration, would act as a restraint onWT/MIN(01)/3
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imports.  The representative of China emphasized that the purpose of the registration system was only
to gather statistical information.  He confirmed that China would bring its automatic licensing system
into conformity with Article 2 of the Agreement on Import Licensing Procedures upon accession.
The Working Party took note of this commitment.
137. Some members of the Working Party noted that enterprises and individuals seeking to import
products subject to tariff quota administration requirements had to go through extensive procedures toreceive a quota allocation and that the quota certificate would indicate whether the subject good was
to be imported through a state trading enterprise or a non-state trading enterprise and would be valid
for a certain period of time.  Moreover, the entity importing the good would need trading rights.  In
the light of these multiple requirements, a quota allocation certificate should satisfy any import
licensing requirement that might apply.
138. The representative of China confirmed that China would not require a separate import licence
approval for goods subject to a TRQ allocation re quirement but would provide any necessary import
licence in the procedure that granted a quota allocation.  The Working Party took note of this
commitment.
10. Customs Valuation
139. Some members of the Working Party expressed concern regarding the methods used by China
to determine the customs value of goods, in particular regarding the practice of using minimum orreference prices for certain goods, which would be inconsistent with the Agreement on
Implementation of Article VII of the GATT 1994 ("Customs Valuation Agreement").  Other WTO-
consistent means were available to Members doubting the veracity of declared transaction values.
140. In response, the representative of China stated that China had ceased to use and would not
reintroduce minimum or reference prices as a means to determine customs value.  The Working Partytook note of this commitment.
141. The representative of China considered that there would not be situations where the "customs
value" could not be "ascertained" since the Customs Valuation Agreement provided several methods
for valuation.
142. The representative of China recalled that the overwhelming majority of China's customs
duties were ad valorem  duties.  The customs value of imported goods was assessed according to the
c.i.f. price based on the transaction value, as defined in the Customs Valuation Agreement.  If the
transaction value of imported goods could not be determined, the customs value was determined
based on other means provided for in the Customs Valuation Agreement.  He also noted that the
Customs Law provided for appeal procedures. In the event of a dispute over calculation of duty paidor payable with the Customs, the dissatisfied importer could apply to Customs for a reconsideration of
the case. If the appeal was rejected the importer could sue at the People's Court.
143. The representative of China confirmed that, upon accession, China would apply fully the
Customs Valuation Agreement, including the customs valuation methodologies set forth in Articles 1
through 8 of the Agreement.  In addition, China would apply the provisions of the Decision on the
Treatment of Interest Charges in Customs Value of Imported Goods, and the Decision on the
Valuation of Carrier Media Bearing Software for Data Processing Equipment, adopted by the WTOCommittee on Customs Valuation (G/VAL/5), as soon as practicable, but in any event no later than
two years from the date of accession. The Working Party took note of these commitments.WT/MIN(01)/3
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11. Other Customs Formalities
144. The representative of China said that Chin a joined the International Convention on the
Simplification and Harmonisation of  Customs Procedures in 1988 and on 15 June 2000 signed the
Draft Protocol on the Amendment of the International Convention on the Simplification and
Harmonisation of Customs Procedures.  The Customs authorities of China had only adopted such
customs formalities as declaration, examination, levying of duties and release which were consistentwith international practices.
12. Preshipment Inspection
145. The representative of China stated that, currently, there were trade and commerce inspection
agencies (including joint-venture agencies) engaged in preshipment inspection. He further stated that
China would comply with the Agreement on Preshi pment Inspection, and would regulate the existing
trade and commerce inspection agencies and permit the qualified agencies to be engaged in
preshipment inspection in line with the government mandate or the terms and conditions ofcommercial contracts.  The Working Party took note of this commitment.
146. Some members of the Working Party requested information on whether China used the
services of a private preshipment inspection entity.  The representative of China confirmed that China
would ensure that, upon accession, any laws and regulations relating to preshipment inspection by any
inspection agency, including private entities, would be consistent with relevant WTO agreements, in
particular, the Agreement on Preshipment Inspection and the Customs Valuation Agreement.
Moreover, any fees charged in connection with such preshipment inspection would be commensurate
with the service provided, in conformity with Article VIII:1 of the GATT 1994.  The Working Party
took note of these commitments.
13. Anti-Dumping, Countervailing Duties
147. Some members of the Working Party raised concerns that the current investigations by the
Chinese authority would be judged to be inco nsistent with the Agreement on Implementation of
Article VI of GATT 1994("Anti-Dumping Agreement")  if China were a Member of the WTO today.
In certain cases, the basis for calculating dumping margins for a preliminary affirmative determination
was not disclosed to interested parties.  Furthermore, the determination of injury and causation did notappear to have been made on an objective examination of sufficient evidence.  In the views of these
members, bringing the Chinese anti-dumping rule s into compliance with the WTO Agreement on its
face was not sufficient. WTO-consistency had to be secured substantively as well.
148. In response, the representative of China stated that China promulgated regulations and
procedures on anti-dumping and countervailing duties in 1997 with reference to the Anti-DumpingAgreement and Agreement on Subsidies and Countervailing Measures.  He committed to revising
China's current regulations and procedures prior to its accession in order to fully implement China's
obligations under the Anti-Dumping and SCM Agreements.  The Working Party took note of this
commitment.
149. Members of the Working Party and the representative of China agreed that the term "national
law" in subparagraph (d) of Section 15 of the Draft Protocol, should be interpreted to cover not only
laws but also decrees, regulations and administrative rules.
150. Several members of the Working Party noted that China was continuing the process of
transition towards a full market economy.  Those members noted that under those circumstances, in
the case of imports of Chinese origin into a WTO Member, special difficulties could exist in
determining cost and price comparability in th e context of anti-dumping investigations andWT/MIN(01)/3
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countervailing duty investigations.  Those members stated that in such cases, the importing WTO
Member might find it necessary to take into account the possibility that a strict comparison with
domestic costs and prices in China might not always be appropriate.
151. The representative of China expressed concern with regard to past measures taken by certain
WTO Members which had treated China as a non-market economy and imposed anti-dumping duties
on Chinese companies without identifying or publishing the criteria used, without giving Chinesecompanies sufficient opportunity to present evidence and defend their interests in a fair manner, and
without explaining the rationale underlying their de terminations, including with respect to the method
of price comparison in the determinations.  In response to these concerns, members of the Working
Party confirmed that in implementing subparagraph (a)(ii) of Section 15 of the Draft Protocol, WTO
Members would comply with the following:
(a) When determining price comparability in a particular case in a manner not based on a strict
comparison with domestic prices or costs in China, the importing WTO Member shouldensure that it had established and published in advance (1) the criteria that it used for
determining whether market economy conditions prevailed in the industry or company
producing the like product and (2) the methodology that it used in determining price
comparability.  With regard to importing WTO Members other than those that had an
established practice of applying a methodology that included, inter alia, guidelines that theinvestigating authorities should normally utilize, to the extent possible, and where necessary
cooperation was received, the prices or costs in one or more market economy countries that
were significant producers of comparable merchandise and that either were at a level of
economic development comparable to that of China or were otherwise an appropriate source
for the prices or costs to be utilized in light of the nature of the industry under investigation,they should make best efforts to ensure that their methodology for determining price
comparability included provisions similar to those described above.
(b) The importing WTO Member should ensure that it had notified its market-economy criteria
and its methodology for determining price comparability to the Committee on
Anti-Dumping Practices before they were applied.
(c) The process of investigation should be transparent and sufficient opportunities should be
given to Chinese producers or exporters to make comments, especially comments on the
application of the methodology for determining price comparability in a particular case.
(d) The importing WTO Member should give notice of information which it required and
provide Chinese producers and exporters ample opportunity to present evidence in writing ina particular case.
(e) The importing WTO Member should provide Chinese producers and exporters a full
opportunity for the defence of their interests in a particular case.
(f) The importing WTO Member should provide a sufficiently detailed reasoning of its
preliminary and final determinations in a particular case.
152. The representative of China stated that determinations made by China during investigations
initiated pursuant to applications made before accession should be free from challenge under the Anti-Dumping Agreement by the Members of the WTO.  He further confirmed that, notwithstanding
Article 18.3 of the Anti-Dumping Agreement,
(a) China would apply the provisions of the Anti-Dumping Agreement to:WT/MIN(01)/3
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(i) proceedings under Article 9.3, including the calculation of margins of dumping, in
connection with anti-dumping measures adopted before accession ("existing
measures");  and
(ii) reviews of existing measures initiated under Articles 9.5, 11.2, and 11.3 pursuant to
requests made following accession.  Any review of an existing measure underArticle 11.3 would be initiated no later than five years from the date of its imposition.
(b) China would also provide the type of judicial review described in Article 13 of the
Anti-Dumping Agreement with regard to proceedings under Article 9.3 and reviews under
Articles 9.5, 11.2, and 11.3.
The Working Party took note of these commitments.153. The representative of China noted that pursuant to the provisions of "Regulation on
Anti-dumping and Countervailing Measures of the People's Republic of China", there were four
Chinese government bodies responsible for anti-dumping and countervailing duty investigations.
Their identities and responsibilities were as follows:
(a) Ministry of Foreign Trade and Economic Cooperation ("MOFTEC")
Receiving anti-dumping and countervailing petitions;  Conducting investigations on foreign
subsidies and on dumping and dumping margins and issuing relevant preliminary
determination decisions and notices;  Negotiating with foreign interested parties on "PriceUndertaking" if necessary;  Providing proposal on imposition of definitive anti-dumping or
countervailing duties or proposals on duty ref und, etc.  There was an Anti-dumping Division
established under the Department of Treaties and Law of MOFTEC, with responsibility to
handle anti-dumping and countervailing investigations on alleged imports.
(b) State Economics and Trade Commission ("SETC")
Responsible for the investigation of injury caused to the domestic industry by the dumped or
subsidized imports, the extent of such injury and making injury findings. There was a non-
permanent decision and policy-making body in SETC, named the Injury Investigation andDetermination Committee ("IIDC"), which was composed of six commissioners from the
relevant departments of SETC. There was a permanent executive office in charge of the
investigation of injury to the industry and submitting its findings to the IIDC for approval.
(c) General Customs Administration ("Customs")
Coordinating anti-dumping investigations w ith MOFTEC;  enforcing anti-dumping measures
such as collecting cash deposits and dumping duties, enforcing countervailing measures by
collecting countervailing duties, and monitoring implementation.
(d) Tariff Commission of the State Council ("TCSC")
Making final decisions on whether or not to levy the anti-dumping or countervailing duties
based on the suggestions by MOFTEC with regard to imposing anti-dumping or
countervailing duties and reimbursing excess amount of duties, respectively.WT/MIN(01)/3
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14. Safeguards
154. The representative of China stated that upon accession, China would implement its
Regulation on Safeguard by which the future safeguard measures would be regulated.  The contents of
this new regulation would be fully consistent with the Agreement on Safeguards.  China was in the
process of drafting safeguard legislation in accordance with Article 29 of the Foreign Trade Law and
the Agreement on Safeguards.  The Working Party took note of this commitment.
C. EXPORT REGULATIONS
1. Customs Tariffs, Fees and Charges for Services Rendered, Application of Internal Taxes
to Exports
155. Some members of the Working Party raised concerns over taxes and charges applied
exclusively to exports.  In their view, such taxes and charges should be eliminated unless applied in
conformity with GATT Article VIII or listed in Annex 6 to the Draft Protocol.
156. The representative of China noted that the majority of products were free of export duty,
although 84 items, including tungsten ore, ferros ilicon and some aluminum products, were subject to
export duties.  He noted that the customs value of exported goods was the F.O.B. price of the goods.
2. Export Licensing and Export Restrictions
157. The representative of China confirmed that the list of all entities responsible for the
authorization or approval of expor ts would be updated and republished in the official journal, the
MOFTEC Gazette, within one month of any change thereto.  The Working Party took note of this
commitment.
158. The representative of China said that China applied its export licence system to certain
agricultural products, resource products and ch emicals. China's export licencing system was
administered in accordance with the "Interim Procedures for the Export Licencing System". In 1992,there were 143 categories of products subject to export licencing which accounted for 48.3 per cent of
the total value of the China's exports, but by 1999, the total number of products subject to export
licensing had been reduced to 58 categories and 73 items with an export value of US$ 18.5 billion,
taking up only 9.5 per cent of total exports. Export licences for these products were issued according
to the stipulated commodity scope respectively by the Administrative Bureau of Quota and Licence("ABQL"), the Special Commissioner Offices (" SCO") located in 16 provinces and the Commissions
of Foreign Economic Relations and Trade ("COFTEC") of various provinces, autonomous regions,
municipalities directly under the central government and those with independent budgetary status.
The main criteria used in determining whether a product was subject to export licensing, as set down
in the Foreign Trade Law, were:  (1) maintenance of national security or public interests;(2) protection against shortage of supply in the domestic market or exhaustion of natural resources;
(3) limited market capacity of importing countries or regions;  or (4) obligations stipulated in
international treaties.  Export licensing was also used for statistical purposes.
159. He further noted that an application for an export licence had to be submitted to the licence
issuing institutions authorized by MOFTEC, together with documents approving the export by the
competent departments, and other relevant materials (such as the Export Qualification Certificate for
the enterprises, export contract and so on). The procedures were the same for all export destinations.A decision on the request for an export licence normally took three working days. Licences were valid
for six months and could be extended once.  FIEs engaged in exporting products were required to
obtain export licences if the products to be exported were subject to the licensing requirement.  If theWT/MIN(01)/3
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products were not subject to licensing, customs clearance would be given after examination by
Customs on the basis of export contracts and other relevant documents.
160. Certain members of the Working Party noted the conditions in the GATT 1994 in regard to
non-automatic licensing and export restrictions.  They  pointed out that export prohibitions, restrictions
and non-automatic licensing could only temporarily be applied under Article XI of the GATT 1994 to
prevent or relieve critical shortages of foodstuffs or other products essential to an exporting WTOMember.  Article XX of the GATT 1994 also allowed for restrictive export measures, but only if such
measures were made effective in conjunction with restrictions on domestic production or
consumption.  These members noted that some of the criteria of the Foreign Trade Law referred to
above did not at present meet the specific conditions laid down in Articles XI and XX of the
GATT 1994.
161. Members of the Working Party welcomed the steady reduction in the number of products
subject to export licensing in China.  Certain members reiterated their request for the submission of acomplete list of restrictions presently applied.  These members expressed concern that the remaining
number was still high, covering about ten per cent of export trade, and requested that they be either
reduced further or eliminated by the date of accession in order to achieve full compatibility with
GATT requirements.  Some members expressed particular concern about export restrictions on raw
materials or intermediate products that could be subject to further processing, such as tungsten oreconcentrates, rare earths and other metals.
162. The representative of China confirmed that China would abide by WTO rules in respect of
non-automatic export licensing and export restrictions.  The Foreign Trade Law would also be
brought into conformity with GATT requirements.  Moreover, export restrictions and licensing would
only be applied, after the date of accession, in those cases where this was justified by GATTprovisions. The Working Party took note of these commitments.
163. The representative of China stated that China prohibited export of narcotic drugs, poisons,
materials containing State secrets, precious and rare animals and plants.
164. Some members of the Working Party expressed concern about China's restrictions on exports
of silk.  Certain other members expressed concern about export restrictions on other goods, inparticular raw materials or intermediate products that could be subject to further processing, such as
tungsten ore concentrates, rare earths and other metals.  Members of the Working Party urged China
to ensure that any such restrictions that were im posed or maintained complied with the terms of the
WTO Agreement and the Draft Protocol.
165. The representative of China confirmed that upon accession, remaining non-automatic
restrictions on exports would be notified to the WTO annually and would be eliminated unless they
could be justified under the WTO Agreement or the Draft Protocol.  The Working Party took note of
this commitment.
3. Export Subsidies
166. Some members of the Working Party noted that China had provided a list of prohibited
subsidies falling within the scope of Article 3 of the SCM Agreement and a timetable for their
elimination, in Annex 5B of the Draft Protocol.  Those members considered this list to be incomplete.
167. The representative of China confirmed, as provided in Section 10.3 of the Draft Protocol,  that
it would eliminate all export subsidies, within th e meaning of Article 3.1(a) of the SCM Agreement,
by the time of accession.  To this end, China would, by accession, cease to maintain all pre-existing
export subsidy programmes and, upon accession, make no further payments or disbursements, norWT/MIN(01)/3
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forego revenue or confer any other benefit, under such programmes.  This commitment covered
subsidies granted at all levels of government which were contingent, in law or in fact, upon an
obligation to export.  The Working Party took note of this commitment.
168. On the same basis, the representative of China confirmed that China would eliminate, upon
accession, all subsidies contingent upon the use of domestic over imported goods, within the meaning
of Article 3.1(b) of the SCM Agreement.  The Working Party took note of this commitment.
D. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS
1. Taxes and Charges Levied on Imports and Exports
169. Some members of the Working Party expressed concern about the application of the VAT and
additional charges levied by sub-national governments on imports.  Non-discriminatory application of
the VAT and other internal taxes was deemed essential.
170. The representative of China confirmed that upon accession, China would ensure that its laws
and regulations relating to all fees, charges or taxes levied on imports and exports would be in fullconformity with its WTO obligations, including Articles I, III:2 and 4, and XI:1 of the GATT 1994,
and that it would also implement such laws and regulations in full conformity with these obligations.
The Working Party took note of this commitment.
2. Industrial Policy, including Subsidies
171. Some members of the Working Party expressed concern that the special features of China's
economy, in its present state of reform, still created the potential for a certain level of trade-distorting
subsidization;  this could have an impact not only on access to China's domestic market, but also on
the performance of Chinese exports in the markets of other WTO Members, and should be subject to
effective SCM Agreement disciplines.  In view of this, some members felt that it would be
inappropriate for China to benefit from certain provisions of Article 27.  The representative of China,in turn, considered that certain provisions of this Article should be available to China, and informed
the Working Party of the efforts being undertaken, as part of its ongoing reform process, to reduce the
availability of certain types of subsidies.  Ch ina was committed to implementing the SCM Agreement
in a manner that was fair and equitable to China and to other WTO Members.  In line with this
approach, the representative of China stated his intention to reserve the right to benefit from theprovisions of Articles 27.10, 27.11, 27.12 and 27.15 of the SCM Agreement, while confirming that
China would not seek to invoke Articles 27.8, 27.9 and 27.13 of the SCM Agreement.  The Working
Party took note of these commitments.
172. Some members of the Working Party, in view of the special characteristics of China's
economy, sought to clarify that when state-owned enterprises (including banks) provided financial
contributions, they were doing so as government actors within the scope of Article 1.1(a) of the
SCM Agreement.  The representative of China noted, however, that such financial contributions
would not necessarily give rise to a benefit within the meaning of Article 1.1(b) of the
SCM Agreement.  He pointed out that China's objective was that state-owned enterprises, including
banks, should be run on a commercial basis and be responsible for their own profits and losses.  The
Working Party took note of this commitment.
173. Some members of the Working Party, while understanding the difficulties involved in
gathering information, raised concerns over the comprehensiveness of the subsidy notification which
China had provided in Annexes 5A and 5B to the Draft Protocol, as last modified on 31 May 2000.
Some members of the Working Party explained that, as an illustration of the above, certain types of
subsidies did not appear in Annexes 5A and 5B.  Those members of the Working Party first identifiedWT/MIN(01)/3
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state support through the banking system, notably government-owned banks, in the form of policy
loans, the automatic roll-over of unpaid principal and interest, forgiven and non-performing loans, and
the selective use of below-market interest rates.  Some members also referred to unreported tax
subsidies, investment subsidies and subsidies provided by sub-national governments, some of which
favoured exporting firms.  Other members mentioned subsidies granted to the telecommunications,
footwear, coal and shipbuilding sectors.  The repr esentative of China explained that, in common with
many other Members, China had experienced difficulty in obtaining accurate data about all types of
subsidies.  He also indicated that China was attempting to reduce the availability of certain types of
subsidies, in particular by reforming its tax system and making government-owned banks operate on a
commercial basis.  The representative of China stated that China would progressively work towards a
full notification of subsidies, as contemplated by Article 25 of the SCM Agreement.  The Working
Party took note of this commitment.
174. Some members of the Working Party also raised  concerns regarding the subsidies that China
provided in connection with SEZs and other special economic areas.  Some of these appeared to be
contingent upon export performance or on the use of domestic goods.  The representative of China
noted that the main purpose of such subsidies was to promote regional development and foreign
investment.  He confirmed that China would, upon accession, eliminate any such subsidies which
were inconsistent with the SCM Agreement.  The Working Party took note of this commitment.
175. Some members of the Working Party requested information from China on the Steel Import
Substitution Programme, which appeared to provide export subsidies to the big four steel groups in
China.  In response, the representative of China clarified that China did not collect VAT on imported
and domestically produced steel used as raw material for the processing trade.  Such a policy, in his
view, was consistent with WTO rules and the practices of many WTO Members, and thus should notbe considered as subsidies.
176. Some members of the Working Party requested information from China on the "China
High-Tech Product Export Catalogue", which set forth central government export policies for the
telecommunications, computer software, aviation and aerospace, lasers, pharmaceuticals, medical
equipment, new materials and energy industries.  In response, the representative of China clarifiedthat products listed in the Catalogue would enjoy full VAT rebate treatment, while other exported
products would only be given partial VAT rebate treatment.  Such a policy, in his view, was
consistent with Article XVI of the GATT 1994 a nd relevant Annexes of the SCM Agreement.  He
further confirmed that the VAT rebates were applied only to exported products and not to
domestically consumed products.
3. Technical Barriers to Trade
177. The representative of China stated that China had set up a TBT notification authority and two
enquiry points which had been notified to the TBT Committee. Upon accession, notices of adopted
and proposed technical regulations,  standards and conformity assessment procedures would be
published.  The names of the publications where this information could be found would be included in
China's Statement of Implementation and Administration under Article 15.2 of the TBT Agreement,
which would be submitted upon accession.  The Working Party took note of this commitment.
178. The representative of China stated that, furthe r to China's implementation of WTO provisions,
internal mechanisms would exist, upon accession, to inform and consult with, on an ongoing basis,
government agencies and ministries (at national and sub-national levels), and private sector interests
on the rights and obligations under the GATT 1994 and the TBT Agreement.  Concerning questions
from some members of the Working Party on the opportunity for public consultation and comment onproposed standards and technical regulations, the representative of China confirmed that, upon
accession, China's procedures would clearly indicate that such opportunity existed and that commentsWT/MIN(01)/3
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would be given due consideration regardless of origin.  The representative of China also confirmed
that, upon accession, China would have in place minimum timeframes for allowing public comment
on proposed technical regulations, standards and conformity assessment procedures as set out in the
TBT Agreement and relevant decisions and recommendations adopted by the TBT Committee.  The
Working Party took note of these commitments.
179. Several members of the Working Party requested information on the extent to which
international standards were used as the basis for existing Chinese standards, details on China's plans
for using international standards as the basis for new standards, and details on China's plans for
reviewing existing standards so as to harmonize  them with relevant international standards.
180. In response, the representative of China stated that, as a full member of,  for example, ISO,
IEC and ITU, China actively participated in the development of relevant international standards.
With China's efforts in restructuring government agencies, China would, not later than four months
after accession, notify acceptance of   the Code of Good Practice.  The representative of China stated
that for government standardizing bodies, a clear policy existed to periodically review existing
standards, inter alia , to harmonize them with relevant international standards where appropriate .
Furthermore, China would speed up its process of revising the current voluntary  national , local and
sectoral standards so as to harmonize them with in ternational standards.  The Working Party took note
of these commitments.
181. Some members of the Working Party expressed concern that China's use of the terms
"technical regulations" and "standards" was not always consistent with the definitions found in the
TBT Agreement, e.g., China sometimes used the word  "standards" to refer to mandatory requirements
that fell within the definition of "technical regulations".  These members noted that China had
developed a number of different types of measures, referred to as "standards", at levels other than thecentral government, in particular, regional, sectoral, and enterprise levels.
182. In response, the representative of China stated that China, in its notifications under the TBT
Agreement, including its notifications under Article 15.2 and in publications referenced therein, and
in modifications of existing measures, would use the terms "technical regulations" and "standards"
according to their meanings under the TBT Agreem ent.  The Working Party took note of these
commitments.
183. Some members of the Working Party also expressed concern that China did not use relevant
and available international standards as the basis for some of its existing technical regulations.
Several members asked for information on the extent to which international standards were used as
the basis for existing technical regulations, detail s on China's plans for using international standards
as the basis for new technical regulations, and details on China's plans for reviewing existing technical
regulations so as to harmonize standards referenced  in them with international standards or their
relevant parts.
184. In response, the representative of China stated that since 1980, China had taken the active
adoption of international standards as the basis for technical regulations as a basic policy of
accelerating industrial modernization and promoting economic growth. The representative of China
confirmed that this policy also required technical regulations to be reviewed every five years,inter alia , to ensure that international standards were used in accordance with Article 2.4 of the
Agreement.  He also confirmed that China would prov ide this policy as part of its notification under
Article 15.2 of the Agreement .  He noted that as a result of China's efforts in the past 20 years, the use
of international standards as the basis for technical regulations had increased from 12 per cent to
40 per cent.  China had begun formulating a standardization development programme in a bid to meetthe challenges of the 21st century and the requirem ents provided for in the TBT Agreement, and had
undertaken to further increase the use of international standards as the basis for technical regulationsWT/MIN(01)/3
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by 10 per cent  in five years.  The representative of China also confirmed that China would make
publicly available procedures to implement Article 2.7 of the Agreement.  The Working Party took
note of these commitments.
185. Bearing in mind the relevant provisions of the TBT Agreement, some members of the
Working Party asked China to identify local government bodies, directly below the central
government level, and non-governmental organizations, that were authorized to adopt technicalregulations or conformity assessment procedures.  The representative of China replied that China
would provide a list of relevant local governme ntal and non-governmental bodies, upon accession, as
part of its notification under Article 15.2 of the TBT Agreement.  The Working Party took note of this
commitment.
186. With respect to conformity assessment procedures, several members of the Working Party
asked for information about the extent to which international guides and recommendations were used
as the basis for existing conformity assessment procedures, details on China's plans for using suchguides and recommendations as the basis for new conformity assessment procedures, and details on
China's plans for reviewing existing conformity assessment procedures so as to harmonize them with
relevant international guides and recommendations.
187. In response, the representative of China stated th at China played a full part in the preparation
by appropriate international standardizing bodies of guides and recommendations for conformityassessment procedures, e.g., as a full member of ISO CASCO.  He stated that it was difficult to
quantify the extent to which such guides and recommendations were used as the basis for existing
conformity assessment procedures.  He confirmed that China would use relevant guides or
recommendations issued by international standardizing bodies as the basis for new conformity
assessment procedures in accordance with Article 5.4 of the TBT Agreement.  The representative ofChina also stated that existing conformity assessment procedures were reviewed concurrently with
and under the same policy as related technical regulations, inter alia , to ensure the use of relevant
international guides or recommendations in accord ance with Article 5.4 of the TBT Agreement.  He
also confirmed that, upon accession, China would ensure that the same conformity assessment
procedures were applied to both imported and domestic products.  The Working Party took note ofthese commitments.
188. Some members of the Working Party expressed concerns about the complexity and
inconsistency of China's conformity assessment regime with TBT Agreement requirements.  In
particular, those members noted that conformity assessment on imported and domestic products was
not performed by the same governmental entities and that this situation could result in less favourabletreatment for imports.  In response, the representa tive of China stated that the Chinese government
had already decided to merge CIQ-SA and CSBTS into the State General Administration of the
People's Republic of China for Quality Supervision and Inspection and Quarantine ("AQSIQ"), under
its policy of development of market economy and further reform and opening up in China. The
representative of China confirmed that the AQSIQ was responsible for all policies and procedures
related to conformity assessment in China.  He further stated that other government ministries and
agencies developed conformity assessment policies and procedures but that these had to be authorizedby AQSIQ before they could be enacted.
189. Some members of the Working Party expressed concern about the consistency of the Law of
the People's Republic of China on Import-Export Commodity Inspection ("the Law"), and the
Regulations for the Implementation of that Law ("the Implementing Regulations"), with the TBT
Agreement.  In particular, provisions for technical regulations and conformity assessment proceduresdid not adequately address fundamental obligations such as transparency, non-discrimination, national
treatment, and the avoidance of unnecessary barriers to trade.WT/MIN(01)/3
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190. Some members of the Working Party expressed concern about  a conformity assessment
procedure known as Statutory In spection, which was described, inter alia , in Articles 4, 5, and 6 of
the Law and Articles 4, 5, and 9 of the Implementing Regulations.  They stated that it was inconsistent
with the principle of national treatment and constituted an unnecessary obstacle to international trade.
Members of the Working Party agreed that WT/ACC/CHN/31 and WT/ACC/CHN/32, lists of
products subject to Statutory Inspection, did not prejudge the legal status, nature or effects of notifiedtechnical regulations and standards under the WTO Agreement.  The representative of China stated
that China would bring the Law and Implementing Regulations, as well as other relevant legislation
and regulations, into conformity with the TBT Agreement by the date of accession.  The Working
Party took note of this commitment.
191. Some members of the Working Party expressed concern  about a conformity assessment
procedure, and the application thereof, known as the Safety Licence System for Import Commodities
("the System"), which was described in Article 22  of the Law and Article 38 of the Implementing
Regulations.  They stated that it was inconsistent with the principle of national treatment and
constituted an unnecessary obstacle to international trade (e.g., due to the frequent plant inspections
required).  In response, the representative of China confirmed that, for technical regulations and
conformity assessment procedures related to goods currently subject to the Safety Licence System for
Import Commodities, relevant legislation and regulations would be brought into full conformity   with
the TBT Agreement by the date of accession.  The Working Party took note of this commitment
192. Responding to the concerns of members of the Working Party, the representative of China
confirmed that to eliminate unnecessary barriers to trade, China would not maintain multiple or
duplicative conformity assessment procedures, nor would it impose requirements exclusively on
imported products.  The Working Party took note of this commitment.
193. Some members of the Working Party expressed concern with respect to the confidentiality of
information in connection with conformity assessment procedures undertaken by China.  In response,
the representative of China confirmed that China would fully implement the obligations of
Article 5.2.4 of the TBT Agreement in this regard.  The Working Party took note of this commitment.
194. Some members of the Working Party expressed concern about China's practice of not
accepting the results of conformity assessment by bodies in other WTO Members.  In this regard,
those members noted the obligation of unilateral acceptance of the results of conformity assessment as
described in Article 6.1 of the TBT Agreement.  The representative of China responded that products
certified by bodies recognized by China would require no additional conformity assessment
procedures in China, except for random sampling of said products.  Furthermore, where randomsampling was undertaken and China's test results differed from the test results of competent bodies in
other WTO Members, the representative of China confirmed that China would act in accordance with
international guidelines and recommendations, where these existed, or would provide a process of
review with the objective of resolving such differences.  Some members of the Working Party
requested China to make public and update on an ongoing basis information on conformity
assessment bodies that were recognized by China.  The representative of China confirmed that China
would provide this information.  The Working Party took note of these commitments.
195. Concerning foreign and joint-venture conform ity assessment bodies, certain members of the
Working Party noted that China should not maintain requirements which had the effect of acting as
barriers to their operation, unless otherwise specified in China's Schedule of Specific Commitments.
The representative of China replied that China would not maintain such requirements.  Some
members also observed that all foreign or joint venture conformity assessment bodies that met China'srequirements should be eligible for accreditation and accorded national treatment.  The representative
of China confirmed that the accreditation requirements would be transparent and provide nationalWT/MIN(01)/3
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treatment to foreign conformity assessment bodies.   The Working Party took note of these
commitments.
196. Some members of the Working Party raised specific concerns regarding such matters as
(a) registration of initial imports of chemical products, (b) procedures to obtain and apply "CCIB"
safety mark and the "Great Wall" mark, (c) automobiles and parts, and (d) the safety and quality
licence system for boilers and pressure vessels.  In response, the representative of China stated thatChina would  implement the following measures prior to accession, unless otherwise indicated:
(a) Registration of Initial Imports of Chemical Products
– Enact and implement, within one year after its accession, a new law and relevant
regulations regarding assessment and control of chemicals for the protection of the
environment, in which complete national treatment and full consistency with
international practices would be ensured.
– Ensure that chemicals listed in the "inventory chemicals" annexed to the above new
law and its regulations would be exempted from a registration obligation and that a
unified assessment procedure would be established for domestic and imported
products under the new law and its regulations.
(b) CCIB Safety Mark and the "Great Wall" Mark
– Unify the existing certification marks, i.e., the "CCIB" mark and the "Great Wall"
mark into a new certification mark.  For like imported and domestic goods, all bodies
and agencies would issue the same mark and charge the same fee.
– Accept testing reports for products subject to the International Electrotechnical
Commission's System for Conformity Testing to Standards for Safety of Electrical
Equipment ("IECEE CB Scheme") to which China was a party, and simplify the
procedures for obtaining the new, unified certification mark
– Shorten the time period needed for importers to obtain both marks regarding the same
products,   to no more than  three months .
(c) Automobiles and Parts
– Unify its laws, regulations and standards applied to domestic and imported
automobiles and parts.
– Formulate, publish and implement laws and regulations, standards and implementing
regulations to establish a transparent system under which all the laws and regulations
would be applied so as to accord importe d products treatment no less favourable than
that accorded to like products of national origin.
(d) Safety and Quality Licence System for Boilers and Pressure Vessels
– Accord imported products treatment no less favourable than that accorded to products
of national origin, including fees imposed for conformity assessment and the effective
period of factory certification.WT/MIN(01)/3
Page 40
– Adopt international standards as the basis for technical regulations and exempt
imported products from inspection where like domestic products were not subject to
such inspection.
The Working Party took note of these commitments.
197. The representative of China confirmed that, except as otherwise specified in the Draft
Protocol, China would apply all obligations under the TBT Agreement from the date of accession.
The Working Party took note of this commitment.
4. Sanitary and Phytosanitary Measures
198. Some Members of the Working Party expressed concerns in relation to the use by China of
sanitary and phytosanitary ("SPS") procedures as non-tariff barriers and raised specific instances
where they considered that China's measures we re not consistent with the WTO Agreement on the
Application of Sanitary and Phytosanitary Measures ("SPS Agreement").  Members sought assurances
that China would only use SPS measures to the extent necessary to protect human, animal or plant life
or health, and that such measures would be based fully on scientific principles.
199. The representative of China stated that pursuant to the provisions of the SPS Agreement,
China applied SPS measures only to the extent nece ssary to protect the life and health of human
beings, animals and plants.  He also noted that most of China's SPS measures were based on
international standards, guidelines and recommendations.  China would not apply SPS measures in a
manner which would act as a disguised restriction on trade.  In accordance with the SPS Agreement,
China would ensure that SPS measures would not be maintained without sufficient scientific
evidence.  The Working Party took note of these commitments.
200. Members of the Working Party expressed the view that China should comply with the SPS
Agreement from the date of China's accession and should ensure conformity with the SPS Agreement
of all its laws, regulations, decrees, requirements and procedures relating to SPS measures.  In
response, the representative of China confirmed that China would fully comply with the SPS
Agreement and would ensure the conformity with the SPS Agreement of all of its laws, regulations,decrees, requirements and procedures relating to SPS measures from the date of accession.  The
Working Party took note of these commitments.
201. Members of the Working Party noted that China's notification of laws, regulations and  other
SPS measures, referred to in the Draft Protocol, was provided in document WT/ACC/CHN/33.
Members of the Working Party agreed that this notification did not prejudge the legal status under theWTO Agreement of the nature or effects of the notified laws, regulations and other SPS measures.
202. The representative of China said that China had set up an SPS notification authority and an
SPS enquiry point which would be notified to the SPS Committee.  SPS measures, including those
relating to inspection, had been published in public ations such as the MOFTEC Gazette.  Information
could also be gathered from the SPS notification authority or from China's SPS enquiry point.
5. Trade-Related Investment Measures
203. The representative of China confirmed that upon accession, as set forth in the Draft Protocol,
China would comply fully with the TRIMs Agreement, without recourse to Article 5 thereof, and
would eliminate foreign-exchange balancing a nd trade balancing requirements, local content
requirements and export performance requirements. Chinese authorities would not enforce the terms
of contracts containing such requirements.  The allocation, permission or rights for importation and
investment would not be conditional upon performance requirements set by national or sub-nationalWT/MIN(01)/3
Page 41
authorities, or subject to secondary conditions covering, for example, the conduct of research, the
provision of offsets or other forms of industrial compensation including specified types or volumes of
business opportunities, the use of local inputs or the transfer of technology.  Permission to invest,
import licences, quotas and tariff rate quotas would be granted without regard to the existence of
competing Chinese domestic suppliers.  Consistent with its obligations under the WTO Agreement
and the Draft Protocol, the freedom of contract of enterprises would be respected by China.  TheWorking Party took note of this commitment.
204. In the context of discussions on the government's Industrial Policy for the Automotive Sector,
the representative of China confirmed that this policy would be amended to ensure compatibility with
WTO rules and principles.  The Working Party took note of this commitment.
205. The representative of China added that amendments would be made to ensure that all
measures applicable to motor vehicle producers restricting the categories, types or models of vehicle
permitted for production, would gradually be lifted.  Such measures would be completely removedtwo years after accession, thus ensuring that moto r vehicle producers would be free to choose the
categories, types and models they produced.  However, it was understood that category authorizations
by the government could continue to distinguish between trucks and buses, light commercial vehicles,
and passenger cars (including multi-purpose vehicles and sport utility vehicles).  The Working Party
took note of this commitment.
206. The representative of China confirmed that Chin a also agreed to raise the limit within which
investments in motor vehicle manufacturing could be  approved at provincial government level only,
from the current level of US$30 million, to US$60 million one year after accession, US$90 million
two years after accession, and US$150 million four years after accession.  The Working Party took
note of this commitment.
207. With respect to the manufacture of motor vehi cle engines, the representative of China also
confirmed that China agreed to remove the 50 per cent foreign equity limit for joint-ventures upon
accession.  The Working Party took note of this commitment.
6. State Trading Entities
208. Some members of the Working Party expressed concern that the activities of China's state
trading enterprises were not sufficiently transparent and were not in accordance with WTO
obligations.  The representative of China indicated, however, that China's state trading enterprises had
full management autonomy and responsibility for their own profits and losses and that China had
undertaken broad and significant commitments to improve the transparency of state trading
enterprises' operation and the measures relating to such operation.
209. The same members of the Working Party also stated that China should ensure that the import
purchasing practices and procedures of state trading enterprises were fully transparent, and in
compliance with the requirements of the WTO Agreement.  They considered that China should also
refrain from taking any measure to influence or direct state trading enterprises as to the quantity,
value, or country of origin of goods purchased or sold, except in accordance with the requirements of
the WTO Agreement.  Those members also stated that as part of China's notification under the
GATT 1994 and the Understanding on the Interpretation of Article XVII of the GATT 1994, Chinashould also notify information on state trading, including, in the case of state trading of exported
goods, domestic procurement prices, contract terms for delivery and financing terms and conditions.
210. In response, the representative of China stated that its state trading enterprises had full
management autonomy and responsibility for their own profits and losses.  However, some members
of the Working Party again stated that China should undertake a commitment to ensure that all stateWT/MIN(01)/3
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trading enterprises complied with the requirements  of the WTO Agreement.  The representative of
China noted that a list of products subject to state trading had been provided in Annex 2A of the Draft
Protocol.  He also confirmed that information on state trading enterprises, as required by the Draft
Protocol, would be supplied, consistent with the requ irements of paragraph 333 of this Report.  The
Working Party took note of this commitment.
211. Members of the Working Party took note of the specific arrangements that would apply for
fertilizers and crude and processed oil.  A key feature of those arrangements related to the annual
allocation of import quantities.  The differences in the regimes that would apply to those products
were noted, in particular in regard to the obligation on state enterprises trading in fertilizers to carry
over to the next year any unused import quantities.
212. Some members of the Working Party requested assurances that, for oil products, quantities
reserved for non-state traders would be allocated in such a manner that they would be fully utilized.
In this respect, the representative of China confirmed that imports allocated to non-state traders ofcrude and processed oil, as specified in Annex 2A of the Draft Protocol, would be carried over to the
next year if they were not fully utilized.  In addition, the representative of China agreed that China
would publish, on a quarterly basis, the requests fo r imports that had been made by non-state traders,
as well as the licences granted, and would supply information relevant to such traders upon request.
The Working Party took note of these commitments.
213. Some members of the Working Party noted that prior to accession, some enterprises in China
were permitted to import goods for their production purposes, including those goods included in
Annex 2A.  The representative of China confirme d that, notwithstanding Section 5, paragraph 1, of
the Draft Protocol, non-state trading enterprises, including private enterprises, would still be permitted
to import such goods for production purposes and th at national treatment would be provided to such
imports.  The Working Party took note of these commitments.
214. Some members of the Working Party expressed concerns about supplies of raw materials in
the textiles sector, and particularly in regard to supplies of silk, in the light of China's position as the
major world supplier of silk, currently subject to state trading rights concerning exports.
215. In this regard, the representative of China confirmed that China would progressively abolish
the system of state trading in respect of silk by measures increasing and extending trading rights, with
the result that China would remove completely the silk products set out in numbers 10 and 11 of
Annex 2A2 to the Draft Protocol (list of products subject to state trading on exports) and grant the
right to trade in such products to all individuals and enterprises no later than 1 January 2005.  Pending
the implementation of this right, China undertook not  to introduce any changes of a more restrictive
nature to the existing structures in place for the supply of silk.  The representative of China further
confirmed that access to supplies of raw materials in the textiles sector would remain at conditions no
less favorable than for domestic users, and gave his assurance that access to supplies of raw materials
as enjoyed under existing arrangements would not be adversely affected following China's accession.
The Working Party took note of these commitments.
216. Members of the Working Party noted that domestic prices for most agricultural commodities
in China were higher than world prices, and this differential allowed China's state trading enterprisesto import at low prices and then mark up the price when selling the product to wholesalers and
end-users. Some members expressed concern that th is practice could become more widespread when
access opportunities were created under TRQs.  Those members were particularly concerned that
mark-ups could be used to reduce the competitiveness of imported products and limit the range of
qualities and grades available to end-users in China.  The representative of China stated that currentlystate trading enterprises did not mark up imported products; instead, they only charged a nominal
transaction fee.  Consequently, China's practice was consistent with WTO obligations, did not resultWT/MIN(01)/3
Page 43
in any trade-distorting effect, and that under China's law limits existed on the fees that could be
charged by state trading enterprises.
217. The representative of China stated that China would ensure that no price increase in respect to
imports, in particular by state trading enterprises, would result in protection beyond that allowed in its
Schedule of Concessions and Commitments on Goods or that was not otherwise justified under WTO
rules.  The Working Party took note of this commitment.
7. Special Economic Areas
218. Members of the Working Party noted that there was insufficient information available
concerning special economic areas within China's customs territory, including border trade regions
and minority autonomous areas, SEZs, open coastal cities, economic and technical development zones
and other areas where special regimes for tariffs, taxes and regulations had been established
(collectively referred to as "special economic areas"), in particular their names, geographic
boundaries, and relevant laws, regulations and other measures relating thereto.
219. In response, the representative of China stated that since 1979 China had established a
number of special economic areas where more open policies were applied.  They included five SEZs,
14 open coastal cities, six open cities along the Yangtze River, 21 provincial capital cities and 13
inland boundary cities.  Those special economic areas enjoyed greater flexibility in utilizing foreign
capital, introducing foreign technology and conducting economic cooperation overseas.  At present,foreign investors were entitled to certain preferential treatment.
220. The representative of China further stated that FIEs located in SEZs or the Economic and
Technical Development Zones of open coastal cities were entitled to a corporate income tax rate of
15 per cent (the normal income tax was 33 per cent).  Profits remitted abroad by foreign investors
were exempted from income tax.  The preferential income tax rate of 15 per cent was applicable totechnology-intensive or knowledge-intensive items or projects with foreign investment of over
US$30 million, as well as enterprises that operat ed in the fields of energy, transport and port
construction.
221. The representative of China noted that throughout  the customs territory of China, a socialist
market economy system was applied.  In 1999, the foreign trade volume of SEZs accounted for nearlyone fifth of the nation's total.  The national laws and regulations on taxation were applicable to SEZs
in a uniform manner.
222. In response to further requests for information, the representative of China indicated that there
was no plan to establish any new SEZs. The special preferential tariff policies applied to SEZs had
been eliminated. With the development of China's economic reform and opening up, China wouldimplement its tariff policy uniformly throughout its customs territory. Members of the Working Party
expressed concern that imported products introduced from these special economic areas into other
parts of China's customs territory should be subject to the same treatment in the application of all
taxes, import restrictions and customs duties and other charges as that normally applied to imports
into the other parts of China's customs territory. The representative of China stated that China would
undertake to ensure such non-discriminatory treatment.  The Working Party took note of this
commitment.
223. Some members of the Working Party also raised concerns as to whether the assistance
provided to minority autonomous regions and other areas of economic poverty was consistent with
WTO requirements.  In response, the representative of China confirmed that China had a clear
commitment to uniform administration of the trad e regime within each such area and that, uponWT/MIN(01)/3
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accession, China would ensure that such assistance would be implemented consistent with WTO
obligations.  The Working Party took note of this commitment.
224. Some members of the Working Party requested that China take steps to ensure that all
products imported into the other parts of the customs territory of China from special economic areas
would be subject to the same normal customs duties and charges as any other product imported into
the customs territory of China.  In particular, those members requested that China undertake acommitment to apply all taxes, charges and measures affecting imports, including import restrictions
and customs and tariff charges, that were normally applied to imports into the other parts of China's
customs territory to all imported products, including physically incorporated components, entering
China's customs territory from the special economic areas.
225. The representative of China confirmed that China would strengthen the uniform enforcement
of taxes, tariffs and non-tariff measures on trade between its special economic areas and the other
parts of China's customs territory.  The representative of China further confirmed that statistics ontrade between China's special economic areas and the other parts of its customs territory would be
maintained and improved, and would be notified to the WTO on a regular basis.  The Working Party
took note of these commitments.
226. Some members of the Working Party requested that China notify the WTO of all the relevant
laws, regulations and other measures relating to its special economic areas.  They asked that thenotification list and identify all those special economic areas.  Those members also requested that
China notify the WTO promptly, but in any case within 60 days, of any additions or modifications to
its special economic areas, including notification of the laws, regulations and other measures relating
thereto.
227. The representative of China confirmed that China would provide information in its
notifications describing how the special trade, tariff, and tax regulations applied were limited to the
designated special economic areas, including in formation concerning their enforcement.  The
Working Party took note of this commitment.
228. In response to concerns raised by some members of the Working Party, the representative of
China confirmed that any preferential arrangements provided to foreign invested enterprises locatedwithin the special economic areas would be provided on a non-discriminatory basis.  The Working
Party took note of this commitment.
8. Transit
229. The representative of China stated that the current regulation of transit in China, the
Regulations of the Customs of the People's Republic of China on the Supervision and Administrationof Transit Goods, was consistent with Article V of the GATT 1994.
9. Agricultural Policies
230. The representative of China stated that since  China was a country with a vast agricultural
base, as well as a vast population, agricultural security and food security in particular, was an issue of
supreme importance. China based its policies on domestic agricultural supply, especially on balanced
supply and demand of grains.  Meanwhile, China actively sought international resources as a
necessary supplement.
231. While noting this statement, some members of the Working Party expressed concerns about
China's linkage of import policies for agriculture, including TRQ allocations, to domestic production
policy and the sub-national supply and utilization situation.  Those members requested that ChinaWT/MIN(01)/3
Page 45
undertake an appropriate commitment to eliminate these practices.  In response, the representative of
China confirmed that China would base import policies for agriculture on commercial considerations
only.  The Working Party took note of this commitment.
232. Some members of the Working Party expressed further concerns in relation to administrative
guidance provided at the national and sub-national level which could have the effect of influencing
the quantity and composition of agricultural imports.  Those members considered reform of thesepractices toward full WTO consistency as an essential element of China's accession.  To ensure
effective market access opportunities were created for imported products, some members requested
assurances from China that agricultural and trade policies would not discriminate in a WTO
inconsistent manner against imported products.  Consistent with China's commitment to uniform
administration, the representative of China confirme d that, by the date of accession, China would not
maintain, resort or revert to guidance plans or administrative guidance at the national or sub-national
level that regulate the quantity, quality or treatment of imports, or constitute import substitutionpractices or other non-tariff measures, including those maintained through state trading enterprises at
the national or sub-national level.  The Working Party took note of this commitment.
233. Some members of the Working Party expressed concern that large stocks in China of grain
and cotton had been procured at relatively high prices by state-trading enterprises or other state-
affiliated, state-run, or state-controlled entities a nd noted that exports of these or other government-
purchased products at prices lower than the comparable price charged for the like product to buyers in
the domestic market could be challenged as an export subsidy or as inconsistent with other WTO
obligations.  These members requested that China ensure that all entities, including state trading
enterprises and any other state-affiliated, state-run, or state-controlled entity at the national or sub-
national level operated in accordance with China's WTO obligations, including those on exportsubsidies.  In response, the representative of China confirmed that all entities in China would operate
in accordance with China's WTO obligations, includ ing those on export subsidies.  Further, the
representative of China stated that national and sub-national authorities would not provide fund
transfers or other benefits to any entities in China that would be inconsistent with its WTO
obligations, including to offset losses accrued through exports. The Working Party took note of thesecommitments.
234. The representative of China confirmed that by the date of accession, China would not
maintain or introduce any export subsidies on agricultural products.  The Working Party took note of
this commitment.
235. In implementing Article 6.2 and 6.4 of the Agreement on Agriculture, the representative of
China confirmed that while China could provide support through government measures of the types
described in Article 6.2, the amount of such support would be included in China's calculation of its
Aggregate Measurement of Support ("AMS").  He noted that China's Total AMS Commitment Level
was set forth in Part IV, Section I of China's Schedule.  The representative of China further confirmed
that China would have recourse to a de minimis  exemption for product-specific support equivalent to
8.5 per cent of the total value of production of a basic agricultural product during the relevant year.
The representative of China confirmed that China would have recourse to a de minimis  exemption for
non-product-specific support of 8.5 per cent of the value of China's total agricultural production
during the relevant year.  Accordingly, these percentages would constitute China's de minimis
exemption under Article 6.4  of the Agreement on Agriculture.  The Working Party took note of these
commitments.
236. China's concessions on agricultural tariffs, and commitments on domestic support and on
export subsidies for agricultural products were contained in the Schedule of Concessions and
Commitments on Goods annexed to the Draft Protocol as Annex 8.WT/MIN(01)/3
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237. Some members of the Working Party noted that the domestic support tables of China in
WT/ACC/CHN/38/Rev.3 showed China's base total AMS as zero in DS:4.  They also noted that
product specific support was negative in DS:5.
238. Some members of the Working Party noted  that although WT/ACC/CHN/38/Rev.3 did
provide a basis for supporting the commitments in China's Schedule, this document still contained
issues which required further methodological clarification relating to policy classification.  Therepresentative of China confirmed that this clarification would be addressed in the context of China's
notification obligations under the Agreement on Agri culture.  The Working Party took note of this
commitment.
10. Trade in Civil Aircraft
239. In response to questions from members of the Working Party, the representative of China
indicated that China was not in a position to co mmit to joining the Agreement on Trade in Civil
Aircraft at the present stage.
240. The representative of China confirmed that China would not impose any provisions of offsets
or other forms of industrial compensation when purchasing civil aircraft, including specified types or
volumes of business opportunities.  The Working Party took note of this commitment.
11. Textiles
241. Some members of the Working Party proposed and the representative of China accepted that
the quantitative restrictions maintained by WTO Members on imports of textiles and apparel products
originating in China that were in force on the date prior to the date of China's accession should be
notified to the Textiles Monitoring Body ("TMB") as being the base levels for the purpose of
application of Articles 2 and 3 of the WTO Agr eement on Textiles and Clothing ("ATC").  For such
WTO Members, the phrase "day prior to the date of entry into force of the WTO Agreement",contained in Article 2.1 of the ATC, should be deemed to refer to the day prior to the date of China's
accession.  To these base levels, the increase in growth rates provided for in Articles 2.13 and 2.14 of
the ATC should be applied, as appropriate, from the date of China's accession.  The Working Party
took note of these commitments.
242. The representative of China agreed that the following provisions would apply to trade in
textiles and clothing products until 31 December 2008 and be part of the terms and conditions for
China's accession:
(a) In the event that a WTO Member believed that imports of Chinese origin of textiles and
apparel products covered by the ATC as of the date the WTO Agreement entered into force ,
were, due to market disruption, threatening to impede the orderly development of trade inthese products, such Member could request consultations with China with a view to easing or
avoiding such market disruption.  The Member requesting consultations would provide China,
at the time of the request, with a detailed factual statement of reasons and justifications for its
request for consultations with current data which, in the view of the requesting Member,
showed:  (1) the existence or threat of market disruption;  and (2) the role of products of
Chinese origin in that disruption;
(b) Consultations would be held within 30 days of receipt of the request.  Every effort would be
made to reach agreement on a mutually satisfactory solution within 90 days of the receipt of
such request, unless extended by mutual agreement;WT/MIN(01)/3
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(c) Upon receipt of the request for consultations, China agreed to hold its shipments to the
requesting Member of textile or textile products in the category or categories subject to these
consultations to a level no greater than 7.5 per cent (6 per cent for wool product categories)
above the amount entered during the first 12 mont hs of the most recent 14 months preceding
the month in which the request for consultations was made;
(d) If no mutually satisfactory solution were reached during the 90-day consultation period,
consultations would continue and the Member requesting consultations could continue the
limits under subparagraph (c) for textiles or textile products in the category or categories
subject to these consultations;
(e) The term of any restraint limit established under subparagraph (d) would be effective for the
period beginning on the date of the request for consultations and ending on 31 December ofthe year in which consultations were requested, or where three or fewer months remained in
the year at the time of the request for consultations, for the period ending 12 months after the
request for consultations;
(f) No action taken under this provision would remain in effect beyond one year, without
reapplication, unless otherwise agreed between the Member concerned and China;  and
(g) Measures could not be applied to the same product at the same time under this provision and
the provisions of Section 16 of the Draft Protocol.
The Working Party took note of these commitments.
12. Measures Maintained Against China
243. The representative of China stated that WTO Members should eliminate all discriminatory
non-tariff measures maintained against Chinese exports from the date of China's accession.  In
response, some members of the Working Party stated that, in their view, such measures did not needto be phased out until such time as China's foreign trade regime fully conformed to WTO obligations.
244. In light of the above, it was agreed that any prohibitions, quantitative restrictions or other
measures maintained against imports from China in a manner inconsistent with the WTO Agreement
would be listed in Annex 7 to the Draft Protocol.  It was further agreed that all such measures would
be phased out or otherwise dealt with in accordance with mutually agreed terms and timetables asspecified in said annex.
13. Transitional Safeguards
245. With respect to implementation of the product-specific safeguard, the representative of China
expressed particular concern that WTO Members provide due process and use objective criteria in
determining the existence of market disruption or trade diversion, because WTO Members did not
have wide experience in implementing the provisions of Section 16 of the Draft Protocol.  He stated
that with respect to trade diversion, WTO Members needed to apply objective criteria to determinewhether an action by China or another WTO Member under the product-specific safeguard to prevent
or remedy market disruption caused or threatened to cause significant diversion of trade.  Such criteria
should include the actual or imminent increase in ma rket share or volume of imports from China, the
nature or extent of the action taken by China or the other WTO Member and other similar criteria.  In
addition, WTO Members should provide an opportunity for importers, exporters and all interestedparties to submit their views on the matter.WT/MIN(01)/3
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246. Members of the Working Party noted that the Draft Protocol included specific requirements
that WTO Members needed to follow in connection with an action under that Section.  Members of
the Working Party confirmed that in implementing the provisions on market disruption, WTO
Members would comply with thos e provisions and the following:
(a) An action to address market disruption would be taken only after an investigation by the
competent authorities of the importing WTO Member pursuant to procedures previouslyestablished and made available to the public;
(b) The competent authority of the importing Member would publish notice of the
commencement of any investigation under the product-specific safeguard provisions of the
Draft Protocol and would, within a reasonable time thereafter, hold a public hearing or
provide other appropriate means  for the purpose of permitting interested parties to present
evidence and their views as to the appropriateness of whether or not to take a measure and torespond to the presentations of other parties;
(c) In determining whether market disruption existed, including the causal link between imports
which were increasing rapidly, either absolutely or relatively, and any material injury or threat
of material injury to the domestic industry,  the competent authorities would considerobjective factors, including (1) the volume of imports of the product which was the subject of
the investigation; (2) the effect of imports of such product on prices in the importing WTO
Member's market for the like or directly competitive products; (3) the effect of imports of
such product on the domestic industry producing like or directly competitive products;
(d) The competent authorities would publish any measure proposed to be taken and provide the
opportunity, including a public hearing, if requested, or provide other appropriate means, for
importers, exporters and other interested parties to submit their views and evidence on the
appropriateness of the proposed measure and whether it would be in the public interest;
(e) The competent authority would promptly publish notice of the decision to apply a measure,
including an explanation of the basis for the decision and the scope and duration of the
measure;
(f) The period of application of the measure could be extended, provided that the competent
authorities of the importing WTO Member had determined that action continued to be
necessary to prevent or remedy market disruption.  The competent authorities of the
importing WTO Member would publish notice of the commencement of any proceeding to
consider whether to extend the duration of an action and would, within a reasonable time
thereafter, hold a public hearing or provide other appropriate means for the purpose of
permitting all interested parties to have an oppo rtunity to present evidence or their views and
to respond to the presentations of other parties;
(g) Except for good cause, no investigation under Section 16 of the Protocol on the same subject
matter could be initiated less than one year after the completion of a previous investigation;
and
(h) A WTO Member would apply a measure only for such period of time as was necessary to
prevent or remedy market disruption.
247. Trade diversion referred to an increase in imports from China of a product into a WTO
Member as the result of an action by China or other WTO Members pursuant to paragraphs 2, 3 or 7of Section 16 of the Draft Protocol.  Members of th e Working Party also noted that the Draft ProtocolWT/MIN(01)/3
Page 49
required a determination that any trade diversion was significant and that the action taken to address
market disruption had caused or threatened to cause the diversion.
248. Members of the Working Party agreed that objective criteria had to be applied in determining
whether actions to prevent or remedy market disruption caused or threatened to cause significant
diversion of trade.   Among the factors to be examined were:
(a) the actual or imminent increase in market  share of imports from China in the importing WTO
Member;
(b) the nature or extent of the action taken or proposed by China or other WTO Members;(c) the actual or imminent increase in the volume of imports from China due to the action taken
or proposed;
(d) conditions of demand and supply in the importing WTO Member's market for the products at
issue; and
(e) the extent of exports from China to the WTO Member(s) applying a measure pursuant to
paragraphs 2, 3 or 7 of Section 16 of the Draft Protocol and to the importing WTO Member.
249. A measure taken to address significant diversions of trade would be terminated not later than
30 days after the expiration of the action taken by the WTO Member or Members involved against
imports from China.
250. If the WTO Member or Members taking an action to address market disruption notified the
WTO Committee on Safeguards of any modification of an action, the competent authorities of the
WTO Member addressing trade diversion would dete rmine whether a significant diversion of trade
continued to exist and determine whether to modify, withdraw or keep in place the action taken.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
A. GENERAL
1. Overview
251. The representative of China stated that China had made the protection of intellectual property
rights ("IPRs") an essential component of its reform and opening-up policy and socialist legal
construction.  The formulation of laws and regulations in this field could be traced back to the late
1970s.  Since then, China had joined relevant international conventions and had actively participatedin the activities sponsored by relevant international organizations.  It had intensified its exchanges and
cooperation with countries throughout the world in the field of IPR protection.  As a result,
notwithstanding the initial stage of its developmen t, China's IPR protection system aimed at achieving
world dimension and world standards.  Lists of admi nistrative rules concerning intellectual property
rights currently in force in China were presented below in Table A. The status of ongoing reforms and
other relevant information was presented in Table B in the following paragraph. Other laws,
regulations and measures relating to the implementation of the TRIPS Agreement had been or wouldbe notified to the WTO and would be made available upon request.WT/MIN(01)/3
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Table A:  The Administrative Rules of China Concerning Intellectual Property Rights
The following three parts were the administrative rules regarding protection of intellectual property
right, which were still in force in China. As an important part of China's IPR legal system, these rules
had a great effect on IPR protection, enforcing the IPR law, etc.
Part I List of Administrative Rules Regarding Protection of Patent Right
Part II List of Admini strative Rules Regarding Protection of Trademark
Part III List of Admini strative Rules Regarding Protection of Copyright
Part I List of Administrative Rules Regarding Protection of Patent Right
(i) Methods on the Showing the Identification of Ri ght of Priority to Applicant made by Patent 
Office of China (1 March 1988)
(ii) Opinions of the Patent Office of China concerning the Implementation of the Regulations 
on Patent Commissioning (19 April 1991)
(iii) Explanation of the Patent Office of China on Certain Matters Relating to the 
Commissioning Involving Foreign Interests (16 November 1987)
(iv) Decree of Patent Office of  China (No.26) (20 November 1989)
(v) Decree of Patent Office of China (No.27) (21 December 1989)
(vi) Decree of Patent Office of China (No.31) (14 March 1991)
(vii) Procedures for Administrative Reconsideration of Patent Office of the People's Republic of 
China (for Trial Implementation) (21 December 1992)
(viii) Methods of Handling the Patent Disputes by the Administrative Authorities for Patent 
Affairs (4 December 1989)
Part II List of Administrative Rule s Regarding Protection of Trademark
(i) Circular on the Commodities Demanded to Use Registered Trademark made by the State
Administration for Industry and Commerce (14 January 1988)
(ii) Circular on the Prohibition from Registering the Other Person's Trademark Abroad without
Being Authorized made by State Administration for Industry and Commerce and theMinistry of Foreign Economy and Trade (19 November 1990)
(iii) Interim Provisions on Claims for Priority in Applying for Registration of Trademarks made
by State Administration for Industry and Commerce (15 March 1983)
(iv) Methods of the Application International Registration of Trademark of Madrid made by the
State Administration for Industry and Commerce (2 March 1989)WT/MIN(01)/3
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(v) Circular on the Stopping Using the Literal of "Xiang Bin" or "Champagne" in Varieties of
Commodities of Alcohol made by the State Administration for Industry and Commerce
(26 October 1989)
(vi) Circular on Printing and distributing " the Rules regarding the Question of Using Trademark
in Can Food for Export" (15 October 1991)
(vii) Provisions on the Control over the Surrogate of Trademark
(viii) Provisions on the Registration of and the Control over the Collective Trademark and
Certified Trademark (issued on 30 December 1994, revised on 3 December 1998)
(ix) Provisions on the Control over the Printi ng of Trademark (issued on 5 September 1996,
revised on 3 December 1998)
Part III List of Admini strative Rules Regarding Protection of Copyright
(i) Opinions of the National Copyright Administration on Questions Relating to Reprinting the
Programs in Advance in Broadcast and Television (12 December 1987)
(ii) Circular of the National Copyright Administration of Printing and Distribution "Report
Relating to Appropriate Handling the Copyright Question in the Process of Culture
Communication with Taiwan" and "Interim Provis ions Relating to the Copyright Question of
Pressing the Works Written by Taiwan Compatriots" (8 February 1988)
(iii) Circular of National Copyright Administration regarding the Points for Attention of
Transferring Copyright to Taiwan's Press Person (26 December 1987)
(iv) Opinions of National Copyright Administration on Matters Relating to Local Work on
Copyright Management (May 1988)
(v) Circular of the National Copyright Administration concerning Procedures of Examining and
Verifying the Copyright Trading Contract Between the Mainland and Hong Kong, Macaoand Taiwan (2 November 1988)
(vi) Opinions on Certain Matters of the National Copyright Administration concerning Handling
Copyright Cases (27 December 1988)
(vii) Circular of the National Copyright Administration concerning the Standard of Paying 
Author's Remuneration When the Press Reprint and Extract the Published Works at Present 
(27 August 1991)
(viii) Interim Provisions of the Standard of Paying Author's Remuneration When the Press Reprint
and Extract the Published Works with the Consent by Law (1 August 1993)
(ix) Interim Provisions of the Standard of Pa ying Author's Remuneration When Perform the
Published Works with the Consent by Law (1 August 1993)
(x) Interim Provisions of the Standard of Paying Author's Remuneration When Record the
Published Works with the Consent by Law (1 August 1993)WT/MIN(01)/3
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(xi) Direction of the Chinese Center of Receiving and Transmitting Author's Remuneration
concerning Receiving and Transmitting Remuneration About the Press Extract the Published
Works
(xii) Circular of the National Copyright Administration concerning Enforcing "the Memorandum
of Understanding between the Government of the People's Republic of China and the
Government of the United States of America on the Protection of Intellectual Property"
(29 February 1992)
(xiii) Urgent Circular concerning Strengthenin g Administration of Reproducing Compact Discs
and Laser Discs (12 April 1994)
(xiv) Circular of Enforcing "Urgent Circular concerning Strengthening Administration of
Reproducing Compact Discs an d Laser Discs" (12 May 1994)
(xv) Cooperate Circular of the Ministry of Judicial and National Copyright Administration
concerning Bringing Notary Office into Play in Dealing with the Infringing Copyright Cases
(29 August 1994)
(xvi) Measures of the Registration of Copyright of Computer Software (4 June 1992)
(xvii) Guide to Classified Coding of Soft ware in Computer Software's Registration
(xviii) The Item and Standard of Registration Expenses of Computer Software (18 April 1992)
252. The representative of China stated that for accession to the WTO Agreement and compliance
with the TRIPS Agreement, further amendments had been made to the Patent Law.  The amendments
to the Copyright Law and the Trademark Law, as well as relevant implementing rules covering
different areas of the TRIPS Agreement, would also be accomplished upon China's accession.  The
representative of China stated that laws adopted by the National People's Congress and administrative
regulations, including implementing rules, issued by the State Council were applied and enforced by
the people's courts. The Working Party took note of these commitments.WT/MIN(01)/3
Page 53
Table B:  Revision of China's IPR Laws in Conformity with the TRIPS Agreement
The People's Republic of China had conducted an intensive work programme to examine and revise the
IPR laws, administrative regulations and department rules relating to the implementation of the WTO
Agreement and China's accession commitments. A list of China's IPR laws, administrative regulations
and department rules to be revised and abolished was hereby notified to the Working Party. Part I ofthe list contained eight laws and regulations.  Part II of the list contained four department rules to be
revised or abolished for the same reason. This list included the names of laws, regulations and
department rules, reasons for revision or abolishment, and dates of implementation.
Part I Laws and Administrative Regulations
Laws and Regulations Date of Implementation
1.  Copyright Law of  the People's Republic ofChinaUpon accession
2.  Regulations for the Implementation of the
Copyright Law of the People's Republic of ChinaUpon accession
3.  Regulations for the Protection of Computer
SoftwareUpon accession
4.  Trademark Law of the People's Republic of
ChinaUpon accession
5.  Detailed Rules for the Implementation of the
Trademark Law of the People's Republic of ChinaUpon accession
6.  Regulations of the People's Republic of China
on the Protection of New Varieties of PlantsEffective as of 1 October 1997
7.  Law of the People's Republic of China Against
Unfair CompetitionEffective as of 1 December 1993
8.  Regulations on the Implementation of the
Integrated Circuit Layout DesignTo be effective as of 10 October 2001
Part II  Department Rules
Department Rules Date of Implementation
1.  Interim Rules on the Administration of Patents
in Agriculture, Animal Husbandry and FisheriesTo be abolished upon accession
2.  Notice on the Interim Regulation on the
Protection of Copyright of Books and MagazinesTo be abolished upon accession
3.  Notice on the Issuance of the "Detailed Rules
of Interim Regulations on the Protection of
Copyright of Books and Magazines", "Publication
Intention Contracts" and  "Publication Contracts"To be abolished upon accession
4.  Interpretation of Article 15(4) of the "Interim
Regulation on the Protection Copyright of Books
and Magazines"To be abolished upon accession
2. Responsible agencies for policy formulation and implementation
253. The representative of China stated that, at present, different agencies were responsible for IPR
policy formulation and implementation.  The Stat e Intellectual Property Office ("SIPO") wasWT/MIN(01)/3
Page 54
responsible for patent approval; the Trademarks Office under the State Administration for Industry
and Commerce ("SAIC") was responsible for trademarks registration; the Copyright Office was
responsible for copyright policy making; SAIC was responsible for anti-unfair competition, including
the protection of trade secrets; the State Drug Administration ("SDA") was responsible for
administrative protection of pharmaceuticals; the General Customs Administration was responsible
for border measures;  the Ministry of Agriculture and the State Administration of Forestry wereresponsible for protection of plant varieties;  the Ministry of Information Industry was responsible for
the protection of layout designs of integrated circuits;  and the State General Administration of the
People's Republic of China for Quality Supervision and Inspection and Quarantine and SAIC were
responsible for combating counterfeiting activities.  Other agencies like the agency for press and
publications, the people's courts and police were also involved in the protection of IPR in China.
3. Participation in international intellectual property agreements
254. The representative of China stated that China became a member of the World Intellectual
Property Organization in 1980. In 1985, China became a member of the Paris Convention for the
Protection of Industrial Property. China was one of the first countries that signed the Treaty on
Intellectual Property in Respect of Integrated Circuits, the negotiation of which was concluded in
1989. In 1989, China became a member of the Madrid Agreement Concerning the International
Registration of Marks and in 1992, China became a member of the Berne Convention for theProtection of Literary and Artistic Works.  In 1993, China became a member of the Convention for
the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms.
In 1994, China became a member of  the Patent Cooperation Treaty and a member of the Nice
Agreement Concerning the International Classification of Goods and Services for the Purposes of the
Registration of Marks.  In 1995, China became a member of the Budapest Treaty on the InternationalRecognition of the Deposit of Microorganisms for the Purposes of Patent Procedure and applied for
membership in the Protocols of the Madrid Agreement Concerning the International Registration of
Marks. In 1996, China became a member of the Locarno Agreement on Establishing an International
Classification for Industrial Designs; and in 1997, China became a member of the Strasbourg
Agreement Concerning the International Patent Classification.  Besides the above efforts, Chinaparticipated in the TRIPS negotiations during the Uruguay Round and initialled the Final Act.
4. Application of national and MFN treatment to foreign nationals
255. Some members of the Working Party expressed concern that certain provisions of China's
copyright and trademark laws, as well as China's Rules on Banning the Infringement of Business
Secrets (23 November 1995) did not provide national treatment to foreign right-holders.  The Ruleson Banning Infringements of Business Secrets, for example, defined the "owner" of a trade secret as a
"citizen, corporation, and other organization" and did not explicitly provide protection for foreign
individuals or organizations.  Some members of  the Working Party further stated that national
treatment should be fully applied, so that copyright enforcement action by local copyright bureaux
involving foreign right-holders, would no longer require clearance by the National Copyright
Administration in Beijing.
256. The representative of China responded that China's IPR laws provided that any foreigner
would be treated in accordance with any agreemen t concluded between the foreign country and China,
or in accordance with any international treaty to which both countries were party, or on the basis of
the principle of reciprocity.  The representative of China further confirmed that China would modify
relevant laws, regulations and other measures so as to ensure national and MFN treatment to foreign
right-holders regarding all intellectual property ri ghts across the board in compliance with the TRIPS
Agreement.  This would include adjustments of th e clearance requirement mentioned in the previous
paragraph to ensure national treatment.  The Working Party took note of these commitments.WT/MIN(01)/3
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B. SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES FOR
THE ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY RIGHTS
1. Copyright protection
257. The representative of China stated that the Copyright Law, which was promulgated in 1990,
established the basic copyright protection system in China together with the Implementing Rules of
the Copyright Law (30 May 1991), the Provisions on the Implementation of the InternationalCopyright Treaty (25 September 1992) and other related laws and regulations.  In principle, this
system was in compliance with the international IPR treaties and practices.  For the protection of
copyright and neighbouring rights, not only civil and criminal liabilities but also administrative
liabilities, were provided for in this system.  He nce the infringing activities could be curbed in a
timely and effective manner and the legitimate rights of the right-holders could be protected.
258. Some members of the Working Party expressed concerns about the consistency of China's
current law on the protection of copyright and related rights with the TRIPS Agreement.  In particular,members noted the need to clarify the rights of performers and producers to bring them into
conformity with the requirements of Article 14 of the TRIPS Agreement.  In addition, improvements
were needed with respect to enforcement of copyright to provide expressly for provisional measures
to preserve evidence, including documentary evidence and for remedies sufficient to deter further
infringements.
259. The representative of China responded that, realizing that there were some existing
differences between China's copyright laws and the TRIPS Agreement, the amendment to the
Copyright Law had been accelerated.  The proposed amendments would clarify the payment system
by broadcasting organizations which use the re cording products and also include the following
provisions: rental rights in respect of computer programs and movies, mechanical performance rights,rights of communication to the public and related protection measures, protection of database
compilations, provisional measures, increasing the legitimate compensation amount and strengthening
the measures against infringing activities.  China's copyright regime including Regulations for the
Implementation of the Copyright Law and the Provisions on the Implementation of the International
Copyright Treaty would be amended so as to ensu re full consistency with China's obligations under
the TRIPS Agreement.  The Working Party took note of these commitments.
2. Trademarks, including service marks
260. The representative of China stated that the Trademark Law, its implementing rules and other
relevant laws, administrative regulations and department rules constituted the existing trademark legal
system in China.  The objective of these laws was to provide protection to right-holders in line withthe international conventions and prevailing practices regarding intellectual property rights, which
was embodied both in the regulations on the substance and procedures for trademark registration and
in the protection of trademark exclusive rights.  In  order to protect the trademark owner's exclusive
rights, China's Trademark Law contained not only civil and criminal liabilities but also provided for
administrative punishment of trademark infringers.  This "double-track system" for the protection of
exclusive rights in trademarks could prevent trademark infringements in a timely and effective
manner and protect the legitimate rights and interests of these exclusive rights.  In recent years,China's judicial and administrative bodies had stepped up their efforts to protect trademark exclusive
rights within their respective authority.  They had settled a large number of cases that were influential,
domestically and abroad, which provided adequate protection to the legitimate rights and interests of
both Chinese and foreign holders of exclusive rights in trademarks, and received a positive response
from domestic and foreign right-holders.WT/MIN(01)/3
Page 56
261. Some members of the Working Party reiterated their concerns about whether certain
provisions of China's trademark law provided national treatment to foreign owners of trademarks.
They noted that China's law required foreign owners of trademarks to use designated trademark
agents, while Chinese nationals were permitted to file directly with China's Trademark Office.
Members also noted that China's trademark law did not consider certain signs as eligible for
protection as required under the TRIPS Agreement.  These included names, letters, numerals andcolours capable of distinguishing goods and services.  In addition, if registrability of a trademark
depends on use, China's trademark law should provide that a non-distinctive mark could qualify for
registration when it has acquired distinctiveness based on use.  Members also noted that it was not
clear under China's law that actual use of a mark was not required before a party could file to register
a mark.
262. Some members of the Working Party also raised concerns about the protection of well-known
trademarks in China, in particular those not registered in China.  China's laws and regulations did notspecifically state the criteria for determining whether a mark was well-known and therefore members
could not determine if it conformed to the requirements of Article 16 of the TRIPS Agreement.
Moreover, while China had provided protection to  "well-known trademarks " owned by nationals,
such protection had, as yet, not been granted to the well-known trademarks of foreigners.  Members
also noted that certain provisions of China's trademark law needed to be extended to unregisteredwell-known trademarks.
263. The representative of China stated that with the development of China's market economy and
the further implementation of the TRIPS Agreement,  China's legislative and law enforcement bodies
had also realized that the existing trademark law fe ll somewhat short of fulfilling the requirements of
the TRIPS Agreement and the Paris Convention in a few aspects and were therefore preparing toamend the existing trademark law to fully meet the requirements of the TRIPS Agreement.
Modifications would mainly be made to the followin g aspects: to include the trademark registration of
three-dimensional symbols, combinations of colours, alphabets and figures; to add the content of
collective trademark and certification trademark (including geographical indications); to introduce
official symbol protection; to protect well-known trad emarks; to include priority rights; to modify the
existing trademark right confirmation system and offer interested parties the opportunity for judicial
review concerning the confirmation of trademark rights;  to crack down on all serious infringements;
and to improve the system for providing damages for trademark infringement.  The Working Party
took note of these commitments.
3. Geographical indications, including appellations of origin
264. The representative of China stated that the relevant rules of the SAIC and the State General
Administration of the People's Republic of China for Quality Supervision and Inspection and
Quarantine partly provided protection for geographical indications, including appellations of origin,
and that the amendments to the trademark law w ould have a specific provision on the protection of
geographical indications.
265. Members of the Working Party took note of the progress achieved on providing protection for
geographical indications and reiterated the importance of China's legislation complying with theobligations under the TRIPS Agreement (Articles 22, 23 and 24).  The representative of China shared
this assessment and reiterated China's intention to fully comply with relevant articles in the TRIPS
Agreement on geographical indications. The Working Party took note of this commitment.
4. Industrial designs
266. Some members of the Working Party noted that the industrial design provisions of China's
patent law appeared to implement substantial port ions of the TRIPS Agreement requirements relatingWT/MIN(01)/3
Page 57
to industrial designs.  One notable exception was the area of textile designs.  These members noted
that designs of WTO Members could be protected under China's Provisions on the Implementation of
the International Copyright Treaty as works of applied art.  Members urged China to incorporate this
protection into its law and to provide such protection to domestic textile designs.
5. Patents
267. The representative of China stated that in preparation for its accession, China revised its
patent law in 1992 for the first time.  China had taken measures to enhance consistency with the
TRIPS Agreement in terms of major provisions and protection standards.  In order to increase the
awareness of the general public on IPR protection, and patent protection in particular, to be consistent
with the TRIPS Agreement, and to build up a sound social environment for the promotion and
commercialization of inventions, the National People's Congress approved the second revision of the
Patent Law on 25 August 2000.  The revised patent law, which would take effect on 1 July 2001,
included the following elements: (1) patent owners would have the right to prevent others fromoffering for sale the patented product without thei r consent (Article 11);  (2) for utility model and
design applications or patents, the final decision on re-examination and invalidation would be made
by the people's courts other than for inventions th at were patented prior to the amendment (Articles 41
and 46);  (3) patent owners could, before instituting legal proceedings, request the people's court to
take provisional measures such as to order the suspension of infringing acts and to provide propertypreservation (Article 61); and (4) conditions for granting a compulsory licence would be further
clarified and made consistent with the TRIPS Agreement.
268. The representative of China further stated that since its establishment, SIPO had paid great
attention to strengthening its contacts and coordination with relevant departments and ministries in the
field of IPR law enforcement, especially in the areas of settling inter-agency problems and resolvingkey cases.  At the same time, SIPO had taken appropriate measures to improve the performance of
local patent authorities in law enforcement.  For example, in June 1999, SIPO convened a nationwide
working conference, which was attended by representatives from local patent administrative
authorities.  The participants summarized their law enforcement practices over the previous two years
and also exchanged information on their experiences in their local legislative work with a view to
intensifying patent protection.  The conference also called for the introduction of important patent
cases reporting and recording system.
269. The representative of China stated that so far as the range of patent protection and protection
for new plant varieties were concerned, China had already met the requirements of Article 27 of the
TRIPS Agreement.  When amending the Patent Law in 1992, China modified Article 25 therein withreference to the relevant stipulations in the draft of the TRIPS Agreement and expanded the coverage
of patent protection to food, beverages, flavourings, pharmaceuticals and materials obtained by
chemical methods.  The scope of patent exclusions would be limited to "scientific discoveries, rules
and methods of intellectual activities, diagnostic and therapeutic methods for the treatment of
diseases, animals and plant varieties, as well as materials obtained by the change of nucleus".
270. He further stated that Article 5 of China's Patent Law stipulated that inventions that violate
laws of China or social morality or prejudice public interest would not be entitled to patent right.While literally there was a difference between Article 5 of China's Patent Law and the TRIPS
Agreement, in practice, during the review of patent applications, the interpretation of "violating laws
of China" had been restricted to "if laws of China prohibit the sale of a certain patented product, or
prohibit the sale of products manufactured by a patented method, the granting of patent right cannot
be denied to this product invention or this invention of product manufacturing method by relying onArticle 5 of the Patent Law".  Hence, in essence, he concluded that there was no difference between
Article 5 of the Patent Law as applied and the TRIPS Agreement.  Nonetheless, China would amend
the Implementing Rules of the Patent Law to ensure that this provision would be implemented in fullWT/MIN(01)/3
Page 58
compliance with Article 27.2 of the TRIPS Agreement, which stipulated that: "Members may exclude
from patentability inventions, the prevention within their territory of the commercial exploitation of
which is necessary to protect ordre public  or morality, including to protect human, animal or plant life
or health or to avoid serious prejudice to the environment, provided that such exclusion is not made
merely because the exploitation is prohibited by their law".  The Working Party took note of this
commitment.
271. Regarding Article 28 of the TRIPS Agreement (rights conferred), the representative of China
stated that China's patent law had fully complied with the requirements of the TRIPS Agreement for
the following reasons.  First, in the 1992 amendment to the Patent Law, Article 11 was modified as
follows: "any entity or individual is, without prior licensing from the patentee, prohibited from
making, using or selling patented products or patented processes, or using or selling products directly
obtained by the patented processes for the purpose of production and operation".  It was also
prohibited for any entity or individual to import patented products or products directly obtained bypatented processes for the purpose of production and operation.  This modification expanded the
scope of patentees' right, namely the new content of  "the right to prohibit import" and "the effect of
patented processes is extended to products directly obtained by patented processes".  Second, in 2000,
when the second amendment was made to the Patent  Law, Article 11 was once again modified. A new
stipulation was introduced granting patentees the right to prohibit others from offering for sale thepatented products or products directly obtained by patented processes without the consent of
patentees.  Therefore, so far as "the right of patentees" is concerned, China's Patent Law had fully
accommodated the requirements of the TRIPS Agreement.
272. Further to the 1992 amendment, the representative of China stated that China's Patent Law
provided for compulsory licences based on reasonable terms, for public interest and for dependentpatents.  With regard to the conditions of compul sory licences for dependent patents, the Patent Law
provided that the latter invention should be tech nically more advanced than the earlier one.  The
TRIPS Agreement provides that "the invention claimed in the second patent shall involve an
important technical advance of considerable economic significance in relation to the invention
claimed in the first patent" (Article 31(l)(i)).  Since the provisions of the TRIPS Agreement were
more transparent and easier to operate, the relevant expressions contained in the TRIPS Agreement
were adopted in the new revision.  In addition, the following restrictive conditions for granting
compulsory licences contained in the Implementing Rules of the Patent Law of 1992 had been moved
into the Patent Law in order to make it more authoritative: the decision of SIPO on the granting of a
compulsory licence for exploitation would be limited in terms of its scope and duration; when thecircumstances which led to such compulsory licence ceased to exist and were unlikely to recur, SIPO,
upon the request of the patentee, could terminate the compulsory licence after examination;  were
incorporated into the Law (former Article 68 of the Implementing Rules of the Patent Law of 1992
had now been moved into Article 52 of the revised Patent Law).
273. The representative of China stated that following the 1992 amendment, the regulations on
compulsory licensing in China's Patent Law and its implementing rules, as a whole, had fulfilled the
requirements of the TRIPS Agreement.  However, some wording and expressions in the Chineseregulations were still not identical to the TR IPS Agreement and these regulations still needed
improvement in respect of the administrative legal proceedings concerning compulsory licensing.
Therefore, in the second amendment to the Patent Law in 2000, the corresponding amendments and
modifications to the stipulations on compulsory licensing were mainly made in the following two
points: (1) Article 53 of the Patent Law was modifi ed from "a patented invention or utility model is
technically more advanced than the inventions or utility models which have obtained patent right
earlier" into "a later invention or utility model is an important technical progress with striking
economic significance as compared to the earlier invention or utility model"; and (2) having been
subject to appropriate adjustments, the regulations  on the time, scope and termination of compulsory
licensing enforcement in Article 68 of the Implementing Rules of the Patent Law of 1992 wereWT/MIN(01)/3
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integrated into Article 52 of the amended Patent Law.  Following the above-mentioned amendments,
China's Patent Law had regulations on compulsory licensing with clearer structure and improved
content.  In the representative of China's view, these regulations were fully consistent with the TRIPS
Agreement.  He also added that up to now China had not issued any compulsory licences for patent
enforcement.
274. Some members of the Working Party noted the improvements in the provisions regarding
compulsory licensing for patents that the representative of China cited.  Some members however,
requested clarification of the subject matter that would be subject to compulsory licensing under the
Patent Law.
275. In response, the representative of China agreed that still not all the requirements of Article 31
of the TRIPS Agreement had been incorporated into Chinese law, and that the Implementing Rules of
the Patent Law would therefore be modified so as to  ensure that: (1) use without authorization of the
right-holder would only be permitted if, prior to such use, the proposed user had made efforts toobtain authorization from the right-holder on reas onable commercial terms and conditions, on the
understanding that this requirement could be waiv ed in the case of a national emergency or other
circumstances of extreme urgency or in cases of pu blic non-commercial use and subject to the other
provisions of subparagraph (b) of Article 31;  (2) the right-holder would be paid adequate
remuneration in the circumstances of each case, taking into account the economic value of theauthorization (Article 31(h));  (3) any such use wo uld be authorized predominantly for the supply of
the domestic market (Article 31(f)); and (4) in the case of semi-conductor technology, the scope and
duration of such use would only be for public non-commercial use or to remedy a practice determined
after judicial or administrative process to be anti-competitive (Article 31(c)). The Working Party took
note of these commitments.
276. Regarding Article 32 of the TRIPS Agreement (revocation/forfeiture), the representative of
China stated that in light of Articles 41 and 46 of the amended Patent Law, patent applicants or
patentees of inventions, as well as applicable utility models and designs, could institute legal
proceedings in the people's court if they were not satisfied with the review or nullity decisions made
by the Patent Review Board.  This modification enabled China's Patent Law to be fully consistent
with TRIPS regarding administrative decisions which were subject to judicial review.
277. On the duration of patent right protection, the representative of China stated that as early as
1992 when China made an initial amendment to the Patent Law, Article 45 (later converted into
Article 42 after the second amendment) was modified as: "the duration of inventions patent right is
20 years and the duration of patent right for applicable utility model and designs is 10 years, countedas of the date of application".  Therefore, China's Patent Law had for a long time accorded with
Articles 26 and 33 of the TRIPS Agreement concerning the duration of patent rights.
278. Regarding Article 34 of the TRIPS Agreement (process patents: burden of proof), the
representative of China stated that China's Patent Law was modified in 1992 and 2000, and was now
in full conformity with the TRIPS Agreement.  The amended paragraph 2 of Article 57 reads: "when
any infringement dispute relates to a process patent for the manufacture of a new product, any entity
or individual manufacturing the identical product shall furnish proof to the effect that a differentprocess is used in the manufacture of its or his product".
6. Plant variety protection
279. The representative of China confirmed that China was a party to the 1978 text of the
Universal Convention on the Protection of Plant Varieties ("UPOV").  In March 1997, the State
Council formulated and promulgated the Regulati on on the Protection of New Plant Varieties, thus
offering protection for new plant varieties in a  sui generis form consistent with the requirements ofWT/MIN(01)/3
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the TRIPS Agreement. A unit or an individual that had accomplished the breeding enjoyed an
exclusive right in their right-granted variety. No unit or individual could, without permission from the
owner of the variety rights (referred to as "the variety rights owner"), produce or market for
commercial purposes the propagation material of th e rights-granted variety, or repeatedly use for
commercial purposes the propagation material of th e rights-granted variety in the production of the
propagation material of another variety. The conditions of non-voluntary licensing were set out in theregulation. The period of protection of variety rights, from the date of grant of the rights, would be
20 years for vines, forest trees, fruit trees and ornamental trees and 15 years for other plants.
7. Layout designs of integrated circuits
280. The representative of China stated that China was one of the first countries to sign the Treaty
on Intellectual Property in Respect of Integrated Circuits in 1989.  The specific Regulation on the
Protection of Layout Designs of Integrated Ci rcuits, which would implement China's obligations
under Section 6, Part II of the TRIPS Agreement, was issued in April 2001 and would be effective on1 October 2001.
281. The representative of China stated that China was strengthening the protection of the layout
designs to support the rapid development of the integrated circuit industry. The regulations provided
protection to layout-designs, according to which the following acts if performed without authorization
of the right-holder were unlawful: importing, selling or otherwise distributing for commercialpurposes a protected layout-design, an integrated circuit in which a protected layout-design was
incorporated, or an article incorporating such an in tegrated circuit only in so far as it continued to
contain an unlawfully reproduced layout-desig n. The exception clause and non-voluntary licensing
clause were in conformity with Article 37 of TRIPS. The term of protection was 10 years counted
from the date of filing an application for registration or from the first commercial exploitationwherever in the world it occurred. In addition, the protection to the layout-design of integrated circuits
was in accordance with Article 2 through 7 (other than paragraph 3 of Article 6), Article 12 and
paragraph 3 of Article 16 of the Treaty on Intellect ual Property in Respect of Integrated Circuits.
8. Requirements on undisclosed information, including trade secrets and test data
282. Some members of the Working Party expressed concern about China's protection against
unfair commercial use and disclosure of undisclosed test and other data submitted to authorities in
China to obtain marketing approval for pharmaceutica ls and agricultural chemicals.  They noted that
China's laws appeared to prohibit the release of information by government officials but did not
include provisions regarding the prevention of unfair commercial use, as required under Article 39.3
of the TRIPS Agreement.  Some members requested that China specifically provide in its law and
regulations that it would protect against unfair commercial use of undisclosed test or other data
submitted in support of applications for marketing approval of pharmaceutical or of agricultural
chemical products which utilize new chemical entiti es, by providing that no person other than the
person that submitted such data may, without the permission of the person initially submitting the
data, rely on such data in support of an application for product approval for a period of at least six
years from the date on which marketing approval to the person that submitted the data had been
granted.
283. The representative of China stated that Article 10 of the Anti-unfair Competition Law
provided that a business operator must not infringe upon trade secrets.  Under the same Article,
obtaining, using or disclosing another's trade secrets by a third party who clearly knew or ought to
have known that the case fell under the unlawful acts listed in the preceding paragraph was deemed
infringement upon trade secrets.  Trade secrets re ferred to any technology information or business
operation information which was unknown to the public, could bring about economic benefits to theWT/MIN(01)/3
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obligee, had practical utility and about which the obligee had adopted secret-keeping measures.  He
also stated that Article 219 of the Criminal  Law had similar definitions on trade secrets.
284. The representative of China further confirmed that China would, in compliance with
Article 39.3 of the TRIPS Agreement, provide effective protection against unfair commercial use of
undisclosed test or other data submitted to authorities in China as required in support of applications
for marketing approval of pharmaceutical or of agricultural chemical products which utilized newchemical entities, except where the disclosure of such data was necessary to protect the public, or
where steps were taken to ensure that the data are protected against unfair commercial use.  This
protection would include introduction and enactment of laws and regulations to make sure that no
person, other than the person who submitted such data, could, without the permission of the person
who submitted the data, rely on such data in support of an application for product approval for a
period of at least six years from the date on which China granted marketing approval to the person
submitting the data.  During this period, any second applicant for market authorization would only begranted market authorization if he submits his own data.   This protection of data would be available
to all pharmaceutical and agricultural products which utilize new chemical entities, irrespective of
whether they were patent-protected or not.  The Working Party took note of these commitments.
C. MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS
285. The representative of China stated that there were provisions relating to compulsory licences
in the Patent Law to prevent abuse of patent right.  He also stated that the Trademark Law provided
that the trademark registrant may, by concluding a trademark licensing contract, authorize another
person to use its registered trademark.  The licensor would supervise the quality of the goods on
which the licensee used the licensor's registered trademark and the licensee would guarantee the
quality of the goods on which the registered trademark was to be used.
286. Some members of the Working Party expressed some concerns as to the compatibility of
China's rules on control of anti-competitive licensing practices or conditions with the corresponding
obligations under Article 40 of the TRIPS Agreement.  The representative of China stated in response
that China's legislation would comply with these obligations, notably as to the request for
consultations with other Members.  He stated that these rules would apply across the board to allintellectual property rights. The Working Party took note of this commitment.
D. ENFORCEMENT
1. General
287. Some members of the Working Party expressed concern that there was a continued need for
additional enforcement efforts by the Government of China.  They also said that China shouldstrengthen the legislative framework for the enforcem ent of intellectual property rights for all right-
holders.  The representative of China stated that where an infringement of intellectual property rights
was found in China, the person concerned could bring a lawsuit to a court.  Since 1992, special IPR
courts have been set up in major cities such as Beijing and Shanghai on the basis of their specialized
collegial panels.  According to China's legislation, individuals and enterprises would be held
responsible for all their IPR infringing activities and su bject to civil and/or criminal liabilities.  Where
any person violated the IPR of another person and the circumstances were serious, the person directlyresponsible would be prosecuted for his criminal liability by applying relevant provisions of the
Criminal Law.  If found guilty, the person directly responsible could be sentenced to a fixed-term
imprisonment of no more than seven years or be subject to detention or a fine.
288. Some members of the Working Party further urged China to ensure the vigorous application
by Chinese authorities of the enforcement legislation in order to considerably reduce the existing highWT/MIN(01)/3
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levels of copyright piracy and trademark counterfeiting.  Action should include the closure of
manufacturing facilities as well as markets and retail shops that had been the object of administrative
convictions for infringing activities.  The representative of China stated that the measures for cracking
down on intellectual property piracy were always severe in China.  In judicial aspects, courts at all
levels were continuously paying attention to the trial of IPR cases.  As for administration aspects, the
administrative authorities at all levels were putting emphasis on strengthening anti-piracy work.  Inaddition, the administrative authorities were also enhancing the legal publication and education of the
general public in a bid to ensure that the legal environment of China would be able to meet the
requirements for enforcing the TRIPS Agreement.  The Working Party took note of these
commitments .
2. Civil judicial procedures and remedies
289. Some members of the Working Party expressed concern about certain practices relating to the
filing of civil judicial actions that made it difficult for intellectual property right-holders to pursuetheir rights in China's courts.  China's system of basing filing fees on the amount of damages
requested makes large-scale infringement actions unnecessarily costly.  Those members also
expressed concern  regarding the calculation of damages based on the infringer's profits.  This,
combined with China's rules on establishing the level of profits which require evidence of actual sale
and which disregard inventory and past activity, often resulted in damage amounts inadequate tocompensate for the injury that the right-holder has suffered.
290. The representative of China stated that Article 118 of the General Principles of the Civil Law
provided that if the rights of authorship (copyrights), patent rights, rights of exclusive use of
trademarks, rights of discovery, rights of invention or rights for scientific and technological research
achievements of citizens or juridical persons were infringed upon by such means as plagiarism,alteration or imitation, they had the right to demand that the infringement be stopped, its ill effects be
eliminated and the damages be compensated for.  He further stated that the Trademark Law, the
Patent Law and the Copyright Law had similar provisions.
291. The representative of China further confirmed that, Articles 42 and 43 of the TRIPS
Agreement would be effectively implemented under the judicial rules of civil procedure.  TheWorking Party took note of this commitment.
292. The representative of China confirmed that the relevant implementing rules would be
amended to ensure full compliance with Articles 45 and 46 of the TRIPS Agreement, to the effect that
damages paid by the infringer to the right-holder would be adequate to compensate for the injury
suffered because of an infringement of that person 's intellectual property right by an infringer who
knowingly, or with reasonable gr ounds to know, engaged in infringing activity.  The Working Party
took note of this commitment.
3. Provisional measures
293. Members of the Working Party noted that the TRIPS Agreement required that judicial
authorities have the authority to order prompt and effective provisional measures to (1) prevent an
infringement of intellectual property from occurring, in particular to prevent the distribution or sale of
infringing goods, and (2) to preserve the evidence of alleged infringement.
294. The representative of China stated that in China's Civil Procedure Law there were provisions
on property preservation, but as yet no explicit stipulations had been provided to authorize the
people's court to take measures for the prevention of infringements prior to formal institution of a
lawsuit by a party involved.  In order to enhance the deterrent power of law against infringements and
to guarantee that the legitimate rights and interests of patentees would not suffer from irreparableWT/MIN(01)/3
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harm as well as to comply with the TRIPS Agreement, China, when amending the Patent Law for the
second time in 2000, introduced Article 61 to regulate provisional measures, which provided as
follows: "where a patentee or any interested party who can provide any reasonable evidence that his
right is being infringed or that such infringement is imminent, and any delay in stopping the acts is
likely to cause irreparable harm to his or its legitimate rights and interests, he or it may, before
instituting legal proceedings, request the people's court to order the suspension of related acts and toprovide property preservation".
295. Some Members of the Working Party expressed concern that Article 61 of the Patent Law did
not fully incorporate all requirements of Article 44 of the TRIPS Agreement, and that it was still
unclear whether holders of intellectual property rights other than patents could rely on a similar
procedure.
296. The representative of China stated that Article 61 of the Patent Law would be implemented in
a way fully consistent with Article 50.1-4 of the TRIPS Agreement.  He also stated that "reasonableevidence" in Article 61 of the Patent Law would be, through implementing rules, clarified to mean
"any reasonably available evidence in order to sati sfy with sufficient degree of certainty that the
applicant is the right-holder and that the applicant's right is being infringed or that such infringement
is imminent, and to order the applicant to provide a security or equivalent assurance sufficient to
protect the defendant and to prevent abuse". The Working Party took note of this commitment.
4. Administrative procedures and remedies
297. Members of the Working Party noted that most IPR enforcement in China was done through
administrative actions.  In this connection, some members expressed concern about the inadequate
levels of administrative sanctions in China which, when coupled with the high threshold for initiating
criminal prosecutions, made IPR enforcement in China difficult.  Administrative sanctions generallyamounted to small fines and the loss of infringing inventory.  Members also stressed the need for
administrative authorities to refer more cases, including those involving repeat offenders and willful
piracy and counterfeiting, to the appropriate authorities for initiation of criminal actions.
298. The representative of China said that the Trademark Law provided that in the event of any
infringement of the right to the exclusive use of a registered trademark, the infringed right-holdercould request the administrative department for industry and commerce at or above the county level
for disposition.  The relevant administrative de partment for industry and commerce had the power to
order the infringer to stop the infringing act immedi ately and to compensate the infringed right-holder
for its or his losses.  SAIC and its local agencies above the county level could also impose a fine upon
the infringer.  The Patent Law provided that the patentee and interested party could request theadministrative authority for patent affairs to handle the infringing act.  The administrative authority
could order the infringer to stop the infringing act immediately and mediate on damages at the request
of the parties concerned.  The Copyright Law provided that the copyright administration department
could subject anyone who committed acts of infringement to such administrative penalties as
confiscation of unlawful income from the act or imposition of a fine.
299. The representative of China stated that most IPR enforcement actions in China resulted in
administrative measures to address the infringement.  He noted ongoing efforts to strengthen thesanctions that were available to administrative authorities and the increased attention given to
enforcement of IPRs.  The representative of China confirmed that the government would continue to
enhance its enforcement efforts, including through the application of more effective administrative
sanctions.  Relevant agencies, including the St ate Administration for Industry and Commerce, the
State General Administration of the People's Republic of China for Quality Supervision andInspection and Quarantine and the Copyright Office, now had the authority to confiscate equipment
used for making counterfeit and pirated products and other evidence of infringement.  These relevantWT/MIN(01)/3
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agencies would be encouraged to exercise their authority to seize and preserve evidence of
infringement such as inventory and documents.  Administrative authorities would have the authority
to impose sufficient sanctions to prevent or deter further infringement and would be encouraged to
exercise that authority.  Appropriate cases, including those involving repeat offenders and willful
piracy and counterfeiting, would be referred to relevant authorities for prosecution under the criminal
law provisions.  The Working Party took note of these commitments.
5. Special border measures
300. The representative of China stated that on 5 July 1995 the State Council of the People's
Republic of China had issued special legislation in respect of border measures for enforcement of
intellectual property rights – the Regulations of the People's Republic of China Governing Customs
Protection of Intellectual Property Rights – which came into effect on 1 October of the same year.
According to this legislation, China's Customs offices must take measures to intercept importation or
exportation of goods that were proved to be infringing the rights of trademarks, patents or copyrightslegally protected in China.  China's Customs offices were granted authority to investigate any
suspected shipment and confiscate the goods in case infringement was proved.
301. Some members of the Working Party expressed concerns as to the compatibility of existing
border measures with obligations under Articles 51 to 60 of the TRIPS Agreement; particularly the
provisions on suspension of release into free circulation by customs authorities (Article 51), rules onevidence for initiating this procedure (Article 52), requirements on the security needed to protect the
defendant (Article 53), rules on notice of the suspen sion (Article 54) and its duration (Article 55),
rules on indemnification of the importer in case of wrongful detention (Article 56) and opportunity for
the right-holder to have the goods detained inspec ted (Article 57). Moreover some expressed their
concern as to compatibility of rules on actions ex-officio by competent authorities and the conditionsattached (Article 58), as well as to the remedies provided against infringing goods (Article 59) and the
quantities subject to the  de minimis rules (Article 60).
302. In response, the representative of China stated that China would provide holders of
intellectual property rights with procedures related to border measures that complied fully with the
relevant provisions of the TRIPS Agreement (Articles 51 to 60).  The Working Party took note of thiscommitment.
6. Criminal procedures
303. The representative of China stated that Articles 213 to 220 of the Criminal Law (Crimes of
Infringing on Intellectual Property Rights) provided that whoever seriously infringes the right-holders'
rights of registered trademarks, patents, copyrights or trade secrets would be sentenced to fixed-termimprisonment and would also be fined.
304. Some members of the Working Party expressed concerns that criminal procedures could not
be used effectively to address piracy and counterfeiting.  In particular, the monetary thresholds for
bringing a criminal action, as currently applied, were very high and seldom met.  Those thresholds
should be lowered so as to permit effective action that would deter future piracy and counterfeiting.
In response, the representative of China stated that  China's administrative authority would recommend
that the judicial authority make necessary adjustment s to lower the thresholds so as to address these
concerns.  The Working Party took note of this commitment.
305. Noting the advanced state of protection for in tellectual property rights in China, the
representative of China confirmed that upon accession China would fully apply the provisions of the
TRIPS Agreement.  The Working Party took note of this commitment.WT/MIN(01)/3
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VI. POLICIES AFFECTING TRADE IN SERVICES
1. Licensing
306. Some members of the Working Party welcomed the broad-ranging and comprehensive
commitments that China was undertaking to increa se transparency and to provide information to
governments and service providers on any matter relating to the GATS including China's Schedule of
Specific Commitments.  These members nonetheless expressed concerns regarding the lack oftransparency in China's current services regime, in particular with respect to obtaining, extending,
renewing, denying and terminating licences and other approvals required to provide services in
China's market and appeals of such actions (hereafter referred to as "China's licensing procedures and
conditions"). To be consistent with the provisions of the WTO Agreement, including the Draft
Protocol and China's Schedule of Specific Commitments, members of the Working Party noted that
China's licensing procedures and conditions should not in themselves act as a barrier to market access
and should not be more trade restrictive than necessary. Those members also expressed the view thatupon its accession, China should publish (1) a list of authorities responsible for authorizing, approving
or regulating those service sectors in which China made specific commitments and (2) China's
licensing procedures and conditions.
307. The representative of China confirmed that paragraph 332  regarding publication of a list of all
organizations that were responsible for authorizing, approving or regulating service activities for eachservice sector, including those organizations delegated such authority from the central government
authorities, would apply. The representative of China also confirmed that China would publish in the
official journal all of China's licensing procedures and conditions upon accession.  The Working Party
took note of these commitments.
308. The representative of China also confirmed that upon accession China would ensure that
China's licensing procedures and conditions would not act as barriers to market access and would not
be more trade restrictive than necessary.  In accordance with China's commitments under the WTO
Agreement, the Draft Protocol and its Schedule of Specific Commitments, the representative of China
confirmed that for those services included in China's Schedule of Specific Commitments, China
would ensure that:
(a) China's licensing procedures and conditions were published prior to becoming effective;
(b) In that publication, China would specify reasonable time frames for review and decision by
all relevant authorities in China's licensing procedures and conditions;
(c) Applicants would be able to request licensing without individual invitation;
(d) Any fees charged, which were not deemed to include fees determined through auction or a
tendering process, would be commensurate with the administrative cost of processing an
application;
(e) The competent authorities of China would, after receipt of an application, inform the
applicant whether the application was considered complete under China's domestic laws and
regulations and in the case of incomplete applications, identify the additional information that
was required to complete the application and provide the opportunity to cure deficiencies;
(f) Decisions would be taken promptly on all applications;(g) If an application was terminated or denied, the applicant would be informed in writing and
without delay the reasons for such action. The applicant would have the possibility ofWT/MIN(01)/3
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resubmitting, at its discretion, a new application that addressed the reasons for termination or
denial;
(h) If an application was approved, the applicant would be informed in writing and without delay.
The licence or approval would enable the applicant to start the commercial operations upon
registration of the company with SAIC for fis cal and other similar administrative purposes.
This registration would be completed within 2 months of the submission of a complete file, as
required by public SAIC regulations, and in accordance with China's Schedule of Specific
Commitments;
(i) Where China required an examination to licence professionals, such examinations would be
scheduled at reasonable intervals.
The Working Party took note of these commitments.
309. Some members of the Working Party also expressed concern about maintaining the
independence of regulators from those they regulated. The representative of China confirmed that for
the services included in China's Schedule of Specific Commitments, relevant regulatory authorities
would be separate from, and not accountable to, any service suppliers they regulated, except for
courier and railway transportation services.  For these excepted sectors, China would comply withother relevant provisions of the WTO Agreement and the Draft Protocol. The Working Party took
note of these commitments.
310. The representative of China stated that China would consult with WTO Members and develop
regulations, consistent with China's Schedule of Specific Commitments and its obligations under
GATS, on sales away from a fixed location.  The Working Party took note of this commitment.
311. Some members of the Working Party noted that the World Code of Conduct provided a strong
ethical basis for regulating sales away from a fixed location.
312. In response to questions from members of the Working Party regarding certain terms in
China's Schedule of Specific Commitments, the representative of China confirmed the following:   
(a) A "master policy" was a policy that provided blanket coverage for the same legal person's
property and liabilities located in different places.  A master policy could only be issued by
the business department of an insurer's head office or that of its authorized province-level
branch offices.  Other branches were not allowed to issue master policies.
(i) For master policy business with the state key construction projects as its subject-
matter insured.
If investors on the state key construction projects (i.e., projects that were so listed and
annually announced by the State Development and Planning Commission) met either
of the following requirements, they could purchase a master policy from insurers that
were located in the same place as the investors' legal persons were located.
1. The investment on the subject-matter insured were all from China (including
the reinvestment from the foreign-invested enterprises in China) and the sum of
investment of the investor accounted for over 15 per cent of the total investment.
2. The investment was partially from abroad, and partially from China
(including the reinvestment from the foreig n-invested enterprises in China) and theWT/MIN(01)/3
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sum of investment of the Chinese investor accounted for over 15 per cent of the total
domestic investment.
For those projects that drew all investment from abroad, every insurer could provide
coverage in the form of a master policy.
(ii) A Master policy covering different subject-matters insured of the same legal person.
For those subject-matters insured located in different places and owned by the same
legal person (excluding financial, railway, and post and telecommunications
industries and enterprises), a master policy could be issued on the basis of either of
the following conditions.
1. For the sake of payment of the premium tax, insurance companies
incorporated where the legal person or accounting unit of the insurance applicant was
located, were allowed to issue a master policy.
2. If over 50 per cent of the insurance amount of the subject-matter insured was
from a larger or medium sized city, then insurers in that city were allowed to issue a
master policy, no matter whether the insurance applicant's legal person or accounting
unit was located in the city.
(b) Large scale commercial risk meant an insurance risk written on any large scale commercial
enterprise if, upon accession, the aggregate annual premium exceeded 800 thousand RMB andthe investment was more than 200 million RMB;  one year after accession, if the aggregate
annual premium exceeded 600 thousand RMB and the investment was more than 180 million
RMB; two years after accession, if the aggregate annual premium exceeded 400 thousand
RMB and the investment was more than 150 million RMB.
(c) Statutory insurance in China's Schedule of Specific Commitments were limited to the
following specific categories, and no additional lines or products would be added:  third party
auto liability insurance, and driver and ope rator liability for buses and other commercial
vehicles.
(d) The representative of China confirmed that any changes to the definition of master policy and
large scale commercial risk would be consistent with China's Specific Schedule ofCommitments and obligations under GATS so as to progressively liberalize access to this
services sector.
The Working Party took note of these commitments.
313. Members of the Working Party welcomed China' s commitment to permit internal branching
for insurance firms consistent with the phase-out of geographic restrictions.  Some members notedthat China had scheduled certain qualifications as limitations under GATS Articles XVI and XVII that
foreign insurers had to meet to apply for a licence to provide services in China.  These qualifications
related to a minimum period of establishment in a WTO member, total assets and maintenance of a
representative office in China.  These qualificatio ns should not apply to those foreign insurance
companies established in China seeking authorisation to establish a branch or sub-branch.   The
representative of China confirmed that the qualifications for foreign insurers applying for a licence to
enter China's market would not apply to foreign insurers already established in China that wereseeking authorization to establish branches or sub-branches. He also confirmed that a branch and a
sub-branch were an extension of the parent enterprise and not a separate legal entity and that China
would permit internal branching accordingly on that basis, and in compliance with China's ScheduleWT/MIN(01)/3
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of Specific Commitments, including provisions on MFN treatment.  The Working Party took note of
these commitments.
2. Choice of Partner
314. Some members of the Working Party expressed concern regarding the existing practice of
imposing conditions on the Chinese companies that were allowed to partner with foreign service
suppliers.  These members indicated that this could amount to de facto  quotas, as the number of
potential partners meeting those conditions might be limited.  The representative of China confirmed
that a foreign service supplier would be able to partner with any Chinese entity of its choice, including
outside the sector of operation of the joint venture, as long as the Chinese partner was legally
established in China.  The joint venture as such should meet the prudential and specific sectoral
requirements, on the same basis as those for domestic enterprises and which must be publicly
available.  The Working Party took note of these commitments.
3. Modification of the Equity Interest
315. The representative of China confirmed that the Chinese and foreign  partners in an established
joint venture would be able to discuss the modification of their respective equity participation levels
in the joint venture and implement such modification if agreement was reached by both sides and also
approved by the authorities.  The representative of China confirmed that such an agreement would be
approved if consistent with the relevant equity commitments in China's Schedule of SpecificCommitments.  The Working Party took note of this commitment.
4. Prior Experience Requirement for Establishment in Insurance Sector
316. The representative of China confirmed that the merging, division, restructuring or other
change of legal form of an insurance company w ould not impact the prior experience requirements
included in China's Schedule of Specific Commitments if the new entity continued to supplyinsurance services.  The Working Party took note of this commitment .
5. Inspection Services
317. In response to questions from members of the Working Party, the representative of China
confirmed that China would not maintain requirements which had the effect of acting as barriers to
the operation of foreign and joint-venture commodity inspection agencies, unless otherwise specifiedin China's Schedule of Specific Commitments.  The Working Party took note of this commitment.
6. Market Research
318. Some members of the Working Party expressed concern regarding market research activities.
In response to questions from members in this respect, the representative of China confirmed that,
upon accession, China would remove the prior approval requirement for market research services,defined as investigation services designed to secure information on the prospects and performance of
an organization's products in the market, includ ing market analysis (of the size and other
characteristics of a market) and analysis of consumer attitudes and preferences.  Market research firms
registered in China, which were engaged in such services, would only be required to file the survey
plan and the questionnaire form on record in the statistical agencies of government at or above the
provincial level.  The Working Party took note of these commitments.   WT/MIN(01)/3
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7. Legal Services
319. In response to questions from members of the Working Party, the representative of China
clarified that "Chinese national registered lawyers", as indicated in China's Schedule of Specific
Commitments, were those Chinese nationals who had obtained a lawyer's certificate and were holding
a Chinese practising permit and were registered to practice in a Chinese law firm.
8. Minority Shareholder Rights
320. With respect to its Schedule of Specific Commitments, the representative of China confirmed
that, while China had limited its market access commitments in some sectors to permit foreigners to
hold only a minority equity interest, a minority shareholder could enforce rights in the investment
under China's laws, regulations and measures.  Moreover, WTO Members would have recourse to
WTO dispute settlement to ensure implementation of all commitments in China's GATS schedule.
The Working Party took note of these commitments.
9. Schedule of Specific Commitments
321. China's Schedule of Specific Commitments, reproduced in Annex 9 to the Draft Protocol,
contained the market access commitments of China in respect of Services.
VII. OTHER ISSUES
1. Notifications
322. Members of the Working Party requested that China submit the notifications required in the
Draft Protocol and Report to the WTO body with a mandate covering the subject of the notification.
The representative of China confirmed that China would submit its notifications to these bodies,
consistent with Section 18.1 and Annex 1A of the Draft Protocol.  The Working Party took note of
this commitment.
2. Special Trade Arrangements
323. Some members of the Working Party raised specific concerns in relation to some of China's
special trade arrangements, including barter trade arrangements, with third countries and separate
customs territories, which those members considered not to be in conformity with WTO requirements.
In response, the representative of China recalled the commitment undertaken by China in Section 4 of
the Draft Protocol.
3. Transparency
324. Some members of the Working Party expressed concern about the lack of transparency
regarding the laws, regulations and other measures that applied to matters covered in the WTO
Agreement and the Draft Protocol.  In particular, some members noted the difficulty in finding and
obtaining copies of regulations and other measures undertaken by various ministries as well as those
taken by provincial and other local authorities.  Transparency of regulations and other measures,
particularly of sub-national authorities, was essential since these authorities often provided the details
on how the more general laws, regulations and other measures of the central government would be
implemented and often differed among various jurisdictions.  Those members emphasized the need to
receive such information in a timely fashion so that governments and traders could be prepared to
comply with such provisions and could exercise  their rights in respect of implementation and
enforcement of such measures.  The same members emphasized the importance of such pre-publication to enhancing secure, predictable trading relations.  Those members noted the developmentWT/MIN(01)/3
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of the Internet and other means to ensure that in formation from all government bodies at all levels
could be assembled in one place and made readily available.  The creation and maintenance of a
single, authoritative journal and enquiry point would greatly facilitate dissemination of information
and help promote compliance.
325. In response, the representative of China noted that the Government of China regularly issued
publications providing information on China's foreign trade system, such as the: "Almanac of Foreign
Economic Relations and Trade" and "The Bulletin of MOFTEC" published by MOFTEC; "Statistical
Yearbook of China", published by the State Statistical Bureau; "China's Customs Statistics
(Quarterly)", edited and published by the Customs.  China's laws and regulations of the State Council
relating to foreign trade were all published, as were rules issued by departments.  Such laws,
regulations and rules were available in the "Gazette  of the State Council", the "Collection of the Laws
and Regulations of the People's Republic of China" and the "MOFTEC Gazette".  The administrative
regulations and directives relating to foreign trade were also published on MOFTEC's official website
(http://www.moftec.gov.cn) and in periodicals.
326. He further noted that there were no forex restrictions affecting import or export.  Information
on forex measures was published by the SAFE and was available on SAFE's website
(http://www.safe.gov.cn) and via the news media.
327. The representative of China noted that information concerning the administration of imports
and exports would be published in the "International Business" newspaper and the "MOFTEC
Gazette".
328. He also noted that information on China's customs laws and regulations, import and export
duty rates, and customs procedures was published in the "Gazette of the State Council" and in the
press media, and was available upon request.  The procedures concerning application of duty rates,customs value and duty determination, drawback and duty recovery, as well as the procedures
concerning duty exemptions and reduction, were also published.  Customs also published monthly
customs statistics, calculated according to country of origin and final destination, on the basis of
eight-digit HS levels.
329. The representative of China noted that any bilateral trade agreements concluded between
China and its trading partners, and protocols on the exchange of goods negotiated under them were
published in "The Treaty Series of the PRC".  He also noted that the "Directory of China's Foreign
Economic Relations and Trade Enterprises" and "China's Foreign Trade Corporations and
Organizations" were two publications which identified foreign trade corporations and other
enterprises in China engaged in foreign trade.
330. The representative of China stated that the full listing of official journals was as follows:
Gazette of the Standing Committee of the National People's Congress of the People's Republic of
China; Gazette of the State Council of the People's Republic of China; Collection of the Laws of the
People's Republic of China; Collection of the Laws and Regulations of the People's Republic of
China; Gazette of MOFTEC of the People's Republic of China; Proclamation of the People's Bank of
the People's Republic of China;  and Proclamation of the Ministry of Finance of the People's Republic
of China.
331. The representative of China confirmed that publication of all laws, regulations and other
measures pertaining to or affecting trade in goods, services, TRIPS or the control of forex would
include the effective date of these measures.  It would also include the products and services affected
by a particular measure, identified by appropriate tariff line and CPC classification.  The Working
Party took note of these commitments.WT/MIN(01)/3
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332. The representative of China confirmed that China would publish in the official journal, by
appropriate classification and by service where relevant, a list of all organizations, including those
organizations delegated such authority from the national authorities, that were responsible for
authorizing, approving or regulating services activities whether through grant of licence or other
approval.  Procedures and the conditions for obtai ning such licences or approval would also be
published.  The Working Party took note of these commitments.
333. The representative of China confirmed that none of the information required by the
WTO Agreement or the Draft Protocol to be disclosed would be withheld as confidential information
except for those reasons identified in Section 2(C) of the Draft Protocol or unless it would
demonstrably prejudice the legitimate commercial interests of particular enterprises, public or private.
The Working Party took note of this commitment.
334. The representative of China confirmed that China would make available to WTO Members
translations into one or more of the official languages of the WTO all laws, regulations and othermeasures pertaining to or affecting trade in goods, services, TRIPS or the control of forex, and to the
maximum extent possible would make these laws, regulations and other measures available before
they were implemented or enforced, but in no case later than 90 days after they were implemented or
enforced.  The Working Party took note of these commitments.
335. Members of the Working Party also requested that China set up an enquiry point where
information relating to all laws, regulations, judicial decisions and administrative rulings of general
application and other measures pertaining to or affecting trade in goods, services, TRIPS or the
control of forex could be obtained.
336. The representative of China confirmed that China would establish or designate one or more
enquiry points where all information relating to the laws, regulations and other measures pertaining toor affecting trade in goods, services, TRIPS or the control of forex, as well as the published texts,
could be obtained and would notify the WTO of any enquiry point and its responsibility.  The
information would include the names of national or sub-national authorities (including contact points)
responsible for implementing a particular measure.  The Working Party took note of these
commitments.
4. Government Procurement
337. The representative of China stated that in or der to promote China's government procurement
regime, the Ministry of Finance promulgated the Interim Regulations on Government Procurement in
April 1998.  The Interim Regulations were stipulated in line with the spirit of the WTO Agreement on
Government Procurement ("GPA") and on the basis of the relevant provisions of the United NationsModel Law on Procurement of Goods, Construction and Services while making reference to the laws
and regulations of some WTO Members on government procurement. The policy and procedure s
regarding government procurement provided for ther ein were consistent with international practice.
China stuck to the fundamental principles of being open, fair, equitable, efficient and in the public
interest when carrying out government procurem ent.  At present, China was formulating its
Government Procurement Law.
338. Some members of the Working Party stated that China should become a Party to the GPA and
that prior to its accession to the GPA, China should conduct all government procurement in a
transparent and non-discriminatory manner.  Those members noted that China's public entities
engaged exclusively in commercial activities woul d not be conducting government procurement and
thus laws, regulations and other measures regulating these entities' procurement practices would be
fully subject to WTO requirements.WT/MIN(01)/3
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339. The representative of China stated that China intended to become a Party to the GPA and that
until such time, all government entities at the central and sub-national  level , as well as any of its
public entities other than those engaged in exclusively commercial activities,  would conduct their
procurement in a transparent manner, and provide all foreign suppliers with equal opportunity to
participate in that procurement pursuant to the principle of MFN treatment , i.e., if a procurement was
opened to foreign suppliers, all foreign suppliers would be provided with equal opportunity toparticipate in that procurement (e.g., through the bidding process).  Such entities' procurements would
be subject only to laws, regulations, judicial decisions, administrative rulings of general application,
and procedures (including standard contract clauses) which had been published and made available to
the public.  The Working Party took note of these commitments.
340. Noting China's intention to become a Party to the GPA, some members of the Working Party
stated that China should, upon accession, become an observer to the GPA, and should initiate
negotiations for membership in the Agreement by tabling an Appendix 1 offer within two years ofaccession.
341. The representative of China responded that China would become an observer to the GPA
upon accession to the WTO Agreement and initiate negotiations for membership in the GPA by
tabling an Appendix 1 offer  as soon as possible.  The Working Party took note of these commitments.
VIII.  CONCLUSIONS
342. The Working Party took note of the explanations and statements of China concerning its
foreign trade regime, as reflected in this Report.   The Working Party took note of the commitments
given by China in relation to certain specific matters which are reproduced in paragraphs 18-19,
22-23, 35-36, 40, 42, 46-47, 49, 60, 62, 64, 68, 70, 73, 75, 78-79, 83-84, 86, 91-93, 96, 100-103, 107,
111, 115-117, 119-120, 122-123, 126-132, 136, 138, 140, 143, 145, 146, 148, 152, 154, 157, 162,165, 167-168, 170-174, 177-178, 180, 182, 184-185, 187, 190-197, 199-200, 203-207, 210, 212-213,
215, 217, 222-223, 225, 227-228, 231-235, 238, 240-242, 252, 256, 259, 263, 265, 270, 275, 284,
286, 288, 291, 292, 296, 299, 302, 304-305, 307-310, 312-318, 320, 322, 331-334, 336, 339 and 341
of this Report and noted that these commitments are incorporated in paragraph 1.2 of the Draft
Protocol.
343. Having carried out the examination of the foreign trade regime of China and in the light of the
explanations, commitments and concessions made by China, the Working Party reached the
conclusion that China should be invited to accede to the Marrakesh Agreement Establishing the WTO
under the provisions of Article XII.  For this purpose, the Working Party prepared the Draft Decision
and Draft Protocol reproduced in the Appendix to this Report, and took note of China's Schedule ofConcessions and Commitments on Goods (docum ent WT/ACC/CHN49/Add.1) and China's Schedule
of Specific Commitments on Services (document WT/ACC/CHN/49/Add.2) that were annexed to the
Draft Protocol.  It was proposed that these texts be adopted by the General Council when it adopted
the Report.  When the Draft Decision was adopted, the Draft Protocol would be open for acceptance
by China which would become a WTO Member 30 days after it accepted the said Draft Protocol.  The
Working Party agreed, therefore, that it had completed its work concerning the negotiations for the
accession of China to the WTO Agreement.WT/MIN(01)/3
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DRAFT DECISION
ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA
Decision of [… November 2001]
[The Ministerial Conference,
Having regard to  paragraph 2 of Article XII and paragraph 1 of Article IX of the Marrakesh
Agreement Establishing the World Trade Organi zation, and the Decision-Making Procedures under
Articles IX and XII of the Marrakesh Agreement Establishing the World Trade Organization agreed
by the General Council (WT/L/93),
Taking note  of the application of the People's Republic of China for accession to the
Marrakesh Agreement Establishing the World Trade Organization dated 7 December 1995,
Noting  the results of the negotiations directed toward the establishment of the terms of
accession of the People's Republic of China to the Marrakesh Agreement Establishing the World
Trade Organization and having prepared a Protoc ol on the Accession of the People's Republic of
China (WT/ACC/CHN/…),
Decides  as follows:
The People's Republic of China may accede to the Marrakesh Agreement Establishing the
World Trade Organization on the terms and conditions set out in the Protocol annexed to thisdecision.]WT/MIN(01)/3
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DRAFT PROTOCOL
ON THE ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA
Preamble
The World Trade Organization ("WTO"), pursua nt to the approval of the Ministerial
Conference of the WTO accorded under Article XII of the Marrakesh Agreement Establishing the
World Trade Organization ("WTO Agreement"), and the People's Republic of China ("China"),
Recalling that China was an original contracting party to the General Agreement on Tariffs
and Trade 1947,
Taking note that China is a signatory to the Final Act Embodying the Results of the Uruguay
Round of Multilateral Trade Negotiations,
Taking note of the Report of the Working Party on the Accession of China in document
WT/ACC/CHN/49 ("Working Party Report"),
Having regard to the results of the negotiations concerning China's membership in the WTO,
Agree as follows:
Part I - General Provisions
1. General
1. Upon accession, China accedes to the WTO Agreement pursuant to Article XII of that
Agreement and thereby becomes a Member of the WTO.
2. The WTO Agreement to which China accedes shall be the WTO Agreement as rectified,
amended or otherwise modified by such legal instru ments as may have entered into force before the
date of accession.  This Protocol, which shall include the commitments referred to in paragraph 342 ofthe Working Party Report, shall be an integral part of the WTO Agreement.
3. Except as otherwise provided for in this Protoc ol,  those obligations in the Multilateral Trade
Agreements annexed to the WTO Agreement that are to be implemented over a period of time starting
with entry into force of that Agreement shall be implemented by China as if it had accepted that
Agreement on the date of its entry into force.
4. China may maintain a measure inconsistent with paragraph 1of Article II of the General
Agreement on Trade in Services ("GATS") provided that such a measure is recorded in the List of
Article II Exemptions annexed to this Protocol a nd meets the conditions of the Annex to the GATS on
Article II Exemptions.
2. Administration of the Trade Regime
(A) Uniform Administration
1. The provisions of the WTO Agreement and this Protocol shall apply to the entire customs
territory of China, including border trade regions and minority autonomous areas, Special Economic
Zones, open coastal cities, economic and technical development zones and other areas where specialWT/MIN(01)/3
Page 75
regimes for tariffs, taxes and regulations are established (collectively referred to as "special economic
areas").
2. China shall apply and administer in a uniform, impartial and reasonable manner all its laws,
regulations and other measures of the central government as well as local regulations, rules and other
measures issued or applied at the sub-national level (collectively referred to as "laws, regulations andother measures") pertaining to or affecting trade in goods, services, trade-related aspects of
intellectual property rights ("TRIPS") or the control of foreign exchange.
3. China's local regulations, rules and other measures of local governments at the sub-national
level shall conform to the obligations undertaken in the WTO Agreement and this Protocol.
4. China shall establish a mechanism under which individuals and enterprises can bring to the
attention of the national authorities cases of non-uniform application of the trade regime.
(B) Special Economic Areas
1. China shall notify to the WTO all the relevant laws, regulations and other measures relating to
its special economic areas, listing these areas by name and indicating the geographic boundaries that
define them.  China shall notify the WTO promptly, but in any case within 60 days, of any additions
or modifications to its special economic areas, including notification of the laws, regulations and other
measures relating thereto.
2. China shall apply to imported products, including physically incorporated components,
introduced into the other parts of China's customs territory from the special economic areas, all taxes,
charges and measures affecting imports, including import restrictions and customs and tariff charges,
that are normally applied to imports into the other parts of China's customs territory.
3. Except as otherwise provided for in this Protocol, in providing preferential arrangements for
enterprises within such special economic areas,  WTO provisions on non-discrimination and national
treatment shall be fully observed.
(C) Transparency
1. China undertakes that only those laws, regulations and other measures pertaining to or
affecting trade in goods, services, TRIPS or the control of foreign exchange that are published and
readily available to other WTO Members, individuals and enterprises, shall be enforced.  In addition,
China shall make available to WTO Members, upon request, all laws, regulations and other measures
pertaining to or affecting trade in goods, services, TRIPS or the control of foreign exchange before
such measures are implemented or enforced.  In emergency situations, laws, regulations and othermeasures shall be made available at the latest when they are implemented or enforced.
2. China shall establish or designate an official journal dedicated to the publication of all laws,
regulations and other measures pertaining to or affecting trade in goods, services, TRIPS or the
control of foreign exchange and, after publication of its laws, regulations or other measures in suchjournal, shall provide a reasonable period for comment to the appropriate authorities before such
measures are implemented, except for those laws, regulations and other measures involving national
security, specific measures setting foreign exchange rates or monetary policy and other measures the
publication of which would impede law enforcement.  China shall publish this journal on a regular
basis and make copies of all issues of this journal readily available to individuals and enterprises.
3. China shall establish or designate an enquir y point where, upon request of any individual,
enterprise or WTO Member all information relating to the measures required to be published underWT/MIN(01)/3
Page 76
paragraph 2(C)1 of this Protocol may be obtained.  Replies to requests for information shall generally
be provided within 30 days after receipt of a request.  In exceptional cases, replies may be provided
within 45 days after receipt of a request.  Notice of the delay and the reasons therefor shall be
provided in writing to the interested party.  Re plies to WTO Members shall be complete and shall
represent the authoritative view of the Chinese government.  Accurate and reliable information shall
be provided to individuals and enterprises.
(D) Judicial Review
1. China shall establish, or designate, and maintain tribunals, contact points and procedures for
the prompt review of all administrative actions relating to the implementation of laws, regulations,
judicial decisions and administrative rulings of general application referred to in Article X:1 of the
GATT 1994, Article VI of the GATS and the relevant  provisions of the TRIPS Agreement.  Such
tribunals shall be impartial and independent of the agency entrusted with administrative enforcement
and shall not have any substantial interest in the outcome of the matter.
2. Review procedures shall include the opportunity for appeal, without penalty, by individuals or
enterprises affected by any administrative action subjec t to review.  If the initial right of appeal is to
an administrative body, there shall in all cases be the opportunity to choose to appeal the decision to a
judicial body.  Notice of the decision on appeal shall be given to the appellant and the reasons for
such decision shall be provided in writing.  The appe llant shall also be informed of any right to further
appeal.
3. Non-discrimination
Except as otherwise provided for in this Protocol, foreign individuals and enterprises and
foreign-funded enterprises shall be accorded treatmen t no less favourable than that accorded to other
individuals and enterprises in respect of:
(a) the procurement of inputs and goods and services necessary for production and the conditions
under which their goods are produced, marketed or sold, in the domestic market and for
export;  and
(b) the prices and availability of goods and services supplied by national and sub-national
authorities and public or state enterprises, in areas including transportation, energy, basic
telecommunications, other utilities and factors of production.
4. Special Trade Arrangements
Upon accession, China shall eliminate or bring in to conformity with the WTO Agreement all
special trade arrangements, including barter trade arrangements, with third countries and separate
customs territories, which are not in conformity with the WTO Agreement.
5. Right to Trade
1. Without prejudice to China's right to regulate trade in a manner consistent with the WTO
Agreement, China shall progressively liberalize the ava ilability and scope of the right to trade, so that,
within three years after accession, all enterprises in China shall have the right to trade in all goods
throughout the customs territory of China, except fo r those goods listed in Annex 2A which continue
to be subject to state trading in accordance with this  Protocol.  Such right to trade shall be the right to
import and export goods.  All such goods shall be accorded national treatment under Article III of the
GATT 1994, especially paragraph 4 thereof, in respect of their internal sale, offering for sale,
purchase, transportation, distribution or use, including their direct access to end-users.  For thoseWT/MIN(01)/3
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goods listed in Annex 2B, China shall phase out limitation on the grant of trading rights pursuant to
the schedule in that Annex.  China shall complete  all necessary legislative procedures to implement
these provisions during the transition period.
2. Except as otherwise provided for in this Pr otocol, all foreign individuals and enterprises,
including those not invested or registered in Ch ina, shall be accorded treatment no less favourable
than that accorded to enterprises in Ch ina with respect to the right to trade.
6. State Trading
1. China shall ensure that import purchasing procedures of state trading enterprises are fully
transparent, and in compliance with the WTO Agreement, and shall refrain from taking any measure
to influence or direct state trading enterprises as to the quantity, value, or country of origin of goodspurchased or sold, except in accordance with the WTO Agreement.
2. As part of China's notification under the GATT 1994 and the Understanding on the
Interpretation of Article XVII of the GATT 1994, China shall also provide full information on the
pricing mechanisms of its state trading enterprises for exported goods.
7. Non-Tariff Measures
1. China shall implement the schedule for phased elimination of the measures contained in
Annex 3.  During the periods specified in Annex 3, the protection afforded by the measures listed inthat Annex shall not be increased or expanded in size, scope or duration, nor shall any new measures
be applied, unless in conformity with the provisions of the WTO Agreement.
2. In implementing the provisions of Articles III and XI of the GATT 1994 and the Agreement
on Agriculture, China shall eliminate and shall not introduce, re-introduce or apply non-tariffmeasures that cannot be justified under the provisions of the WTO Agreement.  For all non-tariff
measures, whether or not referred to in Annex 3, that are applied after the date of accession, consistent
with the WTO Agreement or this Protocol, China shall allocate and otherwise administer such
measures in strict conformity with the provisi ons of the WTO Agreement, including GATT 1994 and
Article XIII thereof, and the Agreement on Import Licensing Procedures, including notificationrequirements.
3. China shall, upon accession, comply with the TRIMs Agreement, without recourse to the
provisions of Article 5 of the TRIMs Agreement.  China shall eliminate and cease to enforce trade and
foreign exchange balancing requirements, local content and export or performance requirements made
effective through laws, regulations or other measures.  Moreover, China will not enforce provisions of
contracts imposing such requirements.  Without prejudice to the relevant provisions of this Protocol,China shall ensure that the distribution of import licences, quotas, tariff-rate quotas, or any other
means of approval for importation, the right of im portation or investment by national and sub-national
authorities, is not conditioned on:  whether competing domestic suppliers of such products exist;  or
performance requirements of any kind, such as local content, offsets, the transfer of technology,
export performance or the conduct of research and development in China.
4. Import and export prohibitions and restrictions, and licensing requirements affecting imports
and exports shall only be imposed and enforced by the national authorities or by sub-national
authorities with authorization from the national authorities.  Such measures which are not imposed by
the national authorities or by sub-national authorities with authorization from the national authorities,shall not be implemented or enforced.WT/MIN(01)/3
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8. Import and Export Licensing
1. In implementing the WTO Agreement and provisions of the Agreement on Import Licensing
Procedures, China shall undertake the following measures to facilitate compliance with these
agreements:
(a) China shall publish on a regular basis the following in the official journal referred to in
paragraph 2(C)2 of this Protocol:
– by product, the list of all organizations, including those organizations delegated such
authority by the national authorities, that are responsible for authorizing or approving
imports or exports, whether through grant of licence or other approval;
– procedures and criteria for obtaining such import or export licences or other
approvals, and the conditions for deciding whether they should be granted;
– a list of all products, by tariff number, that are subject to tendering requirements,
including information on products subject to such tendering requirements and anychanges, pursuant to the Agreement on Import Licensing Procedures;
– a list of all goods and technologies whose import or export are restricted or
prohibited;  these goods shall also be notified to the Committee on Import Licensing;
– any changes to the list of goods and technologies whose import and export are
restricted or prohibited.
Copies of these submissions in one or more of ficial languages of the WTO shall be forwarded
to the WTO for circulation to WTO Members and for submission to the Committee on ImportLicensing within 75 days of each publication.
(b) China shall notify the WTO of all licensing and quota requirements remaining in effect after
accession, listed separately by HS tariff line and with the quantities associated with the
restriction, if any, and the justification for maintaining the restriction or its scheduled date oftermination.
(c) China shall submit the notification of its import licensing procedures to the Committee on
Import Licensing.  China shall report annually to the Committee on Import Licensing on its
automatic import licensing procedures, explaining the circumstances which give rise to these
requirements and justifying the need for their continuation.  This report shall also provide the
information listed in Article 3 of the Agreement on Import Licensing Procedures.
(d) China shall issue import licences for a minimum duration of validity of six months, except
where exceptional circumstances make this impossible.  In such cases, China shall promptly
notify the Committee on Import Licensing of th e exceptional circumstances requiring the
shorter period of licence validity.
2. Except as otherwise provided for in this Pr otocol, foreign individuals and enterprises and
foreign-funded enterprises shall be accorded treatmen t no less favourable than that accorded to other
individuals and enterprises in respect of the distribution of import and export licences and quotas.WT/MIN(01)/3
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9. Price Controls
1. China shall, subject to paragraph 2 below, allow prices for traded goods and services in every
sector to be determined by market forces, and multi-tier pricing practices for such goods and services
shall be eliminated.
2. The goods and services listed in Annex 4 may be subject to price controls, consistent with the
WTO Agreement, in particular Article III of the GATT 1994 and Annex 2, paragraphs 3 and 4 of the
Agreement on Agriculture.  Except in exceptional circumstances, and subject to notification to the
WTO, price controls shall not be extended to goods or services beyond those listed in Annex 4, and
China shall make best efforts to reduce and eliminate these controls.
3. China shall publish in the official journal the list of goods and services subject to state pricing
and changes thereto.
10. Subsidies
1. China shall notify the WTO of any subsidy within the meaning of Article 1 of the Agreement
on Subsidies and Countervailing Measures ("SCM Agreement"), granted or maintained in its territory,
organized by specific product, including those subsidies defined in Article 3 of the SCM Agreement.
The information provided should be as specific as possible, following the requirements of the
questionnaire on subsidies as noted in Article 25 of the SCM Agreement.
2. For purposes of applying Articles 1.2 and 2 of the SCM Agreement, subsidies provided to
state-owned enterprises will be viewed as specific if, inter alia, state-owned enterprises are the
predominant recipients of such subsidies or state-owned enterprises receive disproportionately large
amounts of such subsidies.
3. China shall eliminate all subsidy programmes falling within the scope of Article 3 of the SCM
Agreement upon accession.
11. Taxes and Charges Levied on Imports and Exports
1. China shall ensure that customs fees or charges applied or administered by national or sub-
national authorities, shall be in conformity with the GATT 1994.
2. China shall ensure that internal taxes and charges, including value-added taxes, applied or
administered by national or sub-national authorit ies shall be in conformity with the GATT 1994.
3. China shall eliminate all taxes and charges applied to exports unless specifically provided for
in Annex 6 of this Protocol or applied in conformity with the provisions of Article VIII of the
GATT 1994.
4. Foreign individuals and enterprises and foreign-funded enterprises shall, upon accession, be
accorded treatment no less favourable than that accorded to other individuals and enterprises inrespect of the provision of border tax adjustments.
12. Agriculture
1. China shall implement the provisions contained in China's Schedule of Concessions and
Commitments on Goods and, as specifically provided in this Protocol, those of the Agreement on
Agriculture.  In this context, China shall not maintain or introduce any export subsidies on agricultural
products.WT/MIN(01)/3
Page 80
2. China shall, under the Transitional Review Mechanism, notify fiscal and other transfers
between or among state-owned enterprises in the agri cultural sector (whether national or sub-national)
and other enterprises that operate as state trading enterprises in the agricultural sector.
13. Technical Barriers to  Trade
1. China shall publish in the official journal all criteria, whether formal or informal, that are the
basis for a technical regulation, standard or conformity assessment procedure.
2. China shall, upon accession, bring into conformity with the TBT Agreement all technical
regulations, standards and conformity assessment procedures.
3. China shall apply conformity assessment procedures to imported products only to determine
compliance with technical regulations and standards that are consistent with the provisions of this
Protocol and the WTO Agreement. Conformity asse ssment bodies will determine the conformity of
imported products with commercial terms of contracts only if authorized by the parties to such
contract. China shall ensure that such inspection of products for compliance with the commercialterms of contracts does not affect customs clearance or the granting of import licences for such
products.
4. (a) Upon accession, China shall ensure that the same technical regulations, standards and
conformity assessment procedures are applied to both imported and domestic products.  In order toensure a smooth transition from the current system, China shall ensure that, upon accession, all
certification, safety licensing, and quality licensing bodies and agencies are authorized to undertake
these activities for both imported and domestic products, and that, one year after accession, all
conformity assessment bodies and agencies are authorized to undertake conformity assessment for
both imported and domestic products.   The choice of body or agency shall be at the discretion of theapplicant.  For imported and domestic products, all bodies and agencies shall issue the same mark and
charge the same fee.  They shall also provide the same processing periods and complaint procedures.
Imported products shall not be subject to more than one conformity assessment.  China shall publish
and make readily available to other WTO Members, individuals, and enterprises full information on
the respective responsibilities of its conformity assessment bodies and agencies.
(b) No later than 18 months after accession, China shall assign the respective
responsibilities of its conformity assessment bodies solely on the basis of the scope of work and type
of product without any consideration of the origin of a product.  The respective responsibilities that
will be assigned to China’s conformity assessme nt bodies will be notified to the TBT Committee
12 months after accession.
14. Sanitary and Phytosanitary Measures
China shall notify to the WTO all laws, regulations and other measures relating to its sanitary
and phytosanitary measures, including product coverage and relevant international standards,
guidelines and recommendations, within 30 days after accession.
15. Price Comparability in Determining Subsidies and Dumping
Article VI of the GATT 1994, the Agreement on Im plementation of Article VI of the General
Agreement on Tariffs and Trade 1994 ("Anti-Dumping Agreement") and the SCM Agreement shallapply in proceedings involving imports of Chinese origin into a WTO Member consistent with the
following:WT/MIN(01)/3
Page 81
(a) In determining price comparability under Article VI of the GATT 1994 and the
Anti-Dumping Agreement, the importing WTO Member shall use either Chinese
prices or costs for the industry under investigation or a methodology that is not based
on a strict comparison with domestic prices or costs in China based on the following
rules:
(i) If the producers under investigation can clearly show that market economy
conditions prevail in the industry producing the like product with regard to
the manufacture, production and sale of that product, the importing WTO
Member shall use Chinese prices or costs for the industry under investigation
in determining price comparability;
(ii) The importing WTO Member may use a methodology that is not based on a
strict comparison with domestic prices or costs in China if the producers
under investigation cannot clearly show that market economy conditions
prevail in the industry producing the like product with regard to manufacture,
production and sale of that product.
(b) In proceedings under Parts II, III and V of the SCM Agreement, when addressing
subsidies described in Articles 14(a), 14(b), 14(c) and 14(d), relevant provisions of
the SCM Agreement shall apply;  however, if there are special difficulties in that
application, the importing WTO Member may then use methodologies for identifying
and measuring the subsidy benefit which take into account the possibility thatprevailing terms and conditions in China may not always be available as appropriate
benchmarks.  In applying such methodologies, where practicable, the importing WTO
Member should adjust such prevailing terms and conditions before considering the
use of terms and conditions prevailing outside China.
(c) The importing WTO Member shall notify methodologies used in accordance with
subparagraph (a) to the Committee on Anti-Dumping Practices and shall notify
methodologies used in accordance with subparagraph (b) to the Committee on
Subsidies and Countervailing Measures.
(d) Once China has established, under the national law of the importing WTO Member,
that it is a market economy, the provisions of subparagraph (a) shall be terminated
provided that the importing Member's national law contains market economy criteria
as of the date of accession.  In any event, the provisions of subparagraph (a)(ii) shall
expire 15 years after the date of accession.  In addition, should China establish,
pursuant to the national law of the importing WTO Member, that market economy
conditions prevail in a particular industry or sector, the non-market economyprovisions of subparagraph (a) shall no longer apply to that industry or sector.
16. Transitional Product-Specific Safeguard Mechanism
1. In cases where products of Chinese origin are being imported into the territory of any
WTO Member in such increased quantities or under such conditions as to cause or threaten to cause
market disruption to the domestic producers of like or directly competitive products, the
WTO Member so affected may request consultations with China with a view to seeking a mutually
satisfactory solution, including whether the affected WTO Member should pursue application of a
measure under the Agreement on Safeguards.  Any such request shall be notified immediately to theCommittee on Safeguards.WT/MIN(01)/3
Page 82
2. If, in the course of these bilateral consultations, it is agreed that imports of Chinese origin are
such a cause and that action is necessary, China shall take such action as to prevent or remedy the
market disruption.  Any such action shall be noti fied immediately to the Committee on Safeguards.
3. If consultations do not lead to an agreement between China and the WTO Member concerned
within 60 days of the receipt of a request for consultations, the WTO Member affected shall be free,in respect of such products, to withdraw concessions  or otherwise to limit imports only to the extent
necessary to prevent or remedy such market disruption.  Any such action shall be notified
immediately to the Committee on Safeguards.
4. Market disruption shall exist whenever imports of an article, like or directly competitive with
an article produced by the domestic industry, are increasing rapidly, either absolutely or relatively, so
as to be a significant cause of material injury, or threat of material injury to the domestic industry.  Indetermining if market disruption exists, the affected WTO Member shall consider objective factors,
including the volume of imports, the effect of imports on prices for like or directly competitive
articles, and the effect of such imports on the domestic industry producing like or directly competitive
products.
5. Prior to application of a measure pursuant to paragraph 3, the WTO Member taking such
action shall provide reasonable public notice to all interested parties and provide adequate opportunity
for importers, exporters and other interested parties to submit their views and evidence on the
appropriateness of the proposed measure and whether it would be in the public interest.  The
WTO Member shall provide written notice of the decision to apply a measure, including the reasonsfor such measure and its scope and duration.
6. A WTO Member shall apply a measure pursuant to this Section only for such period of time
as may be necessary to prevent or remedy the market disruption.  If a measure is taken as a result of a
relative increase in the level of imports, China has the right to suspend the application of substantiallyequivalent concessions or obligations under the GATT 1994 to the trade of the WTO Member
applying the measure, if such measure remains in effect more than two years.  However, if a measure
is taken as a result of an absolute increase in imports, China has a right to suspend the application of
substantially equivalent concessions or obligations under the GATT 1994 to the trade of the WTO
Member applying the measure, if such measure remains in effect more than three years.  Any suchaction by China shall be notified immediately to the Committee on Safeguards.
7. In critical circumstances, where delay would cause damage which it would be difficult to
repair, the WTO Member so affected may take a provisional safeguard measure pursuant to a
preliminary determination that imports have caused or threatened to cause market disruption.  In this
case, notification of the measures taken to the Committee on Safeguards and a request for bilateral
consultations shall be effected immediately thereafter.  The duration of the provisional measure shallnot exceed 200 days during which the pertinent requirements of paragraphs 1, 2 and 5 shall be met.
The duration of any provisional measure shall be counted toward the period provided for under
paragraph 6.
8. If a WTO Member considers that an action taken under paragraphs 2, 3 or 7 causes or
threatens to cause significant diversions of trade into its market, it may request consultations with
China and/or the WTO Member concerned.  Such consultations shall be held within 30 days after the
request is notified to the Committee on Safeguards.  If such consultations fail to lead to an agreement
between China and the WTO Member or Members concerned within 60 days after the notification,
the requesting WTO Member shall be free, in respect of such product, to withdraw concessionsaccorded to or otherwise limit imports from China, to  the extent necessary to prevent or remedy such
diversions.  Such action shall be notified  immediately to the Committee on Safeguards.WT/MIN(01)/3
Page 83
9. Application of this Section shall be terminated 12 years after the date of accession.
17. Reservations by WTO Members
All prohibitions, quantitative restrictions and other measures maintained by WTO Members
against imports from China in a manner inconsistent with the WTO Agreement are listed in Annex 7.All such prohibitions, quantitative restrictions and other measures shall be phased out or dealt with in
accordance with mutually agreed terms and timetables as specified in the said Annex.
18. Transitional Review Mechanism
1. Those subsidiary bodies
2 of the WTO which have a mandate covering China's commitments
under the WTO Agreement or this Protocol shall, within one year after accession and in accordancewith paragraph 4 below, review, as appropriate to  their mandate, the implementation by China of the
WTO Agreement and of the related provisions of this Protocol.  China shall provide relevant
information, including information specified in Annex 1A, to each subsidiary body in advance of the
review.  China can also raise issues relating to any reservations under Section 17 or to any other
specific commitments made by other Members in this Protocol, in those subsidiary bodies which havea relevant mandate.  Each subsidiary body shall report the results of such review promptly to the
relevant Council established by paragraph 5 of Article IV of the WTO Agreement, if applicable,
which shall in turn report promptly to the General Council.
2. The General Council shall, within one year after accession, and in accordance with
paragraph 4 below, review the implementation by China of the WTO Agreement and the provisions of
this Protocol.  The General Council shall conduct su ch review in accordance with the framework set
out in Annex 1B and in the light of the results of  any reviews held pursuant to paragraph 1.  China
also can raise issues relating to any reservati ons under Section 17 or to any other specific
commitments made by other Members in this Protocol.  The General Council may makerecommendations to China and to other Members in these respects.
3. Consideration of issues pursuant to this Section shall be without prejudice to the rights and
obligations of any Member, including China, under the WTO Agreement or any Plurilateral Trade
Agreement, and shall not preclude or be a precondition to recourse to consultation or other provisionsof the WTO Agreement or this Protocol.
4. The review provided for in paragraphs 1 and 2 will take place after accession in each year for
eight years.  Thereafter there will be a final review in year 10 or at an earlier date decided by the
General Council.
Part II - Schedules
1. The Schedules annexed to this Protocol shall become the Schedule of Concessions and
Commitments annexed to the GATT 1994 and the Schedule of Specific Commitments annexed to the
GATS relating to China.  The staging of concessions and commitments listed in the Schedules shall
be implemented as specified in the relevant parts of the relevant Schedules.
                                                     
2 Council for Trade in Goods, Council for Trade-Related Aspects of Intellectual Property Rights,
Council for Trade in Services, Committees on Balance- of-Payments Restrictions, Market Access (covering also
ITA), Agriculture, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Subsidies andCountervailing Measures, Anti-Dumping Measures, Customs Valuation, Rules of Origin, Import Licensing,
Trade-Related Investment Measures, Safeguards, Trade in Financial Services.WT/MIN(01)/3
Page 84
2. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date
of that Agreement, the applicable date in respect of the Schedules of Concessions and Commitments
annexed to this Protocol shall be the date of accession.WT/MIN(01)/3
Page 85
Part III - Final Provisions
1. This Protocol shall be open for acceptance, by signature or otherwise, by China until
1 January 2002.
2. This Protocol shall enter into force on the thirtieth day following the day of its acceptance.3. This Protocol shall be deposited with the Director-General of the WTO. The Director-General
shall promptly furnish a certified copy of this Protocol and a notification of acceptance by China
thereof, pursuant to paragraph 1 of Part III of this Protocol, to each WTO Member and to China.
4. This Protocol shall be registered in accordance with the provisions of Article 102 of the
Charter of the United Nations.
Done at [Doha] this [   ] day of [       ] tw o thousand and one, in a single copy, in the English,
French and Spanish languages, each text being authentic, except that a Schedule annexed hereto may
specify that it is authentic in only one or more of these languages.WT/MIN(01)/3
Page 86
ANNEX 1A
INFORMATION3 TO BE PROVIDED BY CHINA
IN THE CONTEXT OF THE TRANSITIONAL REVIEW MECHANISM
China is requested to provide information on the following in accordance with Article 18.1 of
the Protocol of Accession.  The requested information should be provided annually, except in those
cases where China and the Members agree that it is no longer required for the review.
I. ECONOMIC DATA
(a) most recently available import and export statistics by value and volume, by supplier country
at the HS 8-digit level
(b) current account data on services, by source and destination in line with the statistical
requirements of the IMF
(c) capital account data for inward- and outward-realized foreign direct investment by source and
destination in line with the statistical requirements of the IMF
(d) the value of tariff revenues, non-tariff taxes, and other border charges levied exclusively on
imports by product or at the highest level of detail possible, but at least by HS heading(4-digit) at the beginning of the review mechanism
(e) the value of export duties/taxes by product(f) the volume of trade subject to tariff exemptions by product or at the highest level of detail
possible, but at least by HS heading (4-digit)  at the beginning of the review mechanism
(g) the value of commissions, mark ups and other fees charged on imports subject to state trading
or designated trading imposed through government regulation or guidance, if any
(h) the shares of imports and exports accounted for by the trading activities of state-owned
enterprises
(i) annual economic development programmes, China's five-year programmes and any industrial
or sectoral programmes or policies (including programmes relating to investment, export,
import, productions, pricing or other targets, if any) promulgated by central and sub-central
government entities
(j) annual receipts under the Value-Added Tax (VAT), with separate information for imports and
domestic products as well as information on VAT rebates
                                                     
3 This "information" refers to information other than that required by the general notification
requirements  for WTO Members.  To avoid duplicatio n, it is understood that Members will accept information
provided on an annual basis by China to other WTO bodies as satisfying the information requirements in
Annex 1.WT/MIN(01)/3
Page 87
II. ECONOMIC POLICIES
1. Non-Discrimination (to be notified to the Council for Trade in Goods)
(a) the repeal and cessation of all WTO inconsistent laws, regulations and other measures on
national treatment
(b) the repeal or modification to provide full GATT national treatment in respect of laws,
regulations and other measures applying to internal sale, offering for sale, purchase,
transportation, distribution or use of: after sales service, pharmaceutical products, cigarettes,
spirits, chemicals and boiler and pressure vessels (for pharmaceutical products, chemicals and
spirits there is a reservation of the right to use a transitional period of one year from the date
of accession in order to amend or repeal relevant legislation)
2. Foreign Exchange and Payments (to be notified to the Committee on Balance-of-
Payments Restrictions)
(a) exchange measures as required under Article VIII, Section 5 of the IMF's Articles of
Agreement and such other information on China's exchange measures as was deemed
necessary in the context of the transitional review mechanism
3. Investment Regime (to be notified to the Committee on Trade-Related  Investment
Measures)
(a) completed revisions to investment guidelines in conformity with the WTO Agreement
4. Pricing Policies (to be notified to the Committee on Subsidies and Countervailing
Measures)
(a) application of existing or any other price controls and the reason for their use
(b) pricing mechanisms of China's state trading enterprises for exported products
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
1. Structure and Powers of the Government/Authority of Sub-Central
Governments/Uniform Administration (to be notified to the General Council)
(a) revision or enactment of domestic laws, regulations and other measures related to China's
commitments under the WTO Agreement and Protocol, including those of local governmentsat the sub-national level, that have been promulgated since accession or the previous meeting
of the relevant body under the Transitional Review Mechanism
(b) establishment and operation (upon accession) of the mechanism pursuant to Section 2(A),
paragraph 4 of the Protocol under which individuals and enterprises can bring cases of non-uniform application of the trade regime to the attention of national authoritiesWT/MIN(01)/3
Page 88
IV. POLICIES AFFECTING TRADE IN GOODS
1. Tariff Rate Quotas (to be notified to the Committee on Market Access)
(a) administration of TRQs on a transparent, predictable, uniform, fair and non-discriminatory
basis using clearly specified timeframes, administrative procedures and requirements andevidence of a consistent national allocation (and reallocation) policy  including:
(i) provision of volume/value of the quota or TRQ made available;
(ii) reallocated quota or TRQ applied for;
(iii) the volume/value of requests for allocation or reallocation denied;
(iv) fill rates for the quota or TRQ;
(v) for TRQs, the amount of any goods entered at the over quota rate; and(vi) time taken to grant a quota or TRQ allocation.
2. Non-Tariff Measures including Quantitative Im port Restrictions (to be notified to the
Committee on Market Access)
(a) the introduction, re-introduction or applicati on of any non-tariff measures other than those
listed in Annex 3 of the Protocol and elimination of non-tariff measures
(b) implementation of the schedule for phased elimination of the measures contained in Annex 3
(c) quota allocation and reallocation in confor mity with WTO requirements, including the
Agreement on Licensing Procedures following criteria set out in the Report of the Working
Party on the Accession of China ("Report ")
(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 the Protocol
3. Import Licensing (to be notified to the Committee on Import Licensing)
(a) implementation of the provisions of the Agreement on Import Licensing Procedures and the
WTO Agreement applying the measures set out in Section 8 of the Protocol including
provision of the time taken to grant an import licence
4. Customs Valuation (to be notified to the Committee on Customs Valuation)
(a) the use of valuation methods, other than the stated transaction value
5. Export Restrictions (to be notified to the Council for Trade in Goods)
(a) any restrictions on exports through non-automatic licensing or other means justified by
specific product under the WTO Agreement or the Protocol
6. Safeguards (to be notified to the Committee on Safeguards)
(a) implementation of China's Regulation on SafeguardsWT/MIN(01)/3
Page 89
7. Technical Barriers to Trade (to be notified to the Committee on Technical Barriers to
Trade)
(a) notification of acceptance of the Code of Go od Practice not later than four months after
China's accession
(b) periodic review of existing standards of government standardizing bodies and harmonization
of the same with relevant international standards where appropriate
(c) revision of current voluntary national, local and sectoral standards so as to harmonize them
with international standards
(d) use of the terms "technical regulations" and "standards" according to their meaning under the
TBT Agreement in China's notifications under the TBT Agreement, including under
Article 15.2 thereof and publications referenced therein, and in modifications of existing
measures
(e) review of technical regulations every five years to ensure international standards are used in
accordance with Article 2.4 of the Agreement and provision for adoption of international
standards as the basis for technical regulation as part of its notification under Article 15.2 of
the Agreement
(f) progress report on increase of the use of international standards as the basis for technical
regulations by ten per cent in five years
(g) provision of procedures to implement Article 2.7 of the Agreement(h) provision of a list of relevant local govern mental and non-governmental bodies that are
authorized to adopt technical regulations or conformity assessment procedures as part of
China's  notification under Article 15.2 of the Agreement
(i) ongoing updates on the conformity assessment bodies that are recognized by China
(j) enactment and implementation of a new law and relevant regulations regarding assessment
and control of chemicals for the protection of the environment in which complete national
treatment and full consistency with international practices would be ensured within one year
after China's accession following conditions set out in 3(t) of the TBT Working Party Report
(k) information on whether, one year after accession, all conformity assessment bodies and
agencies are authorized to undertake conformity assessment for both imported and domesticproducts and are following the conditions outlined in Section 13, subparagraph 4(a) of the
Protocol
(l) assignment of the respective responsibilities of China's conformity assessment bodies solely
on the basis of the scope of work and type of product without any consideration of the origin
of a product no later than eighteen months after accession
(m) notification of the respective responsibilities assigned to China's conformity assessment
bodies to the TBT committee 12 months after accessionWT/MIN(01)/3
Page 90
8. Trade-Related Investment Measures (to be notified to the Committee on Trade-Related
Investment Measures)
(a) elimination and cessation of enforcement of trade and foreign exchange balancing
requirements, local content and export performance offsets and technology transferrequirements made effective through laws, regulations or other measures
(b) amendments to ensure lifting of all measures applicable to motor vehicle producers restricting
the categories, types or models of vehicles permitted for production (to be completely
removed two years after accession)
(c) increased limits within which investments in motor vehicle manufacturing could be approved
at the provincial government at the levels outlined in the Report
9. State Trading Entities (to be notifi ed to the Council for Trade in Goods)
(a) progressive abolishment of state trading in re spect of silk measures, increasing and extending
trading rights, granting the right to trade to all individuals no later than 1 January 2005
(b) access to supplies of raw materials in the textiles sector at conditions no less favourable than
for domestic users, and not adversely affected access to supplies of raw materials as enjoyed
under existing arrangements
(c) progressive increases in access by non state trad ing entities to trade in fertilizer and oil and
the filling of quantities available for import by non state trading entities
10. Government Procurement (to be notifi ed to the Council for Trade in Goods)
(a) laws, regulations and procedures
(b) procurement in a transparent manner and application of the MFN principle
V. POLICIES AFFECTING TRADE IN SERVICES (to be notified to the Council for
Trade in Services)
(a) regularly updated lists of all laws, regulations, administrative guidelines and other measures
affecting trade in each service sector or sub-sector indicating, in each case, the service
sector(s) or sub-sector(s) they apply to, the date  of publication and the date of entry into force
(b) China's licensing procedures and conditions, if any, between domestic and foreign service
suppliers, measures implementing the free choice of partner and list of transport agreements
covered by MFN exceptions
(c) regularly updated lists of the authorities, at all levels of government (including organizations
with delegated authority) which are responsible for the adoption, implementation and
reception of appeals for laws, regulations, administrative guidelines and other measures
affecting trade in services
(d) independence of the regulatory authorities from the service suppliersWT/MIN(01)/3
Page 91
(e) foreign and domestic suppliers in sectors where specific commitments have been undertaken
indicating the state of play of licensing applications on sector and sub-sector levels (accepted,
pending, rejected)
VI. TRADE-RELATED INTELLECTUAL PROPERTY REGIME (to be notified to the
Council for Trade-Related Aspects of Intellectual Property Rights)
(a) amendments to Copyright, Trademark and Patent Law, as well as relevant implementing rules
covering different areas of the TRIPS Agreement bringing all such measures into full
compliance with and full application of the TRIPS Agreement and the protection of
undisclosed information
(b) enhanced IPR enforcement efforts through the application of more effective administrative
sanctions as described in the Report
VII. SPECIFIC QUESTIONS IN THE CONTEXT OF THE TRANSITIONAL REVIEW
MECHANISM (to be notified to the General Council or relevant subsidiary body)
(a) response to specific questions in the context of the transitional review mechanism received
from the General Council or a subsidiary bodyWT/MIN(01)/3
Page 92
ANNEX 1B
ISSUES TO BE ADDRESSED BY THE GENERAL COUNCIL IN ACCORDANCE
WITH SECTION 18.2 OF CHINA'S PROTOCOL OF ACCESSION
– Review of the reports and the issues referred to in Section 18.1 of China's Protocol of
Accession.
– Development of China's trade with WTO Members and other trading partners, including the
volume, direction and composition of trade.
– Recent developments and cross-sectoral issues regarding China's trade regime.
The Rules of Procedure of the WTO General Council  shall apply unless specified otherwise.
China shall submit any information and the documenta tion relating to the review no later than 30 days
prior to the date of the review.WT/MIN(01)/3
Page 93
ANNEX 2A1
PRODUCTS SUBJECT TO STATE TRADING (IMPORT)
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSSTATE TRADING
ENTERPRISES
1 10011000 Durum wheat
2 10019010 Seed of wheat & maslin, excl. durum wheat
3 10019090 Wheat & maslin, excl. for seeding and durum
wheat
4 11010000 Wheat or maslin flour
5 11031100 Groats & meal of wheat
6 11032100 Pellets of wheat
7 10051000 Maize (corn) seed
8 10059000 Maize (corn), excl. for seeding
9 11022000 Maize (corn) flour
10 11031300 Groats & meal of maize (corn)
11 11042300 Other worked grains of maize (corn) (for
example, hulled, pearled, sliced or kibbled)
12 10061010 Rice in husk (paddy or ro ugh) seed
13 10061090 Rice in husk (paddy or ro ugh), excl. for seeding
14 10062000 Husked (brown) rice
15 10063000 Semi-milled or wholly milled rice, whether or
not polished or glazed
16 10064000 Broken rice
17 11023000 Rice flourGRAIN
18 11031400 Groats & meal of riceChina National Cereals, Oil &
Foodstuff Import and Export
Co.
19 15071000 Crude soybean oil, whether or not degummed,
but not chemically modified
20 15079000 Soybean oil and its fractions, refined, but not
chemically modified
21 15111000 Crude palm oil, but not chemically modified
22 15119000 Palm oil and its fractions, refined, but not
chemically modified
23 15141010 Crude rape, colza oil, but not chemically
modified
24 15141090 Crude mustard oil, but not chemically modifiedVEGETABLE
OIL
25 15149000 Rape, colza or mustard oil and fractions thereof,
refined, but not chemically modified1. China National Cereals,
Oil & Foodstuff Importand Export Co.
2. China National Native
Products and Animal By-
products Import &Export Co.
3. China Resources Co.4. China Nam Kwong
National Import &
Export Co.
5. China Liangfeng Cereals
Import & Export Co.
6. China Cereals, Oil &
Foodstuff Co.(Group)
26 17011100 Raw cane sugar, in solid form, not containing
added flavouring or colouring matter
27 17011200 Raw beet sugar, in solid form, not containing
added flavouring or colouring matter
28 17019100 Cane or beet sugar and chemically pure sucrose,
in solid form, containing added flavouring orcolouring
29 17019910 Granulated sugar
30 17019920 Superfine sugarSUGAR
31 17019990 Cane or beet sugar and chemically pure sucrose,
in solid form, not containing added flavouring
or colouring matter, excl. granulated sugar,
superfine sugar and  raw sugar1. China National Cereals,
Oil & Foodstuff Import
and Export Co.
2. China Export
Commodities BaseConstruction Co.
3. China Overseas Trade
Co.
4. China Sugar & Wine Co.
(Group)
5. China Commerce
Foreign Trade Co.WT/MIN(01)/3
Page 94
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSSTATE TRADING
ENTERPRISES
32 24011010 Flue-cured tobacco , not stemmed/stripped
33 24011090 Tobacco other than flue-cured, not
stemmed/stripped
34 24012010 Flue-cured tobacco, partly or wholly
stemmed/stripped
35 24012090 Tobacco other than flue-cured, partly or wholly
stemmed/stripped
36 24013000 Tobacco refuse
37 24021000 Cigars, cheroots & cigarillos, containing
tobacco
38 24022000 Cigarettes containing tobacco
39 24029000 Cigars, cheroots, cigarillos and cigarettes, of
tobacco substitutes
40 24031000 Smoking tobacco whether or not containing
tobacco substitutes in any proportion
41 24039100 Homogenized or "reconstituted" tobacco
42 24039900 Manufactured tobacco and tobacco substitutes,
nes; tobacco extracts and essences
43 48131000 Cigarette paper in the form of booklets or tubes
44 48132000 Cigarette paper in rolls of a width ≤5cm
45 48139000 Cigarette paper, nes
46 55020010 Cellulose diacetate filament tow3
47 56012210 Cigarette filter tips of man-made fibres
48 84781000 Machinery for preparing or making up tobacco,
not elsewhere specified or includedTOBACCO
49 84789000 Parts, of machinery for preparing or making up
tobacco, not elsewhere specified or includedChina National Tobacco
Import & Export Co.
CRUDE OIL50 27090000 Petroleum oils & oils obtained from bituminous
minerals, crude
51 27100011 Motor gasoline & aviation gasoline
52 27100013 Naphtha
53 27100023 Aviation kerosene
54 27100024 Lamp-kerosene
55 27100031 Light diesel oil
56 27100033 Fuel oil No.5 to No.7 (National Code)PROCESSED
OIL
57 27100039 Diesel oils & preparations thereof and other fuel
oils, nes1. China National Chemical
Import & Export Co.
2. China International
United Petroleum &
Chemicals Co.
3. China National United
Oil Co.
4. Zhuhai Zhenrong
Company
                                                     
3 Coverage is limited to cellulose diacetate filament tow used in the production of cigarettes.WT/MIN(01)/3
Page 95
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSSTATE TRADING
ENTERPRISES
58 31021000 Urea, whether or not in aqueous solution
59 31022100 Ammonium sulphate
60 31022900 Double salts & mixtures of ammonium sulphate
& ammonium nitrate
61 31023000 Ammonium nitrate, whether or not in aqueous
solution
62 31024000 Mixtures of ammonium nitrate with calcium
carbonate or other inorganic non-fertilizing
substances
63 31025000 Sodium nitrate
64 31026000 Double salts & mixtures of calcium nitrate &
ammonium nitrate
65 31027000 Calcium cyanamide
66 31028000 Mixtures of urea & ammonium nitrate in
aqueous or ammoniacal solution
67 31029000 Mineral or chemical fertilizers, nitrogenous ,
nes, incl. mixtures not specified in the foregoingsubheadings
68 31031000 Superphosphates
69 31032000 Basic slag
70 31039000 Mineral or chemical fertilizers, phosphatic, nes
71 31041000 Carnallite, sylvite & other crude natural
potassium salts
72 31042000 Potassium chloride
73 31043000 Potassium sulphate
74 31049000 Mineral or chemical fertilizers, potassic, nes
75 31051000 Goods of chapter 31 in tables or similar forms or
in packages of a gross weight ≤10kg
76 31052000 Mineral or chemical fertilizers containing the
three fertilizing elements nitrogen, phosphorus& potassium
77 31053000 Diammonium hydrogenorthophosphate
(diammonium phosphate)
78 31054000 Ammonium dihydrogenorthophosphate
(monoammonium phosphate) and mixtures
thereof with diammoniumhydrogenorthophosphate (diammoniumphosphate)
79 31055100 Mineral or chemical fertilizers containing
nitrates & phosphates
80 31055900 Mineral or chemical fertilizers containing the
two fertilizing elements nitrogen & phosphorus,
nes
81 31056000 Mineral or chemical fertilizers with phosphorus
& potassium, nesCHEMICAL
FERTILIZER
82 31059000 Mineral or chemical fertilizers, nes1. China National Chemical
Import & Export Co.
2. China National
Agricultural Means of
Production Group Co.WT/MIN(01)/3
Page 96
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSSTATE TRADING
ENTERPRISES
83 52010000 Cotton, not carded or combed
COTTON84 52030000 Cotton, carded or combed1. China National Textiles
Import & Export Co.
2. Beijing Jiuda Textiles
Group Co.
3. Tianjing Textiles
Industry Supply andMarketing Co.
4. Shanghai Textiles Raw
Materials Co.
Product & HS 2000Volume to non-state traders on
accession2)Annual growth in non-state
trade volume3)
Oil--processed1)
(HS 27.10)4 million tonnes 15 %
Oil--crude
(HS 27.09)7.2 million tonnes 15 %
(1) Excludes LPG, which falls under HS 27 11, and has not been notified by China as subject to state
trading.  The present import quota (16.58 million tonnes rising by 15% per year) will be removed on1 January 2004.
(2) Imports to be effected pursuant to the provisions of the WTO Agreement on Import Licensing
Procedures.
(3) This growth rate shall be applied for a period of 10 years following accession, after which time it shall
be reviewed with interested Members.  Pending conclusion  of the review talks, the volume available to non-state
importers on that date shall be increased annually in line with the average growth in overall imports of theproduct concerned over the preceding 10 year period.
However, for processed oil, a review shall be carried out with interested Members by 2004 to establish
whether the growth rate should be adjusted in the light of the evolution of trade volumes.WT/MIN(01)/3
Page 97
ANNEX 2A2
PRODUCTS SUBJECT TO STATE TRADING (EXPORT)
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSSTATE TRADING
ENTERPRISES
1 09021010 Flavoured green tea (not fermented) in
immediate packings of a content ≤3kg
2 09021090 Unflavoured green tea (not fermented) in
immediate packings of a content ≤3kg
3 09022010 Flavoured green tea (not fermented) in
immediate packings of a content >3kgTEA
4 09022090 Unflavoured green tea(not fermented) in
immediate packings of a content >3kgChina National Native
Products and AnimalBy-Products Import &Export Co.
5 10061010 Rice in husk (paddy or ro ugh) seed
6 10061090 Rice in husk (paddy or ro ugh), excl. for
seeding
7 10062000 Husked (brown) rice
8 10063000 Semi-milled or wholly milled rice, whether or
not polished or glazedRICE
9 10064000 Broken rice
10 10051000 Maize (corn) seed
11 10059000 Maize (corn), excl. for seedingCORN12 11042300 Other worked grains of maize (corn) (for
example, hulled, pearled, sliced or kibbled)
13 12010010 Seed of soya beans
14 12010091 Yellow soya beans, not for seeding, whether
or not broken
15 12010092 Black soya beans, not for seeding, whether or
not broken
16 12010093 Green soya beans, not for seeding, whether or
not brokenSOY BEAN
17 12010099 Soya beans, nes, not for seeding, whether or
not broken1. China National Cereals
Oil and Foodstuffs
Import & Export Co.
2. Jilin Grain Import &
Export Co. Ltd.
18 26110000 T ungsten ores & concentrates
19 26209010 Ash & residues containing mainly tungsten &
compound thereofTUNGSTEN
ORE20 26209090 Ash & residues containing metals &
compound thereof, nes
21 28418010 Ammonium paratungstate AMMONIUM
PARATUNG-
STATES22 28418040 Ammonium metatungstates
23 28259011 T ungstic acid
24 28259012 T ungsten trioxides
25 28259019 T ungsten oxides and hydroxides, nes
26 28418020 Sodium tungstate
27 28418030 Calcium tungstate
28 28499020 Carbides of tungsten, whether or not
chemically refined
29 81011000 T ungsten powdersTUNGSTATE
PRODUCTS
30 81019100 T ungsten unwrought (incl. bars and rods
simply sintered); tungsten waste and scrap1. China National Metals
and Minerals Import &Export Co.
2. China National Non-
ferrous Import &
Export Co.
3. China Rare Earth and
Metal Group Co.
4. China National
Chemical Import &
Export Co.WT/MIN(01)/3
Page 98
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSSTATE TRADING
ENTERPRISES
31 27011100 Anthracite, not agglomerated, whether or not
pulverized
32 27011210 Bituminous coking coal, not agglomerated,
whether or not pulverized
33 27011290 Other bituminous coal, other than coking coal,
not agglomerated, whether or not pulverized
34 27011900 Coal nes, not agglomerated, whether or not
pulverizedCOAL
35 27021000 Lignite, not agglomerated, whether or not
pulverized1. China National Coal
Industry Import &Export Co.
2. China National Metals
and Minerals Import &Export Co.
3. Shanxi Coal Import &
Export Group Co.
4. Shenhua Group Ltd.
CRUDE OIL36 27090000 Petroleum oils & oils obtained from
bituminous minerals, crude
37 27100011 Motor gasoline & aviation gasoline
38 27100013 Naphtha
39 27100019 Gasoline distillages, nes & preparations
thereof
40 27100023 Aviation kerosene
41 27100024 Lamp-kerosene
42 27100029 Kerosene distillages, nes & preparations
thereof
43 27100031 Light diesel oil
44 27100033 Fuel oil No.5 to No.7 (National Code)
45 27100039 Diesel oils & preparations thereof and other
fuel oils, nes
46 27100053 Lubricating greases
47 27100054 Lubricating oils
48 27100059 Heavy oils & preparations thereof, nesPROCESSED
OIL
49 27111100 Natural gas, liquefied1. China National
Chemical Import &Export Co.
2. China International
United Petroleum &
Chemicals Co.
3. China National United
Oil Co.
50 50010010 Mulberry feeding silk-worm cocoons
51 50010090 Silk-worn cocoons suitable for reeling (excl.
Mulberry feeding silk-worm cocoons)
52 50020011 Plant reeled (Steam filature silk),not thrown
53 50020012 Steam filature silk ,home reeled, not thrown
54 50020013 Steam filature silk, doupion, not thrown
55 50020019 Steam filature raw silk (excl. Plant reeled,
home reeled, doupion), not thrown
56 50020020 Tussah raw silk, not thrown
57 50020090 Raw silk, nes, not thrown
58 50031000 Silk waste (including cocoons unsuitable for
reeling, yarn waste and garneted stock), notcarded or combed
59 50039000 Silk waste (including cocoons unsuitable for
reeling, yarn waste and garneted stock), carded
or combed
60 50040000 Silk yarn (excl. spun from silk waste), not put
up for retail sale
61 50050010 Yarn spun from noil, not put up for retail saleSILK
62 50050090 Yarn spun from other silk waste (excl. Yarn
spun from noil), not put up for retail saleChina National Silk Import
& Export Co.WT/MIN(01)/3
Page 99
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSSTATE TRADING
ENTERPRISES
63 50071010 Unbleached (unscoured or scoured) or bleached
woven fabrics of noil silk
64 50072011 Unbleached (unscoured or scoured) or bleached
woven fabrics, containing 85% or more by
weight of mulberry silk
65 50072021 Unbleached (unscoured or scoured) or bleached
woven fabrics of tussah silk, containing 85% ormore by weight of tussah silkUN-
BLEACHED
SILK
66 50072031 Unbleached (unscoured or scoured) or bleached
woven fabrics of spun silk, containing 85% ormore by weight of tussah silk
67 52010000 Cotton, not carded or combedCOTTON68 52030000 Cotton, carded or combed
69 52041100 Cotton sewing thread, cotton by weight
≥85%,not put up for retail sale
70 52051100 Uncombed single cotton yarn, cotton by weight
≥85%, measuring ≤14 metric number, not put up
for retail sale
71 52051200 Uncombed single cotton yarn, cotton by weight
≥85%, measuring, >14 metric number but ≤43
metric number, not put up for retail sale
72 52051300 Uncombed single cotton yarn, cotton by weight
≥85%, measuring >43metric number but
≤52metric number, not put up for retail sale
73 52051400 Uncombed single cotton yarn, cotton by weight
≥85%, measuring >52metric number but
≤80metric number, not put up for retail sale
74 52051500 Uncombed single cotton yarn, cotton by weight
≥85%, measuring >80metric number, not put up
for retail sale
75 52052100 Combed single cotton yarn, cotton by weight
≥85%, measuring ≤14metric number, not put up
for retail sale
76 52052200 Combed single cotton yarn, cotton by weight
≥85%, measuring >14metric number but
≤43metric number, not put up for retail sale
77 52052300 Combed single cotton yarn, cotton by weight
≥85%, measuring >43metric number but
≤52metric number, not put up for retail sale
78 52052400 Combed single cotton yarn, cotton by weight
≥85%, measuring >52metric number but
≤80metric number, not put up for retail sale
79 52052600 Combed single cotton yarn, cotton by weight
≥85%, measuring >80metric number but
≤94metric number, not put up for retail sale
80 52053100 Uncombed multiple or cabled cotton yarn, cotton
by weight ≥85%, measuring ≤14metric number
81 52053200 Uncombed multiple or cabled cotton yarn, cotton
by weight ≥85%, measuring >14metric number
but ≤43metric number, not put up for retail saleCOTTON
YARN,
containing 85%
or more by
weight of
cotton*
82 52053300 Uncombed multiple or cabled cotton yarn, cotton
by weight ≥85%, measuring >43metric number
but ≤52metric number, not put up for retail sale1. China National
Textiles Import &
Export Co.
2. Qingdao Textiles
United Import &Export Co.
3. Beijing No.2 Cotton
Mill
4. Beijing No.3 Cotton
Mill
5. Tianjin No.1 Cotton
Mill
6. Shanghai Shenda Co.
Ltd
7. Shanghai Huashen
Textiles and DyingCo. (Group)
8. Dalian Huanqiu
Textiles Group Co.
9. Shijiazhuang
Changshan TextilesGroup
10. Luoyang Cotton
Mill, Henan ProvinceWT/MIN(01)/3
Page 100
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSSTATE TRADING
ENTERPRISES
83 52053400 Uncombed multiple or cabled cotton yarn, cotton
by weight ≥85%, measuring >52metric number
but ≤80metric number, not put up for retail sale
84 52053500 Uncombed cabled cotton yarn, cotton by weight
≥85%, measuring >80metric number, not put up
for retail sale
85 52054100 Combed multiple or cabled cotton yarn, cotton
by weight ≥85%, measuring ≤14metric number,
not put up for retail sale
86 52054200 Combed multiple or cabled cotton yarn, cotton
by weight ≥85%, measuring >14metric number
but ≤43metric number, not put up for retail sale
87 52054300 Combed multiple or cabled cotton yarn, cotton
by weight ≥85%, measuring >43metric number
but ≤52metric number, not put up for retail sale
88 52054400 Combed multiple or cabled cotton yarn, cotton
by weight ≥85%, measuring >52metric number
but ≤80metric number, not put up for retail sale
89 52054600 Combed multiple or cabled cotton yarn, cotton
by weight ≥85%, measuring >80metric number
but ≤94metric number, not put up for retail sale
90 52071000 Cotton yarn (excl. sewing), put up for retail sale,
cotton by weight ≥85%
91 52041900 Cotton sewing thread, cotton by weight <85%,
not put up for retail sale
92 52061100 Uncombed single cotton yarn, cotton by weight
<85%, measuring ≤14metric number, not put up
for retail sale
93 52061200 Uncombed single cotton yarn, cotton by weight
<85%, measuring >14metric number but≤43metric number, not put up for retail sale
94 52061300 Uncombed single cotton yarn, cotton by weight
<85%, measuring >43metric number but≤52metric number, not put up for retail sale
95 52061400 Uncombed single cotton yarn, cotton by weight
<85%, measuring >52metric number but
≤80metric number, not put up for retail sale
96 52061500 Uncombed single cotton yarn, cotton by weight
<85%, measuring >80metric number, not put upfor retail sale
97 52062100 Combed single cotton yarn, cotton by weight
<85%, measuring ≤14metric number, not put up
for retail sale
98 52062200 Combed single cotton yarn, cotton by weight
<85%, measuring >14metric number but
≤43metric number, not put up for retail sale
99 52062300 Combed single cotton yarn, cotton by weight
<85%, measuring >43metric number but≤52metric number, not put up for retail saleCOTTON
YARN,
containing less
than 85% by
weight of
cotton*
100 52062400 Combed single cotton yarn, cotton by weight
<85%, measuring >52metric number but≤80metric number, not put up for retail sale11. Songyue Textiles
Industry Group,Henan Province
12. Dezhou Cotton Mill
13. Wuxi No.1 Cotton
Mill
14. Puxin Textiles Mill,
Hubei Province
15. Northwest No.1
Cotton Mill
16. Chengdu Jiuxing
Textiles Group Co.
17. Suzhou Sulun
Textiles Joint
Company (Group)
18. Northwest No.7
Cotton Mill
19. Xiangmian Group
Co., Hubei Province
20. Handan Lihua
Textiles Group Co.WT/MIN(01)/3
Page 101
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSSTATE TRADING
ENTERPRISES
101 52062500 Combed single cotton yarn, cotton by weight
<85%, measuring >80metric number, not put upfor retail sale
102 52063100 Uncombed multiple or cabled cotton yarn, cotton
by weight <85%, measuring ≤14metric number,
not put up for retail sale
103 52063200 Uncombed multiple or cabled cotton yarn, cotton
by weight <85%, measuring >14metric numberbut ≤43metric number, not put up for retail sale
104 52063300 Uncombed multiple or cabled cotton yarn, cotton
by weight <85%, measuring >43metric numberbut ≤52metric number, not put up for retail sale
105 52063400 Uncombed multiple or cabled cotton yarn, cotton
by weight <85%, measuring >52metric number
but ≤80metric number, not put up for retail sale
106 52063500 Uncombed multiple or cabled cotton yarn, cotton
by weight <85%, measuring >80metric number,not put up for retail sale
107 52064100 Combed multiple or cabled cotton yarn, cotton
by weight <85%, measuring ≤14metric number,
not put up for retail sale
108 52064200 Combed multiple or cabled cotton yarn, cotton
by weight <85%, measuring >14metric number
but ≤43metric number, not put up for retail sale
109 52064300 Combed multiple or cabled cotton yarn, cotton
by weight <85%, measuring >43metric numberbut ≤52metric number, not put up for retail sale
110 52064400 Combed multiple or cabled cotton yarn, cotton
by weight <85%, measuring >52metric number
but ≤80metric number, not put up for retail sale
111 52064500 Combed multiple or cabled cotton yarn, cotton
by weight <85%, measuring >80metric number,not put up for retail sale
112 52079000 Cotton yarn (excl. sewing), put up for retail sale,
cotton by weight <85%
113 52081100 Unbleached plain cotton weave, cotton by
weight ≥85%,a weight not exceeding 100g/m2
114 52081200 Unbleached plain cotton weave, cotton by
weight ≥85%,a weight exceeding 100g/m2 but
not exceeding 200g/m2
115 52081300 Unbleached 3 or 4-thread twill, cotton by weight
≥85%, a weight not exceeding 200g/m2
116 52081900 Unbleached woven cotton fabrics, nes, cotton by
weight ≥85%, a weight not exceeding 200g/m2
117 52091100 Unbleached plain cotton weave, cotton by
weight ≥85%, a weight exceeding 200g/m2
118 52091200 Unbleached 3 or 4-thread twill, cotton by weight
≥85%, a weight exceeding 200g/m2WOVEN
FABRICS OF
COTTON,
containing 85%
or more by
weight of
cotton*
119 52091900 Unbleached cotton fabrics, cotton by weight
≥85%, a weight exceeding 200g/m2, nes21. Xinjiang Textiles
Industry Co.(Group)
22. Anqing  Textiles
Mill
23. Jinan No.2 Cotton
Mill
24. Tianjin No.2
Cotton Mill
25. Jinhua Textiles
Mill, ShanxiProvince
26. Jinwei Group Co.,
Zhejiang Province
27. Northwest No.5
Cotton Mill
28. Baoding No.1
Cotton Mill
29. Liaoyang Textiles
Mill
30. Changchun
Textiles Mill
31. Huaxin Cotton
Mill, HenanProvince
32. Baotou Textiles
Mill
33. Ninbo Hefeng
Textiles Group Co.
34. Northwest No.4
Cotton Mill
35. Xinjiang Shihezi
Bayi Cotton MillWT/MIN(01)/3
Page 102
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSSTATE TRADING
ENTERPRISES
120 52101100 Unbleached plain cotton weave, cotton by
weight <85%,mixed mainly or solely with man-made fibres, a weight not exceeding 200g/m2
121 52101200 Unbleached 3 or 4-thread twill, cotton by weight
<85%,mixed mainly or solely with man-made
fibres, a weight not exceeding 200g/m2
122 52101900 Unbleached woven cotton fabrics, nes, cotton by
weight <85%,mixed mainly or solely with man-made fibres, a weight not exceeding 200g/m2
123 52111100 Unbleached plain cotton weave, cotton by
weight <85%,mixed mainly or solely with man-made fibres, a weight exceeding 200g/m2
124 52111200 Unbleached 3 or 4-thread twill, cotton by weight
<85%,mixed mainly or solely with man-made
fibres, a weight exceeding 200g/m2WOVEN
FABRICS OF
COTTON,
containing less
than 85% by
weight of
cotton*
125 52111900 Unbleached woven cotton fabrics, nes, cotton by
weight <85%,mixed mainly or solely with man-made fibres, a weight exceeding 200g/m2
126 26171010 Crude antimony ANTIMONY
ORES 127 26171090 Antimony ores & concentrates, excl. crude
ANTIMONY
OXIDE128 28258000 Antimony oxides
129 81100020 Antimony unwrought
130 81100030 Antimony waste and scrap; Antimony powders ANTIMONY
PRODUCTS 131 81100090 Antimony and articles thereof, nes1. China National
Metals and MineralsImport & Export Co.
2. China National Non-
ferrous Import &Export Co.
3. China Rare Earth and
Metal Group Co.
132 71061000 Silver in powder
133 71069100 Silver (incl. Silver plated with gold or platinum)
in unwrought formsSILVER
134 71069200 Silver (incl. Silver plated with gold or platinum)
in semi-manufactured forms nes1. China Banknote
Printing and Minting
Corporation
2. China Copper Lead
Zinc Group
                                                     
* Each of the 35 State Trading Enterprises listed under products "Cotton Yarn, containing 85% or more
by weight of cotton", "Cotton Yarn, containing less than 85% by weight of cotton", "Woven Fabrics of Cotton,containing 85% or more by weight of cotton", "Woven Fabrics of Cotton, containing less than 85% by weight of
cotton", may trade in Product Numbers 69 through 125.WT/MIN(01)/3
Page 103
ANNEX 2B
PRODUCTS SUBJECT TO DESIGNATED TRADING
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSLIBERALIZATION
PROGRAM
1 40011000 Natural rubber latex, in primary forms or in plates, sheets
or strip
2 40012100 Smoked sheets of natural rubber
3 40012200 Technically specified natural rubber, in primary forms or
in plates, sheets or stripNATURAL
RUBBER
4 40012900 Natural rubber, in primary forms or in plates, sheets or
strip, nesLiberalized within
3 years after accession.
5 44020000 Wood charcoal (incl. shell or nut charcoal), whether or
not agglomerated
6 44031000 Wood in the ro ugh, whether or not stripped of bark or
sapwood, or ro ughly squared, treated with paint, stains,
creosote or other preservatives
7 44032000 Coniferous wood in the rough, whether or not stripped of
bark or sapwood, or ro ughly squared, excl. treated with
preservatives
8 44034910 Teak wood in the rough, whether or not stripped of bark
or sapwood, or ro ughly squared, excl. treated with
preservatives
9 44034990 Specified tropical wood in the rough, nes, whether or not
stripped of bark or sapwood, or roughly squared, excl.treated with preservatives
10 44039100 Oak (Quercus spp.) wood in the rough, whether or not
stripped of bark or sapwood, or roughly squared, excl.treated with preservatives
11 44039200 Beech (Fagus spp.) wood in the rough, whether or not
stripped of bark or sapwood, or ro ughly squared, excl.
treated with preservatives
12 44039910 Nan mu (Phoebe) wood in the rough, whether or not
stripped of bark or sapwood, or roughly squared, excl.treated with preservatives
13 44039920 Camphor wood in the rough, whether or not stripped of
bark or sapwood, or ro ughly squared, excl. treated with
preservatives
14 44039930 Rosewood in the rough, whether or not stripped of bark
or sapwood, or ro ughly squared, excl. treated with
preservatives
15 44039940 Kiri (Paulownia) wood in the rough, whether or not
stripped of bark or sapwood, or roughly squared, excl.treated with preservatives
16 44039990 Wood, nes, in the rough, whether or not stripped of bark
or sapwood, or ro ughly squared, excl. treated with
preservativesTIMBER
17 44041000 Hoopwood; split poles; piles, pickets and stakes of wood,
pointed but not sawn lengthwise; wooden sticks, roughly
trimmed but not turned, bent or otherwise worked;chipwood and the like, coniferousLiberalized within
3 years after accession.WT/MIN(01)/3
Page 104
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSLIBERALIZATION
PROGRAM
18 44042000 Hoopwood; split poles; piles, pickets and stakes of wood,
pointed but not sawn lengthwise; wooden sticks, roughlytrimmed but not turned, bent or otherwise worked;
chipwood and the like, non-coniferous
19 44050000 Wood wool; wood flour
20 44061000 Railway or tramway sleepers (cross-ties) of wood, not
impregnated
21 44069000 Railway or tramway sleepers (cross-ties) of wood,
impregnated
22 44071000 Wood sawn or chipped lengthwise, sliced or peeled,
whether or not planed, sanded or finger-jointed, of athickness exceeding 6mm, conifers
23 44072400 Wood sawn or chipped lengthwise, sliced or peeled,
whether or not planed, sanded or finger-jointed, of a
thickness exceeding 6mm, Virola, Mahogany (Swietenia
spp.), Imbuia and Balsa
24 44072500 Wood sawn or chipped lengthwise, sliced or peeled,
whether or not planed, sanded or finger-jointed, of athickness exceeding 6mm, Dark Red Meranti, Light RedMeranti and Meranti Bakau
25 44072600 Wood sawn or chipped lengthwise, sliced or peeled,
whether or not planed, sanded or finger-jointed, of a
thickness exceeding 6mm, White Lauan, White Meranti,
White Seraya, Yellow Meranti and Alan
26 44072910 Wood sawn or chipped lengthwise, sliced or peeled,
whether or not planed, sanded or finger-jointed, of athickness exceeding 6mm,Teak wood
27 44072990 Wood sawn or chipped lengthwise, sliced or peeled,
whether or not planed, sanded or finger-jointed, of a
thickness exceeding 6mm, specified tropical woods nes
28 44079100 Wood sawn or chipped lengthwise, sliced or peeled,
whether or not planed, sanded or finger-jointed, of athickness exceeding 6mm, Oak (Quercus spp.) wood
29 44079200 Wood sawn or chipped lengthwise, sliced or peeled,
whether or not planed, sanded or finger-jointed, of athickness exceeding 6mm, Beech (Fagus spp.) wood
30 44079910 Wood sawn or chipped lengthwise, sliced or peeled,
whether or not planed, sanded or finger-jointed, of a
thickness exceeding 6mm, Nan mu, Camphor wood or
Rosewood
31 44079920 Wood sawn or chipped lengthwise, sliced or peeled,
whether or not planed, sanded or finger-jointed, of athickness exceeding 6mm, Paulownia wood
32 44079990 Wood sawn or chipped lengthwise, sliced or peeled,
whether or not planed, sanded or finger-jointed, of a
thickness exceeding 6mm, wood nes
33 44121300 Plywood consisting solely of sheets of wood, each ply
not exceeding 6mm thickness, with at least one outer plyof tropical wood specified
34 44121400 Plywood consisting solely of sheets of wood, each ply
not exceeding 6mm thickness, with at least one outer plyof non-coniferous woodPLYWOOD
35 44121900 Plywood consisting solely of sheets of wood, each ply
not exceeding 6mm thickness, nesLiberalized within
3 years after accession.WT/MIN(01)/3
Page 105
PRODUCTS NO HSNO DESCRIPTION OF PRODUCTSLIBERALIZATION
PROGRAM
36 51011100 Greasy shorn wool, not carded or combed
37 51011900 Greasy wool (excl. shorn), not carded or combed
38 51012100 Degreased shorn wool, not carbonised, not carded or
combed
39 51012900 Degreased wool (excl. shorn), not carbonised, not carded
or combed
40 51013000 Carbonized wool, not carded or combed
41 51031010 Noils of wool, excluding garnetted stock
42 51051000 Carded wool
43 51052100 Combed wool in fragmentsWOOL
44 51052900 Wool tops & combed wool (excl. Combed wool in
fragments)Liberalized within
3 years after accession.
45 54023910 Synthetic filament textured yarn of polypropylene, not
for retail sale
46 54023990 Synthetic filament textured yarn, nes, not for retail sale
47 54024910 Single synthetic yarn of polypropylene, with ≤50
turns/m, not for retail sale
48 54024920 Single synthetic yarn of polyurethane, with ≤50 turns/m,
not for retail sale
49 54024990 Single synthetic yarn, nes, with ≤50 turns/m, not for
retail sale
50 54025910 Single filament yarn of polypropylene, with >50 turns/m,
not for retail sale
51 54025990 Single synthetic filament yarn, nes, with >50 turns/m, not
for retail sale
52 54026910 Multiple or cabled yarn of polypropylene not for retail
sale
53 54026920 Multiple or cabled yarn of polyurethane, not for retail
sale
54 54026990 Multiple or cabled yarn of synthetic filament, nes, not for
retail sale
55 55013000 Synthetic filament tow of acrylic or modacrylic
56 55033000 Synthetic staple fibres, of acrylic or modacrylic, not
carded, combed or otherwise processed for spinning
57 55063000 Synthetic staple fibres of acrylic or modacrylic, carded,
combed or otherwise processed for spinning
58 55093100 Single yarn, with ≥85% acrylic or modacrylic staple
fibres, not put up for retail sale
59 55093200 Multiple or cabled yarn, ≥85% acrylic/modacrylic staple
fibres, not put up for retail sale
60 55096100 Yarn, <85% acrylic or modacrylic staple fibres, mixed
mainly or solely with wool or fine animal hair, not put upfor retail sale
61 55096200 Yarn, <85% acrylic or modacrylic staple fibres, mixed
mainly or solely with cotton, not put up for retail saleACRYLIC
62 55096900 Yarn, <85% acrylic or modacrylic staple fibres, nes, not
put up for retail saleLiberalized within
3 years after accession.WT/MIN(01)/3
Page 106
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSLIBERALIZATION
PROGRAM
63 72081000 Iron or non-alloy steel in coils, not clad or plated or
coated, of a width of 600mm or more, not further workedthan hot-rolled, with patterns in relief
64 72082500 Flat-rolled products of iron or non-alloy steel, in coils,
not clad or plated or coated, of a width of 600mm or
more, not further worked than hot-rolled, pickled, of athickness of 4.75mm or more
65 72082600 Flat-rolled products of iron or non-alloy steel, in coils,
not clad or plated or coated, of a width of 600mm ormore, not further worked than hot-rolled, pickled, of athickness of 3mm or more but less than 4.75mm
66 72082700 Flat-rolled products of iron or non-alloy steel, in coils,
not clad or plated or coated, of a width of 600mm or
more, not further worked than hot-rolled, pickled, of athickness of less than 3mm
67 72083600 Flat-rolled products of iron or non-alloy steel, in coils,
not clad or plated or coated, of a width of 600mm ormore, not further worked than hot-rolled, nes, of athickness of 10mm or more
68 72083700 Flat-rolled products of iron or non-alloy steel, in coils,
not clad or plated or coated, of a width of 600mm or
more, not further worked than hot-rolled, nes, of athickness of 4.75mm or more but less than 10mm
69 72083800 Flat-rolled products of iron or non-alloy steel, in coils,
not clad or plated or coated, of a width of 600mm ormore, not further worked than hot-rolled, nes, of a
thickness of 3mm or more but less than 4.75mm
70 72083900 Flat-rolled products of iron or non-alloy steel, in coils,
not clad or plated or coated, of a width of 600mm ormore, not further worked than hot-rolled, nes, of athickness of less than 3mm
71 72084000 Flat-rolled products of iron or non-alloy steel not in coils,
not clad or plated or coated, of a width of 600mm ormore, not further worked than hot-rolled, with patterns in
relief
72 72085100 Flat-rolled products of iron or non-alloy steel, not in
coils, not clad or plated or coated, of a width of 600mmor more, not further worked than hot-rolled, nes, of athickness of 10mm or more
73 72085200 Flat-rolled products of iron or non-alloy steel, not in
coils, not clad or plated or coated, of a width of 600mmor more, not further worked than hot-rolled, nes, of a
thickness of 4.75mm or more but less than 10mm
74 72085300 Flat-rolled products of iron or non-alloy steel, not in
coils, not clad or plated or coated, of a width of 600mmor more, not further worked than hot-rolled, nes, of athickness of 3mm or more but less than 4.75mmSTEEL
75 72085400 Flat-rolled products of iron or non-alloy steel, not in
coils, not clad or plated or coated, of a width of 600mm
or more, not further worked than hot-rolled, nes, of a
thickness of less than 3mmLiberalized within
3 years after accession.WT/MIN(01)/3
Page 107
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSLIBERALIZATION
PROGRAM
76 72089000 Flat-rolled products of iron or non-alloy steel, not clad or
plated or coated, of a width of 600mm or more, hot-rolled, nes
77 72091500 Flat-rolled products of iron or non-alloy steel, in coils,
not clad or plated or coated, of a width of 600mm or
more, not further worked than cold-rolled, of a thicknessof 3mm or more
78 72091600 Flat-rolled products of iron or non-alloy steel, in coils,
not clad or plated or coated, of a width of 600mm ormore, not further worked than cold-rolled, of a thicknessexceeding 1mm but less than 3mm
79 72091700 Flat-rolled products of iron or non-alloy steel, in coils,
not clad or plated or coated, of a width of 600mm or
more, not further worked than cold-rolled, of a thicknessof 0.5mm or more but not exceeding 1mm
80 72091800 Flat-rolled products of iron or non-alloy steel, in coils,
not clad or plated or coated, of a width of 600mm ormore, not further worked than cold-rolled, of a thicknessof less than 0.5mm
81 72092500 Flat-rolled products of iron or non-alloy steel, not in
coils, not clad or plated or coated, of a width of 600mm
or more, not further worked than cold-rolled, of athickness of 3mm or more
82 72092600 Flat-rolled products of iron or non-alloy steel, not in
coils, not clad or plated or coated, of a width of 600mmor more, not further worked than cold-rolled, of a
thickness exceeding 1mm but less than 3mm
83 72092700 Flat-rolled products of iron or non-alloy steel, not in
coils, not clad or plated or coated, of a width of 600mmor more, not further worked than cold-rolled, of athickness of 0.5mm or more but not exceeding 1mm
84 72092800 Flat-rolled products of iron or non-alloy steel, not in
coils, not clad or plated or coated, of a width of 600mmor more, not further worked than cold-rolled, of a
thickness of less than 0.5mm
85 72099000 Flat-rolled products of iron or non-alloy steel, not clad or
plated or coated, of a width of 600mm or more, cold-rolled, nes
86 72101100 Flat-rolled products of iron or non-alloy steel, plated or
coated with tin, of a width of 600mm or more, of athickness of 0.5mm or more
87 72101200 Flat-rolled products of iron or non-alloy steel, plated or
coated with tin, of a width of 600mm or more, of a
thickness of less than 0.5mm
88 72102000 Flat-rolled products of iron or non-alloy steel, plated or
coated with lead, of a width of 600mm or more,including terneplate
89 72103000 Flat-rolled products of iron or non-alloy steel, of a width
of 600mm or more, electrolytical ly plated or coated with
zincWT/MIN(01)/3
Page 108
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSLIBERALIZATION
PROGRAM
90 72104100 Flat-rolled products of iron or non-alloy steel, of a width
of 600mm or more, corrugated, plated or coated withzinc nes
91 72104900 Flat-rolled products of iron or non-alloy steel, of a width
of 600mm or more, plated or coated with zinc, nes
92 72105000 Flat-rolled products of iron or non-alloy steel, of a width
of 600mm or more, plated or coated with chromiumoxides or with chromium and chromium oxides
93 72106100 Flat-rolled products of iron or non-alloy steel, of a width
of 600mm or more, plated or coated with aluminium-zincalloys
94 72106900 Flat-rolled products of iron or non-alloy steel, of a width
of 600mm or more, plated or coated with aluminium, nes
95 72107000 Flat-rolled products of iron or non-alloy steel, of a width
of 600mm or more, painted or plated with plastics
96 72109000 Flat-rolled products of iron or non-alloy steel, of a width
of 600mm or more, plated or coated, nes
97 72111300 Flat-rolled products of iron or non-alloy steel, not in
coils, not clad or plated or coated, rolled on four faces orin a closed box pass, 150mm <width >600mm, and athickness ≥4mm, without patterns in relief, not further
worked than hot-rolled
98 72111400 Flat-rolled products of iron or non-alloy steel, not further
worked than hot-rolled, not clad  or plated or coated, of a
width of less than 600mm, of a thickness of 4.75mm ormore, nes
99 72111900 Flat-rolled products of iron or non-alloy steel, not further
worked than hot-rolled, not clad  or plated or coated, of a
width of less than 600mm, nes
100 72112300 Flat-rolled products of iron or non-alloy steel, of a width
of less than 600mm, not further worked than cold-rolled,
containing by weight less than 0.25% of carbon
101 72112900 Flat-rolled products of iron or non-alloy steel, of a width
of less than 600mm, not further worked than cold-rolled,containing by weight not less than 0.25% of carbon
102 72119000 Flat-rolled products of iron or non-alloy steel, of a width
of less than 600mm, nes
103 72121000 Flat-rolled products of iron or non-alloy steel, of a width
of less than 600mm, plated or coated with tin
104 72122000 Flat-rolled products of iron or non-alloy steel, of a width
of less than 600mm, electrolyti cally plated or coated with
zinc
105 72123000 Flat-rolled products of iron or non-alloy steel, of a width
of less than 600mm, plated or coated with zinc, nes
106 72124000 Flat-rolled products of iron or non-alloy steel, of a width
of less than 600mm, painted or plated or coated withplastics
107 72125000 Flat-rolled products of iron or non-alloy steel, of a width
of less than 600mm, plated or coated, nesWT/MIN(01)/3
Page 109
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSLIBERALIZATION
PROGRAM
108 72126000 Flat-rolled products of iron or non-alloy steel, of a width
of less than 600mm, clad
109 72131000 Bars & rods, hot-rolled, in irregularly wound coils, of
iron or non-alloy steel, containing indentations & ribs &
grooves & other deformations produced during the
rolling process
110 72132000 Bars & rods, hot-rolled, in irregularly wound coils, of
iron or non-alloy steel, of free cutting steel
111 72139100 Bars & rods, hot-rolled, in irregularly wound coils, of
iron or non-alloy steel, of circular cross-sectionmeasuring less than 14 mm in diameter, nes
112 72139900 Bars & rods, hot-rolled, in irregularly wound coils, of
iron or non-alloy steel, nes
113 72141000 Bars & rods of iron or non-alloy steel, not further worked
than forged, nes
114 72142000 Bars & rods of iron or non-alloy steel, not further worked
than forged or hot-rolled or hot-drawn or hot-extruded,containing indentations & ribs & grooves & otherdeformations produced during the rolling process ortwisted after rolling, nes
115 72143000 Bars & rods of iron or non-alloy steel, not further worked
than forged or hot-rolled or hot-drawn or hot-extruded
(incl. twisted after rolling), of free cutting steel, nes
116 72149100 Bars & rods of iron or non-alloy steel, not further worked
than forged or hot-rolled or hot-drawn or hot-extruded(incl. twisted after rolling), of rectangular (excl. square)cross-section, nes
117 72149900 Bars & rods of iron or non-alloy steel, not further worked
than forged or hot-rolled or hot-drawn or hot-extruded
(incl. twisted after rolling), nes
118 72151000 Bars & rods of free cutting steel, not further worked than
cold- formed or cold-finished, nes
119 72155000 Bars & rods of iron or non-alloy steel, not further worked
than cold- formed or cold-finished, nes
120 72159000 Bars & rods of iron or non-alloy steel, nes
121 72161010 H sections of iron or non-alloy steel, not further worked
than hot-rolled or hot-drawn or hot-extruded, of a heightless than 80mm
122 72161090 U &I sections of iron or non-alloy steel, not further
worked than hot-rolled or hot-drawn or hot-extruded, of a
height less than 80mm
123 72162100 L sections of iron or non-alloy steel, not further worked
than hot-rolled or hot-drawn or hot-extruded, of a heightless than 80mm
124 72162200 T sections of iron or non-alloy steel, not further worked
than hot-rolled or hot-drawn or hot-extruded, of a heightless than 80mm
125 72163100 U sections of iron or non-alloy steel, not further worked
than hot-rolled or hot-drawn or hot-extruded, of a height
of 80mm or moreWT/MIN(01)/3
Page 110
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSLIBERALIZATION
PROGRAM
126 72163200 I sections of iron or non-alloy steel, not further worked
than hot-rolled or hot-drawn or hot-extruded, of a heightof 80mm or more
127 72163300 H sections of iron or non-alloy steel, not further worked
than hot-rolled or hot-drawn or hot-extruded, of a height
of 80mm or more
128 72164010 L sections of iron or non-alloy steel, not further worked
than hot-rolled or hot-drawn or hot-extruded, of a heightof 80mm or more
129 72164020 T sections of iron or non-alloy steel, not further worked
than hot-rolled or hot-drawn or hot-extruded, of a heightof 80mm or more
130 72165010 Z sections of iron or non-alloy steel, not further worked
than hot-rolled or hot-drawn or hot-extruded
131 72165090 Angles & shapes & sections of iron or non-alloy steel,
not further worked than hot-rolled or hot-drawn or hot-extruded, nes
132 72166100 Angles & shapes & sections of iron or non-alloy steel,
not further worked than cold-rolled or cold-drawn orcold-extruded, obtained from flat-rolled products
133 72166900 Angles & shapes & sections of iron or non-alloy steel,
not further worked than cold-rolled or cold-drawn or
cold-extruded, nes
134 72169100 Angles & shapes & sections of iron or non-alloy steel,
cold-rolled or cold-drawn or cold-extruded, obtainedfrom flat-rolled products, nes
135 72169900 Angles & shapes & sections of iron or non-alloy steel,
cold-rolled or cold-drawn or cold-extruded, nes
136 72171000 Wire of iron or non-alloy steel, not plated or coated,
whether or not polished
137 72172000 Wire of iron or non-alloy steel, plated or coated with zinc
138 72173000 Wire of iron or non-alloy steel, plated or coated with
other base metals
139 72179000 Wire of iron or non-alloy steel, nes
140 72181000 Ingots & other primary forms of stainless steel
141 72189100 Semi-finished products of stainless steel, of rectangular
(other than square) cross-section
142 72189900 Semi-finished products of stainless steel, nes
143 72191100 Flat-rolled products of stainless steel, of a width of
600mm or more, not further worked than hot-rolled, incoils, of a thickness exceeding 10mm
144 72191200 Flat-rolled products of stainless steel, of a width of
600mm or more, not further worked than hot-rolled, in
coils, of a thickness of 4.75mm or more but less than
10mm
145 72191300 Flat-rolled products of stainless steel, of a width of
600mm or more, not further worked than hot-rolled, incoils, of a thickness of 3mm or more but less than4.75mmWT/MIN(01)/3
Page 111
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSLIBERALIZATION
PROGRAM
146 72191400 Flat-rolled products of stainless steel, of a width of
600mm or more, not further worked than hot-rolled, incoils, of a thickness of less than 3mm
147 72192100 Flat-rolled products of stainless steel, of a width of
600mm or more, not further worked than hot-rolled, not
in coils, of a thickness exceeding 10mm
148 72192200 Flat-rolled products of stainless steel, of a width of
600mm or more, not further worked than hot-rolled, notin coils, of a thickness of 4.75mm or more but less than10mm
149 72192300 Flat-rolled products of stainless steel, of a width of
600mm or more, not further worked than hot-rolled, not
in coils, of a thickness of 3mm or more but less than
4.75mm
150 72192400 Flat-rolled products of stainless steel, of a width of
600mm or more, not further worked than hot-rolled, notin coils, of a thickness of less than 3mm
151 72193100 Flat-rolled products of stainless steel, of a width of
600mm or more, not further worked than cold-rolled, of athickness of 4.75mm or more
152 72193200 Flat-rolled products of stainless steel, of a width of
600mm or more, not further worked than cold-rolled, of a
thickness of 3mm or more but less than 4.75mm
153 72193300 Flat-rolled products of stainless steel, of a width of
600mm or more, not further worked than cold-rolled, of athickness exceeding 1mm but less than 3mm
154 72193400 Flat-rolled products of stainless steel, of a width of
600mm or more, not further worked than cold-rolled, of a
thickness of 0.5mm or more but not exceeding 1mm
155 72193500 Flat-rolled products of stainless steel, of a width of
600mm or more, not further worked than cold-rolled, of athickness of less than 0.5mm
156 72199000 Flat-rolled products of stainless steel, of a width of
600mm or more, nes
157 72201100 Flat-rolled products of stainless steel, of a width of less
than 600mm, not further worked than hot-rolled, of athickness of 4.75mm or more
158 72201200 Flat-rolled products of stainless steel, of a width of less
than 600mm, not further worked than hot-rolled, of a
thickness of less than 4.75mm
159 72202000 Flat-rolled products of stainless steel, of a width of less
than 600mm, not further worked than cold-rolled
160 72209000 Flat-rolled products of stainless steel, of a width of less
than 600mm, nes
161 72210000 Bars & rods of stainless steel, hot-rolled, in irregularly
wound coils
162 72221100 Bars & rods of stainless steel, not further worked than
hot-rolled or hot-drawn or extruded, of circular cross-
section, nes
163 72221900 Bars & rods of stainless steel, not further worked than
hot-rolled or hot-drawn or extruded, nesWT/MIN(01)/3
Page 112
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSLIBERALIZATION
PROGRAM
164 72222000 Bars & rods of stainless steel, not further worked than
cold- formed or cold-finished
165 72223000 Bars & rods of stainless steel, nes
166 72224000 Angles, shapes & sections, stainless steel
167 72230000 Wire of stainless steel
168 72241000 Ingots & other primary forms of alloy steel, other than
stainless
169 72249010 Raw casting forging stocks, individual piece weight of
10T or more, of alloy steel, other than stainless
170 72249090 Semi-finished products of alloy steel other than stainless,
nes
171 72251100 Flat rolled products of Si-electrical steel, width ≥600mm,
grain-oriented
172 72251900 Flat rolled products of silicon-electrical steel,
width≥600mm, nes
173 72252000 Flat rolled products of high speed steel, width ≥600mm
174 72253000 Flat rolled products, of alloy steel (excl. stainless,
silicon-electrical steel, high speed steel), in coils, notfurther worked than hot-rolled, width ≥600mm
175 72254000 Flat rolled products, of alloy steel (excl. stainless,
silicon-electrical steel, high speed steel), not further
worked than hot-rolled, width ≥600mm, nes
176 72255000 Flat rolled products, of alloy steel (excl. stainless,
silicon-electrical steel, high speed steel), not furtherworked than cold-rolled, width ≥600mm
177 72259100 Flat rolled products, of alloy steel (excl. stainless,
silicon-electrical steel, high speed steel), nes,
width≥600mm, electrolytically coated with zinc
178 72259200 Flat rolled products, of alloy steel (excl. stainless,
silicon-electrical steel, high speed steel), nes,width≥600mm, otherwise coated with zinc
179 72259900 Flat rolled products, of alloy steel, width ≥600mm, nes
180 72261100 Flat rolled products of silicon -electrical steel, width
<600mm grain-oriented
181 72261900 Flat rolled products of silicon -electrical steel, width
<600mm, nes
182 72262000 Flat rolled products of high speed steel, width <600mm
183 72269100 Flat rolled products, of alloy steel (excl. stainless,
silicon-electrical steel, high speed steel), not further
worked than hot-rolled, width <600mm
184 72269200 Flat rolled products, of alloy steel (excl. stainless,
silicon-electrical steel, high speed steel), not furtherworked than cold-rolled, width <600mm
185 72269300 Flat rolled products, of alloy steel (excl. stainless,
silicon-electrical steel, high speed steel), nes, width<600mm, electrolytically coated with zinc
186 72269400 Flat rolled products, of alloy steel (excl. stainless,
silicon-electrical steel, high speed steel), nes, width
<600mm, otherwise coated with zinc
187 72269900 Flat rolled products, of alloy steel, width <600mm, nesWT/MIN(01)/3
Page 113
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSLIBERALIZATION
PROGRAM
188 72271000 Bars & rods, of high speed steel, hot-rolled, in irregularly
wound coils
189 72272000 Bars & rods, of silico-manganese steel, hot-rolled, in
irregular wound coils
190 72279000 Bars & rods, of alloy steel, hot-rolled, in irregularly
wound coils, nes
191 72281000 Bars & rods of high speed steel, nes
192 72282000 Bars & rods of silico-manganese steel, nes
193 72283000 Bars & rods of alloy steel other than stainless, not further
worked than hot-rolled or hot-drawn or extruded, nes
194 72284000 Bars & rods of alloy steel other than stainless, not further
worked than forged
195 72285000 Bars & rods of alloy steel other than stainless, not further
worked than cold formed or finished
196 72286000 Bars & rods of alloy steel other than stainless, nes
197 72287010 Shapes of crawler tread of alloy steel other than stainless
198 72287090 Angles, shapes & sections of alloy steel other than
stainless, nes
199 72288000 Bars & rods, hollow drill, of alloy or non-alloy steel
200 72291000 Wire of high speed steel
201 72292000 Wire of silico-manganese steel
202 72299000 Wire of alloy steel, nes
203 73011000 Sheet piling of iron or steel, whether or not drilled,
punched or made from assembled elements
204 73012000 Angles, shapes & sections, welded, of iron or steel
205 73021000 Rails, of iron or steel
206 73022000 Sleepers (cross-ties), of iron or steel
207 73023000 Switch blades & crossing frogs & point rods & other
crossing pieces, of iron or steel
208 73024000 Fish plates & sole plates, of iron or steel
209 73029000 Rail or tramway construction material of iron or steel,
nes
210 73030010 Tube, pipes of cast iron, of circular cross-section, inside
diameter. ≥500mm
211 73030090 Tubes, pipes & hollow profiles of cast iron, nes
212 73041000 Pipes, line, of iron (other than cast) or steel, seamless, of
a kind used for oil or gas pipelines
213 73042100 Drill pipe, of iron (other than cast) or steel, seamless, for
use in drilling for oil or gas
214 73042900 Casings, tubing pipe of iron (other than cast) or steel,
seamless, for use in drilling for oil or gas
215 73043110 Boiler tubes & pipes, of iron (other than cast) or steel,
seamless, of circular cross-section, cold drown or rolled
216 73043120 Geological casing & drill pipe, of iron (other than cast)
or steel, seamless, of circular cross-section, cold drownor rolled
217 73043190 Tubes & pipe, of iron (other than cast) or steel, seamless,
of circular cross-section, cold drown or rolled, nesWT/MIN(01)/3
Page 114
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSLIBERALIZATION
PROGRAM
218 73043910 Boiler tubes & pipes, of iron (other than cast) or steel,
seamless, of circular cross-section, not cold drown orrolled
219 73043920 Geological casing & drill pipe, of iron (other than cast)
or steel, seamless, of circular cross-section, not cold
drown or rolled
220 73043990 Tubes & pipe, of iron (other than cast) or steel, seamless,
of circular cross-section, not cold drown or rolled, nes
221 73044190 Tubes, pipe, of stainless steel, seamless, of circular cross-
section, cold drown or rolled, nes
222 73044910 Boiler tubes & pipes, of stainless steel, seamless, of
circular cross-section, not cold drown or rolled
223 73044990 Tubes & pipe, of stainless steel, seamless, of circular
cross-section, cold drown or rolled, nes
224 73045110 Boiler tube & pipe, of alloy steel other than stainless,
seamless, of circular cross-section, cold drown or rolled
225 73045120 Geological casing & drill pipe, of alloy steel other than
stainless, seamless, of circular cross-section, cold drownor rolled
226 73045190 Tubes & pipe, of alloy steel other than stainless,
seamless, of circular cross-section, cold drown or rolled,nes
227 73045910 Boiler tube & pipe, of alloy steel other than stainless,
seamless, of circular cross-section, not cold drown or
rolled
228 73045920 Geological casing & drill pipe, of alloy steel other than
stainless, seamless, of circular cross-section, not colddrown or rolled
229 73045990 Tubes & pipe, of alloy steel other than stainless,
seamless, of circular cross-section, not cold drown orrolled, nes
230 73049000 Tubes, pipe & hollow profiles, of iron (other than cast) or
steel, seamless, nes
231 73051100 Line pipes for oil or gas pipelines, of iron or steel, of
circular cross-section, external diameter >406.4mm,longitudinally submerged arc welded
232 73051200 Line pipes for oil or gas pipelines, of iron or steel, of
circular cross-section, external diameter >406.4mm,longitudinally welded nes
233 73051900 Line pipes for oil or gas pipelines, of iron or steel, of
circular cross-section, external diameter >406.4mm, nes
234 73052000 Casings used in drilling for oil or gas, of iron or steel, of
circular cross-section, external diameter >406.4mm, nes
235 73053100 Tubes & pipe, of iron or steel, longitudinally welded, of
circular cross-section, external diameter >406.4mm, nes
236 73053900 Tubes & pipe, of iron or steel, welded (excl.
longitudinally welded), , external diameter >406.4mm
237 73059000 Tubes & pipe, of iron or steel, riveted or similarly closed,
external diameter >406.4mm, nes
238 73061000 Line pipes for oil or gas pipelines, of iron or steel,
welded or open seam or riveted or similarly closed, nesWT/MIN(01)/3
Page 115
PRODUCTS NO HS NO DESCRIPTION OF PRODUCTSLIBERALIZATION
PROGRAM
239 73062000 Casings used in drilling for oil or gas, of iron or steel,
welded or open seam or riveted or similarly closed, nes
240 73063000 Tubes & pipes, of iron and non-alloy steel, welded, of
circular cross-section, nes
241 73064000 Tubes & pipes, of stainless steel, welded, of circular
cross-section, nes
242 73065000 Tubes & pipes, of alloy steel other than stainless, welded,
of circular cross-section, nes
243 73066000 Tubes, pipe & hollow profiles, of iron or steel, welded,
of non-circular cross-section, nes
244 73069000 Tubes, pipe & hollow profiles, of iron or steel, welded or
open seam or riveted or similarly closed, nes
245 73121000 Stranded wire & ropes & cables, of iron or steel, not
electrically insulatedWT/MIN(01)/3
Page 116
ANNEX 3
NON-TARIFF MEASURES SUBJECT TO PHASED ELIMINATION
Table One
Products Subject to Import Licence, Import Quota and Import Tendering
Serial
NOHS NO DESCRIPTION OF PRODUCTS L Q TPhasing-out
PeriodQuota
Category
1 17011100 Raw cane sugar, in solid form, not containing
added flavouring or colouring matterL Q upon accession
2 17011200 Raw beet sugar, in solid form, not containing
added flavouring or colouring matterL Q upon accession
3 17019910 Granulated sugar L Q upon accession
4 17019920 Superfine sugar L Q upon accession
5 24011010 Flue-cured tobacco, not stemmed/stripped L Q upon accession
6 24011090 Tobacco other than flue-cured, not
stemmed/strippedL Q upon accession
7 24012010 Flue-cured tobacco, partly or wholly
stemmed/strippedL Q upon accession
8 24012090 Tobacco other than flue-cured, partly or wholly
stemmed/strippedL Q upon accession
9 24013000 Tobacco refuse L Q upon accession
10 24029000 Cigars, cheroots, cigarillos and cigarettes, of
tobacco substitutesL Q upon accession
11 24039100 Homogenized or "reconstituted" tobacco L Q upon accession
12 27100011 Motor gasoline & aviation gasoline L Q 2004 1
13 27100013 Naphtha L Q 2004 1
14 27100019 Gasoline distillages, nes & preparations thereof L Q 2004 1
15 27100023 Aviation kerosene L Q 2004 1
16 27100024 Lamp-kerosene L Q 2004 1
17 27100031 Light diesel oil L Q 2004 1
18 27100033 Fuel oil No.5 to No.7 (National Code) L Q 2004 1
19 27100039 Diesel oils & preparations thereof and other fuel
oils, nesL Q 2004 1
20 28371110 Sodium cyanide L Q 2002 2
21 31021000 Urea, whether or not in aqueous solution L Q upon accession
22 31022100 Ammonium sulphate L Q 2002 3
23 31022900 Double salts & mixtures of ammonium sulphate &
ammonium nitrateL Q 2002 3
24 31023000 Ammonium nitrate, whether or not in aqueous
solutionL Q 2002 3
25 31024000 Mixtures of ammonium nitrate with calcium
carbonate or other inorganic non-fertilizing
substancesL Q 2002 3
26 31025000 Sodium nitrate L Q upon accession
27 31026000 Double salts & mixtures of calcium nitrate &
ammonium nitrateL Q upon accession
28 31027000 Calcium cyanamide L Q upon accession
29 31028000 Mixtures of urea & ammonium nitrate in aqueous
or ammoniacal solutionL Q 2002 3
30 31029000 Mineral or chemical fertilizers, nitrogenous , nes,
incl. mixtures not specified in the foregoingsubheadingsL Q 2002 3
31 31031000 Superphosphates L Q 2002 3WT/MIN(01)/3
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PeriodQuota
Category
32 31032000 Basic slag L Q 2002 3
33 31039000 Mineral or chemical fertilizers, phosphatic, nes L Q 2002 3
34 31041000 Carnallite, sylvite & other crude natural potassium
saltsL Q upon accession
35 31042000 Potassium chloride L Q upon accession
36 31043000 Potassium sulphate L Q 2002 3
37 31049000 Mineral or chemical fertil izers, potassic, nes L Q upon accession
38 31051000 Goods of chapter 31 in tables or similar forms or
in packages of a gross weight ≤10kgL Q 2002 3
39 31052000 Mineral or chemical fertilizers containing the
three fertilizing elements nitrogen, phosphorus &
potassiumL Q upon accession
40 31053000 Diammonium hydrogenorthophosphate
(diammonium phosphate)L Q upon accession
41 31054000 Ammonium dihydrogenorthophosphate
(monoammonium phosphate) and mixturesthereof with diammoniumhydrogenorthophosphate (diammoniumphosphate)L Q 2002 3
42 31055100 Mineral or chemical fertilizers containing nitrates
& phosphatesL Q 2002 3
43 31055900 Mineral or chemical fertilizers containing the two
fertilizing elements nitrogen & phosphorus, nesL Q 2002 3
44 31056000 Mineral or chemical fertilizers with phosphorus &
potassium, nesL Q 2002 3
45 31059000 Mineral or chemical fertilizers, nes L Q 2002 3
46 39076011 Polyethylene terephthalate in slices or chips, high
viscosityL Q upon accession
47 39076019 Polyethylene terephthalate in slices or chips, nes L Q upon accession
48 40011000 Natural rubber latex, in primary forms or in
plates, sheets or stripL Q 2004 4
49 40012100 Smoked sheets of natural rubber L Q 2004 4
50 40012200 Technically specified natural rubber, in primary
forms or in plates, sheets or stripL Q 2004 4
51 40012900 Natural rubber, in primary forms or in plates,
sheets or strip, nesL Q 2004 4
52 40111000 New pneumatic tyres, of rubber of a kind used on
motor carsL Q 2004 5
53 40112000 New pneumatic tyres, of rubber of a kind used on
buses or lorriesL Q 2004 5
54 40119100 New pneumatic tyres, of rubber, nes, of herring-
bone or similar treadL Q 2002 5
55 40121010 Retreaded tyres of rubber used on automobiles L Q 2002 5
56 40122010 Used pneumatic tyres of rubber used on
automobilesL Q 2002 5
57 40129020 Solid/cushion rubber tyres, etc, used on
automobilesL Q upon accession
58 40131000 Inner tubes, of rubber of a kind used on motor
cars, buses or lorriesL Q upon accession
59 51011100 Greasy shorn wool, not carded or combed L Q upon accession
60 51011900 Greasy wool (excl. shorn), not carded or combed L Q upon accession
61 51012100 Degreased shorn wool, not carbonised, not carded
or combedL Q upon accessionWT/MIN(01)/3
Page 118
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NOHS NO DESCRIPTION OF PRODUCTS L Q TPhasing-out
PeriodQuota
Category
62 51012900 Degreased wool (excl. shorn), not carbonised, not
carded or combedL Q upon accession
63 51013000 Carbonized wool, not carded or combed L Q upon accession
64 51031010 Noils of wool, excluding garnetted stock L Q upon accession
65 51051000 Carded wool L Q upon accession
66 51052100 Combed wool in fragments L Q upon accession
67 51052900 Wool tops & combed wool (excl. Combed wool in
fragments)L Q upon accession
68 52010000 Cotton, not carded or combed L Q upon accession
69 52030000 Cotton, carded or combed L Q upon accession
70 54022000 High tenacity yarn of polyesters L Q upon accession
71 54023310 Elastic filament of polyesters, not for retail sale L Q upon accession
72 54023390 Textured yarn of polyesters, nes, not for retail sale L Q upon accession
73 54023990 Synthetic filament textured yarn, nes, not for retail
saleL Q upon accession
74 54024200 Single yarn of partially oriented polyesters, with
≤50 turns/m, not for retail saleL Q upon accession
75 54024300 Single yarn of polyesters, nes, with ≤50turns/m,
not for retail saleL Q upon accession
76 54024990 Single synthetic yarn, nes, with ≤50 turns/m, not
for retail saleL Q upon accession
77 54025200 Single yarn of polyesters, with >50 turns/m, not
for retail saleL Q upon accession
78 54025990 Single synthetic filament yarn, nes, with
>50 turns/m, not for retail saleL Q upon accession
79 54026200 Multiple or cabled yarn of polyesters, not for
retail saleL Q upon accession
80 54026990 Multiple or cabled yarn of synthetic filament, nes,
not for retail saleL Q upon accession
81 54033310 Single yarn of cellulose diacetate, not for retail
saleL Q upon accession
82 54041000 Synthetic monofilament of ≥67 decitex, or more
and of which no cross-sectional dimensionexceeds 1mmL Q upon accession
83 55012000 Synthetic filament tow of polyesters L Q upon accession
84 55013000 Synthetic filament tow of acrylic or modacrylic L Q upon accession
85 55020010 Cellulose diacetate filament tow L Q upon accession
86 55032000 Synthetic staple fibres, of polyesters, not carded,
combed or otherwise processed for spinningL Q upon accession
87 55033000 Synthetic staple fibres, of acrylic or modacrylic,
not carded, combed or otherwise processed forspinningL Q upon accession
88 55062000 Synthetic staple fibres, of polyesters, carded,
combed or otherwise processed for spinningL Q upon accession
89 55063000 Synthetic staple fibres of acrylic or modacrylic,
carded, combed or otherwise processed for
spinningL Q upon accession
90 55092100 Single yarn, with ≥85% polyester staple fibres,
not put up for retail saleL Q upon accession
91 55092200 Multiple or cabled yarn, with ≥85% polyester
staple fibres, not put up for retail saleL Q upon accession
92 55093100 Single yarn, with ≥85% acrylic or modacrylic
staple fibres, not put up for retail saleL Q upon accessionWT/MIN(01)/3
Page 119
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NOHS NO DESCRIPTION OF PRODUCTS L Q TPhasing-out
PeriodQuota
Category
93 55093200 Multiple or cabled yarn, ≥85% acrylic/modacrylic
staple fibres, not put up for retail saleL Q upon accession
94 55095100 Yarn, <85% polyester staple fibres, mixed mainly
or solely with artificial staple fibres, not put up forretail saleL Q upon accession
95 55095200 Yarn, <85% polyester staple fibres, mixed mainly
or solely with wool/fine animal hair, not put upfor retail saleL Q upon accession
96 55095300 Yarn, <85% polyester staple fibres, mixed mainly
or solely with cotton, not put up for retail saleL Q upon accession
97 55095900 Yarn, <85% polyester staple fibres, nes, not put
up for retail saleL Q upon accession
98 55096100 Yarn, <85% acrylic or modacrylic staple fibres,
mixed mainly or solely with wool or fine animal
hair, not put up for retail saleL Q upon accession
99 55096200 Yarn, <85% acrylic or modacrylic staple fibres,
mixed mainly or solely with cotton, not put up forretail saleL Q upon accession
100 55096900 Yarn, <85% acrylic or modacrylic staple fibres,
nes, not put up for retail saleL Q upon accession
101 84073100 Reciprocation piston engines of a kind used for
the prolusion of vehicles of Chapter 87, with acylinder capacity not exceeding 50ccL Q 2003 6
102 84073200 Reciprocation piston engines of a kind used for
the prolusion of vehicles of Chapter 87, with a
cylinder capacity exceeding 50cc but notexceeding 250ccL Q 2003 6
103 84073300 Reciprocation piston engines of a kind used for
the prolusion of vehicles of Chapter 87, with acylinder capacity exceeding 250cc but notexceeding 1000ccL Q 2003 6
104 84079090 Spark-ignition reciprocation or rotary internal
combustion piston engines not elsewhere
specified or includedL Q 2003 7
105 84082010 Compression-ignition internal combustion piston
engines (diesel or semi-diesel engines) for theprolusion of vehicles of Chapter 87, with anoutput 132.39KW (180H.P.)or moreL Q 2003 7
106 84082090 Compression-ignition internal combustion piston
engines (diesel or semi-diesel engines) for theprolusion of vehicles of Chapter 87, with anoutput less than 132.39KW (180H.P.)L Q 2003 7
107 84089092 Compression-ignition internal combustion piston
engines (diesel or semi-diesel engines) not
elsewhere specified or included with an outputexceeding 14KW but less than132.39KW(180H.P.)T 2004
108 84143011 Compressors for refrigerators or freezers driven
by a motor, of a motor power not exceeding0.4KWL Q upon accession
109 84143012 Compressors for refrigerators or freezers driven
by a motor, of a motor power exceeding 0.4KW
but not exceeding 5KWL Q upon accessionWT/MIN(01)/3
Page 120
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NOHS NO DESCRIPTION OF PRODUCTS L Q TPhasing-out
PeriodQuota
Category
110 84143013 Compressors for air conditioning machinery
driven by a motor, of a motor power exceeding
0.4KW but not exceeding 5KWL Q upon accession
111 84143019 Compressors of a kind used in refrigerating
equipment driven by a motor, not elsewherespecified or includedL Q upon accession
112 84143090 Compressors of a kind used in refrigerating
equipment driven by a non-motorL Q upon accession
113 84145930 Centrifugal ventilation fans T upon accession
114 84151000 Window or wall types air conditioning machinery,
self-containedL Q 2002 8
115 84152000 Air conditioning machinery used for persons in
motor vehiclesL Q 2002 7
116 84158110 Air conditioning machinery incorporating a
refrigerating unit and a valve for reversal of the
cooling/heat cycle, of a refrigerating effect notexceeding 4000 Kcal per hourL Q upon accession
117 84158210 Air conditioning machinery incorporating a
refrigerating unit, of a refrigerating effect notexceeding 4000 Kcal per hour, nesL Q upon accession
118 84181010 Combined refrigerator-freezers fitted with
separate external doors, of a capacity exceeding500LL Q upon accession
119 84181020 Combined refrigerator-freezers fitted with
separate external doors, of a capacity exceeding
200L but not exceeding 500LL Q upon accession
120 84181030 Combined refrigerator-freezers fitted with
separate external doors, of a capacity notexceeding 200LL Q upon accession
121 84182110 Household-compression-type refrigerators, of a
capacity exceeding 150LL Q upon accession
122 84182120 Household-compression-type refrigerators, of a
capacity exceeding 50 l but not exceeding 150LL Q upon accession
123 84182130 Household-compression-type refrigerators, of a
capacity not exceeding 50LL Q upon accession
124 84182200 Household-absorption-type refrigerators,
electricalL Q upon accession
125 84183010 Chest-type freezers of a refrigerating temperature
of –40°C or lower, capacity not exceeding 800LL Q upon accession
126 84183021 Chest-type freezers of a refrigerating temperature
higher than –40°C, capacity exceeding 500L but
not exceeding 800LL Q upon accession
127 84183029 Chest-type freezers of a refrigerating temperature
higher than –40°C, capacity not exceeding 500LL Q upon accession
128 84184010 Upright-type freezers of a refrigerating
temperature of –40°C or lower, capacity notexceeding 900LL Q upon accession
129 84184021 Upright-type freezers of a refrigerating
temperature higher than –40°C, capacityexceeding 500L but not exceeding 900LL Q upon accession
130 84184029 Upright-type freezers of a refrigerating
temperature higher than –40°C, capacity not
exceeding 500LL Q upon accessionWT/MIN(01)/3
Page 121
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NOHS NO DESCRIPTION OF PRODUCTS L Q TPhasing-out
PeriodQuota
Category
131 84185000 Refrigerating or freezing chests, cabinets, display
counters, show-cases and similar refrigerating or
freezing furniture, nesL Q upon accession
132 84254990 Hoists of a kind used for raising vehicles, not
elsewhere specified or includedT upon accession
133 84261910 Overhead traveling Ship loading cranes T upon accession
134 84261921 Overhead traveling Grab ship unloading cranes T upon accession
135 84261929 Other Overhead traveling ship unloading cranes T upon accession
136 84263000 Portal or pedestal jib cranes T upon accession
137 84264110 Wheel-mounted cranes T upon accession
138 84264190 Self-propelled machinery on tyres fitted with a
crane, not elsewhere specified or includedT upon accession
139 84281010 Lifts and skip hoists designed for the transport of
personsT 2002
140 84284000 Escalators and moving walkways T upon accession
141 84291110 Track laying self-propelled bulldozers and
angledozers with an engine of an outputexceeding 235.36kW(320H.P.)T 2004
142 84294011 Self-propelled vibration-type road rollers, of a
deadweight of 18t or moreT 2002
143 84294019 Self-propelled road rollers, not elsewhere
specified or includedT 2004
144 84305020 Mining power shovels, self-propelled T upon accession
145 84381000 Bakery machinery and machinery for the
manufacture of macaroni, spaghetti or similarproductsT upon accession
146 84391000 Machinery for making pulp of fibrous cellulosic
materialT 2002
147 84392000 Machinery for making paper or paperboard T 2002
148 84393000 Machinery for finishing paper or paperboard T 2002
149 84413090 Machinery for making cartons, boxes, cases,
tubes, drums or similar containers in paper pulp,
paper or paperboard, other than by moulding, not
elsewhere specified or includedT upon accession
150 84414000 Machinery for moulding articles in paper pulp,
paper or paperboardT upon accession
151 84431910 Sheet fed offset printing machinery, T 2004
152 84431990 Offset printing machinery not elsewhere specified
or includedT 2004
153 84435912 Platen screen press printing machinery T upon accession
154 84451110 Carding machinery, for cotton type fibres T upon accession
155 84451120 Carding machinery, for wool type fibres T upon accession
156 84451200 Combing machinery for textile fibres T upon accession
157 84452020 Break spinning machinery (Rotor spinning
frames)L Q upon accession
158 84454010 Automatic bobbin winders T upon accession
159 84459010 Warping machinery for textile fibres T upon accession
160 84463020 Rapier looms for weaving fabrics of a width
exceeding 30cmT upon accession
161 84463030 Carrier looms for weaving fabrics of width
exceeding 30 cmT upon accessionWT/MIN(01)/3
Page 122
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NOHS NO DESCRIPTION OF PRODUCTS L Q TPhasing-out
PeriodQuota
Category
162 84501200 Washing machinery with built-in centrifugal drier,
dry linen capacity not exceeding 10kg, including
machinery which both wash and dryL Q upon accession
163 84501900 Washing machinery, dry linen capacity not
exceeding 10kg, not elsewhere specified orincluded, including machinery which both washand dryL Q upon accession
164 84522110 Automatic sewing machinery, flat-seam type,
other than book-sewing machinery of heading84.40T upon accession
165 84522190 Automatic sewing machinery, other than flat-
seam type & book-sewing machinery of heading
84.40T upon accession
166 84542010 Fining equipments, outside of converters, used in
metallurgy or in metal foundryT upon accession
167 84543010 Cold chamber die-casting machinery T upon accession
168 84563010 Machine-tools for working any material by
removal of material, numerically controlled,operated by electro-discharge processesT 2004
169 84569910 Cutting machinery of plasma arc, for working any
material by removal of materialT 2004
170 84569990 Machine-tools for working any material by
removal of material, opera ted by electro-chemical,
electron beam, ionic-beam processes, not
elsewhere specified or includedT 2004
171 84571010 Machining centers, vertical type, for working
metalT 2004
172 84571020 Machining centers, horizontal type, for working
metalT 2004
173 84571030 Machining centers, plano type, for working metal T 2004
174 84571090 Machining centers, not elsewhere specified or
included, for working metalT 2004
175 84581100 Horizontal lathes (including turning centers) for
removing metal, numerically controlledT 2004
176 84621090 Non-numerically controlled Forging or die-
stamping machinery (including presses) andhammers for working metalT 2002
177 84659600 Sp litting, slicing, paring machinery for working
wood, cork, bone, hard rubber, hard plastics orsimilar hard materialsT upon accession
178 84714991 Processing machinery for distributed control
systems, presented in the form of systemsT 2004
179 84742010 Crushing, grinding machinery for earth stone, ores
or other mineral substances in solid (incl. power
or paste) form, toothing roller typeT upon accession
180 84742090 Crushing, grinding machinery for earth stone, ores
or other mineral substances in solid (incl. poweror paste) form, other than toothing roller typeT upon accession
181 84743100 Concrete or mortar mixers T 2004
182 84775900 Machinery for moulding or otherwise forming, for
working rubber or plastics or for the manufactureof products from these materials, not elsewherespecified or includedT 2002
183 84781000 Machinery for preparing or making up tobacco, T 2002WT/MIN(01)/3
Page 123
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NOHS NO DESCRIPTION OF PRODUCTS L Q TPhasing-out
PeriodQuota
Category
not elsewhere specified or included
184 84789000 Parts, of machinery for preparing or making up
tobacco, not elsewhere specified or includedT upon accession
185 84791021 Machinery for spreading bituminous concrete T 2002
186 84791022 Stabilizer spreading machinery T 2002
187 84804100 Injection or compression types moulds for metal
or metal carbidesT 2002
188 84807100 Injection or compression types moulds for rubber
or plasticsT 2002
189 84834020 Planet decelerators T upon accession
190 85042320 Liquid dielectric transformers, having a power
handling capacity of 400MVA or moreT 2004
191 85172100 Facsimile machinery T 2002
192 85175090 Apparatus for carrier-current line systems, not
elsewhere specified or includedT upon accession
193 85184000 Audio-frequency electric amplifiers T 2002
194 85199910 Compact disc players for sound reproducing, not
incorporating a sound recording deviceL Q upon accession
195 85203210 Digital audio cassette-tape recorders incorporating
sound reproducing apparatus, not elsewherespecified or includedL Q upon accession
196 85203290 Digital audio magnetic tape recorders
incorporating sound reproducing apparatus, otherthan cassette-tape, not elsewhere specified or
includedL Q upon accession
197 85203300 Cassette-tape recorders incorporating sound
reproducing apparatus, not elsewhere specified or
includedL Q upon accession
198 85203910 Open-reel tape recorders incorporating sound
reproducing apparatus, not elsewhere specified orincludedL Q upon accession
199 85203990 Magnetic tape recorders incorporating sound
reproducing apparatus, not elsewhere specified orincludedL Q upon accession
200 85209000 Magnetic tape recorders not incorporating sound
reproducing apparatus; other sound recording
apparatus, whether or not incorporating sound
reproducing apparatus, not elsewhere specified orincludedL Q upon accession
201 85211011 Magnetic video tape recorders, broadcast quality,
whether or not incorporating a video tunerL Q 2002 9
202 85211019 Magnetic video tape recorders, whether or not
incorporating a video tuner, not elsewherespecified or includedL Q 2002 9
203 85211020 Magnetic video tape reproducers, whether or not
incorporating a video tunerL Q 2002 9
204 85219010 Laser video compact disk player, whether or not
incorporating a video tunerL Q 2002 10
205 85219090 Video recording or reproducing apparatus,
whether or not incorporating a video tuner, not
elsewhere specified or includedL Q 2002 10
206 85229021 Transport mechanisms of cassette magnetic tape
recorders or reproducers, whether or notL Q 2002 11WT/MIN(01)/3
Page 124
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NOHS NO DESCRIPTION OF PRODUCTS L Q TPhasing-out
PeriodQuota
Category
incorporating a magnetic head
207 85229030 Parts and accessories suitable for use solely or
principally with the video recording or
reproducing apparatus, not elsewhere specified orincludedL Q 2002 9
208 85252011 Satellite earth station for television, whether or
not incorporating sound recording or reproducingapparatusT 2004
209 85252019 Satellite earth station other than for television,
whether or not incorporating sound recording or
reproducing apparatusT upon accession
210 85252022 Radio telephone handsets, including vehicle
installed, whether or not incorporating sound
recording or reproducing apparatusT 2002
211 85252029 Mobile communication equipment incorporating
reception apparatus, whether or not incorporatingsound recording or reproducing apparatus, notelsewhere specified or includedT 2002
212 85252092 Mobile communication base station, whether or
not incorporating sound recording or reproducing
apparatusT 2002
213 85252093 Wireless subscriber communicating equipments,
whether or not incorporating sound recording or
reproducing apparatusT 2002
214 85173013 Digital program-controlled mobile
communication switching systemsT 2002
215 85173091 Analogical mobile communication switching
systemsT 2002
216 85253010 Television cameras, for special purposes L Q 2002 9
217 85253091 Television cameras not for special purposes,
broadcast qualityL Q 2002 9
218 85253099 Television cameras, not elsewhere specified or
includedL Q 2002 9
219 85254010 S till image video cameras and other video camera
recorder, for special purposesL Q 2002 9
220 85254020 Household video camera recorders L Q 2002 9
221 85254030 Still image video cameras with digital image
storageL Q 2002 9
222 85254090 S till image video cameras and other video camera
recorders, not elsewhere specified or includedL Q 2002 9
223 85271200 Pocket-size radio cassette-players capable of
operating without an external source of power,
including apparatus capable of receiving alsoradio-telephony or radio-telegraphy, whether ornot combined with a clock in the same housingL Q upon accession
224 85271300 Radio-broadcast receivers combined with sound
recording or reproducing apparatus capable of
operating without an external source of power,
including apparatus capable of receiving alsoradio-telephony or radio-telegraphy, nesL Q upon accessionWT/MIN(01)/3
Page 125
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NOHS NO DESCRIPTION OF PRODUCTS L Q TPhasing-out
PeriodQuota
Category
225 85271900 Radio-broadcast receivers capable of operating
without external power, whether or not combined
with a clock in the same housing, nesL Q upon accession
226 85272100 Radio-broadcast receivers combined with sound
recording or reproducing apparatus not capable ofoperating with an external source of power, of akind used in motor vehicles, including apparatus
capable of receiving also radio-telephony or
radio-telegraphyL Q upon accession
227 85272900 Radio-broadcast receivers not capable of
operating with an external source of power, of akind used in motor vehicles, including apparatuscapable of receiving also radio-telephony or
radio-telegraphy, nesL Q upon accession
228 85273100 Radio-broadcast receivers combined with sound
recording or reproducing apparatus not capable of
operating with an external source of power,including apparatus capable of receiving alsoradio-telephony or radio-telegraphy, nesL Q upon accession
229 85273200 Radio-broadcast receivers not combined with
sound recording or reproducing apparatus butcombined with a clock, nes, including apparatus
capable of receiving also radio-telephony or
radio-telegraphyL Q upon accession
230 85273900 Radio-broadcast receivers not capable of
operating with an external source of power,including apparatus capable of receiving alsoradio-telephony or radio-telegraphy, notelsewhere specified or includedL Q upon accession
231 85279010 Radio paging receivers T 2002
232 85281210 Colour satellite television receivers, whether or
not incorporating radio-broadcast receivers or
sound or video recording or reproducing
apparatusT 2004
233 85281291 Colour television receivers, whether or not
incorporating radio-broadcast receivers or soundor video recording or reproducing apparatus, witha diagonal measurement of the screen notexceeding 42cmL Q upon accession
234 85281292 Colour television receivers, whether or not
incorporating radio-broadcast receivers or sound
or video recording or reproducing apparatus, with
a diagonal measurement of the screen exceeding42cm but not exceeding 52cmL Q upon accession
235 85281293 Colour television receivers, whether or not
incorporating radio-broadcast receivers or soundor video recording or reproducing apparatus, witha diagonal measurement of the screen exceeding
52cmL Q 2002 12
236 85282100 Colour video monitors L Q 2002 12
237 85283010 Colour video projectors L Q 2002 12
238 85291020 Aerials and aerial reflectors of all kinds and parts
suitable for use therewith, for radio-broadcastT 2002WT/MIN(01)/3
Page 126
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NOHS NO DESCRIPTION OF PRODUCTS L Q TPhasing-out
PeriodQuota
Category
receivers and their combinations or television
receivers
239 85291090 Aerials and aerial reflectors of all kinds and parts
suitable for use therewith, for apparatus of
headings 85.25 to 85.28, not elsewhere specifiedor includedT 2004
240 85299091 High frequency tuners, suitable for use solely or
principally with television receiversT 2004
241 85311090 Burglar or fire alarms & similar apparatus, not
elsewhere specified or includedT 2002
242 85352900 Automatic circuit breakers, for voltage exceeding
72.5 KVT 2004
243 85401100 Cathode-ray television picture tubes, including
video monitor tubes, colorL Q 2002 12
244 85404000 Color data/graphic display tubes, with a phosphor
dot screen pitch smaller than 0.4mmL Q 2002 12
245 85445910 Electric cable (including co-axial cable), without
connectors, for voltage exceeding 80V but not
exceeding 1000 VT upon accession
246 85447000 Optical fibre cables, made up of individually
sheathed fibres, whether or not assembled withelectric conductors or fitted with connectorsT upon accession
247 86040099 Railway or tramway maintenance or service
vehicles, whether or not self-propelled, notelsewhere specified or includedT upon accession
248 87012000 Road tractors for semi-trailers, other than tractors
of heading 87.09L Q 2004 7
249 87019000 Tractors not elsewhere specified or included,
other than tractors of heading 87.09T upon accession
250 87021020 Motor vehicles for the transport of ten or more
persons (including the driver), with compression-
ignition internal combustion piston engine (dieselor semi-diesel), for transport of passengers ataerodromeL Q 2004 7
251 87021091 Motor vehicles not elsewhere specified or
included, with compression-ignition internalcombustion piston engine (diesel or semi-diesel),
with 30 seats or more (including the driver)L Q 2004 7
252 87021092 Motor vehicles not elsewhere specified or
included, with compression-ignition internalcombustion piston engine (diesel or semi-diesel),with 20 seats or more, but not exceeding 29 seats(including the driver)L Q 2005 7
253 87021093 Motor vehicles not elsewhere specified or
included, with compression-ignition internal
combustion piston engine (diesel or semi-diesel),
with 10 seats or more, but not exceeding 19 seats(including the driver)L Q 2005 7
254 87029010 Motor vehicles not elsewhere specified or
included, with 30 seats or more (including thedriver)L Q 2004 7
255 87029020 Motor vehicles not elsewhere specified or
included, with 20 seats or more, but not exceeding29 seats (including the driver)L Q 2005 7WT/MIN(01)/3
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PeriodQuota
Category
256 87029030 Motor vehicles not elsewhere specified or
included, with 10 seats or more, but not exceeding
19 seats (including the driver)L Q 2005 7
257 87031000 Vehicles specially designed for traveling on snow;
golf cars and similar vehiclesL Q upon accession
258 87032130 Saloon cars, with spark-ignition internal
combustion reciprocating piston engine, of acylinder capacity not exceeding 1000ccL Q 2005 7
259 87032190 Vehicles not elsewhere specified or included, with
spark-ignition internal combustion reciprocating
piston engine, of a cylinder capacity not
exceeding 1000ccL Q 2005 7
260 87032230 Saloon cars, with spark-ignition internal
combustion reciprocating piston engine, of acylinder capacity exceeding 1000cc but notexceeding 1500ccL Q 2005 7
261 87032240 Cross-country cars (4WD), with spark-ignition
internal combustion reciprocating piston engine,
of a cylinder capacity exceeding 1000cc but not
exceeding 1500ccL Q 2005 7
262 87032250 Station wagons (with 9 seats or less), with spark-
ignition internal combustion reciprocating pistonengine, of a cylinder capacity exceeding 1000ccbut not exceeding 1500ccL Q 2005 7
263 87032290 Vehicles not elsewhere specified or included, with
spark-ignition internal combustion reciprocating
piston engine, of a cylinder capacity exceeding
1000cc but not exceeding 1500ccL Q 2005 7
264 87032314 Saloon cars, with spark-ignition internal
combustion reciprocating piston engine, of acylinder capacity exceeding 1500cc but notexceeding 2500ccL Q 2005 7
265 87032315 Cross-country cars (4WD), with spark-ignition
internal combustion reciprocating piston engine,of a cylinder capacity exceeding 1500cc but not
exceeding 2500ccL Q 2005 7
266 87032316 Station wagons (with 9 seats or less), with spark-
ignition internal combustion reciprocating pistonengine, of a cylinder capacity exceeding 1500ccbut not exceeding 2500ccL Q 2005 7
267 87032319 Vehicles not elsewhere specified or included, with
spark-ignition internal combustion reciprocatingpiston engine, of a cylinder capacity exceeding
1500cc but not exceeding 2500ccL Q 2005 7
268 87032334 Saloon cars, with spark-ignition internal
combustion reciprocating piston engine, of a
cylinder capacity exceeding 2500cc but notexceeding 3000ccL Q 2005 7
269 87032335 Cross-country cars (4WD), with spark-ignition
internal combustion reciprocating piston engine,of a cylinder capacity exceeding 2500cc but notexceeding 3000ccL Q 2005 7WT/MIN(01)/3
Page 128
Serial
NOHS NO DESCRIPTION OF PRODUCTS L Q TPhasing-out
PeriodQuota
Category
270 87032336 Station wagons (with 9 seats or less), with spark-
ignition internal combustion reciprocating piston
engine, of a cylinder capacity exceeding 2500ccbut not exceeding 3000ccL Q 2005 7
271 87032339 Vehicles not elsewhere specified or included, with
spark-ignition internal combustion reciprocatingpiston engine, of a cylinder capacity exceeding
2500cc but not exceeding 3000ccL Q 2005 7
272 87032430 Saloon cars, with spark-ignition internal
combustion reciprocating piston engine, of a
cylinder capacity exceeding 3000ccL Q 2005 7
273 87032440 Cross-country cars (4WD), with spark-ignition
internal combustion reciprocating piston engine,of a cylinder capacity exceeding 3000ccL Q 2005 7
274 87032450 Station wagons (with 9 seats or less), with spark-
ignition internal combustion reciprocating pistonengine, of a cylinder capacity exceeding 3000ccL Q 2005 7
275 87032490 Vehicles not elsewhere specified or included, with
spark-ignition internal combustion reciprocating
piston engine, of a cylinder capacity exceeding
3000ccL Q 2005 7
276 87033130 Saloon cars, with compression-ignition internal
combustion piston engine (diesel or semi-diesel)of a cylinder capacity not exceeding 1500ccL Q 2005 7
277 87033140 Cross-country cars (4WD), with compression-
ignition internal combustion piston engine (dieselor semi-diesel), of a cylinder capacity not
exceeding 1500ccL Q 2005 7
278 87033150 Station wagons (with 9 seats or less), with
compression-ignition internal combustion piston
engine (diesel or semi-diesel), of a cylindercapacity not exceeding 1500ccL Q 2005 7
279 87033190 Vehicles not elsewhere specified or included, with
compression-ignition internal combustion pistonengine (diesel or semi-diesel), of a cylindercapacity not exceeding 1500ccL Q 2005 7
280 87033230 Saloon cars, with compression-ignition internal
combustion piston engine (diesel or semi-diesel),
of a cylinder capacity exceeding 1500cc but notexceeding 2500ccL Q 2005 7
281 87033240 Cross-country cars (4WD), with compression-
ignition internal combustion reciprocating pistonengine (diesel or semi-diesel), of a cylindercapacity exceeding 1500cc but not exceeding
2500ccL Q 2005 7
282 87033250 Station wagons (with 9 seats or less), with
compression-ignition internal combustion piston
engine (diesel or semi-diesel), of a cylindercapacity exceeding 1500cc but not exceeding2500ccL Q 2005 7
283 87033290 Vehicles not elsewhere specified or included, with
compression-ignition internal combustion pistonengine (diesel or semi-diesel), of a cylinder
capacity exceeding 1500cc but not exceedingL Q 2005 7WT/MIN(01)/3
Page 129
Serial
NOHS NO DESCRIPTION OF PRODUCTS L Q TPhasing-out
PeriodQuota
Category
2500cc
284 87033330 Saloon cars, with compression-ignition internal
combustion piston engine (diesel or semi-diesel),
of a cylinder capacity exceeding 2500ccL Q 2005 7
285 87033340 Cross-country cars (4WD), with compression-
ignition internal combustion piston engine (dieselor semi-diesel), of a cylinder capacity exceeding2500ccL Q 2005 7
286 87033350 Station wagons (with 9 seats or less), with
compression-ignition internal combustion pistonengine (diesel or semi-diesel), of a cylinder
capacity exceeding 2500ccL Q 2005 7
287 87033390 Vehicles not elsewhere specified or included, with
compression-ignition internal combustion piston
engine (diesel or semi-diesel), of a cylindercapacity exceeding 2500ccL Q 2005 7
288 87039000 Motor cars and other motor vehicles principally
designed for the transport of persons, notelsewhere specified or included, including stationwagons and racing carsL Q 2005 7
289 87041030 Electromobile dumpers for the transport of goods,
designed for off-highway useT 2004
290 87042100 Motor vehicles for the transport of goods, with
compression-ignition internal combustion piston
engine (diesel or semi-diesel), gross vehicleweight not exceeding 5 tons, excl. dumpers foroff-highway useL Q 2004 7
291 87042230 Motor vehicles for the transport of goods, with
compression-ignition internal combustion pistonengine (diesel or semi-diesel), gross vehicle
weight exceeding 5 tons but not exceeding 14
tons, excl. dumpers for off-highway useL Q 2004 7
292 87042240 Motor vehicles for the transport of goods, with
compression-ignition internal combustion pistonengine (diesel or semi-diesel), gross vehicleweight exceeding 14 tons but not exceeding 20tons, excl. dumpers for off-highway useL Q 2004 7
293 87042300 Motor vehicles for the transport of goods, with
compression-ignition internal combustion piston
engine (diesel or semi-diesel), gross vehicleweight exceeding 20 tons, excl. dumpers for off-highway useL Q 2004 7
294 87043100 Motor vehicles for the transport of goods, with
spark-ignition internal combustion reciprocatingpiston engine, gross vehicle weight not exceeding
5 tons, excl. dumpers for off-highway useL Q 2004 7
295 87043230 Motor vehicles for the transport of goods, with
spark-ignition internal combustion reciprocating
piston engine, gross vehicle weight exceeding 5tons but not exceeding 8 tons, excl. dumpers foroff-highway useL Q 2002 7
296 87043240 Motor vehicles for the transport of goods, with
spark-ignition internal combustion reciprocatingpiston engine, gross vehicle weight exceeding 8
tons, excl. dumpers for off-highway useL Q 2002 7WT/MIN(01)/3
Page 130
Serial
NOHS NO DESCRIPTION OF PRODUCTS L Q TPhasing-out
PeriodQuota
Category
297 87049000 Motor vehicles for the transport of goods, not
elsewhere specified or includedL Q 2002 7
298 87051021 All-road crane lorries, of maximum lifting
capacity not exceeding 50 tonsL Q 2004 13
299 87051022 All-road crane lorries, of maximum lifting
capacity exceeding 50 tons but not exceeding 100tonsL Q 2004 13
300 87051023 All-road crane lorries, of maximum lifting
capacity exceeding 100 tonsL Q 2004 13
301 87051091 Crane lorries not elsewhere specified or included,
of maximum lifting capacity not exceeding 50tonsL Q 2004 13
302 87051092 Crane lorries not elsewhere specified or included,
of maximum lifting capacity exceeding 50 tons
but not exceeding 100 tonsL Q 2004 13
303 87051093 Crane lorries not elsewhere specified or included,
of maximum lifting capacity exceeding 100 tonsL Q 2004 13
304 87052000 Mobile drilling derricks L Q 2002 7
305 87053010 Fire fighting vehicles, mounted with scaling
ladderL Q 2002 7
306 87053090 Fire fighting vehicles, not elsewhere specified or
includedL Q 2002 7
307 87054000 Concrete-mixer lorries L Q 2002 7
308 87059020 Mobile radiological units L Q 2002 7
309 87059030 Mobile environmental monitoring units L Q 2002 7
310 87059040 Mobile clinics L Q 2002 7
311 87059051 Airplane charging vehicles (frequency= 400Hz) L Q 2002 7
312 87059059 Mobile electric generator sets, not elsewhere
specified or includedL Q 2002 7
313 87059060 Mobile vehicles for aircraft refueling, air-
conditioners or deicingL Q 2002 7
314 87059070 Snow sweep vehicles for cleansing streets airfield
runwaysL Q 2002 7
315 87059080 Petroleum well logging trucks, fracturing unit
trucks and mixing sand trucksL Q 2002 7
316 87059090 Special purpose motor vehicles, not elsewhere
specified or included, other than those principallydesigned for the transport if persons or goodsL Q 2002 7
317 87060040 Chassis fitted with engines for crane lorries L Q 2004 13
318 87071000 Bodies for the vehicles of heading 87.03 L Q 2004 7
319 87111000 Motorcycles (including  mopeds) and cycles fitted
with an auxiliary motor, with reciprocatinginternal combustion piston engine, of a cylindercapacity not exceeding 50ccL Q 2004 6
320 87112000 Motorcycles (including  mopeds) and cycles fitted
with an auxiliary motor, with reciprocating
internal combustion piston engine, of a cylindercapacity exceeding 50cc but not exceeding 250ccL Q 2004 6
321 87113010 Motorcycles (including  mopeds) and cycles fitted
with an auxiliary motor, with reciprocatinginternal combustion piston engine, of cylindercapacity exceeding 250cc but not exceeding400ccL Q 2004 6
322 87113020 Motorcycles (including mopeds) and cycles fitted L Q 2004 6WT/MIN(01)/3
Page 131
Serial
NOHS NO DESCRIPTION OF PRODUCTS L Q TPhasing-out
PeriodQuota
Category
with an auxiliary motor, with reciprocating
internal combustion piston engine, of cylinder
capacity exceeding 400cc but not exceeding500cc
323 87114000 Motorcycles (including  mopeds) and cycles fitted
with an auxiliary motor, with reciprocatinginternal combustion piston engine, of cylindercapacity exceeding 500cc but not exceeding
800ccL Q 2004 6
324 87115000 Motorcycles (including  mopeds) and cycles fitted
with an auxiliary motor, with reciprocating
internal combustion piston engine, of cylindercapacity exceeding 800ccL Q 2004 6
325 87119000 Motorcycles (including  mopeds) and cycles fitted
with an auxiliary motor, not elsewhere specifiedor included; side-carsL Q 2004 6
326 87141900 Parts and accessories of motorcycle (including
moped), excl. saddlesL Q 2004 6
327 89012011 Finished oil tankers, loading not exceeding
100000tT 2004
328 89012012 Finished oil tankers, loading exceeding 100000t,
not exceeding 300000tT 2004
329 89012013 Finished oil tankers, loading exceeding 300000t T 2004
330 89012021 Crude oil tankers, loading not exceeding 150000t T 2004
331 89012022 Crude oil tankers, loading exceeding 150000t, not
exceeding 300000tT 2004
332 89012023 Crude oil tankers, loading exceeding 300000t T 2004
333 89012031 Liquified petroleum gas carriers, volume with
20000m3 or lessT 2004
334 89012032 Liquified petroleum gas carriers, volume
exceeding 20000m3T 2004
335 89012041 Liquified natural gas carriers, volume not
exceeding 20000m3T 2004
336 89012042 Liquified natural gas carriers, volume exceeding
20000m3T 2004
337 89012090 Tankers, not elsewhere specified or included T 2004
338 89013000 Refrigerated vessels other than those of
subheading 8901.20T upon accession
339 89019021 Motor container vessels, capable loading standard
containers with 6000 or lessT 2004
340 89019022 Motor container vessels, capable loading standard
containers more than 6000T 2004
341 89019031 Motor Ro-Ro carriers, loading not exceeding
2000tT 2004
342 89019032 Motor Ro-Ro carriers, loading exceeding 2000t T 2004
343 89019041 Motor bulk carriers, loading not exceeding
150000tT 2004
344 89019042 Motor bulk carriers, loading exceeding 150000t,
not exceeding 300000tT 2004
345 89019043 Motor bulk carriers, loading exceeding 300000t T 2004
346 89019050 Multi-purposes motor vessels T 2004
347 89019080 Motor vessels for the transport of goods and
motor vessels for the transport of both personsand goods, not elsewhere specified or includedT 2004WT/MIN(01)/3
Page 132
Serial
NOHS NO DESCRIPTION OF PRODUCTS L Q TPhasing-out
PeriodQuota
Category
348 89020010 Fishing vessels, factory ships and other vessels for
processing or preserving fishery products,
motorizedT upon accession
349 89040000 Tugs and pusher craft T 2004
350 89051000 Dredgers T 2004
351 90061010 Electronic colour scanners used for preparing
printing plates or cylindersL Q upon accession
352 90065100 Cameras with a through-the-lens viewfinder
(single lens reflex (SLR)), for roll film of a widthnot exceeding 35mmL Q 2003 14
353 90065200 Cameras for roll film of a width less than 35mm,
not elsewhere specified or includedL Q 2003 14
354 90065300 Cameras for roll film of a width of 35mm, not
elsewhere specified or includedL Q 2003 14
355 90065900 Cameras not elsewhere specified or included L Q 2003 14
356 90083010 Orthographical image projectors, other than
cinematographicT upon accession
357 90121000 Microscopes other than optical microscopes; and
diffraction apparatusL Q upon accession
358 90158000 Surveying, hydrographic, oceanographic,
hydrological, meteorological or geophysical
instruments and appliances, excluding compasses,
not elsewhere specified or includedT upon accession
359 90181210 B-ultrasonic diagNotic equipment T upon accession
360 90181291 Chromoscope ultrasonic diagNotic equipment T upon accession
361 90184910 Dentists' chairs incorpora ting dental equipment T upon accession
362 90189090 Instruments and appliances used in Medical,
surgical or veterinary sciences, not elsewhere
specified or includedT upon accession
363 90221300 X-ray apparatus for dental use T upon accession
364 90221400 X-ray apparatus for medical, surgical or
veterinary uses, not elsewhere specified orincludedT upon accession
365 90221990 X-ray apparatus, not elsewhere specified or
included, other than for medical useT upon accession
366 90222100 Apparatus based on the use of alpha, beta or
gamma radiations, including radiography or radiorapy apparatus, for medical surgical, dental or
veterinaryT upon accession
367 90278090 Instruments and apparatus for measuring or
checking viscosity, porosity, expansion, surface
tension or the like, measuring or checkingquantities of heat, sound or light; Instruments andapparatus for physical or chemical analysis, nesT upon accession
368 90301000 Instruments and apparatus for measuring or
detecting ionizing radiationsT upon accession
369 90304010 Frequency meters, digital, of test frequency less
than 12.4GHzT upon accession
370 90318010 Optical telecommunication and optical fibre
performance testing instrumentsT upon accession
371 90311000 Machines for balancing mechanical parts T 2004
372 91011100 Electrically operated wrist-watches, with
mechanical display only, whether or notL Q 2003 15WT/MIN(01)/3
Page 133
Serial
NOHS NO DESCRIPTION OF PRODUCTS L Q TPhasing-out
PeriodQuota
Category
incorporating a stop-watch facility, with case of
precious metal or of metal clad with precious
metal
373 91012100 Non-electrically operated wrist-watches,
automatic winding, whether or not incorporating astop-watch facility, with case of precious metal orof metal clad with precious metalL Q 2003 15
374 91012900 Non-electrically operated wrist-watches, not
elsewhere specified and included, whether or notincorporating a stop-watch facility, with case of
precious metal or of metal clad with precious
metalL Q 2003 15
375 91021100 Electrically operated wrist-watches, with
mechanical display only, whether or notincorporating a stop-watch facility, other thanthose of heading 91.01L Q 2003 15
376 91022100 Non-electrically operated wrist-watches,
automatic winding, whether or not incorporating a
stop-watch facility, other than those of heading
91.01L Q 2003 15
377 91022900 Non-electrically operated wrist-watches, not
elsewhere specified and included, whether or notincorporating a stop-watch facility, other thanthose of heading 91.01L Q 2003 15
Notes:
1. "L" stands for "import licence";
"Q" stands for "import quota";  and"T" stands for "specific import tendering requirements for machinery and electronic
products".
2. The NTMs will be eliminated as of 1 January of each calendar year as specified in the column
of Phasing-out Period.
3. The products covered by the Agreement on Trade in Civil Aircraft are not subject to any
NTMs specified herein.WT/MIN(01)/3
Page 134
Table Two
Product Quota
(Initial Quota Volume/Value and Annual Growth Rate)
Quota CategoryProduct Coverage
(Serial No in Table One)UnitInitial Quota
Volume/ValueAnnual
Growth
Rate
1 Processed oil 12-19 Million Metric Tons 16.58 15%
2 Sodium cyanide 20 Million Metric Tons 0.018 15%
3 Chemical fertilizer 22-25, 29-33, 36, 38, 41-45 Million Metric Tons 8.9 15%
4 Natural rubber 48-51 Million Metric Tons 0.429 15%
5 Tires of rubber used on
automobiles52-56 Million Pieces 0.81 15%
6 Motorcycles and key parts 101-103, 319-326 US $ Millio n 286 15%
7 Automobiles and key parts 104-106, 115, 248, 250-256,
258-288, 290-297, 304-316,318US$ Millio n 6000 15%
8 Air conditioners and
compressors114 US$ Million 286 15%
9 Recording apparatus and
key parts201-203, 207, 216- 222 US$ M illion 293 15%
10 Magnetic sound and video
recording apparatus204, 205 US$ Million 38 15%
11 Recorders and transport
mechanisms206 US$ Million 387 15%
12 Color TV set and TV
tuners235-237, 243, 244 U S$ Million 325 15%
13 Crane lorries and chassi s 298-303, 317 US$  Million 88 15%
14 Cameras 352-355 US$ Million 14 15%
15 Wrist watches 372-377 US$ Million 33 15%WT/MIN(01)/3
Page 135
Table Three
Products Subject to Import Licence Only
NO HS NO DESCRIPTION OF PRODUCTS LPhasing-out
Period
1 10011000 Durum wheat L upon accession
2 10019010 Seed of wheat & maslin, excl. durum wheat L upon accession
3 10019090 Wheat & maslin, excl. for seeding and durum wheat L upon accession
4 10059000 Maize (corn), excl. for seeding L upon accession
5 10061010 Rice in husk (paddy or ro ugh) seed L upon accession
6 10061090 Rice in husk (paddy or ro ugh), excl. for seeding L upon accession
7 10062000 Husked (brown) rice L upon accession
8 10063000 Semi-milled or wholly milled rice, whether or not polished or glazed L upon accession
9 10064000 Broken rice L upon accession
10 15071000 Crude soya-bean oil, whether or not degummed, but not chemically
modifiedL upon accession
11 15079000 Soya-bean oil and its fractions, refined, but not chemically modified L upon accession
12 15081000 Crude ground-nut oil, but not chemically modified L upon accession
13 15089000 Ground-nut oil and its fractions, refined, but not chemically modified L upon accession
14 15111000 Crude palm oil, but not chemically modified L upon accession
15 15119000 Palm oil and its fractions, refined, but not chemically modified L upon accession
16 15121100 Crude sunflower-seed or safflower oil, but not chemically modified L upon accession
17 15122100 Crude cotton-seed oil, whether or not gossypol has been moved, but
not chemically modifiedL upon accession
18 15122900 Cotton-seed oil and its fractions, refined, but not chemically
modifiedL upon accession
19 15141010 Crude rape, colza oil, but not chemically modified L upon accession
20 15141090 Crude mustard oil, but not chemically modified L upon accession
21 15149000 Rape, colza or mustard oil and fractions thereof, refined, but not
chemically modifiedL upon accession
22 15152100 Crude maize (corn) oil, but not chemically modified L upon accession
23 15155000 Sesame oil and its fractions, whether or not refined, but not
chemically modifiedL upon accession
24 22051000 Vermouth & other wine of fresh grapes flavoured with plants or
aromatic substance, in containers holding  ≤2LL upon accession
25 22059000 Vermouth & other wine of fresh grapes, flavoured with plants or
aromatic substance, in containers holding  >2LL upon accession
26 22071000 Undenatured ethyl alcohol of an alcoholic strength by volume ≥80% L upon accession
27 22082000 Spirits from distilling grape wine or marc L upon accession
28 22083000 Whiskeys L upon accession
29 22084000 Rum & tafia L upon accession
30 22085000 Gin & Geneva L upon accession
31 22087000 Liqueurs and cordials L upon accession
32 22089000 Undenaturated ethyl alcohol of an alcoholic strength by volume
<80%; spirituous beverages, nesL upon accession
33 37013090 Photographic plates, in the flat, sensitized, unexposed, of any
material other than paper, paperboard or textiles, any side exceeding255mm, nesL upon accession
34 37019100 Photographic plates and film for colour photography, in the flat,
sensitized, unexposed, of any material other than paper, paperboardor textiles, any side  ≤ 255mmL upon accession
35 37023100 Photographic film rolls, unexposed, without perforations, for colour
photography , of any material other than paper, paperboard or
textiles, width ≤105mmL upon accessionWT/MIN(01)/3
Page 136
NO HS NO DESCRIPTION OF PRODUCTS LPhasing-out
Period
36 37024100 Film rolls, for colour photography, unexposed, without perforations,
of any material other than paper, paperboard or textiles , width
>610mm, length >200mL upon accession
37 37024390 Film rolls, unexposed, without perforations, width >610mm, length
≤200m, of any material other than pa per, paperboard or textiles, nesL upon accession
38 37024490 Film rolls , unexposed, without perforations, 105mm< width
≤610mm, of any material other than paper, paperboard or textiles,
nesL upon accession
39 37025100 Film rolls for colour photography, unexposed, width ≤16mm,&
length ≤14m, of any material other than paper, paperboard or textiles
nesL upon accession
40 37025200 Film rolls for colour photography, unexposed, width ≤16mm, length
>14m, of any material other than paper, paperboard or textiles, nesL upon accession
41 37025410 Film rolls for colour photography other than for slides, unexposed,
width =35mm and length ≤2m, of any material other than paper,
paperboard or textilesL upon accession
42 37025490 Film rolls for colour photography other than for slides, unexposed,
16 mm<width <35 mm, 2 m<length ≤30m, of any material other than
paper, paperboard or textilesL upon accession
43 37025590 Colour film rolls for colour photography, unexposed, 16mm<width
≤35mm, length >30m, excl. cinematographic filmL upon accession
44 37025690 Film in rolls for colour photography, unexposed, width >35mm, of
any material other than paper, paperboard or textiles , excl.cinematographic filmL upon accession
45 37029100 Film rolls of neutral colour , unexposed, width ≤16mm, length ≤14m,
of any material other than paper, paperboard or textilesL upon accession
46 37031010 Photographic paper & paperboard in rolls, sensitized, unexposed,
width >610mmL upon accession
47 37032010 Photographic paper and paperboard for colour photography,
sensitized, unexposed, not in rolls or width ≤610mmL upon accessionWT/MIN(01)/3
Page 137
ANNEX 4
PRODUCTS AND SERVICES SUBJECT TO PRICE CONTROLS
Products Subject to State Pricing
NO PRODUCTS HS NO DESCRIPTION OF PRODUCTS
24011010 Flue-cured tobacco, not stemmed/stripped
24011090 Tobacco other than flue-cured, not stemmed/stripped
24012010 Flue-cured tobacco, partly  or wholly stemmed/stripped1 TOBACCO
24012090 Tobacco other than flue-cured, partly or wholly  stemmed/stripped
2EDIBLE
SALT25010010 Salt, whether or not in aqueous solution or containing added anticaking or
free-flowing agents
3NATURAL
GAS27112100 Natural gas in gaseous state
30011000 Glands & other organs, dried, whether or not powdered
30012000 Extracts of glands or other organs or of their secretions
30019010 Heparin & its salts
30019090 Substances of human or animal origin, for therapeutic or prophylactic uses,
nes
30021000 Antisera & other blood fractions & modified immunological products,
whether or not obtained by means of biotechnological processes
30022000 Vaccines for human medicine
30023000 Vaccines for veterinary medicine
30029010 Saxitoxin
30029020 Ricitoxin
30029090 Human blood; animal blood prepared for therapeutic, prophylactic or
diagnostic uses; other toxins, cultures of micro-organisms (excl. yeasts) andsimilar products, nes
30041011 Medicaments containing ampicillin, consisting of mixed or unmixed
products for therapeutic or prophylactic uses, put up in measured doses or in
forms of packing for retail sale
30041012 Medicaments containing amoxycillin, consisting of mixed or unmixed
products for therapeutic or prophylactic uses, put up in measured doses or informs of packing for retail sale
30041013 Medicaments containing penicillins V, consisting of mixed or unmixed
products for therapeutic or prophylactic uses, put up in measured doses or informs of packing for retail sale
30041019 Medicaments containing penicillins , nes, consisting of mixed or unmixed
products for therapeutic or prophylactic uses, put up in measured doses or in
forms of packing for retail sale
30041090 Medicaments containing penicillins or derivatives thereof nes, or
streptomycins or their derivatives, consisting of mixed or unmixed productsfor therapeutic or prophylactic uses, put up in measured doses or in forms ofpacking for retail sale
30042011 Medicaments containing cefotaxime, consisting of mixed or unmixed
products for therapeutic or prophylactic uses, put up in measured doses or in
forms of packing for retail sale
30042012 Medicaments containing ceftazidime, consisting of mixed or unmixed
products for therapeutic or prophylactic uses, put up in measured doses or informs of packing for retail sale
30042013 Medicaments containing cefoxitin, consisting of mixed or unmixed products
for therapeutic or prophylactic uses, put up in measured doses or in forms ofpacking for retail sale4PHARMA-
CEUTICALS
30042014 Medicaments containing ceftezole, consisting of mixed or unmixed products
for therapeutic or prophylactic uses, put up in measured doses or in forms of
packing for retail saleWT/MIN(01)/3
Page 138
NO PRODUCTS HS NO DESCRIPTION OF PRODUCTS
30042015 Medicaments containing cefaclor, consisting of mixed or unmixed products
for therapeutic or prophylactic uses, put up in measured doses or in forms of
packing for retail sale
30042016 Medicaments containing cefuroxime, consisting of mixed or unmixed
products for therapeutic or prophylactic uses, put up in measured doses or informs of packing for retail sale
30042017 Medicaments containing ceftriaxone, consisting of mixed or unmixed
products for therapeutic or prophylactic uses, put up in measured doses or informs of packing for retail sale
30042018 Medicaments containing cefoperazone, consisting of mixed or unmixed
products for therapeutic or prophylactic uses, put up in measured doses or in
forms of packing for retail sale
30042019 Medicaments containing other cephamycines, consisting of mixed or
unmixed products for therapeutic or prophylactic uses,put up in measureddoses or in forms of packing for retail sale, nes
30042090 Medicaments containing other antibiotics, consisting of mixed or unmixed
products for therapeutic or prophylactic uses, put up in measured does or informs of packing for retail sale, nes
30043100 Medicaments containing insulin, consisting of mixed or unmixed products
for therapeutic or prophylactic uses, put up in measured does or in forms of
packing for retail sale
30043200 Medicaments containing of adrenal cortical hormones, consisting of mixed
or unmixed products for therapeutic or prophylactic uses, put up in measureddoes or in forms of packing for retail sale
30043900 Medicaments containing other hormones, consisting of mixed or unmixed
products for therapeutic or prophylactic uses, put up in measured does or informs of packing for retail sale, nes
30044010 Medicaments containing quinine or its salts, but not containing antibiotics or
products of heading 29.37, consisting of mixed or unmixed products for
therapeutic or prophylactic uses, put up in measured does or in forms ofpacking for retail sale
30044090 Medicaments containing alkaloids or their derivatives, but not containing
hormones or other products of heading 29.37 or antibiotics, consisting ofmixed or unmixed products put up in measured does or in forms of packingfor retail sale, nes
30045000 Other medicaments containing vitamins or other products of 29.36,
consisting of mixed or unmixed products for therapeutic or prophylacticuses, put up in measured does or in forms of packing for retail sale
30049010 Medicaments containing sulfa drugs, consisting of mixed or unmixed
products for therapeutic or prophylactic uses, put up in measured does or informs of packing for retail sale, nes
30049020 Medicaments containing biphenyl dicarbxybte, consisting of mixed or
unmixed products for therapeutic or prophylactic uses, put up in measured
does or in forms of packing for retail sale, nes
30049053 Bai Yao, consisting of mixed or unmixed products for therapeutic or
prophylactic uses, put up in measured does or in forms of packing for retailsale
30049059 Medicaments of Chinese type, consisting of mixed or unmixed products for
therapeutic or prophylactic uses, put up in measured does or in forms ofpacking for retail sale, nes
30049090 Medicaments of products for therapeutic, prophylactic or diagnostic uses,
consisting of mixed or unmixed products for therapeutic or prophylactic
uses, put up in measured does or in forms of packing for retail sale, nes
30051010 Adhesive plasters, impregnated or coated with pharmaceutical substances or
put up in forms of packing for retail sale for medical, surgical, dental orveterinary purposesWT/MIN(01)/3
Page 139
NO PRODUCTS HS NO DESCRIPTION OF PRODUCTS
30063000 Opacifying preparations for X-ray examinations; diagnostic reagents
designed to be administered to the patient
30066000 Chemical contraceptive preparations based on hormones or spermicides
40141000 Sheath contraceptives
Products Subject to Government Guidance Pricing
NO PRODUCTS HS NO DESCRIPTION OF PRODUCTS
10011000 Durum wheat
10019010 Seed of wheat & maslin, excl. durum wheat
10019090 Wheat & maslin, excl. for seeding and durum wheat
10051000 Maize (corn) seed
10059000 Maize (corn), excl. for seeding
10061010 Rice in husk (paddy or ro ugh) seed
10061090 Rice in husk (paddy or ro ugh), excl. for seeding
10062000 Husked (brown) rice
10063000 Semi-milled or wholly milled rice, whether or not polished or glazed
12010010 Seed of soybeans
12010091 Yellow soybeans, not for seeding, whether or not broken
12010092 Black soybeans, not for seeding, whether or not broken
12010093 Green soybeans, not for seeding, whether or not broken1G R A I N
12010099 Soybeans, nes, not for seeding, whether or not broken
15071000 Crude soybean oil, whether or not degummed, but not chemically modified
15079000 Soya-bean oil and its fractions, refined, but not chemically modified
15141010 Crude rape, colza oil, but not chemically modified2VEGETABLE
OIL
15141090 Crude mustard oil, but not chemically modified
27100011 Motor gasoline & aviation gasoline
27100013 Naphtha
27100023 Aviation kerosene
27100024 Lamp-kerosene
27100031 Light diesel oil
27100033 Fuel oil No.5 to No.7 (National Code)3PROCESSED
OIL
27100039 Diesel oils & preparations thereof and other fuel oils, nes
4 FERTILIZER 31021000 Urea, whether or not in aqueous solution
50010010 Mulberry feeding silk-worm cocoons5SILKWORM
COCOONS 50010090 Other silk-worn cocoons suitable for reeling
6 COTTON 52010000 Cotton, not carded or combedWT/MIN(01)/3
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Public Utilities Subject to Government Pricing
NO CPC PUBLIC  UTILITIES
1 1720 Price of gas for civil use.
2 1800 Price of tap water.
3 1710 Price of electricity.
4 1730 Price of heating power.
5 1800 Price of water supplied by irrigation works.
Service Sectors Subject to Government Pricing
NO CPC SERVICE NOTES
1 7511
7512
75217522Postal and telecommunication
services chargesIncluding postal services charges,
national and trans-provincial
telecommunication services charges.
2 964 Entrance fee for tour sites Referring to significant historical relics
and natural landscape under protection.
3 921  922  923 Education services charges
Service Sectors Subject to Government Guidance Pricing
NO CPC SERVICE NOTES
1 7214  745**
7317111  7112  743
7131  7139Transport services charges Including rail transport of both
passenger and freight, air transport offreight, port services, and pipeline
transport.
2 861   862
8671  8672Professional services charges Including architectural and engineering
services, legal services, assetsassessment services, authentication,arbitration, notarization and inspection.
3 621 Charges for commission
agents' servicesIncluding commission for trademark,
advertisement taxation and biddingagents.
4 81339** Charges for settlement,
clearing and transmission
services of banksIncluding settlement, clearing and
transmission services of the RMB,
transaction fees and seat charges ofnational securities exchanges, as wellas seat charges for China ForeignExchange Center
5 82101 Selling price and renting fee
of residential apartments
6 931 Health related services
Notes:
1. CPC classification is added to the service sectors subject to state pricing in this Annex in
accordance with the GATT document MTN.GNS/W/120, 10 July 1991, which provided services
sectoral classification for the purpose of services negotiations during the Uruguay Round.
2. The government pricing in the service sectors which are listed in China's Schedule of Specific
Commitments shall be applied in a manner consistent with Article 6 of GATS and the Reference
Paper on Basic Telecommunication.WT/MIN(01)/3
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ANNEX 5A
NOTIFICATION PURSUANT TO ARTICLE XXV OF
THE  AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES
I. SUBSIDIES FROM CENTRAL BUDGET PROVIDED TO CERTAIN STATE-
OWNED ENTERPRISES WHICH ARE RUNNING AT A LOSS
1. Title of the subsidy program
Subsidies provided to certain State-owned enterprises which are running at a loss.
2. Period covered by the notification
1990-1998.
3. Policy objective and/or purpose of the subsidy
To promote restructuring of those State-owned enterprises which are running at a loss, while
keeping employment by means of promoting rationalization and maintaining stable
production and safety of the society(compensation for the lack of social security system).
4. Background and authority for the subsidy
Ministry of Finance.
5. Legislation under which it is granted
Assistance by budget.
6. Form of the subsidy
Grant and Tax Forgiving
7. To whom and how the subsidy is provided
Subsidy is provided to severe loss-making State-owned enterprises due to either fixed price of
the products they produce or the increasing cost of exploitation of the resources.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Unit: 100 million RMB
Sector/Year 1990 1991 1992 1993 1994 1995 1996 1997 1998
Metallurgic industry    1.16    1.46    1.35    3.13    4.07 3.02 5.04 10.96 8.36
Ferrous-metal industry    0.63    0.86    1.28    1.51    5.80 5.86 4.78 6.58 4.65
Machinery industry    3.80    5.07   14.61    3.98   14.09 8.34 9.67 11.17 8.38
Coal industry   55.86   66.70   70.14   49.80   47.19 12.13 13.21 16.83 14.85
Oil industry   42.53   54.36   52.89   28.08    0.00 0.00 0.00 6.78 3.28
Chemical industry    3.83    4.03    3.70    4.11    6.90 3.47 4.26 5.32 4.96
Textile industry    1.90    2.39    2.07    3.09    2.65 3.38 6.97 16.41 15.36
Light industry    6.65    7.88    6.31    9.30    3.99 1.52 2.63 6.82 2.35
Tobacco industry    0.00    0.00    0.00    0.00   12.00 8.62 9.26 10.25 8.83
Total of the nine
sectors 116.36  142.75  152.35  103.00   96.69 46.34 55.92 91.12 71.02
Other sectors    1.65    1.94    1.99    1.53    1.24 0.42 1.28 4.62 3.67
Total  118.01  144.69  154.34  104.53   97.93 46.76 57.2 95.74 74.69WT/MIN(01)/3
Page 142
9. Duration of the subsidy and/or any other time-limits attached to it
1949-2000.
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
II. SUBSIDIES FROM LOCAL BUDGET PROVIDED TO LOSS MAKING STATE
OWNED  ENTERPRISES
1. Title of the subsidy program
Subsidies provided to certain State-owned enterprises which are running at a loss.
2. Period covered by the notification
1990-1999.
3. Policy objective and/or purpose of the subsidy
To promote restructuring of those State-owned enterprises which are running at a loss, while
keeping employment by means of promoting rationalization and maintaining stableproduction and safety of the society(compensation for the lack of social security system).
4. Background and authority for the subsidy
Ministry of Finance and local governments.
5. Legislation under which it is granted
Assistance by local budget.
6. Form of the subsidy
Grant and Tax Forgiving
7. To whom and how the subsidy is provided
Subsidy is provided to severe loss-making State-owned enterprises due to either fixed price of
the products they produce or the increasing cost of exploitation of the resources and
restructuring of state owned enterprises.WT/MIN(01)/3
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8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Unit:100 million RMB
1990 1991 1992 1993 1994 1995 1996 1997 1998
Beijing 57.69 59.28 63.26 63.11
Tianjin 9.23 8.79 7.29 7.29
Hebei 6.84 5.89 4.76 4.91
Shanxi 5.52 6.05 5.42 5.75
Inner-
Mongolia3.53 2.77 2.22 2.29
Liaoning 18.02 17.10 16.63 13.14
Jilin 6.07 5.88 5.75 4.02
Heilongjiang 11.77 7.07 5.21 4.47
Shanghai 44.95 45.50 45.88 45.94
Jiangsu 11.75 10.46 8.81 9.15
Zhejiang 25.06 30.10 34.79 37.85
Anhui 4.17 7.11 6.69 5.41
Fujian 2.53 1.40 1.05 0.78
Jiangxi 0.67 0.65 0.52 0.50
Shandong 8.48 8.12 6.37 4.92
Henan 4.27 3.80 3.66 2.66
Hubei 11.60 10.99 10.92 9.83
Hunan 4.57 5.16 4.23 5.18
Guangdong 17.52 17.35 15.39 13.60
Guangxi 2.22 2.01 1.60 1.33
Hainan 0.70 0.43 0.32 0.61
Chongqing 3.18 1.93
Sichuan 5.99 6.37 2.01 1.89
Guizhou 1.48 1.55 2.25 1.46
Yunnan 7.51 7.82 6.49 3.22
Tibet 0.87 1.16 1.19 1.18
Shaanxi 4.67 4.46 4.66 4.09
Gansu 0.47 0.22 0.18 0.56
Qinghai 0.91 0.96 0.51 0.44
Ningxia 0.18 0,16 0.20 0.19
Xingjiang 1.74 1.54 1.27 1.08
Total 460.87 365.55 290.62 306.76 268.29 281.01 280.20 272.75 258.81
9. Duration of the subsidy and/or any other time-limits attached to it
1949-2000.
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.WT/MIN(01)/3
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III. THE PRIORITY IN OBTAINING LOANS AND FOREIGN CURRENCIES BASED
ON EXPORT PERFORMANCE
1. Title of the subsidy program
The priority in obtaining loans and foreign currencies based on export performance.
2. Period covered by the notification
1994-1999.
3. Policy objective and/or purpose of the subsidy
To promote the exportation of automobiles.
4. Background and authority for the subsidy
State Planning Commission.
5. Legislation under which it is granted
State Council Circular on Industrial Policy on Automobiles..
6. Form of the subsidy
Priority in obtaining loans and foreign currencies.
7. To whom and how the subsidy is provided
Priority is given to:
(1) Automotive production enterprises whose export of whole vehicle products has
reached the percentage points in the volume of their sales as indicated in the
following chart;
Vehicles Types Category Percentages
M1 3%
M2 5%Passenger
VehiclesM3 8%
N1 5% Freight
Vehicles N2, N3 4%
Motorcycles L 10%
and
(2) Automobile and motorcycle components manufacturing enterprises whose exports
account for 10 per cent of their total annual sales.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Zero, because no enterprises have reached the level for enjoying the priority up till now.
9. Duration of the subsidy and/or any other time-limits attached to it
China commits itself to eliminate this measure by the year of 2000.
10. Statistical data permitting an assessment of the trade effects of a subsidy
Zero.WT/MIN(01)/3
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IV. PREFERENTIAL TARIFF RATES BASED ON LOCALIZATION  RATE OF
AUTOMOTIVE PRODUCTION.
1. Title of the subsidy program
Preferential tariff rates based on localization  rate of automotive production.
2. Period covered by the notification
1994-1999.
3. Policy objective and/or purpose of the subsidy
To promote the localization process of automobile industry of China.
4. Background and authority for the subsidy
State Planning Commission.
5. Legislation under which it is granted
State Council Circular on Industrial Policy on Automobiles.
6. Form of the subsidy
Preferential tariff rates.
7. To whom and how the subsidy is provided
The preferential tariff rates are granted to the automotive enterprises whose localization
reaches the following ratios:
(1) Localization rate reaches 40 per cent, 60 per cent or 80 per cent on products that
incorporate imported technology on whole vehicles of M Category;
(2) Localization rate reaches 50 per cent, 70 per cent or 90 per cent on products that
incorporate imported technology on whole vehicles of N and L Categories; and
(3) Localization rate reaches 50 per cent, 70 per cent or 90 per cent on products that
incorporate imported technology on automobile and motorcycle assemblies and keycomponents.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Not available.
9. Duration of the subsidy and/or any other time-limits attached to it
China commits itself to phase out this measure by the year of 2000.
10. Statistical data permitting an assessment of the trade effects of a subsidy
The trade effect is negligible.
V. PREFERENTIAL POLICIES FOR THE SPECIAL ECONOMIC ZONES
(EXCLUDING THE PUDONG AREA OF SHANGHAI)
1. Title of the subsidy program
Preferential income tax policies for foreign-invested enterprises in the Special Economic
Zones of Shenzhen, Zhuhai, Shantou, Xiamen, Hainan.WT/MIN(01)/3
Page 146
2. Period covered by the notification
1984 - now.
3. Policy objective and/or purpose of the subsidy
To promote regional development and absorb foreign investment.
4. Background and authority for the subsidy
State Administration of Taxation and local taxation authorities.
5. Legislation under which it is granted
Before 1991, Income Tax Law of the People’s Republic of China Concerning Chinese-
Foreign Equity Joint Ventures and Income Tax Law of the People’s Republic of China for
Foreign Enterprises.After 1991, Income Tax Law of the People’s Republic of China for Enterprises with Foreign
Investment and Foreign Enterprises.
6. Form of the subsidy
Application of preferential income tax rate, and exemption of income tax.
7. To whom and how the subsidy is provided
(1) For foreign-invested enterprises established in the Special Economic Zones and
foreign enterprises engaging in production and business operation in the Special
Economic Zones, preferential income tax rate of 15 per cent shall be applied.
(2) For foreign-invested productive enterprises established in the old areas of the cities
where the Special Economic Zones are located, preferential income tax rate of 24 per
cent shall be applied; for technology intensive projects, projects having foreign
investment more than $ 30 million with a long paying back period, and projectswithin sectors encouraged by the State such as energy, transportation etc., preferential
income tax rate may further be reduced to 15 per cent.
(3) For enterprises in services sectors with foreign investment more than US$ 5 million
and operation term over 10 years, income tax for the first year shall be exempted andthat for the second and third years shall be reduced by 50 per cent, subject to the
application and approval by the local taxation authorities. The base year shall be the
first profit-making year of the enterprises.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
The preferential income tax rate applied is 24 or 15 per cent.
9. Duration of the subsidy and/or any other time-limits attached to it
1984 -
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
VI. PREFERENTIAL POLICIES FOR THE ECONOMIC AND TECHNOLOGY
DEVELOPMENT AREAS
1. Title of the subsidy program
Preferential income tax policies for foreign-invested enterprises in the economic and
technology development areas in Dalian, Qinhuangdao, Tianjin, Yantai, Qingdao,WT/MIN(01)/3
Page 147
Lianyungang, Nantong, Ningbo, Fuzhou, Guan gzhou, Zhanjiang, Shanghai (Minhang,
Hongqiao, Caohejing), Beihai, Shenyang , Wenzhou, Harbin, Changchun, Hangzhou, Wuhan,
Chongqing, Wuhu, Xiaoshan, Huizhou, Nansha , Kunshan, Rongqiao, Weihai, Yingkou,
Dongshan.
2. Period covered by the notification
1984 - now.
3. Policy objective and/or purpose of the subsidy
To accelerate the opening-up of the region and absorb foreign investment.
4. Background and authority for the subsidy
State Administration of Taxation and local taxation authorities.
5. Legislation under which it is granted
Before 1991, Income Tax Law of the People’s Republic of China Concerning Chinese-
Foreign Equity Joint Ventures and Income Tax Law of the People’s Republic of China for
Foreign Enterprises.After 1991, Income Tax Law of the People’s Republic of China for Enterprises with Foreign
Investment and Foreign Enterprises.
6. Form of the subsidy
Application of preferential income tax rate, and exemption of income tax..
7. To whom and how the subsidy is provided
(1) For foreign-invested productive enterprises established in the economic and
technology development areas, preferential income tax rate of 15 per cent shall be
applied.
(2) For foreign-invested productive enterprises established in the old areas of the cities
where the economic and technology development areas are located, preferential
income tax rate of 24 per cent shall be applied; for technology intensive projects,
projects having foreign investment more than $ 30 million with a long paying backperiod, and projects within sectors encouraged by the State such as energy,
transportation etc., preferential income tax rate may further be reduced to 15 per cent.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
The preferential income tax rate applied is 24 or 15 per cent.
9. Duration of the subsidy and/or any other time-limits attached to it
1984 -
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
VII. PREFERENTIAL POLICIES FOR THE SPECIAL ECONOMIC ZONE OF THE
PUDONG AREA OF SHANGHAI
1. Title of the subsidy program
Preferential income tax policies for foreign-invested enterprises in the Special Economic
Zone of the Pudong area of Shanghai.WT/MIN(01)/3
Page 148
2. Period covered by the notification
1991 - now.
3. Policy objective and/or purpose of the subsidy
To accelerate the opening-up of the region and absorb foreign investment.
4. Background and authority for the subsidy
State Administration of Taxation and local taxation authorities.
5. Legislation under which it is granted
Income Tax Law of the People’s Republic of China for Enterprises with Foreign Investment
and Foreign Enterprises.
6. Form of the subsidy
Application of preferential income tax rate, and exemption of income tax.
7. To whom and how the subsidy is provided
(1) For foreign-invested productive enterprises established in the Special Economic Zone
of the Pudong area of Shanghai and for foreign-invested enterprises established there
to engage in infrastructure constructions, preferential income tax rate of 15 per cent
shall be applied.
(2) For foreign-invested enterprises established in the Special Economic Zone of the
Pudong area of Shanghai, engaged in such energy and transportation construction
projects as airport, ports, railways, power stations etc. with operation term longer than
15 years, income tax for the first five years shall be exempted and that for the sixth to
the tenth years shall be reduced by 50 per cent. The base year shall be the first
profit-making year of the enterprises.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
The preferential income tax rate applied is 15 per cent.
9. Duration of the subsidy and/or any other time-limits attached to it
1991 -
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
VIII. PREFERENTIAL POLICIES FOR FOREIGN INVESTED ENTERPRISES
1. Title of the subsidy program
Preferential income tax policies for foreign-invested enterprises in China.
2. Period covered by the notification
1985 - now.
3. Policy objective and/or purpose of the subsidy
To absorb foreign investment and expand economic cooperation.
4. Background and authority for the subsidy
State Administration of Taxation and local taxation authorities.WT/MIN(01)/3
Page 149
5. Legislation under which it is granted
Before 1991, Income Tax Law of the People’s Republic of China Concerning Chinese-
Foreign Equity Joint Ventures and Income Tax Law of the People’s Republic of China for
Foreign Enterprises.
After 1991, Income Tax Law of the People’s Republic of China for Enterprises with Foreign
Investment and Foreign Enterprises.
6. Form of the subsidy
Application of preferential income tax rate, and exemption of income tax.
7. To whom and how the subsidy is provided
(1) For foreign-invested productive enterprises with operation term more than 10 years,
the income tax for the first two years shall be exempted and that for the third to the
fifth year shall be reduced by 50 per cent. The base year shall be the first
profit-making year of the enterprises.
(2) For Chinese-foreign joint enterprises engaged in the construction of ports, docks and
berths, preferential income tax rate of 15 per cent shall be applied, and for those withoperation term longer than 15 years, income tax for the first five years shall be
exempted and that for the sixth to the tenth years shall be reduced by 50 per cent. The
base year shall be the first profit-making year of the enterprises.
(3) For foreign-invested advanced technology enterprises, in case that the technologies
they possess or provide are still regarded as advanced when the initial income tax
exemption and reduction period expires, income tax reduction of 50 per cent may
continue to be applied, for another 3 years.
(4) For foreign-invested enterprises engaged in agriculture, forestry and animal
husbandry, and for foreign-invested enterprises established in remote areas with less
developed economic level, income tax reduction of 15 to 30 per cent may continue to
be applied for another ten years after the initial exemption and reduction period
expires, subject to application and approval of local taxation authorities.
(5) For foreign-invested enterprises of industries and sectors in which foreign investment
is encouraged by the State, provincial government may determine whether to reduce
or exempt the local part of income tax.
(6) For profits of foreign investors which are re-invested into the enterprises to increase
the register capital, or to set up other new enterprises with operation term more than 5
years, 40 per cent of their income tax payment for the re-invested profits shall berefunded subject to application and approval from the local taxation authorities. In
case that the new or the expanded enterprises with the re-investment are hi-tech
enterprises, or that profits are from fore ign-invested enterprises in Hainan Special
Economic Zone and re-invested into infrastructure projects or agriculture
development projects of the same Special Economic Zone, 100 per cent of the paidincome tax for the re-investment shall be refunded.
(7) For dividends, interests, rentals, franchising fees and other forms of income of foreign
investors who have no commercial establishments in China, preferential income tax
rate of 20 per cent shall be applied except for profits of foreign investors gained fromthe enterprises they have invested in China, which are subject to 100 per cent income
tax exemption. For franchising fees gained from provision of special technology to
scientific research, energy development, transportation development, agriculture,WT/MIN(01)/3
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forestry and animal husbandry, preferential income tax rate of 10 per cent may be
applied, subject to application and approval of local taxation authorities; in case that
the technology is advanced or is provided with favorable conditions, income tax
exemption may be applied.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
The preferential income tax rate applied is 20, 15 or 10 per cent.
9. Duration of the subsidy and/or any other time-limits attached to it
1985-
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
IX. LOANS FROM THE STATE POLICY BANKS
1. Title of the subsidy program
Loans of the State Policy Banks (the State Development Bank, the Export and Import Bank of
China, and the Agriculture Development Bank of China).
2. Period covered by the notification
For the State Development Bank, 1994 - 1996;
For the Export and Import Bank of China, 1991 - 1995
For the Agriculture Development Bank of China., 1994 - 1996.
3. Policy objective and/or purpose of the subsidy
To adjust investment structure.
4. Background and authority for the subsidy
There are three State Policy Banks in China: the State Development Bank, the Export and
Import Bank of China, and the Agriculture Development Bank of China. The three State
Policy Banks accumulate capital by issuing treasury bonds to commercial banks and themarket. Generally the State budget does not provide interest rate subsidy to the State Policy
Banks. The interest rates of the State Policy Banks loans are usually the same as the market
interest rates.
5. Legislation under which it is granted
None.
6. Form of the subsidy
Loans.
7. To whom and how the subsidy is provided
Loans from the State Development Bank are mainly directed to infrastructure constructions in
energy, transportation, telecommunications and water conservancy, resources development in
the middle and western parts of China, as well as technology renovation of some enterprises.
Loans from the Export and Import Bank of China are mostly directed to guarantee for export
credit of commercial banks, and a small part is for direct export credit.
Loans from the Agriculture Development Bank of china are mainly provided for purchase andstorage of agricultural and side-line products, forestry construction and water conservancy
development.WT/MIN(01)/3
Page 151
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
RMB 200 billion for the State Development Bank, and 9.6 per cent of which is directed to the
manufacturing industry;
RMB 21 billion export credit (mainly sellers'  credit) for the Export and Import Bank of
China;RMB 500 billion for the Agriculture Development of China.
9. Duration of the subsidy and/or any other time-limits attached to it
1991 -
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
X. FINANCIAL SUBSIDIES FOR POVERTY ALLEVIATION
1. Title of the subsidy program
Financial subsidies for poverty alleviation.
2. Period covered by the notification
For direct allocation of funds, 1991 - now
For poverty alleviation loans, 1994 - now.
3. Policy objective and/or purpose of the subsidy
To alleviate poverty.
4. Background and authority for the subsidy
For direct allocation of funds, State Pla nning Commission and Ministry of Finance.
For poverty alleviation loans, the Agriculture Development Bank of China.
5. Legislation under which it is granted
Assistance by budget.
6. Form of the subsidy
Direct appropriation and provision of poverty alleviation loans.
7. To whom and how the subsidy is provided
The subsidies are provided to regions in China where annual income per capita is less than
RMB 400.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
For direct appropriation from the central budget, the total from 1991 to 2000 is RMB 103.6
billion (RMB 18.3 billion from 1991 to 1995, RMB 4 billion in 1996, RMB 15.2 billion in
1997, RMB 17.8 billion for 1998, RMB 24.3 billion in 1999 and RMB 24.0 billion beingplanned in 2000 ).
For poverty alleviation loans, RMB 30 billion.
9. Duration of the subsidy and/or any other time-limits attached to it
1991 -WT/MIN(01)/3
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10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
XI. FUNDS FOR TECHNOLOGY RENOVATION,  RESEARCH AND DEVELOPMENT
1. Title of the subsidy program
Funds for technology renovation, research and development.
2. Period covered by the notification
1991 - 1998
3. Policy objective and/or purpose of the subsidy
To encourage scientific research and technology development, and to promote application of
science and technology in the rural areas.
4. Background and authority for the subsidy
Ministry of Finance
5. Legislation under which it is granted
State Council Circular No. 99, 1987.
6. Form of the subsidy
Grant and loans.
7. To whom and how the subsidy is provided
To scientific research institutes and some enterprises.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
RMB 301.9 billion (RMB 18.1 billion for 1991, RMB 22.3 billion for 1992, RMB 42.1 billion
for 1993, RMB 41.5 billion for 1994, RMB 49.5 billion for 1995 and RMB 52.6 billion for
1996, RMB 64.3 billion for 1997, RMB 64.1 billion for 1998).
9. Duration of the subsidy and/or any other time-limits attached to it
1991 -
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
XII. INFRASTRUCTURE CONSTRUCTION FUNDS FOR AGRICULTURAL WATER
CONSERVANCY AND FLOOD PROTECTING PROJECTS
1. Title of the subsidy program
Infrastructure construction funds for agricultural water conservancy projects
2. Period covered by the notification
1991 - 1999
3. Policy objective and/or purpose of the subsidy
To improve agricultural irrigation systems and flood-defending facilities.
4. Background and authority for the subsidy
Ministry of Finance and the Provincial Bureau of FinanceWT/MIN(01)/3
Page 153
5. Legislation under which it is granted
Assistance by budget.
6. Form of the subsidy
Grant.
7. To whom and how the subsidy is provided
To key infrastructure projects in water conservancy and flood protection.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
RMB 35.5 billion (RMB 7.5 billion for 1991, RMB 8.5 billion for 1992, RMB 9.5 billion for
1993, RMB 10 billion for 1994, RMB 11.0 billion for 1995, RMB 14.1 billion for 1996, RMB
15.9 billion for 1997, RMB 20.89 billion for 1998 and 21.36 for 1999).
9. Duration of the subsidy and/or any other time-limits attached to it
1991 -
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
XIII. TAX AND TARIFF REF UND FOR EXPORT PRODUCTS
1. Title of the subsidy program
Tariff refund for imported contents of export products, and value-added tax refund for export
products.
2. Period covered by the notification
1985 - now.
3. Policy objective and/or purpose of the subsidy
To alleviate unreasonable tax and tariff burdens of export enterprises.
4. Background and authority for the subsidy
For tariff refund, taxation and customs authorities; and for tax refund, taxation authorities.
5. Legislation under which it is granted
State Council Circular No. 43, 1985.
6. Form of the subsidy
Tax and tariff refund.
7. To whom and how the subsidy is provided
For raw materials, spare parts, assemblies and packing materials imported for the purpose of
processing and assembling for overseas clients or manufacturing products for export, tariffs
shall be exempted, or in the case that tariffs have been collected, refund of the collected tariffs
shall be made, according to quantities of the final products exported.
For agricultural products subject to the official value-added tax rate of 10%, the refund rate is
3%.WT/MIN(01)/3
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For industrial products subject to the official value-added tax rate of 17%, which take
agricultural products as their raw materials, the refund rate is 6%.
For other products subject to the official value-added tax rate of 17%, the refund rate is 9%.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
No specific statistics available.
9. Duration of the subsidy and/or any other time-limits attached to it
1985 -
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
XIV. TARIFF AND IMPORT DUTIES REDUCTION AND EXEMPTION FOR
ENTERPRISES
1. Title of the subsidy program
Tariff and import duties reduction and exemption for enterprises.
2. Period covered by the notification
1985 - 2000.
3. Policy objective and/or purpose of the subsidy
To attract foreign investment, to encourage technology renovations in domestic enterprises,
and to promote such trade forms as border trade, processing trade, compensation trade etc..
4. Background and authority for the subsidy
Taxation and customs authorities.
5. Legislation under which it is granted
Regulation of import and export tariff of the People’s Republic of China.
6. Form of the subsidy
Tariff and import duties reduction and exemption.
7. To whom and how the subsidy is provided
China adopted new taxation system on April 1, 1997. Under this new system, all domestic
enterprises and institutes shall be subject to tariff and import duties in accordance withofficial rate except for the following few cases where tariff and import duties reduction and
exemption are still applied:
(1) goods imported for embassies, and offices of international organizations in China,
donations from foreign governments and international organizations, and goodsimported by Chinese diplomats, Chinese students studying abroad and etc. for
personal consumption;
(2) imports into the Yangpu Economic Development Area in Hainan Province, a bonded
area;
(3) equipment and materials imported during the period of 1996 to 2000 for drilling,
petroleum and natural gas exploitation;WT/MIN(01)/3
Page 155
(4) aircraft imported by domestic civil airlines during the period of 1996 to 2000;
(5) spare parts of cars, of which tariff and import duties reduction and exemption shall be
determined according to the localization rate;
(6) materials imported for domestic manufacturing of aircraft.
Tariff and import duties reduction and exemption before April 1, 1996 of imported
equipment and materials for foreign-invested enterprises, for domestic technology
renovation and infrastructure construction projects, for Special Economic Zones and
Economic and Technology Development Areas, and for border trade, processing
trade and compensation trade, shall be terminated except for the following
transitional period:
(1) for foreign-invested enterprises with total investment less than US$ 30
million approved before April 1, 1996, tariff and import duties reduction and
exemption of their imported equipment and materials shall remain valid within the
transitional period till December 31, 1996; for those enterprises with total investmentmore than US$ 30 million, the transitional period shall end on December 31, 1997;
(2) for industrial projects in such areas as energy, transportation, metallurgical
industry with total investment more than RMB 50 million, and for technology
renovation projects in manufacturing industries with total investment more than RMB30 million, which were approved before April 1, 1996, tariff and import duties for
their equipment importation shall be subject to 50 per cent reduction within the
transitional period till December 31, 1997;
(3) goods imported into the five Special Economic Zones of Shenzhen, Zhuhai,
Shantou, Xiamen, Hainan, as well as those into the Pudong area in Shanghai and the
Industrial Development Zone in Suzhou, shall be subject to tariff and import duties
after 1 April 1996 in accordance with the official tariff and import duties rates.
However, refund of the tariff and import duties will be applied within the transitional
period from 1996 to 2000, with the volume decreasing annually. The refund willterminate after the year 2000.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
No specific statistics available.
9. Duration of the subsidy and/or any other time-limits attached to it
1985 - 2000.
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
XV. PROVISION OF LOW-PRICE INPUTS FOR SPECIAL INDUSTRIAL SECTORS
1. Title of the subsidy program
State low pricing for certain percentage of coal for electricity generating, and for certain
percentage of crude oil.
2. Period covered by the notification
1987 - now.WT/MIN(01)/3
Page 156
3. Policy objective and/or purpose of the subsidy
State pricing for certain percentage of the industrial inputs is to maintain the overall price
level stable.
4. Background and authority for the subsidy
Reform of China's planning economic system began first with the reform of the pricing
system, and by now 95 per cent of the commodities and services in China have already been
determined by the market forces. State pricing remains only for certain percentage of those
crucial products to maintain the ability of the government to curb the overall price level in
emergent cases.
5. Legislation under which it is granted
Provisional regulation of the People’s Republic of China on Pricing.
6. Form of the subsidy
State low pricing for inputs of certain industrial sectors.
7. To whom and how the subsidy is provided
37 per cent of coal in 1995 was subject to state pricing, and 70 per cent of the land oil
production was subject to state pricing, price of the remaining 30 per cent as well as of all the
off-shore oil production was determined by the market.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
No specific statistics available.
9. Duration of the subsidy and/or any other time-limits attached to it
1987 -
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
XVI. SUBSIDY TO CERTAIN ENTERPRISES IN THE FORESTRY INDUSTRY
1. Title of the subsidy program
Subsidy to the forestry industry.
2. Period covered by the notification
1994 - now.
3. Policy objective and/or purpose of the subsidy
To encourage full utilization of forest resources.
4. Background and authority for the subsidy
State Administration of Taxation and local taxation authorities.
5. Legislation under which it is granted
Provisional regulation of the People’s Republic of China on Value added Tax.
6. Form of the subsidy
Refund of value-added tax.WT/MIN(01)/3
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7. To whom and how the subsidy is provided
For certain enterprises in the forestry industry, when their products are based on the
utilization of deficient timber resources, the collected value-added tax shall be refunded.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
No specific statistics available as the quantity is minimal.
9. Duration of the subsidy and/or any other time-limits attached to it
1994 -
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
XVII. PREFERENTIAL INCOME TAX TREATMENT TO HIGH-TECH ENTERPRISES
1. Title of the subsidy program
Preferential Income tax treatment to high-tech enterprises.
2. Period covered by the notification
1994 - now.
3. Policy objective and/or purpose of the subsidy
To accelerate the development of high-tech industries.
4. Background and authority for the subsidy
State Administration of Taxation and local taxation authorities.
5. Legislation under which it is granted
Provisional regulation of the People’s Republic of China on Enterprises Income Tax.
6. Form of the subsidy
Income tax reduction and exemption.
7. To whom and how the subsidy is provided
For high-tech enterprises in the high-tech development zones approved by the State Council,
the income tax rate applied shall be reduced to 15 per cent; for newly-established high-tech
enterprises, income tax shall be exempted for the first two years since the operation.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
No specific statistics available.
9. Duration of the subsidy and/or any other time-limits attached to it
1994 -
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
XVIII. PREFERENTIAL INCOME TAX TREATMENT TO ENTERPRISES UTILIZING
WASTEWT/MIN(01)/3
Page 158
1. Title of the subsidy program
Preferential income tax treatment to enterprises utilizing waste.
2. Period covered by the notification
1993 - now.
3. Policy objective and/or purpose of the subsidy
To encourage resources recycle.
4. Background and authority for the subsidy
State Administration of Taxation and local taxation authorities.
5. Legislation under which it is granted
Provisional regulation of the People’s Republic of China on Enterprises Income Tax.
6. Form of the subsidy
Income tax reduction and exemption.
7. To whom and how the subsidy is provided
For enterprises utilizing waste gas, waste water and solid waste as major production inputs,
income tax shall be reduced or exempted for five years.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
No specific statistics available.
9. Duration of the subsidy and/or any other time-limits attached to it
1993 -
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
XIX. PREFERENTIAL INCOME TAX TREATMENT TO ENTERPRISES IN POVERTY
STRICKEN REGIONS
1. Title of the subsidy program
Preferential Income tax treatment to enterprises in poverty stricken regions
2. Period covered by the notification
1993 - now.
3. Policy objective and/or purpose of the subsidy
To alleviate poverty.
4. Background and authority for the subsidy
State Administration of Taxation and local taxation authorities.
5. Legislation under which it is granted
Provisional regulation of the People’s Republic of China on Enterprises Income Tax.
6. Form of the subsidy
Income tax reduction and exemption.WT/MIN(01)/3
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7. To whom and how the subsidy is provided
For newly-established enterprises in remote regions, poverty stricken regions, and regions
with ethnic groups residence, income tax shall be reduced or exempted for three years.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
No specific statistics available.
9. Duration of the subsidy and/or any other time-limits attached to it
1993 -
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
XX. PREFERENTIAL INCOME TAX TREATMENT TO ENTERPRISES
TRANSFERRING TECHNOLOGIES
1. Title of the subsidy program
Preferential Income tax treatment to enterprises transferring technologies.
2. Period covered by the notification
1993 - now.
3. Policy objective and/or purpose of the subsidy
To encourage technology transfer and extension.
4. Background and authority for the subsidy
State Administration of Taxation and local taxation authorities.
5. Legislation under which it is granted
Provisional regulation of the People’s Republic of China on Enterprises Income Tax.
6. Form of the subsidy
Income reduction and exemption.
7. To whom and how the subsidy is provided
For income of enterprises generated from transferring technologies, or from such relevant
services as technology consultancy, training and etc., income tax shall be exempted when
such annual net income is below RMB 300 thousand; however, in the case that the income
exceeds RMB 300 thousand, for the part which exceeds RMB 300 thousand, income tax shallbe applied as usual.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
No specific statistics available.
9. Duration of the subsidy and/or any other time-limits attached to it
1993 -
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.WT/MIN(01)/3
Page 160
XXI. PREFERENTIAL INCOME TAX TREATMENT TO DISASTER STRICKEN
ENTERPRISES
1. Title of the subsidy program
Preferential Income tax treatment to disaster stricken enterprises
2. Period covered by the notification
1993 - now.
3. Policy objective and/or purpose of the subsidy
To bring down disaster losses.
4. Background and authority for the subsidy
State Administration of Taxation and local taxation authorities.
5. Legislation under which it is granted
Provisional regulation of the People’s Republic of China on Enterprises Income Tax.
6. Form of the subsidy
Income tax reduction and exemption.
7. To whom and how the subsidy is provided
In case that enterprises suffer from such disasters as fire, flood, tornado, earthquake and etc.,
income tax shall be exempted for one year subject to application to and approval from local
taxation authorities.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
No specific statistics available.
9. Duration of the subsidy and/or any other time-limits attached to it
1993 -
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
XXII. PREFERENTIAL INCOME TAX TREATMENT TO ENTERPRISES WHICH
PROVIDE JOB OPPORTUNITIES FOR THE UNEMPLOYED
1. Title of the subsidy program
Preferential income tax treatment to enterprises which provide job opportunities for the
unemployed
2. Period covered by the notification
1993 - now
3. Policy objective and/or purpose of the subsidy
To increase job opportunities.
4. Background and authority for the subsidy
State Administration of Taxation and local taxation authorities.WT/MIN(01)/3
Page 161
5. Legislation under which it is granted
Provisional regulation of the People’s Republic of China on Enterprises Income Tax.
6. Form of the subsidy
Income tax reduction and exemption.
7. To whom and how the subsidy is provided
For newly-established township enterprises, in case that the new jobs they provide in one
certain year exceed 60 per cent of their total jobs, income tax shall be exempted for a period
of three years, subject to their application to and approval from local taxation authorities. In
the same year when the three year exemption period expires, in case the enterprises provide
another 30 per cent more job opportunities, income tax shall be reduced by 50 per cent for
another two years, subject to their application to and approval from local taxation authorities.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
No specific statistics available.
9. Duration of the subsidy and/or any other time-limits attached to it
1993 -
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
XXIII STATISTICS OF INCOME TAX REBATE TO ENTERPRISES SUBJET TO
NOTIFICATION XVII, XVIII, XIX, XX, XXI, XXII
Unit: 10,000 RMB
1995 1996 1997
Beijing 19424 17492 33156
Tianjin 12793 6945 632
Hebei 184 50 5
Shanxi 11216 1519 1465
Inner-Mongolia 2525 445 129
Liaoning 665 477 8515
Jilin 130 1170 791
Heilongjiang 1218 734 1345
Shanghai 41960 110207 63659
Jiangsu 1343 1369 9
Zhejiang 41710 42220 61045
Anhui 14285 17490 23939
Fujian 2563 12953 15183
Jiangxi 28 2 0
Shandong 11586 3737 4277
Henan 192 918 221
Hubei 494 994 12230
Hunan 7019 12179 11915
Guangdong 10835 165 52
Guangxi 9013 6211 7716
Hainan 1194 1371 300
Chongqing 230WT/MIN(01)/3
Page 162
1995 1996 1997
Sichuan 3548 3777 998
Guizhou 647 2006 3259
Yunnan 9027 6418 6563
Tibet 506 1173 228
Shaanxi 7320 4228 1230
Gansu 7519 251 1073
Qinghai 357 378 1815
Ningxia 532 465 2309
Xingjiang 6633 2812 1354
Total 226466 260156 265643
XXIV. TARIFF AND VAT EXEMPTION FOR IMPORTED TECHNOLOGY AND
EQUIPMENT OF THE INVESTERS INVESTING IN AREAS ENCOURAGED BY
THE GOVERNMENT
1. Title of the subsidy program
Tariff and VAT exemption for imported technologies and equipment imported by investors
investing in the industrial areas encouraged by the state.
2. Period covered by the notification
1998 - 2000.
3. Policy objective and/or purpose of the subsidy
Reduce the investment cost of importing technologies and equipment from abroad, so as to
attract foreign direct investment and promote domestic investment as well.
4. Background and authority for the subsidy
The State Council.
5. Legislation under which it is granted
The circular No. 37(1997) issued by the State Council.
6. Form of the subsidy
Tariff and VAT exemption for imported technologies and equipment.
7. To whom and how the subsidy is provided
For foreign investors investing in the encouraged industrial areas defined by the "The
Industrial catalogues for Foreign Direct Inve stment"(jointly issued  by SDPC, SETC and
MOFTEC), their imported technologies and equipment can enjoy treatment of tariff and VATexemption.
For domestic investors investing in the encouraged industrial areas defined by the "The
Catalogues of Current Priorities of Industrial Sectors, Products and Technologies Encouraged
by the State" (issued by The State Development Planning Commission), their imported
technologies and equipment can enjoy treatment of tariff and VAT exemption.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
No specific statistics available.
9. Duration of the subsidy and/or any other time-limits attached to it
1998 - 2000.WT/MIN(01)/3
Page 163
10. Statistical data permitting an assessment of the trade effects of a subsidy
The importation of technologies and equipment has been encouraged by the subsidies, no
specific import volume has been calculated.WT/MIN(01)/3
Page 164
ANNEX 5B
SUBSIDIES TO BE PHASED OUT
I. SUBSIDIES PROVIDED TO CERTAIN STATE-OWNED ENTERPRISES WHICH
ARE RUNNING AT A LOSS
1. Title of the subsidy program
Subsidies provided to certain State-owned enterprises which are running at a loss.
2. Period covered by the notification
1990-1998.
3. Policy objective and/or purpose of the subsidy
To promote structural adjustment of those St ate-owned enterprises which are running at a
loss, especially those in coal-mining and oil-drilling sectors, while keeping employment by
means of promoting rationalization and maintaining stable production and safety.
4. Background and authority for the subsidy
Ministry of Finance.
5. Legislation under which it is granted
Assistance by budget.
6. Form of the subsidy
Grant and tax forgiving
7. To whom and how the subsidy is provided
Subsidy is provided to severe loss-making State-owned enterprises due to either fixed price of
the products they produce or the increasing cost of exploitation of the resources.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Unit: 100 million RMB
 Sector/Year   1990   1991   1992   1993   1994 1995 1996 1997 1998
Metallurgic industry    1.16    1.46    1.35    3.13    4.07 3.02 5.04 10.96 8.36
Ferrous-metal industry    0.63    0.86    1.28    1.51    5.80 5.86 4.78 6.58 4.65
Machinery industry    3.80    5.07   14.61    3.98   14.09 8.34 9.67 11.17 8.38
Coal industry   55.86   66.70   70.14   49.80   47.19 12.13 13.21 16.83 14.85
Oil industry   42.53   54.36   52.89   28.08    0.00 0.00 0.00 6.78 3.28
Chemical industry    3.83    4.03    3.70    4.11    6.90 3.47 4.26 5.32 4.96
Textile industry    1.90    2.39    2.07    3.09    2.65 3.38 6.97 16.41 15.36
Light industry    6.65    7.88    6.31    9.30    3.99 1.52 2.63 6.82 2.35
Tobacco industry    0.00    0.00    0.00    0.00   12.00 8.62 9.26 10.25 8.83
Total of the nine
sectors 116.36  142.75  152.35  103.00   96.69 46.34 55.92 91.12 71.02
Other sectors    1.65    1.94    1.99    1.53    1.24 0.42 1.28 4.62 3.67
Total  118.01  144.69  154.34  104.53   97.93 46.76 57.2 95.74 74.69
9. Duration of the subsidy and/or any other time-limits attached to it
1949-2000.WT/MIN(01)/3
Page 165
10. Statistical data permitting an assessment of the trade effects of a subsidy
Not available.
II. THE PRIORITY IN OBTAINING LOANS AND FOREIGN CURRENCIES BASED
ON EXPORT PERFORMANCE
1. Title of the subsidy program
The priority in obtaining loans and foreign currencies based on export performance.
2. Period covered by the notification
1994-1999.
3. Policy objective and/or purpose of the subsidy
To promote the exportation of automobiles.
4. Background and authority for the subsidy
State Planning Commission.
5. Legislation under which it is granted
State Council Circular on Industrial Policy on Automobiles..
6. Form of the subsidy
Priority in obtaining loans and foreign currencies.
7. To whom and how the subsidy is provided
Priority is given to:
(1) Automotive production enterprises whose export of whole vehicle products has
reached the percentage points in the volume of their sales as indicated in thefollowing chart;
Vehicles Types Category Percentages
M1 3%
M2 5%Passenger
VehiclesM3 8%
N1 5% Freight
Vehicles N2, N3 4%
Motorcycles L 10%
and
(2) Automobile and motorcycle components manufacturing enterprises whose exports
account for 10 per cent of their total annual sales.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Zero, because no enterprises have reached the level for enjoying the priority up till now.
9. Duration of the subsidy and/or any other time-limits attached to it
China commits itself to eliminate this measure by the year of 2000.
10. Statistical data permitting an assessment of the trade effects of a subsidy
Zero.WT/MIN(01)/3
Page 166
III. PREFERENTIAL TARIFF RATES BASED ON LOCALIZATION  RATE OF
AUTOMOTIVE PRODUCTION
1. Title of the subsidy program
Preferential tariff rates based on localization  rate of automotive production.
2. Period covered by the notification
1994-1999
3. Policy objective and/or purpose of the subsidy
To promote the localization process of automobile industry of China.
4. Background and authority for the subsidy
State Planning Commission.
5. Legislation under which it is granted
State Council Circular on Industrial Policy on Automobiles.
6. Form of the subsidy
Preferential tariff rates.
7. To whom and how the subsidy is provided
The preferential tariff rates are granted to the automotive enterprises whose localization
reaches the following ratios:
(1) Localization rate reaches 40 per cent, 60 per cent or 80 per cent on products that
incorporate imported technology on whole vehicles of M Category;
(2) Localization rate reaches 50 per cent, 70 per cent or 90 per cent on products that
incorporate imported technology on whole vehicles of N and L Categories; and
(3) Localization rate reaches 50 per cent, 70 per cent or 90 per cent on products that
incorporate imported technology on automobile and motorcycle assemblies and key
components.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Not available.
9. Duration of the subsidy and/or any other time-limits attached to it
China commits itself to phase out this measure by the year of 2000.
10. Statistical data permitting an assessment of the trade effects of a subsidy
The trade effect is negligible.WT/MIN(01)/3
Page 167
ANNEX 6
PRODUCTS SUBJECT TO EXPORT DUTY
NO HS NO DESCRIPTION OF PRODUCTSEXPORT
DUTY RATE
(%)
1 03019210 Live eels fry 20.0
2 05061000 Ossein and bones treated with acid 40.0
3 05069010 Powder and waste of bones 40.0
4 05069090 Bones and horn-cores, unworked, defatted, simply prepared (but not
cut to shape), treated with acid or  degelatinized, excl. Ossein and
bones treated with acid40.0
5 26070000 Lead ores & concentrates 30.0
6 26080000 Zinc ores & concentrates 30.0
7 26090000 Tin ores & concentrates 50.0
8 26110000 T ungsten ores & concentrates 20.0
9 26159000 Niobium, tantalum & vanadium ores & concentrates 30.0
10 26171010 Crude antimony 20.0
11 28047010 Yellow phosphorus (white phosphorus) 20.0
12 28047090 Phosphorus, nes 20.0
13 28269000 Fluorosilicates and fluoroaluminates  and complex fluorine salts, nes 30.0
14 29022000 Benzene 40.0
15 41031010 Slabs of goats, fresh, or salted, dried, limed, pickled or otherwise
preserved, but not tanned, parchment-dressed or further prepared,whether or not dehaired or split20.0
16 72011000 Non-alloy pig iron containing by weigh<0.5% of phosphorus in pigs,
blocks or other primary forms20.0
17 72012000 Non-alloy pig iron containing by weight >0.5% of phosphorus in
pigs, blocks or other primary forms20.0
18 72015000 Alloy pig iron and spiegeleisen, in pigs, blocks or other primary
forms20.0
19 72021100 Ferro-manganese, containing by weight more than 2% of carbon 20.0
20 72021900 Ferro-manganese, nes 20.0
21 72022100 Ferro-silicon, containing by we ight more than 55% of silicon 25.0
22 72022900 Ferro-silicon, nes 25.0
23 72023000 Ferro-silico-manganese 20.0
24 72024100 Ferro-chromium containing by weight more than 4% of carbon 40.0
25 72024900 Ferro-chromium, nes 40.0
26 72041000 Waste & scrap, of cast iron 40.0
27 72042100 Waste & scrap, of stainless steel 40.0
28 72042900 Waste & scrap of alloy steel, other than stainless steel 40.0
29 72043000 Waste & scrap, of tinned iron or steel 40.0
30 72044100 Ferrous waste & scrap, nes, from turnings, shavings, chips, milling
waste, sawdust, filings, trimmings and stampings, whether or not inbundles40.0
31 72044900 Ferrous waste & scrap of iron or steel, nes 40.0
32 72045000 Remelting scrap ingots of iron or steel 40.0
33 74020000 Copper unrefined; copper anodes for electrolytic refining 30.0
34 74031100 Cathodes & sections of cathodes, of refined copper, unwrought 30.0
35 74031200 Wire bars, of refined copper, unwrought 30.0
36 74031300 Billets, of refined copper, unwrought 30.0
37 74031900 Refined copper, unwrought, nes 30.0
38 74032100 Copper-zinc base alloys (brass), unwrought 30.0
39 74032200 Copper -tin base alloys (bronze), unwrought 30.0WT/MIN(01)/3
Page 168
NO HS NO DESCRIPTION OF PRODUCTSEXPORT
DUTY RATE
(%)
40 74032300 Copper - nickel base alloys (cupronickel) or copper-nickel-zinc base
alloys (silver), unwrought30.0
41 74032900 Copper alloys, unwrought (other than master alloys of heading 74.05) 30.0
42 74040000 Waste & scrap, of copper or copper alloys 30.0
43 74071000 Bars, rods & profiles of refined copper 30.0
44 74072100 Bars, rods & profiles, of copper-zinc base alloys 30.0
45 74072200 Bars, rods & profiles, of copper - nickel base alloys or copper-nickel-
zinc base alloys30.0
46 74072900 Bars, rods & profiles, of copper alloy nes 30.0
47 74081100 Wire of refined copper, of which the maximum cross-sectional
dimension >6mm30.0
48 74081900 Wire of refined copper, of which the maximum cross-sectional
dimension ≤6mm30.0
49 74082100 Wire of copper-zinc base alloys 30.0
50 74082200 Wire of copper - nickel base alloys or copper-nickel-zinc base alloy 30.0
51 74082900 Wire, of copper alloy nes 30.0
52 74091100 Plate, sheet & strip, thickness >0.15mm, of refined copper, in coil 30.0
53 74091900 Plate, sheet & strip, thickness >0.15mm, of refined copper, not in coil 30.0
54 74092100 Plate, sheet & strip, thickness >0.15mm, of copper-zinc base alloys,
in coil30.0
55 74092900 Plate, sheet & strip, thickness >0.15mm, of copper-zinc base alloys,
not in coil30.0
56 74093100 Plate, sheet & strip, thickness >0.15mm, of copper-tin base alloys, in
coil30.0
57 74093900 Plate, sheet & strip, thickness >0.15mm, of copper-tin base alloys,
not in coil30.0
58 74094000 Plate, sheet & strip, thickness >0.15mm, of copper - nickel base
alloys or copper-nickel-zinc base alloy30.0
59 74099000 Plate, sheet & strip, thickness >0.15mm, of copper alloy nes 30.0
60 75021000 Unwrought nickel, not alloyed 40.0
61 75022000 Unwrought nickel alloys 40.0
62 75089010 Electroplating anodes of nickel 40.0
63 76011000 Unwrought aluminium, not alloyed 30.0
64 76012000 Unwrought aluminium alloys 30.0
65 76020000 Aluminium waste & scrap 30.0
66 76041000 Bars, rods & profiles of aluminium, not alloyed 20.0
67 76042100 Hollow profiles of aluminium alloys 20.0
68 76042900 Bars, rods & profiles (excl. hollow profiles), of aluminium alloys 20.0
69 76051100 Wire of aluminium ,not alloyed, with the maximum cross-sectional
dimension >7mm20.0
70 76051900 Wire of aluminium, not alloyed, with the maximum cross-sectional
dimension ≤7mm20.0
71 76052100 Wire of aluminium alloys, with the maximum cross sectional
dimension >7mm20.0
72 76052900 Wire of aluminium alloys, with the maximum cross sectional
dimension ≤7mm20.0
73 76061120 Plates & sheets & strip, rectangular (incl. square), of aluminium, not
alloyed, 0.30mm ≤ thickness ≤0.36mm20.0
74 76061190 Plates & sheets & strip, rectangular (incl. square), of aluminium, not
alloyed, 0.30mm > thickness >0.2mm20.0
75 76061220 Plates & sheets & strip, rectangular (incl. square), of aluminium
alloys, 0.2mm<thickness <0.28mm20.0WT/MIN(01)/3
Page 169
NO HS NO DESCRIPTION OF PRODUCTSEXPORT
DUTY RATE
(%)
76 76061230 Plates & sheets & strip, rectangular (incl. square), of aluminium
alloys, 0.28mm ≤ thickness ≤0.35mm20.0
77 76061240 Plates & sheets & strip, rectangular (incl. square), of aluminium
alloys, 0.35mm<thickness20.0
78 76069100 Plates & sheets & strip, of aluminium, not alloyed, thickness
>0.2mm, nes20.0
79 76069200 Plates & sheets & strip, of aluminium alloys, thickness >0.2mm, nes 20.0
80 79011100 Unwrought zinc, not alloyed, containing by weight ≥99.99% of zinc 20.0
81 79011200 Unwrought zinc, not alloyed, containing by weight<99.99% of zinc 20.0
82 79012000 Unwrought zinc alloys 20.0
83 81100020 Antimony unwrought 20.0
84 81100030 Antimony waste and scrap; Antimony powders 20.0
Note:
China confirmed that the tariff levels included in this Annex are maximum levels which will
not be exceeded. China confirmed furthermore that it would not increase the presently applied rates,except under exceptional circumstances. If such circumstances occurred, China would consult with
affected members prior to increasing applied tariffs with a view to finding a mutually acceptable
solution.WT/MIN(01)/3
Page 170
ANNEX 7
RESERVATIONS BY WTO MEMBERS
Argentina :  restrictions maintained on imports from China
Argentina intends to maintain restrictions on certain products originating in China, such as
textiles and clothing, footwear not used for sporting activities and toys, after the accession of China,
as follows:
PRODUCT HS CODE
Textiles and Clothing 51.11; 51.12; 51.13; 52.08; 52.09; 52.10; 52.11; 52.12; 53.09; 53.10;
53.11; 54.07; 54.08; 55.12; 55.13; 55.14; 55.15; 55.16; 56.02; 56.03;
57.01; 57.02; 57.03; 57.04; 57.05; 58.01; 58.02; 58.03; 58.04; 58.05;58.06; 58.07; 58.08; 58.09; 58.10; 58.11; 59.03; 60.01; 60.02; 61.01;
61.02; 61.03; 61.04; 61.05; 61.06; 61.07; 61.08; 61.09; 61.10; 61.11;
61.12; 61.13; 61.14; 61.15; 61.16; 61.17; 62.01; 62.02; 62.03; 62.04;
62.05; 62.06; 62.07; 62.08; 62.09; 62.10; 62.11; 62.12; 62.13; 62.14;
62.15; 62.16; 62.17; 63.01; 63.02; 63.03; 63.04; 63.05; 63.06; 63.07;63.08; 63.09; 63.10
Footwear not used for sportingactivities64.01; 64.02; 64.03; 64.04; 64.05
Toys 95.02; 95.03
Quotas (Resolution 862/1999) :  to be eliminated by 31 July 2002.
Specific duties :  phasing out will be in line with the following methodology:
1. The base level of specific duties will be that in force at the time of the accession of
China and the ad valorem  equivalent of each specific duty applied to each tariff
position.
2. The transition period will be five years from the date of accession of China, after
which a 35% ad valorem  duty will apply.
3. Duties in excess of 35% will be phased out as follows:
— First year :  a 10% reduction of the amount in excess of 35%
— Second year :  a 20% reduction
— Third year :  a 40% reduction
— Fourth year :  a 60% reduction
— Fifth year :  an 80% reduction
— Sixth year:  As of 1 January of the sixth year, the ceiling of the 35%
ad valorem  equivalent to the minimum specific import duties (DIEMs) will
apply.WT/MIN(01)/3
Page 171
European Communities :  phasing-out timetable of industrial (non-textile) quotas on imports from
China
Product HS/CN Code 2001 2002 2003 2004 2005
ex 6402 99 4 5%
increase5%
increase10%
increase15%
increaseproposed
removal
6403 516403 595%
increase10%
increase15%
increase15%
increaseproposed
removal
ex 6403 912
ex 6403 9925%
increase5%
increase10%
increase15%
increaseproposed
removal
ex 6404 115 5%
increase5%
increase10%
increase15%
increaseproposed
removalFootwear falling withinHS/CN codes
6404 19 105%
increase5%
increase10%
increase15%
increaseproposed
removal
Tableware, kitchenware
of porcelain or china6911 1015%
increase15%
increase15%
increase15%
increaseproposed
removal
Ceramic tableware orkitchenware6912 0015%
increase15%
increase15%
increase15%
increaseproposed
removal
                                                     
4 Excluding footwear involving special technology:  shoes which have a cif price per pair of not less
than ECU 9 for use in sporting activities, with a single- or multi-layer moulded sole, not injected, manufactured
from synthetic materials specially designed to absorb the impact of vertical or lateral movements and with
technical features such as hermetic pads containing gas or fluid, mechanical components which absorb or
neutralize impact or materials such as low-density polymers.
5 Excluding:
(a) footwear which is designed for a sporting activity and has, or has provision for the attachment
of, spikes, sprigs, stops, clips, bats or the like, with a non-injected sole;
(b) footwear involving special technology: shoes wh ich have a cif price per pair of not less than
ECU 9 for use in sporting activities, with a single- or multi-layer moulded sole, not injected,manufactured from synthetic materials specially designed to absorb the impact of vertical or
lateral movements and with technical features such as hermetic pads containing gas or fluid,mechanical components which absorb or neutralize impact or materials such as low-density
polymers.WT/MIN(01)/3
Page 172
Hungary :  quantitative restrictions maintained on imports from China
Hungary undertakes to phase out these restrictions by the year 2005.  The restraint levels are
based on the import data of the year 1999.  The annual quota growth and the carry over and carry
forward rates in the case of textiles and clothing products are included in the notification.
Increase of quotas in per centProduct HSImport from
China in 1999 2001 2002 2003 2004 2005
Footwear falling within
HS codes6401
640264036404
640571 000 pairs
10 625 000 pairs
600 000 pairs
4 450 000 pairs
2 140 000 pairs5
555
55
555
510
101010
1015
151515
15proposed removal
proposed removalproposed removalproposed removal
proposed removal
Overwear
Flexibility rates:  10% of
which carry forward shall
not represent more than5%4203, ex 4303,
ex 4304, 6101,
6102, 6103, 6104,
6106, 6110, 6112,6113, 6114, 6201,6202, 6203, 6204,
6206, 6210, 621115 900 000 $ 6 6 6 6 proposed removal
Other clothing and
ready-made clothingproducts
Flexibility rates:  10% of
which carry forward shall
not represent more than
5%ex 4303, ex 4304,
6117, 6213, 6214,6215, 6301, 6302,
6304, 6306, 6307,
94044 570 000 $ 6 6 6 6 proposed removal
Mexico :  anti-dumping measures maintained against imports from China
Notwithstanding any other provisions of this Protocol, during six years after the accession of China,
Mexico's existing measures listed below shall not be subject to the provisions of either the WTO
Agreement or the anti-dumping provisions of this Protocol.
PRODUCT TARIFF CLASSIFICATION
Bicycles 8712.00.01
8712.00.028712.00.038712.00.048712.00.99
Footwear and parts thereof 56 tariff lines covered under the headings
6401, 6402, 6403, 6404, 6405
Brass padlocks 8301.10.01
Baby carriages 8715.00.01
Door knob locks 8301.40.01
Malleable iron connections 7307.19.02
7307.19.037307.19.997307.99.99
Non-refillable pocket lighters, gas-fuelled 9613.10.01
Fluorite 2529.22.01
Furazolidone 2934.90.01
Tools 48 tariff lines under the headings
8201, 8203, 8204, 8205, 8206WT/MIN(01)/3
Page 173
PRODUCT TARIFF CLASSIFICATION
Textiles (yarns and fabrics of artificial and
synthetic fiber)403 tariff lines under the headings
3005
5204, 5205, 5206, 5207, 5208, 5209, 5210, 5211, 5212,
5307, 5308, 5309, 5310, 5311
5401, 5402, 5404, 5407, 5408, 5501, 5506, 5508, 5509,
5510, 5511, 5512, 5513, 5514, 5515, 5516
5803, 5911
Toys 21 tariff lines under the headings
9501, 9502, 9503, 9504, 9505, 9506
Pencils 9609.10.01
Bicycle tires and inner tubes 4011.50.01 4013.20.01
Electrical machines, appliances and equipmentand parts thereof78 tariff lines under the headings
8501, 8502, 8503, 8504, 8506, 8507, 8509, 8511, 8512,8513, 8515, 8516, 8517, 8518, 8519, 8520, 8523, 8525,
8527, 8529, 8531, 8532, 8533, 8536, 8537, 8544
Parathion-methyl 3808.10.99
Clothing 415 tariff lines under the headings
6101, 6102, 6103, 6104, 6105, 6106, 6107, 6108, 6109,
6110, 6111, 6112, 6113, 6114, 6115, 6116, 6117, 6201,6202, 6203, 6204, 6205, 6206, 6207, 6208, 6209, 6210,6211, 6212, 6213, 6214, 6215, 6216, 6217, 6301, 6302,
6303, 6304, 6305, 6306, 6307, 6308, 6309, 6310,
Organic chemicals 258 tariff lines under the headings
2901, 2902, 2903, 2904, 2905, 2906, 2907, 2909, 2910,
2911, 2912, 2914, 2915, 2916, 2917, 2918, 2919, 2920,
2921, 2922, 2923, 2924, 2925, 2926, 2927
Ceramic and porcelain dishware and loose articles 6911.10.01
6912.00.01
Iron and steel valves 8481.20.01
8481.20.048481.20.998481.30.04
8481.30.99
8481.80.048481.80.188481.80.208481.80.24
Candles 3406.00.01WT/MIN(01)/3
Page 174
Poland :  anti-dumping measures and safeguard measures maintained on imports from China
Poland intends to continue the application of the below mentioned measures after China's
accession.
1. Anti-dumping duties:
PCN 9613 10 00 0 (pocket lighters, gas fuelled, non-fillable)PCN 9613 20 90 0 (pocket lighters, gas fuelled refillable, with other ignition system)The bringing of these measures into conformity with the WTO Agreement
6 will be effected
by the end of 2002.
2. Safeguard measures:
PCN 6402 (other footwear with outer soles and uppers of rubber or plastics).
PCN 6403 (footwear with outer soles of rubber, plastics, leather or composition leather and
uppers of leather).
PCN 6404 (footwear with outer soles of rubber, plastics, leather or composition leather and
upper of textile materials).
PCN 6405 (other footwear)PCN 8516 40 10 0 (electric smoothi ng irons, steam smoothing)
PCN 8516 40 90 0 (electric smoothing irons, other)
The phasing out of these measures will be effected by the end of 2004.
Slovak Republic :  quantitative restrictions maintained on imports from China
The Slovak Republic has concluded the bilaterals talks with China over the quantitative
restrictions on imports of footwear falling within HS/CN Code 6401, 6402, 6403, 6404 and 6405.
Phasing-out Timetable on Footwear Quotas by the Slovak Republic
HS/CN Code 2001 2002 2003 2004 2005
6401 to 6405 15% increase 15% increase 15% increase 15% increaseproposed
removal
                                                     
6 The WTO Agreement as defined in the Draft Protocol on the Accession of China, Section 1, para. 2.WT/MIN(01)/3
Page 175
Turkey :  quantitative restrictions for non-textile products maintained on imports from China
Turkey maintains quantitative restrictions on the goods specified below.  Turkey undertakes
to eliminate these restrictions by 1 January 2005.
CN CODE DESCRIPTION OF GOODS Quota (2000)
(1) 6402.99 Footwear 110 000 Pairs
6403.51)
6403.59)Footwear 26 826 Pairs
(1)
(1)6403.91)
6403.99)Footwear 185 742 Pairs
(2) 6404.11.00.00.00 Footwear 754 350 Pairs
6404.19.10.00.11)
6404.19.10.00.12)
6404.19.10.00.13)Footwear 472 300 Pairs
6911.10 Tableware, kitchenware of porcelain or china 15 225 kg
6912.00 Ceramic tableware or kitchenware, other than of
porcelain or china45 675 kg
(1) Excluding footwear involving special technology:  shoes which have a c.i.f. price per pair of not
less than $ 11,5 for use in sporting activities, with a single- or multi-layer moulded sole, not injected,manufactured from synthetic materials specially designed to  absorb the impact of vertical or lateral movements
and with technical features such as hermetic pads containing gas or fluid, mechanical components which absorbor neutralize impact or materials such as low-density polymers.
(2) Excluding:
(a) footwear which is designed for a sporting activity and has, or has provision for the attachment
of spikes, springs, stops, clips, bats or the like, with a non-injected sole,
(b) footwear involving special technology:  shoes wh ich have a c.i.f. price per pair of not less than
$ 11,5 for use in sporting activities, with a single- or multi-layered moulded sole, not injected, manufacturedfrom synthetic materials specially designed to absorb the impact of vertical or lateral movements and with
technical features such as hermetic pads containing gas or fluid, mechanical components which absorb or
neutralize impact or materials such as low-density polymers.WT/MIN(01)/3
Page 176
ANNEX 8
SCHEDULE CLII – PEOPLE'S REPUBLIC OFCHINA:  PART I – GOODS
Circulated in document WT/ACC/CHN/49/Add.1.WT/MIN(01)/3
Page 177
ANNEX 9
SCHEDULE CLII – PEOPLE'S REPUBLIC OF CHINA:  PART II – SERVICES
Circulated in documen t WT/ACC/CHN/49/Add.2
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