 
  WORLD TRADE  
ORGANIZATION  G/LIC/N/3/CHN/3 
30 September 2004 
 
 (04-4100) 
Committee on Import Licensing Original:   English 
  
 
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES
1 
 
Notification under Article 7.3 of the Agreement on Import Licensing Procedures  
 
PEOPLE'S REPUBLIC OF CHINA 
  
 The following communication, dated 28 September 2004, is being circulated at the request of 
the Delegation of the People's Republic of China.  
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With the implementation of the commitments  undertaken during China’s accession to the 
WTO and the adjustment made to the government structure and responsibilities, the import licensing procedures in China are further streamlined in 20 04.  The Chinese government would like to reflect 
the latest development in this respect through su bmission of its 2004  responses to the questionnaire 
on import licensing procedures.   Outline of systems
 
 
1.       Import licensing in China can be divided into four categories: 
(a)  import quota licence administration (b)  import licence administration (c)  automatic import licensing administration (d)  import tariff rate quota administration 
 
Purposes and coverage of licensing
 
 
2.  Import quota licence administration is applicab le to products subject to import quantitative 
restriction.  Import licence administration is applicab le to other products subject to import restriction. 
Automatic import licensing administration is applicab le to those products free from import restriction, 
however, the importation of which needs monitoring.   Import tariff rate quota administration is 
applicable to products subject to im port tariff rate quota administration.  
 3.  Application of the four categories of import licensing is not based on the origin of the products.  
 
4.  The current import quota licence administra tion is a temporary measure taken to provide 
protection to certain domestic industries during th e transitional period after China’s accession to the 
WTO, and China has made commitments on the sc ope and timeframe etc for the import quota licence 
administration in the Protocol on the Accession.  According to the commitments, all quantitative 
restrictions inconsistent with WTO will be phased out by 2005. 
                                                     
 
1 See document G/LIC/3, Annex, for the Questionnaire. G/LIC/N/3/CHN/3 
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         Import tariff rate quota administrati on is confirmed by other WTO Members within the 
framework of WTO Agreements and the negotiations  on China’s accession.  It is an administrative 
measure over certain products subject  to import restrictions, aiming at  better implementation by China 
of its obligations of being a WTO Member.  The primary categories of products under administration 
of import tariff rate quota are in the agriculture sector.  
          Automatic import licensing administrati on is an administrative measure over certain products 
which are free of import restricti ons but import situation monitoring and statistics collection of which 
are deemed necessary.  It is implemented in a way fully consistent with  the Agreement on Import 
Licensing Procedures , and there is no restriction in terms of import quantity or value. 
 
Import licence administration is an administrative measure primarily over products on which 
import restriction must be applied according to th e obligations under international Conventions to 
which China is a signatory.  
 
5.  The Chinese government has always committed to  establishing and maintaining transparent, 
fair and non-discriminatory import licensing procedures.  The fundamental principles governing import licensing are contained in the Foreign Trade Law  and the Law on Administrative Licensing .  
Under the two Laws, the State Council of the People's Republic of China promulgated the Regulations 
on Administration of Import and Export of Goods in the form of State Council Decree, through which 
situations where import licensing procedures apply ar e established.  Pursuant to the Regulation, the 
government body governing foreign trade under the State Council, i.e. the Ministry of Commerce (MOFCOM) and its predecessor the Ministry of Foreign Trade and Economic Cooperation 
(MOFTEC), promulgated the Measures on Administration of Import Licences for Goods and the 
Measures on Administration of Automatic Import Licensing  for Goods  in form of Ministry Decree, 
which set out clearly implementing details of im port licensing procedures. In accordance with these 
two Ministry Decrees, MOFCOM publishes yearly, in form of Ministry Announcement, the Catalogue 
of Goods Subject to Import Licence Administration and the Catalogue of Goods Subject to Automatic 
Import Licensing Administration, which list all the commodities subject to import licensing procedures, including import quota licence administration, import licence administration and automatic import licensing administration, ex cept for those under tariff rate quota (TRQ) 
administration. 
 
As for commodities under TRQ administration, pursuant to the Regulations on 
Administration of Import and Export of Goods , MOFCOM and the National Development and 
Reform Commission (NDRC) jointly promulgated the Interim Measures on Administration of Tariff 
Rate Quota for Importation of  Agricultural Products in form of Ministry Decree , and the former State 
Economic and Trade Commission and the General Admi nistration of Customs jointly promulgated the 
Interim Measures on the Admini stration of Tariff Rate Quot a for Importation of Fertilizers in form of 
Ministry Decree .  In accordance with these two Ministry D ecrees, the quantities of TRQ, allocation 
methods and application conditions of the co mmodities under TRQ administration are published 
annually in form of Ministry Announcement.  
 
Procedures
 
 
6.  Products subject to import quota licence administration and import tariff rate quota 
administration are those subject to import quantitative r estriction, which is applied globally.  With the  
implementation of the commitments China made in  the accession to the WTO, the last batch of 
products remaining under import quota licence ad ministration in 2004 includes only certain 
machinery and electronic products, i.e., automobiles a nd their key parts.  Products under import tariff 
rate quota administration include grain, cotton, vege table oil, sugar, wool, wool tops and chemical 
fertilizers.   G/LIC/N/3/CHN/3 
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I.      MOFCOM promulgated on 31 July 2003 Announcement No.37 of 2003 , which published the 
quantity of quotas and allocation methods of th e products under import quota licence administration 
for 2004.  
NDRC promulgated on 30 September 2003 the Quantities, Application Conditions and 
Allocation Methods of Tariff Rate Quota for Importation of Grain and Cotton of 2004  in its 
Announcement No. 25 of 2003.  MOFCOM promulgated on 28 September 2003  Allocation Methods 
of Tariff Rate Quota for Importation of Palm O il, Soybean Oil, Rape Seed Oil and Sugar of 2004  in its 
Announcement No.51 of 2003,  and Implementing Rules on the Administration of Tariff Rate Quota for 
Importation of Wool and Wool Tops of 2004  in its Announcement No.52 of 2003 .  MOFCOM also 
promulgated on 10 October 2003  the Quantities, Allocation Principles and Application Procedures of 
Tariff Rate Quota for Import ation of Fertilizers of 2004  in its Announcement No.55 of 2003. 
 
II.     The catalogue and quantities of quota of products under import quota licence administration and 
those under import tariff rate  quota administration were determined during China's WTO accession 
negotiations (Annex 3 and 8 to th e Protocol on the Accession of th e People’s Republic of China).  
Since accession, China has implemen ted the commitment according to the scheduled timeframe.  The 
number of products under import quota licence administ ration has been declining, while the quantities 
of import quota and import tariff rate quota have been gradually rising.  
 
III.     For products under import quota licen ce administration and import tariff rate quota 
administration, quota holders should annually return, for reallocation, the unfilled quota and tariff rate 
quota of the calendar year within the scheduled time- limit.  To ensure that the allocated quota and 
tariff rate quota are used for importation, for quota holders who do not fully use quota and tariff rate quota for the  year and do not return the unfilled quot a and tariff rate quota within the scheduled time 
limit, their next year quantity of quota and tariff ra te quota will be deduced accordingly.  For products 
under import quota licence administration, quota holders who fully use their quota for the previous year, if requesting, will be allocated more to an appropriate extent in the following year.  
 IV.   For products under import quota licence administration, the period for submission of application is one month. 
 
   For products under import tariff rate quot a administration, the period for submission of 
application is 15 days.  (Excluding those to wh ich first come, first served is applicable.) 
 V.   For products under import quota licence administration or import tariff rate quota 
administration, the time for processing the application is two months after  the closing date of the 
period for the submission of application.   VI.   For products under import quota licence administration, two months remain between the granting of the quota license and the date of the opening of the period of importation.  
   For products under import tariff rate quota administration, one day remains between the 
granting of the tariff rate quota and the date of the opening of the period of importation. 
 VII.   The consideration of licence application is effected by one single administrative organ. 
 
   For products under import quota licence administration, an applicant should first of all 
accomplish the verification of import quota applicati on with entities authorized by MOFCOM.  Then, 
the applicant should apply to MOFCOM to obtain import quota.  In the end, the applicant will get import quota license from entities authorized by MOFCOM.  After obtaining import quota, the G/LIC/N/3/CHN/3 
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 applicant will automatically obtain import quota li cence within three worki ng days, or ten working 
days at most under special circumstances.   For products under import tariff rate quota administration, according to the variety of products, the applicant should submit the applicati on to entities with authorization of either 
MOFCOM or NDRC to have the application verified .  The entities will then transmit the application 
to either MOFCOM or NDRC.  MOFCOM or NDRC will, through the entities, allocate to applicants 
import  tariff rate quota.  Import tariff rate quot a holders  do not have to acquire a licence.  
 VIII. For products under import quota licence admi nistration, the allocation of quota is based on 
applicants' capacities of production, sales and servi ce, and past import performance, number of new 
applicants, quota utilization record and other relevant factors.   The allocation of import tariff rate quota for agricultural products is based on the number of 
applicants, past import performance, production capacity  and other relevant commercial standards, or 
on the principle of "first come, first served".  The re allocation is based on the principle of "first come, 
first served", according to pub lished application conditions. 
  The allocation of import tariff rate quota for chemical fertilizers is based on the number of applicants, past import performance, capacity of  production and operation, quota utilization record, 
application situation of new applican ts and other relevant factors.  
 
IX. For products under import quota licence administration and import tariff rate quota administration, no matter whether the exporting country issues export permits or not, import licensing procedures are required and the import licensing is not automatic.   
X. Not applicable.  
 XI. No, except that the applican t chooses specific pattern of trade of importation, such as 
processing trade, under which the import materials and components and products thereof should be 
exported in the end.   
7. There are no quantitative restrictions for products under automatic import licensing 
administration and import license administration.   (a) For products under automatic import licensi ng administration, so long as the content and 
format of the application are correct, the issuing entity should, to the extent practicable, grant the 
licence immediately, or under special circumstances, no more than ten days.   
  For products subject to import restriction which are under import licensing administration, 
e.g. narcotic drugs etc, the time for granting permit is based on the period necessary for making a reasonable judgement on the justification of the import, but in any case no more than 30 days.  
  
(b) For products under automatic import licensi ng administration, the licence can be granted 
immediately upon request.   (c) There are no limitations as to the period of the year during which application for licence 
and/or importation may be made.  
 
(d) The consideration of licence application is effected by one single administrative organ. 
  For products under automatic import licensing administration, the applicant only has to submit the application to the entities authorized by MOFCOM.  G/LIC/N/3/CHN/3 
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For products under import licence administration,  the applicant should apply to different 
competent entities for import permit, according to the different variety of goods.  With the import permit granted, the applicant then obtains im port license from entities authorized by MOFCOM.  
After obtaining the import permit, import licence will  be granted automatically.  The time for granting 
import licence is no more than three working days, and under special circumstances it is no more than 
ten working days.  8. For products under automatic import licensing administration, once the State decides to implement temporary measures to prohibit importation of certain goods or to restrict the quantity of 
importation of certain goods, the granting of automa tic import licence will be ceased automatically on 
the day of entry into force of these temporary measures.  The temporary measures will be published thirty days before their entry into force.  
For products under import licence administration, if the justification for importation is 
believed to be unconvincing, the a pplication may be refused.  The applicant will be given the reason 
of the refusal, and will also be informed of havi ng the right to, pursuant to laws and regulations , apply 
for administrative review or initiate administrative lawsuit.  
 Eligibility of importers to apply for licence
 
 
9. Since 1 July 2004, an automatic registration system has been implemented for any individual 
or enterprise who intends to conduct import and e xport.  For detailed information, please refer to  
Measures for Registration of Foreign Trade Operators,  published on 25 June 2004 in MOFCOM 
Decree No. 14 of 2004.   
 
For products under import quota licence administra tion, conditions of applicant are published 
on 20 December 2001 in Implementing Rules on Administration of Import Quota for Machinery and 
Electronic Products  in Decree  No. 23 of 2001   of MOFTEC and General Administration of Customs 
of the People’s Republic of China . 
  For products under import licence administration, automatic import licensing administration 
and import tariff rate quota administration, except fo r those under administration of designated trading 
or state trading which have to be imported via desi gnated enterprises and stat e trading enterprises, any 
individual or enterprise can apply for import licence so  long as they meet the criteria set for different 
goods as published.  The lists of state trading ente rprises and designated trading enterprises are also 
published.  
 
Documentation and other requirements for application for licence 
 
 
10. For information required to be provided in application for import quota licence, please refer to 
the Implementing Rules on Administration of Import Quota for Machinery and Electronic Products  
published on 20 December 2001 in Decree No. 23 of 2001  of MOFTEC and General Administration 
of Customs, and also the Measures on Administration of Import Licence for Goods  published on 
20 December 2001 in MOFTEC’s Decree No. 22 of 2001 . 
 
 For information required to be provided in a pplication for import licence, please refer to the 
Measures on Administration of Import Licence for Goods  published on 20 December 2001 in 
MOFTEC’s Decree No. 22 of 2001 . 
 
For information required to be provided in a pplication for automatic import licence, please 
refer to the Measures on Administration of Automatic Import Licensing for Goods  published on 
31 December 2001 in MOFTEC’s Decree No. 20 of 2001 .  G/LIC/N/3/CHN/3 
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For information required to be provided in a pplication for tariff rate quota for importation of 
agricultural products, please refer to the Quantities, Application Cond itions and Allocation Methods 
of Tariff Rate Quota for Importa tion of Grain and Cotton of 2004  published on 30 September 200 3 in 
NDRC’s Announcement No. 25 of 2003, the Allocation Methods of Tariff Rate Quota for Importation 
of Palm Oil, Soybean Oil, Rape Seed Oil and Sugar of 2004  published on 28 September 2003 in 
MOFCOM’s Announcement No.51 of 2003 and the Implementing Rules on the Administration of 
Tariff Rate Quota for Importati on of Wool and Wool Tops of 2004 published on 28 September 2003 in 
MOFCOM’s Announcement No.52 of 2003. 
 
For information required to be provided in a pplication for tariff rate quota for importation of 
fertilizers, please refer to the  Quantities, Allocation Principles and Application Procedures of Tariff 
Rate Quota for Importation of Fertilizers of 2004 published on 10 October 2003 in MOFCOM’s 
Announcement No.55 of 2003. 
 
11. For documents required to be provided in act ual importation of products under import quota 
licence administration and import licence administration, please refer to the Measures on 
Administration of Import Licence for Goods   published on 20 December 2001 in MOFTEC’s Decree 
No. 22 of 2001 . 
  For documents required to be provided in actual importation of products under automatic 
import licensing administration, please refer to the Measures on Administration of Automatic Import 
Licensing for Goods  published on 31 December 2001 in MOFTEC’s Decree No. 20 of 2001 . 
  For documents required to be provided in act ual importation of produc ts under import tariff 
rate quota administration of agricultural products, please refer to the Interim Measures on 
Administration of Tariff Rate Quota for Importation of Agricultural Products published on 
27 September 2003 in Decree No.4 of 2003  of MOFCOM and NDRC . 
 
For documents required to be provided in actua l importation of products under import tariff 
rate quota administration of fertilizers, please refer to the Interim Measures on Administration of 
Tariff Rate Quota for Importation of Fertilizers published on 15 January 2002 in Decree No.27 of 
2002  of the former State Economic and Trade Commission and General Administration of Customs . 
 
12.   There are no licensing fees or administrative charges. 
 13.   There is no deposit or advance payment re quirement associated with the issue of licences. 
 
Conditions of licensing
 
 
14. The period of validity for import quota licence and import licence is one year, and the 
licences are valid only in the cale ndar year when they are issued.  The period of validity can be 
extended once, but no more than three months. 
 
The period of validity for automatic import licence is six months, and the licence is valid only 
in the calendar year when it is issued.  The period of validity cannot be extended.   
The period of validity for import tariff rate quota of agricultural products is one year, and the 
licence is valid only in the calendar year when it is issued.  The period of validity can be extended, but 
on more than two months.    G/LIC/N/3/CHN/3 
 Page 7 
 
 
 The period of validity for import tariff rate quota of agricultural products allocated on the 
principle of "first come, first served" is six months, and the licence is valid only in the calendar year when it is issued.  The period of validity can  be extended, but on more than two months. 
 
The period of validity for import tariff rate quota of fertilizers is 180 days, and the licence is 
valid only in the calendar year when it is issued.  The period of validity can be extended, but no more 
than 180 days.  15. For products under import quota licence administration and import tariff rate quota administration, quota holders should annually return, for reallocation, the unfilled quota and tariff rate 
quota of the calendar year within the scheduled time- limit.  To ensure that the allocated quota and 
tariff rate quota are used for importation, for quota holders who do not fully use quota and tariff rate quota for the  year and do not return the unfilled quot a and tariff rate quota within the scheduled time 
limit, their next year quantity of quota and tariff rate quota will be deduced accordingly.  
 
For products under import licence administ ration and automatic import licensing 
administration, non-utilization or a portion of license will not be punished.  16. All the four categories of licences listed above are not transferable.   17. There are no other conditions att ached to the issue of a licence. 
 
Other procedural requirements
 
 
18. For products included in the catalogue of prod ucts subject to statutory inspection, inspection 
and quarantine certificate issued by quality superv ision, inspection and quarantine authorities should 
be provided prior to importation.  
 19. For products under import quota licence administration, the bank will provide foreign exchange to applicants with import quota licence.  
For products under automatic import licensing ad ministration, the bank will provide foreign 
exchange to applicants with automatic import licence. 
 
For products under import licence administration and import tariff rate quota administration, 
foreign exchange will be provided pursuant to relevant regulations of the State Administration of 
Foreign Exchange.  
 
Generally foreign exchange is av ailable to cover licences issued. 
 
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