Eliminating non-tariff measures progressively

Eliminating non- tariff measures progressively

In Chapter 1.4 on China's commitments upon accession to the WTO, it was stated that China would eliminate the non-tariff measures of more than 400 tariff headings by 1 January 2005. During the phase-out period, China will implement growth rates for quotas on relevant products. The criteria and timing for the grant of quota allocations , obtaining and extending licences should be implemented in strict conformity with the provisions of the Agreement on Import Licensing Procedures.

In order to perform the commitments, the categories of products subject to import licensing in 2002 have been reduced from 20 to 12.

Starting from 1 January 2002, China has already eliminated import licensing for the following 14 products: polyester fibre, acrylic fibres, polyester fillet , tobacco and its products, acetate tow, colour television sets and TV kinescope, radios, tape recorders and their main components , audio and video tape duplication equipment, refrigerators and their compressors, recording equipment and its key parts , air conditioners and their compressors, open -end spinning machines, wine and colour-sensitive material. Import licence restrictions on some of the products under the headings of motor vehicles, their key parts and vehicle tyres have also been removed.

The 12 categories of products subject to import licensing in 2002 include 170 eight-digit sub-categories. Products subject to import quota licensing are: processed oil, natural rubber, vehicle tyres, motor vehicles and their key parts, motorcycles and their key parts, cameras and their bodies, watches , crane lorries and their chassis, totaling eight categories. Another four categories of products subject to import licensing are disc-producing equipment, controlled chemicals, chemicals that can be used to produce narcotics and ozone depleting substances.

The import quotas for machinery and electronics products in 2002 are: US$7.935 billion for motor vehicles and their key parts, US$380 million for motorcycles and their key parts; US$120 million for crane trucks and their chassis, US$133 million for cameras and US$482 million for watches.

According to China's commitments upon WTO accession, China will completely eliminate import quotas and licensing on motor vehicles and their key parts, and motorcycles and their key parts by the year 2005. Moreover, China will increase the quota for motor vehicles and their key parts by 15 per cent every year from 2002. From now on, other products subject to import licensing would be reduced progressively.