U.S.-China Trade: Summary of 2003 World Trade Organization Transitional Review Mechanism for China Page: 23 of 101
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Summary of issues by theme Raised by Raised by China's response
United other WTO
Publication of criteria applied for the
allocation of the licenses for automobile
and fertilizer quotas and tariff-rate
authorities had promptly published the total
volume and allocation criteria of 2003 import
TRQs for fertilizers, distributed 2003 fertilizer
TRQs in full quantity, and allocated TRQs for
state trading and non-state trading enterprises
directly to importers in line with specified
proportions. The allocation process had been
administered in a fair and transparent manner.
Enterprises went about the importation of
fertilizers according to the market situation,
either for themselves or as an agent, and their
business activities were free from any
government interference. (Verbale)
Paragraph 130 of the Working Party Report
stated that in allocating quotas for imported
products for wholesale or retail distribution,
China would consider historical performance,
experience and ability in servicing, as well as
the qualifications of importers required by the
Agreement on Import Licensing Procedures.
The allocation criteria for quotas of
automobiles imported for sale were as follows:
first, verify the importer's qualification to
conduct automobile trade in China; second,
check the operational ability of the importer
(i.e. the venue for sale and maintenance); and
third, examine the business performances of
the importer. The Chinese Government would
not allocate quotas for sale to importers
without sale qualification and operational
ability. Importers with prominent operational
ability and historical performance would
receive more quotas. Importers might decide
the composition of products for their quotas at
their own discretion, i.e. they could themselves
determine the type, specification and model of
automobiles of their choice. The Chinese
Government would grant import quotas in light
of their selections. (Verbale)
Interchangeability of import licenses EC -
between different types of models. Writtenb
Specific measures to ensure that quota- Chinese
holders are able to obtain necessary Taipei -
import license. Writtend
Actual auto imports significantly lower Japan - The volume of import quotas was not
than import quota. Written,c necessarily equal to actual import volume, and
Verbale the fill rate of quotas depended on actual
demand for imported automobiles on the
Chinese market. Over recent years,
automobiles produced by Chinese enterprises
(including joint ventures) had satisfied the
needs of Chinese consumers with enhanced
quality, diversified models and lower prices.
Therefore, although the need for automobiles
on the Chinese market had considerably
increased, the need for imported high-price
automobiles was still limited. In particular,
GAO-05-209R U.S.-China Trade
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United States. Government Accountability Office. U.S.-China Trade: Summary of 2003 World Trade Organization Transitional Review Mechanism for China, text, January 25, 2005; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc301428/m1/23/: accessed May 23, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.