PROTOCOL1 ON THE ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA
Preamble2
The World Trade Organization ("WTO"), pursuant 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 Tariffs4 and Trade 1947,
Taking note that China is a signatory to the Final Act Embodying5 the Results of the Uruguay Round of Multilateral Trade Negotiations6,
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 accedes7 to the WTO Agreement pursuant to Article XII of that Agreement and thereby8 becomes a Member of the WTO.
2. The WTO Agreement to which China accedes shall be the WTO Agreement as rectified9, amended10 or otherwise modified by such legal instruments as may have entered into force before the date of accession. This Protocol, which shall include the commitments referred to in paragraph 342 of the Working Party Report, shall be an integral part of the WTO Agreement.
3. Except as otherwise provided for in this Protocol, those obligations in the Multilateral Trade Agreements annexed12 to the WTO Agreement that are to be implemented14 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 Exemptions15 annexed to this Protocol and meets the conditions of the Annex11 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 autonomous16 areas, Special Economic Zones, open coastal17 cities, economic and technical development zones and other areas where special regimes for tariffs, taxes and regulations are established (collectively referred to as "special economic areas").
2. China shall apply and administer in a uniform, impartial18 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 applied19 at the sub-national level (collectively referred to as "laws, regulations and other measures") pertaining20 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 mechanism21 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 geographic22 boundaries that define them. China shall notify the WTO promptly23, but in any case within 60 days, of any additions or modifications24 to its special economic areas, including notification of the laws, regulations and other measures relating thereto.
2. China shall apply to imported products, including physically25 incorporated components26, introduced into the other parts of China's customs territory from the special economic areas, all taxes, charges and measures affecting imports, including import restrictions28 and customs and tariff3 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 fully29 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 other measures shall be made available at the latest when they are implemented or enforced.
2. China shall establish or designate an official journal dedicated30 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 such journal, 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 monetary31 policy and other measures the publication of which would impede32 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 enquiry point where, upon request of any individual, enterprise or WTO Member all information relating to the measures required to be published under 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. Replies to WTO Members shall be complete and shall represent the authoritative33 view of the Chinese government. Accurate and reliable information shall be provided to individuals and enterprises.
(D) Judicial34 Review
1. China shall establish, or designate, and maintain tribunals, contact points and procedures for the prompt review of all administrative35 actions relating to the implementation36 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 entrusted37 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 affected38 by any administrative action subject 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 appellant 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 treatment no less favourable39 than that accorded to other individuals and enterprises in respect of:
(a) the procurement40 of inputs41 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 into conformity42 with the WTO Agreement all special trade arrangements, including barter43 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 availability 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 for 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 those 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 legislative44 procedures to implement13 these provisions during the transition period.
2. Except as otherwise provided for in this Protocol, all foreign individuals and enterprises, including those not invested or registered in China, shall be accorded treatment no less favourable than that accorded to enterprises in China with respect to the right to trade.
6. State Trading
1. China shall ensure that import purchasing procedures of state trading enterprises are fully transparent45, and in compliance46 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 goods purchased 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 Interpretation47 of Article XVII of the GATT 1994, China shall also provide full information on the pricing mechanisms48 of its state trading enterprises for exported goods.
7. Non-Tariff Measures
1. China shall implement the schedule for phased elimination49 of the measures contained in Annex 3. During the periods specified50 in Annex 3, the protection afforded by the measures listed in that 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 implementing51 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-tariff measures that cannot be justified52 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 allocate53 and otherwise administer such measures in strict conformity with the provisions of the WTO Agreement, including GATT 1994 and Article XIII thereof, and the Agreement on Import Licensing54 Procedures, including notification requirements.
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 imposing55 such requirements. Without prejudice to the relevant provisions of this Protocol, China shall ensure that the distribution of import licences, quotas57, tariff?rate quotas, or any other means of approval for importation, the right of importation 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, offsets58, the transfer of technology, export performance or the conduct of research and development in China.
4. Import and export prohibitions59 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 authorization60 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.
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:
每 by product, the list of all organizations, including those organizations delegated such authority by the national authorities, that are responsible for authorizing61 or approving imports or exports, whether through grant of licence or other approval;
每 procedures and criteria62 for obtaining such import or export licences or other approvals, and the conditions for deciding whether they should be granted;
每 a list of all products, by tariff number, that are subject to tendering requirements, including information on products subject to such tendering requirements and any changes, pursuant to the Agreement on Import Licensing Procedures;
每 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;
每 any changes to the list of goods and technologies whose import and export are restricted or prohibited.
Copies of these submissions64 in one or more official languages of the WTO shall be forwarded to the WTO for circulation to WTO Members and for submission63 to the Committee on Import Licensing within 75 days of each publication.
(b) China shall notify the WTO of all licensing and quota56 requirements remaining in effect after accession, listed separately by HS tariff line and with the quantities associated with the restriction27, if any, and the justification65 for maintaining the restriction or its scheduled date of termination.
(c) China shall submit the notification of its import licensing procedures to the Committee on Import Licensing. China shall report annually66 to the Committee on Import Licensing on its automatic import licensing procedures, explaining the circumstances which give rise to these requirements and justifying67 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 the exceptional circumstances requiring the shorter period of licence validity.
2. Except as otherwise provided for in this Protocol, foreign individuals and enterprises and foreign-funded enterprises shall be accorded treatment no less favourable than that accorded to other individuals and enterprises in respect of the distribution of import and export licences and quotas