2022wto贸易政策审议秘书处报告第四部分

WT/TPR/S/230 TradePolicyReview

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China WT/TPR/S/230

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tradepoliciesandpracticesbymeasure

Introduction

Despitethesharpdeclineinexternaldemandduetotheglobalcrisis,Chinahascontinueditslong-termstrategyofopeningitseconomy.ThetrendintariffsremainsdownwardandtheGovernmenthasbeencontinuingwithitsCustomstransitreformandintroducedadirectreleasesystemintoitsentry-exitinspectionprocedurestofacilitatetrade.Inaddition,Chinahasundertakenmajorreformsofitstaxsystem,andimplementedacomprehensivecompetitionlawtofostercompetition.Nonetheless,theGovernmentstillusesvariousmeans(includingtariffandnon-tariffbarriers,exportrestraints,andstate-ownership)to,interalia,provide"guidance"ontheallocationofresources.

ThetariffremainsoneofChina'smainbordermeasureswithanaverageappliedMFNtariffrateof9.5%in2009(downfrom9.7%in2007).Appliedratesareclosetoboundratesandboundratesarelow,therebyimpartingthetariffwithahighdegreeofpredictability.Nonetheless,China'stariffcouldbecomplex,asitsappliedMFNtariff,forexample,contains60differentadvaloremrates.Tariffexemptionsareprovidedfor,interalia,goodsimportedinbondunderprocessingtrade(whichaccountedforabout40%ofChina'sinternationaltrade),iftheyareexportedwithinacertainperiod.

Apartfromimportprohibitions(toprotectpublicinterest,environment,orinaccordancewithinternationalcommitments),Chinahascontinuedtousenon-tariffbordermeasures(suchasimportandexportlicensing)asinstrumentsofitstradeandindustrialpolicies.Statetradingisstillusedtomanagetradeincertainimportsandexportsof,interalia,someagriculturalproductsandcrudeandprocessedoil.

Theadministrativeandlegislativeframeworkonstandards,voluntaryormandatory,remainsthesame.TheGeneralAdministrationofQualitySupervision,InspectionandQuarantine(AQSIQ)hasreformeditsentry-exitinspectionproceduresandintroducedadirectreleasesystemtofacilitatetrade.

Ongovernmentprocurement,ChinaappliedtojointheWTOGPAinDecember2007,andistomakearevisedofferin2010.China'sGovernmentProcurementLawrequirestheGovernmenttoprocuredomesticallyproducedgoodsandservices.In2009,inviewofthestimuluspackageprovided,theGovernmentreiteratedtheimportanceofabidingbytheLawtoattaintheStategoalsforeconomicandsocialdevelopment.

China'sexportregimeisstillcharacterizedbyvariousrestrictions,notablyprohibitions,licensing,quotas,taxes,andlessthanfullrebatesofVATonexports.ExporttaxesandVATrebatesonexportsareadjustedfromtimetotime,accordingtotheauthorities,toreflectthechanginginternationalenvironment,ortosaveenergy,protecttheenvironment,andconservenaturalresources.Nonetheless,theeffectivenessofsomeoftheseexportrestraintsinachievingtheirobjectivescanbequestioned;indeed,theGovernmentisconsideringalternativemeasures,suchaslevyinganenvironmentaltax,forexample,onsomenaturalresourceproducts.

China'staxrevenuehasbeenincreasingfast,andtheGovernmenthasbeencarryingoutvarioustaxreforms,notablyunifyingtaxesonFIEsanddomesticenterprises,andtransformingtheVATfromaproduction-basedtoaconsumption-basedtax,withaviewtosimplifyingChina'staxstructureandrenderingitmoreneutralasfarasinvestmentisconcerned.

TheGovernmentcontinuestouseindustrialpoliciesto"guide"thedevelopmentofcertainsectors,suchastheten(largelymanufacturing)sectorsidentifiedinearly2009tocountertheeffectoftheglobalcrisis.Thereformofthepublicsector,includingSOEs,continues,andSOEsstillplayakeyroleintheeconomy.SOEshavebeenbenefitingdisproportionatelyfromtheGovernment'seconomicstimulusmeasurestoboosttheeconomy,althoughtheauthoritiesmaintainthatthisisnottheintentionoftheGovernment.SOEsalsohavemuchbetteraccesstocapitalthanprivateenterprises.Corporategovernance,includinginSOEs,hasimprovedbythelistingoftheseenterprisesonstockexchanges,bothinChinaandabroad.Inaddition,theconversionofnon-tradeablesharesoflistedSOEstotradeablesharescontributedtothedevelopmentofChina’scapitalmarket.

WiththeentryintoforceofitsAnti-MonopolyLawon1August2008,Chinahastakenamajorsteptopromotecompetition.AstheLawisenforcedbydifferentministries,variousimplementingregulationsondifferentaspectsofcompetitionhavebeenissuedandimplementedbythem.However,certainaspectsoftheLaw(e.g."nationalsecurityreview")stillneedtobeclarified.

Chinahasidentifiedthepromotionofinnovationasanationaldevelopmentstrategy.InJune

2008,theStateCouncilissuedtheOutlineoftheNationalIntellectualPropertyStrategy("theOutline"),withaviewtoenhancingIPRprotectionandpromotingthecreationandutilizationofintellectualproperty,andthusencouraginginnovationactivities.ChinahascontinuedtoimproveitslegislativeframeworkandintensifytheenforcementofIPRprotection;forexample,therevisedPatentLawraisedfinesandlegalcompensationforcasesofmisleadingassertionofpatentrights.BasedonthenumberofinternationalpatentapplicationsfiledwithWIPOunderthePatentCooperationTreaty(PCT)system,Chinarankedfifthintheworldin2009asregardstechnologicalinnovation.TheincreaseininnovationwillundoubtedlycontributetoincreasedawarenessoftheneedtoprotectIPRs.

MeasuresDirectlyAffectingImports

Customsprocedures,valuation,andrulesoforigin

Customsproceduresandpreshipmentinspection

ChinahascontinuedtoreformitsCustomstransitsystemtosimplifyCustomsdeclarationprocedures.Beforethereformbeganin2005,importersininlandareasofChinahadtofirstgothroughCustomstransitproceduresattheentryport,beforedeclaringthegoodsattheCustomsinthedestinationport.Followingthereform,importersdeclareonlyattheplacewheretheyareregistered.ThereformhasbeenexpandednationwideinmainlandChina.

ApartfromthecontinuingCustomstransitreform,therehasbeennomajorchangeintheCustomsproceduresorpreshipmentrequirementssinceChina'spreviousReview.Importers(andexporters)mustregisterwithMOFCOMoritsauthorizedbodiesbeforefilingCustomsdeclarations.Import(andexport)declarationsmustbemadeinpaperandelectronicform,andcanbemadeeitherinpersonorbyanauthorizedenterprise.DeclarationsmustbemadetoCustomsattheportofentrywithin14daysofthegoods’arrival.China'spreshipmentinspection(PSI)requirements,introducedinDecember2005,remainunchanged.PSIisrequiredforimportsof:certaincommoditiesrelatedtonationalsecurity,withhighvalueorcomplicatedtechnology;equipmentexceedingcertainheight,lengthorvolume;solidwasteusedasrawmaterials;andcertainusedelectronicproductsthataredeemedtoaffectpublichealthandenvironment.ChinaintroducedPSIrequirementswithaviewto,interalia,protectingpublichealth,improvingthephytosanitarysituation,protectingtheenvironment,andpreventingcounterfeitgoodsfromenteringChina.

ChinahasdesignatedsomeforeigninstitutionstoconductPSIandtoissuecertificates.ItisnotcleartotheSecretariatwhetherChinasendspeopleorinstitutionsabroadtoconductPSIinspections.

Customsvaluation

Customsvalueisdeterminedonthebasisoftransactionvalue,whichincludesthecostsoftransportandinsuranceandotherrelatedcharges.RulesRegardingDeterminationonCustomsValueofImportedandExportedGoods.SeeWTOdocumentG/VAL/N/1/CHN/5,11April2008.

UndertheRulesRegardingDeterminationonCustomsValueofImportedandExportedGoods,whereitisimpossibletodeterminethetransactionvalue,thecustomsvalueisbasedon(insequentialorder):thetransactionvalueofidenticalgoods;thetransactionvalueofsimilargoods;thedeductivevalue;thecomputedvalue;andthevaluedeterminedona"reasonable"basis.

Rulesoforigin

Duringthereviewperiod,therehasbeennochangeinChina’snon-preferentialrulesoforigin.Forgoodsproducedormanufacturedwhollywithinonecountryorregion,originisdefinedasthatcountryorregion;forgoodsproducedintwoormorecountriesorregions,theplaceoforiginisthecountryorregionwheresubstantialtransformationhasbeenmadeandfinalized.SubstantialtransformationisdefinedeitherasachangeinthetariffheadingofthegoodaccordingtoChina'stariffclassification,orwherethevalueaddedisnolessthan30%ofthetotalvalueoftheproduct.RegulationsontheSpecificationofSubstantialChangeintheNon-PreferentialRulesofOrigin.Viewedat:/flwk/show1.php?file_id=98464(inChinese)[19Dec2008].WTOdocumentG/RO/53(1August2002).

PreferentialrulesoforiginareappliedinaccordancewiththevariousregionalandbilateraltradeagreementsChinahasconcluded(TableAIII.1),andtocertainimportsfromLDCs.SinceitspreviousReview,Chinahassignedfree-tradeagreementswithSingapore(on23

October

2008)andPeru(on28April2009),althoughtheChina-PeruFTAhasnotyetenteredintoforce.ChinaalsomadeearlyannouncementtotheWTOofRTAswithAustraliaandNorway,whicharebeingnegotiated.Preferentialrulesoforigintendtovaryfromagreementtoagreement,andsometimesacrossproductgroups,whichcouldaddtothecomplexityofChina'simportregime.

Tariffs

Overview

ThetariffisoneofChina’smainbordermeasurespertainingtoimports.In2009,tariffrevenueaccountedfor2.5%oftotaltaxrevenue,downfrom3.3%in2008.

China’simporttariffratescompriseMFNtariffrates,non-MFNtariffrates("agreement"tariffrates,"specialpreferential"tariffrates,"general"tariffrates),andtariff-quotarates.Foralltheserates(apartfromthe"general"tariffrates),theCustomsTariffCommissionoftheStateCouncilmayset"interim"tariffratesChina’stariffissetbytheCustomsTariffCommissionoftheStateCouncil,aninter-ministerialbodycomposedof,interalia,theMinistryofFinance,Customs,MOFCOM,NDRC,andtheStateCouncilGeneralOffice.TheTariffCommissionmaysetinterimrateswheneveritconsiderssuchratesnecessary.

,whichareimplementedonspecificproductsforacertainperiodoftime.WherethereareinterimtariffratesonimportedgoodstowhichtheappliedMFNtariffratesareapplicable,andratesarenohigherthanappliedMFNtariffrates,theinterimtariffratesapply;wherethereareinterimtariffratesonimportedgoodstowhichagreementtariffratesorspecialpreferentialtariffratesareapplicable,thelowertariffratesapply;wherethereareinterimtariffratesonimportedgoodstowhichtariff-quotaratesareapplicable,theinterimtariffratesapply.

ChinaprovidesatleastMFNtreatmentforallWTOMembersexceptElSalvadorandsometerritoriesofEUMemberStates.ElSalvadornotifiedthatitdoesnotapplythemultilateraltradeagreementsbetweenElSalvadorandthePeople’sRepublicofChina,inaccordancewiththeArticleXIIIoftheMarrakeshAgreement(WTOdocumentWT/L/429,7November2001).

Dataprovidedbytheauthoritiesindicatethatin2007and2008,virtuallyallofChina'simportsweresubjecttoMFNormorefavourablerates.Exceptionsare"general"rates(section(c)below).

MFNtariffrates

BoundMFNtariffrates

Chinaboundallitstarifflinesatadvaloremrates.TheappliedMFNtariffratesareclosetotheboundratesandboundratesarelow,therebyimpartingahighdegreeofpredictabilitytoChina’sMFNtariff(TableIII.1andChartIII.1).Boundratesvaryfromzeroto65%foragriculturalproducts,andfromzeroto50%fornon-agriculturalproducts.

TableIII.1

China'stariffstructure,2005,2007,and2009

(Percent)

MFNapplied

Final

bounda

2005

2007

2009

1.

Boundtarifflines(%ofalltarifflines)

100.0

100.0

100.0

100.0

2.

Simpleaveragerateb

9.7

9.7

9.5

9.9

Agriculturalproducts(HS01-24)

14.6

14.5

14.5

14.6

Industrialproducts(HS25-97)

8.9

8.8(8.9)c

8.6

9.1

WTOagriculturalproducts

15.3

15.3(15.2)c

15.2

15.3

WTOnon-agriculturalproducts

8.8

8.8

8.6

9.0

Textilesandclothing

11.5

11.5

11.5

11.5

ISIC1-Agriculture,huntingandfishing

11.2

11.2

11.1

11.3

ISIC2-Mining

2.3

2.1

1.9

2.8

ISIC3-Manufacturing

9.8

9.7(9.8)c

9.5

9.9

Manufacturingexcludingfoodprocessing

9.0

9.0

8.8

9.2

Firststageofprocessing

9.6

9.6

9.5

9.9

Semi-processedproducts

7.3

7.2

7.1

7.3

Fullyprocessedproducts

11.1

11.1

10.8(10.9)c

11.3

3.

Domestictariff"peaks"(%ofalltarifflines)d

2.6

2.3(2.4)c

2.0(2.1)c

2.4

4.

Internationaltariff"peaks"(%ofalltarifflines)e

15.6

15.4(15.6)c

14.6(14.9)c

15.9

5.

Overallstandarddeviationoftariffrates

7.6

7.5

7.4(7.5)c

7.6

6.

Coefficientofvariationoftariffrates

0.8

0.8

0.8

0.8

7.

Tariffquotas(%ofalltarifflines)

0.7

0.6

0.6

0.6

8.

Duty-freetarifflines(%ofalltarifflines)

8.6

8.7

9.4

7.6

TableIII.1(cont'd)

9.

Non-advaloremtariffs(%ofalltarifflines)

0.7

0.7

0.7

0.0

10

Nuisanceappliedrates(%ofalltarifflines)f

2.6

2.7

2.7

2.6

a Basedon2009tariffschedule.Implementationoffinalboundratestobereachedin2010.In2009,allbutfivetarifflinesreachedtheU.R.implementation.Thefivelinesare:0810.1000(currentboundrate15.5%,finalboundrate14%),0812.9000(currentboundrate25.9%,finalboundrate25%),2206.0010(42.3%,40%),2206.0090(42.3%,40%),and5512.1100(16.9%,15%).

b Thesimpleaveragesnotincludinginterimratesare,respectively,9.9%,9.8%and9.8%for2005,2007and2009.

c DatainbracketsincludeAVEsforspecificratesprovidedbytheauthorities,asavailable.

d Domestictariffpeaksaredefinedasthoseexceedingthreetimestheoverallsimpleaverageappliedrate.

e Internationaltariffpeaksaredefinedasthoseexceeding15%.

f Nuisanceratesarethosegreaterthanzero,butlessthanorequalto2%.

Note: The2005tariffisbasedonHS02nomenclature,consistingof7,550tarifflines;the2007and2009tariffsarebasedonHS

07nomenclatureconsisting,respectively,of7,645and7,867tarifflines.Calculationsexcludein-quotaratesandspecificrates.Theadvalorempartofalternateratesistakenintoaccountforthecalculations.CalculationsofappliedMFNtariffsarebasedonappliedratesincludinginterimrates.For2007and2009,interimdutyratesareonlyincludedwhenfullyappliedatthe8-digitlevel.For2005,interimdutyratesarealsoincludedwhenpartlyappliedtoan8-digittariffline.

Source: WTOSecretariatcalculations,basedondataprovidedbytheChineseauthorities.

AppliedMFNtariffrates

China'sappliedMFNtariffratesconsistof"standard"appliedMFNtariffratesaswellas"interim"MFNtariffrates;fortherelevantproducts,theinterimtariffeffectivelyreplacestheappliedMFNtariff,andtheinterimratesarenohigherthanthestandardappliedMFNtariffrates.

In2009,China’sappliedMFNtariff(includinginterimrates)consistedof7,867linesattheHS8-digitlevel(HS2007),comparedwith7,645linesin2007.Asat1January2009,439tarifflineswerefullysubjecttointerimtariffs.Including"ex-"lines,interimtariffsappliedtoanother234tarifflines.However,theanalysishereincludesonlythe439linesthatwerefullysubjecttointerimrates,whichalsoincludelineswithnon-advaloremrates.

Some7,815lines(99.3%)involvead

valoremrates.TheappliedMFNtariffcontained60differentadvaloremrates,rangingfromzeroto65%(ChartIII.2).Non-advaloremratesappliedto52

tarifflines;44atspecificrates;5atratesinvolvingeitheranadvaloremrate,ifthepricewasbeloworequaltoacertainamount,oracompoundrate,ifthepricewashigher;and3

alternaterates(advaloremrateorspecificrate,whicheverwaslower).The3lines(HS4001.1000,4001.2100,and4001.2200)aresubjecttointerimtariffrates,whicharelowerorequaltostandardappliedMFNrates.

Theauthoritiesprovidedad

valoremequivalents(AVEs)forallbuttwonon-advaloremtarifflines.The2linesareHS4001.2100,4001.2200.

TheauthoritiesmaintainthatasChinaboundallitstarifflinesatadvaloremrates,theseAVEswereatorlowerthantheirboundrates.Ofthe52lines,47havetheirAVEsexactlythesameastheirboundrates;2lines(HS3702.5520,4001.1000)havetheirAVEsofinterimrateslowerthantheirboundrates,and1"ex-"line(HS3702.4291)hasitsAVEofinterimratelowerthanitsboundrate.Accordingtotheauthorities,forthe2remaininglines(HS

4001.2100,4001.2200)whoseAVEswerenotprovidedtotheSecretariat,theAVEsarelowerthantheirboundrates.

Further,includingAVEsdoesnotchangethesimpleaverageappliedMFNdutyrate(TableIII.1).

TheauthoritiesstatedthatChinahasnotincreasedanyofitsappliedMFNratesin2009,althoughapparentlyChinaincreasedtheinterimtariffsonfueloil(to3%)andjetfuel(to6%)in2010tosaveenergy.Chinaalsoeliminatedlowerinterimdutiesontheimportsofpork,soybeanoil-cake,andneemoil.Astheseimportsarenowsubjectto"standard"appliedMFNtariff(whicharehigherthantheinterimtariffrates),theyarefacinghighertariffrates.(Xinhuanews,18Dec2008.Viewedat:/fortune/2008-12/18/content_10521558.htm(inChinese)[23/03/09].)

In2009,ChinaunilaterallyloweredstandardappliedMFNrateson5linesattheHS

8-digitlevel,andimplementedlowerinterimMFNrateson673tarifflines.Asaresult,thesimpleaverageappliedMFNdutyratefellfrom9.7%in2007to9.5%in2009.Excludinginterimrates,thesimpleaverageappliedMFNtariffratewas9.8%in2009,thesameasin

2007.

ThesimpleaverageappliedMFNdutyratesforagriculturalproducts(WTOdefinition)andnon-agriculturalproductswere15.2%and8.6%,respectively.

ThedispersioninappliedMFNrates,indicatedbythecoefficientofvariation,hasremainedunchangedsince2005,at0.8%.Tradedistortionscanbecausednotonlybyahighleveloftariffprotection,butalsohighdisparityofprotectionacrossdifferentproductcategories.Thegreaterthetariffdispersionacrossproducts,especiallycloselyrelatedproducts,themoreopportunitythereisfortariffevasion.

Thestandarddeviationoftariffrateswas7.4%,slightlylowerthanthe7.5%in2007.Also,China’sappliedMFNtariffsaresubjecttopositiveescalationbetweensemi-processedandfullyprocessedproducts,andinsomecasesnegativeescalationbetweenunprocessedandsemi-processedproducts(ChartIII.3).

Non-MFNrates

"Agreement"tariffratesareChina'spreferentialtariffratesundervariousbilateral/regionaltradeagreementsorarrangements(TableIII.2).Inaddition,Chinaoffersspecialpreferentialtariffs(zerorated)unilaterallytoimportsofsomegoodsfrom

41leastdevelopedcountries(LDCs)withwhichithasdiplomaticrelations.InNovember2009,Chinaannouncedthat,by2015,itistograduallyeliminatetariffson95%ofitstarifflines(attheHS

8-digitlevel)onimportsfromtheseLDCs;in2010,tariffswereeliminatedonsome60%oftarifflines.

TableIII.2

SummaryanalysisofChina'spreferentialtariff,2009

(Percent)

Total

WTOagriculture

WTOnon-agriculture

Textiles&clothing

Average(%)

Shareof

duty-free

linesa(%)

Average(%)

Shareof

duty-free

linesa(%)

Average(%)

Shareof

duty-free

linesa(%)

Average(%)

Shareof

duty-free

linesa(%)

MFNrate

9.5

9.4

15.2

7.1

8.6

9.8

11.5

0.0

Agreementrates

APTAb

8.9

9.7

14.3

7.9

8.0

10.0

10.4

0.0

ASEANc

BruneiDarussalam

2.6

59.6

4.1

59.0

2.3

59.7

3.6

30.1

Cambodia

8.6

15.8

10.2

39.1

8.3

12.1

11.5

0.0

Indonesia

2.6

59.8

4.0

59.5

2.3

59.8

3.5

31.6

Laos

8.8

14.4

11.9

29.4

8.3

12.0

11.4

0.0

Malaysia

2.6

59.6

4.1

59.3

2.3

59.7

3.5

31.4

Myanmar

2.5

60.5

4.1

59.1

2.3

60.7

3.3

35.9

Philippines

2.7

57.3

4.9

42.1

2.3

59.8

3.5

31.4

Singapore

2.6

59.8

4.1

58.8

2.3

60.0

3.6

30.2

Thailand

2.6

59.6

4.2

57.6

2.3

60.0

3.5

31.7

VietNam

2.6

59.6

4.2

55.6

2.3

60.2

3.5

31.8

HongKong,China

7.2

29.3

13.1

19.9

6.3

30.8

5.3

49.5

Macao,China

8.3

18.2

14.1

12.9

7.3

19.0

7.7

27.1

Pakistan

6.9

19.2

12.7

13.0

6.0

20.1

5.5

40.6

Chile

2.3

62.6

5.8

43.7

1.7

65.7

0.2

97.2

NewZealand

5.7

24.7

9.7

14.8

5.0

26.3

6.5

18.0

Singapore

8.3

18.3

13.8

12.9

7.4

19.1

11.0

3.0

Leastdevelopedpreferential

rates

Specialpreferential

tariffagreementfor:

Bangladesh

9.3

10.5

15.1

7.1

8.3

11.1

10.6

4.6

Cambodia

8.8

14.6

12.4

27.1

8.2

12.6

10.5

8.1

Laos

8.8

14.1

13.1

20.7

8.1

13.0

9.7

12.9

Myanmar

9.1

12.3

14.1

14.0

8.3

12.1

10.6

7.3

31Africancountries

8.9

15.3

14.7

11.0

7.9

16.0

9.9

13.2

SixAsia/Pacificcountriesd

9.0

13.3

14.8

9.6

8.0

14.0

9.9

11.2

TableIII.2(cont'd)

Bangladeshe

8.7

10.8

14.2

7.9

7.9

11.2

9.7

4.6

Laosf

7.8

18.6

9.6

40.6

7.5

15.0

8.9

13.0

Cambodiag

8.2

19.0

8.9

50.4

8.1

13.9

10.5

8.1

Myanmarg

2.5

60.5

4.1

59.1

2.3

60.7

3.3

35.9

Singaporeh

2.1

68.5

3.8

64.4

1.9

69.2

3.4

33.1

a Duty-freelinesaspercentageoftotaltarifflines.

b PreferentialratesunderAPTAareapplicabletotheRepublicofKorea,SriLanka,Bangladesh,India,andLaos.

c IncludingEarlyHarvestArrangement,asapplicable.

d IncludingAfghanistan,Yemen,Samoa,Vanuatu,theMaldivesandTimor-Leste.

e IncludingAPTApreferentials,andspecialpreferentialtariffrates.

f IncludingAPTApreferentials,ASEANpreferentials,andspecialpreferentialtariffrates.

g IncludingASEANpreferentials,andspecialpreferentialtariffrates.

h IncludingASEANpreferentials,andSino-SingaporeanFreeTradeAgreement.

Note: Calculationsofaveragesexcludein-quotaandspecificrates,andincludeinterimdutyrates.

Source: WTOSecretariatcalculations,basedoninformationprovidedbytheChineseauthorities.

"General"tariffratesareappliedtoimportswhoseorigincannotbedetermined,oriftheyoriginateinthecountriesandregionsthatarenotsubjecttoMFNtariffrates,agreementrates,orspecialpreferentialrates(i.e.ElSalvadorandsometerritoriesofEUmemberstates,aswellasWTOnon-members).Chinaappliesgeneralratesto:ElSalvador;Ceuta,Gibraltar,Melilla,whichareterritoriesofEUmemberstates;andWTOnon-members,namelyAndorra,Aruba,Bahamas,Bermuda,Bhutan,BonaireIslands,CanaryIslands,CaymanIslands,Comorin,Curacao,FrenchGuyana,GambierIslands,Guadeloupe,Liberia,MarquesasIslands,MarshallIslands,Martinique,MontserratIsland,Nauru,NorfolkIsland,NewCaledonia,Palau,Palestine,Reunion,Sabah,SaintMartinsIsland,Sao

TomeandPrincipe,theRepublicofSanMarino,Seychelles,SocietyIslands,TuamotuIslands,TubaiIslands,TurksandCaicosIslands,Tuvalu,VaticanCity,BritishVirginIslands,andWesternSahara.

TheGeneralratesareallhigherthanorequaltoMFNrates.Thesimpleaverageofthegeneralrateswas57%,muchhigherthantheappliedMFNrate(9.5%)(thesimpleaverageofthegeneralratesforagriculturalproducts(WTOdefinition)andnon-agriculturalproductswere68.3%and55.2%,respectively).

Tariff-ratequotas(TRQs)

In2009,TRQscontinuetobeappliedto8categoriesofimportedgoods,involving45tarifflinesattheHS8-digitlevel.Thesewerewheat(6lines),maize(5),rice(14),sugar(6),wool(6),wooltops(3),cotton(2),andchemicalfertilizers(3).Aslidingdutyisappliedtoout-of-quotaimportsofcotton.In2009,thisdutywasappliedsothat,forcottonvaluedaboveacertainthreshold,aspecificdutyofY0.57/kgapplied;forcottonvaluedbelowthethreshold,theratewascalculatedbasedonanequation,butwasnohigherthan40%,takingintoconsiderationthec.i.f.priceofcotton(inChineseyuan).Thethresholdfor2009wasY11.397/kg.Theaverageappliedin-quotaratewas4.8%,whiletheout-of-quotaratewasaround50%in2009.

TheseTRQsareappliedtoimportsfromallcountries.

Tariffexemptionsandreductions

Tariffexemptionsapplyto:goodswhosevalueperunitincludingthetariffisY50orless;advertisingmaterialsandsamplesofnocommercialvalue;goodsandmaterialsprovidedfreebyinternationalorganizationsorforeigngovernments;goodsdamagedpriortoCustomsrelease;andfuels,stores,beverages,andprovisionsforuseenroute,loadedonanymeansoftransportintransitacrossthefrontier.RegulationsonImportandExportTariff.

Tariffexemptionsandreductionsalsoapplytogoodsimportedbydesignatedenterprisesasspecifiedincertainpolicies.Forexample,enterprises(bothdomesticandforeign-investedenterprises(FIEs))in"encouraged"industrieslistedinChina’sIndustrialRestructuringCatalogueandtheCatalogueforForeignInvestment,suchasthosemanufacturingequipmentfortreatingairpollutant,mayimportequipmentfortheirownuse,exemptfromimporttariffs.

TariffexemptionsalsoapplytogoodsimportedinbondunderprocessingtradeintoCustomscontrolledareas,iftheyareexportedwithinacertainperiod.Ifthegoodsarenotexportedwithinthespecifiedperiod,importdutiesarecollectedbyCustoms.

Processingtradeaccountedfor48.8%and32.1%oftotalexportsandimports,respectively,in2009.Toreduceenergyconsumptionandprotecttheenvironment,theGovernmentmaynotgrantpreferentialtreatmentunderprocessingtradetocertaingoods.Thus,suchgoodsare"restricted"or"prohibited"frombeingimportedunderprocessingtrade.In2009,basedoninformationfromtheauthorities,279lines(HS8-digit)weresubjecttoimportprohibitions(upfrom269in2007)andanother139linesweresubjecttoimportandexportprohibitionsunderprocessingtrade(section(3)(v)).

Further,tariffreductionsorexemptionsapplytosomebordertradeactivities,whichaccountedfor1.2%oftotalimportsandexportsintermsofvolumein2008,upfrom0.98%in2007.Since1November2008,residentswithin20kilometresofthebordermayimportproductsworthuptoY8,000(increasedfromY3,000)perpersonperday,dutyfree,throughdesignatedplacesortradefairs.MOFonlineinformation.Viewedat:

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/guanshuisi/zhengwuxinxi/zhengcefabu/200810/t20081031_86706.html

[08/05/09],andMOFCOMonlineinformation.Viewedat:

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http://www.m