Schedule CLII - People's Republic of China

PART I - MOST-FAVOURED-NATION TARIFF

SECTION I - B Tariff Quotas

1. Tariff quotas indicated in the third column are volumes for calendar year 2001. Tariff quota concessions will be implemented according to the date specified in the "implementation" column. The implementation column indicates the date (referring to 1 January of the year indicated) when the final quota quantity will be achieved. The tariff quota concessions are subject to equal annual adjustments (occurring on 1 January of each year), unless otherwise specified in the last column ("Other terms and conditions").

2. The People's Republic of China (hereinafter referred to as "China")shall maintain its in-quota applied and bound rates (and, upon removal of the tariff-quota, its applied and bound rates) for HS 1514 (rape or colza (canola) oil and its fractions, whether or not refined, but not chemically modified) at a level equal to that for HS 1507 (soya-bean oil and its fractions, whether or not refined, but not chemically modified) and for HS 1205 (rape or colza (canola) seeds, whether or not broken).

3. The growth rate for the TRQ volume for canola (rapeseed) oil shall be no less than the growth rate for the TRQ volume for soybean oil.

4. An entity granted a tariff quota allocation (quota-holder) may engage in importation through state-trading enterprises and/or through entities possessing the right to trade other than state-trading enterprises, including direct importation by the quota holder, as indicated on documentation issued with the allocation or reallocation of the tariff quota quantities.

5 . Application: All applications for an allocation of the tariff-quota will be submitted to the State Development and Planning Commission (SDPC). Specific conditions for applying for a tariff-quota allocation will be published in the official journal one month in advance of the application period, which will be from 15 October to 30 October.

6. Allocation:

A. The entire tariff-quota quantity established in Section I-B shall be allocated to end users by 1 January each year. Inquiries regarding tariff-quota allocations can be made to the SDPC, with responses provided within 10 working days. Any additional requirement for importation will be automatic under the terms of the Agreement on Import Licensing Procedures. China shall equitably distribute allocations within each portion of the tariff-quota to ensure complete tariff-quota utilization and to establish a tariff-quota system that is open, transparent,fair, responsive to market conditions, timely, minimally burdensome to trade and reflects end user preferences.

B.In the first year, allocations to end users by the SDPC of the tariff-quota reserved for importation through state-trading enterprises shall be based on a first-come, first-served system or the requests of the applicants and their historical import performance, production capacity, or other relevant commercial criteria, subject to specific conditions to be published one month in advance of the opening of the application period so as to ensure an equitable distribution and complete tariff-quota utilization. In the first year, no less than 10 % of the tariff-quota reserved for importation through state-trading enterprises will be allocated to new quota-holders.

C. In the first year, allocations to end users by the SDPC of the tariff-quota reserved for importation through entities other than state-trading enterprises shall be based on a first-come, first-served system or the requests of the applicants and their historical import performance, production capacity, or other relevant commercial criteria. No less than 10 % of the

tariff-quota reserved for importation through entities other than state-trading enterprises will be allocated to new quota-holders. This tariff-quota will be limited to entities that do not

receive any special or exclusive rights or privileges, and will include allocations to joint ventures, wholly foreign-funded enterprises, and private enterprises.

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D. Except in cases where tariff-quota is allocated on a first-come, first-served basis, and in accordance with China's Schedule of Concessions and Commitments on Goods, a

quota-holder that has imported under a tariff-quota shall, upon application, receive an allocation of the tariff-quota in the following year for a quantity no less than the quantity imported the

F. Inquiries on the entities which received the allocation can be made to the SDPC which shall provide the information within 10 days.

7. Term: The tariff-quota for each product will be opened on 1 January each year, unless otherwise specified in the Schedule. Tariff-quota allocations will be valid for the calendar

year.

8. Reallocation:

A. In any year, if a quota-holder has not contracted for the total quantity by 15 September, it shall return the unused portion of the tariff-quota quantity to the SDPC for reallocation.

B. Applications for reallocation of the tariff-quota will be accepted by the SDPC from 1 September to 15 September and new allocations shall be assigned by 1 October. Specific

conditions for applying for reallocation of tariff quotas will be published in the official journal one month in advance of the application period. Such allocations, which shall be to new

applicants and to entities other than those returning quotas under sub-paragraph 8.A. above, will be assigned on a first-come, first-served basis. Quota-holders allocated a share of

the tariff-quota reserved for importation through entities other than state-trading enterprises may import through any entity that has a right to trade in any product as specified in

Section 5 of China's Protocol of Accession.

C. Inquiries on the entities which received the reallocations can be made to the SDPC which will provide the information within 10 days.

D. In situations where goods have been shipped from their port of origin before 31 December of any year, but are entered after 31 December of that year, China shall extend the

validity of the tariff quota documents and shall count such shipments against the tariff quota allocation for the year in which the tariff quota was initially allocated.

Consultations:

9. With a view to maintaining a transparent and open tariff quota system, upon request from any WTO Member, China shall consult with the Member on the administration of the tariff

quota to ensure that the tariff quota will be allocated in a transparent, equitable and non-discriminatory manner and that the tariff quota will be fully utilized.

Notes:

1. The share of the tariff-quota reserved for importation through state-trading enterprises is specified in column 7 of Section I-B. The remainder of the tariff-quota quantity is reserved

for importation through any non-state trading enterprise possessing the right to trade in any product as set forth in Section 5 of China's Protocol of Accession.

In any year, if the quantity of the tariff-quota reserved for importation through state-trading enterprises has not been contracted for by 15 August, quota-holders will have the right to trade or to import through any entity with the right to trade any product under Section 5 of China's Protocol of Accession.

2. China shall ensure that the applied duty for soybean oil, rapeseed oil, palm oil, peanut oil, cottonseed oil, sunflower seed oil, and corn oil is no greater than the applied duty for any one of these oils or for any other vegetable oil. Of the vegetable oils subject to tariff quota (i.e., soybean oil, rapeseed oil, and palm oil), if the tariff-quota for any one oil is autonomously increased, the tariff-quotas for the other two will be increased commensurately. Beginning 1 January 2006, China will remove soybean oil, rapeseed oil and palm oil from Annex 2A of the Protocol of Accession and will grant the right to trade such oils to all individuals and enterprises.

3. All quota holders, that have already fully used or contracted their tariff-quota allocations in any year by 15 September shall also be eligible for reallocation of tariff-quota from other quota holders that have returned their allocations.

Description of Tariff item Initial quota Final quota Implementation Initial

products number quantity and quantity and period negotiating right Other terms and conditions

in-quota tariff rate inquota tariff rate

Wheat 7,884,000 mt 9,636,000 mt 2004 AU,CA,US 1) STE share = 90% (See Note 1)

10011000 1% 1% 2) Staging of TRQ quantity:

Description of Tariff item Initial quota Final quota Implementation Initial

products number quantity and quantity and period negotiating right Other terms and conditions

in-quota tariff rate inquota tariff rate

10019010 1% 1% Year: TRQ quantity:

10019090 1% 1% 2002: 8,468,000 mt

11010000 6% 6% 2003: 9,052,000 mt

11031100 9% 9% 2004: 9,636,000 mt

11032100 10% 10%

Corn 5,175,000 mt 7,200,000 mt 2004 AR,US 1) STE share = 71% to 60% (See Note 1)

10051000 1% 1% 2) Staging of TRQ quantity:

10059000 1% 1% 2002: 5,850,000 mt

11022000 9% 9% 2003: 6,525,000 mt

11031300 9% 9% 2004: 7,200,000 mt

11042300 10% 10% 3) Staging of STE share:

2002 68%

2003 64%

2004 60%

Rice, short and medium 1,662,500 mt 2,660,000 mt 2004 AU,TH,US,UY STE share = 50% (See Note 1)

grain 10061010x 1% 1% 1) Rice products are included in the short &

10061090x 1% 1% medium grain rice; 2) China confirms that

10062000x 1% 1% the allocation of the TRQ on rice and

10063000x 1% 1% rice products in these product

10064000x 1% 1% classifications shall take into consideration

11023000x 9% 9% historical trade flows and allocations to

11031400x 9% 9% end-users. Imports of rice and rice products

will be allocated to the full limit of the quota

established for each calendar year as

determined by demand in the Chinese

market.; 3) Quota for short & medium grain

rice shall be allocated to state enterprises

and to private sectors at a ratio of 50:50 (See

Note 1); 4) Staging for the TRQ quantity:

Year: TRQ quantity:

2002 1,995,000 mt

2003 2,327,500 mt

2004 2,660,000 mt

Rice, long grain 1,662,500 mt 2,660,000 mt 2004 AU,TH,US,UY STE share = 50% (See Note 1)

10061010y 1% 1% 1) Rice products are included in the

10061090y 1% 1% long grain rice.; 2) China confirms that

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Description of Tariff item Initial quota Final quota Implementation Initial

products number quantity and quantity and period negotiating right Other terms and conditions

in-quota tariff rate inquota tariff rate

10062000y 1% 1% the allocation of the TRQ on rice and

10063000y 1% 1% rice products in these product

10064000y 1% 1% classifications shall take into consideration

11023000y 9% 9% historical trade flows and allocations to

11031400y 9% 9% end-users. Imports of rice and rice products

will be allocated to the full limit of the quota

established for each calendar year as

determined by demand in the Chinese

market.; 3) Quota for long grain rice shall be

allocated to state enterprises and to private

sectors at a ratio of 50:50 (See Note 1); 4)

Staging for the TRQ quantity: Year:

TRQ quantity:

2002 1,995,000 mt

2003 2,327,500 mt

2004 2,660,000 mt

Soybean oil 2,118,000 mt 3,587,100 mt 2005 AR,BR,MY,SG,US 1) STE share = 42% to 10% (See Notes 1

and 2);

15071000 9% 9% 2) Staging for soybean oil

15079000 9% 9% Year: TRQ quantity:

2002 2,518,000 mt

2003 2,818,000 mt

2004 3,118,000 mt

2005 3,587,100 mt

Staging of STE share:

Year: share:

2002 34%

2003 26%

2004 18%

2005 10%

Tariff quotas to be eliminated on 1 January

2006

Palm oil 2,100,000 mt 3,168,000 mt 2005 BR,CR,MY,SG 1) STE share=42% to 10% (See Notes 1 and

2)

15111000 9% 9% 2) Staging of TRQ for palm oil:

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Description of Tariff item Initial quota Final quota Implementation Initial

products number quantity and quantity and period negotiating right Other terms and conditions

in-quota tariff rate inquota tariff rate

15119000 9% 9% Year: TRQ quantity:

2002 2,400,000 mt

2003 2,600,000 mt

2004 2,700,000 mt

2005 3,168,000 mt

Staging of STE share:

Year: share:

2002 34%

2003 26%

2004 18%

2005 10%

Tariff quotas to be elimnated on 1 January

2006;

3) China agrees to provide adequate

opportunities in increasing the established

import quota levels of TRQs for palm oil in

case of an excessive demand for palm oil

within China that is over and above that of the

present TRQs as evidenced by the complete

utilisation of TRQs for palm oil in the previous

year.; 4) Any adjustments to tariffs, import

quota levels of TRQs, import rights (with

respect to state trading enterprises) and

implementation period resulting from the

conclusion of future bilateral negotiations with

other oils and fats exporting countries for

other oils and fats, shall see a corresponding

adjustment for palm oil as well.

Rape-seed oil 739,200 mt 1,243,000 mt 2005 AU,BR,CA,CE15,S 1) STE share = 42% to 10% (See Notes 1

G and 2);

15141010 9% 9% 2) Staging for rape-seed oil

15141090 9% 9% Year: TRQ quantity:

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Description of Tariff item Initial quota Final quota Implementation Initial

products number quantity and quantity and period negotiating right Other terms and conditions

in-quota tariff rate inquota tariff rate

15149000 9% 9% 2002 878,900 mt

2003 1,018,600 mt

2004 1,126,600 mt

2005 1,243,000 mt

Staging of STE share:

Year: share:

2002 34%

2003 26%

2004 18%

2005 10%

Tariff quotas to be eliminated on 1 January

2006

Sugar 1,680,000 mt 1,945,000 mt 2004 AU,BO,BR,CO,CR, 1) STE share=70% (See Note 1)

CU,DO,GT,HN,NI,P

A,TH

17011100 20% 15% 2) Annual growth rate for the quota volume

17011200 20% 15% of sugar is 5%.; 3) China agrees to provide

17019100 20% 15% adequate opportunities for consultations in

17019910 20% 15% case of an excessive re-export of sugar from

17019920 20% 15% China and it shall fully take into account the

17019990 20% 15% concerns of WTO Members in this regard.; 4)

Staging for sugar:

Year: TRQ quantity:

2002 1,764,000 mt

2003 1,852,000 mt

2004 1,945,000 mt:

5) The in-quota tariff rate will remain at 20%

from the date of accession until 31 December

2003, whereupon the 15% tariff will take effect

on 1 January 2004.

Wool 253,250 mt 287,000 mt 2004 AU,CL,CO,NZ,UY 1) China agrees that in relation to distribution

51011100 1% 1% of import and export licences and tariff

51011900 1% 1% quotas for wool, foreign individuals and

51012100 1% 1% enterprises, foreign-funded enterprises and

51012900 1% 1% joint ventures will be accorded treatment no

51013000 1% 1% less favourable than that accorded to other

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Description of Tariff item Initial quota Final quota Implementation Initial

products number quantity and quantity and period negotiating right Other terms and conditions

in-quota tariff rate inquota tariff rate

51031010 1% 1% individuals and enterprises. 2) Staging for

wool:

Year: TRQ quantity:

2002 264,500 mt

2003 275,750 mt

2004 287,000 mt

Cotton 780,750 mt 894,000 mt 2004 AU,CO,US 1) STE share = 33% (See Note 1)

52010000 1% 1% 2) Staging for cotton

52030000 1% 1% Year: TRQ quantity:

2002 818,500 mt

2003 856,250 mt

2004 894,000 mt