PROTOCOL ON THE ACCESSION OF
THE PEOPLE'S REPUBLIC OF CHINA
Preamble
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 Tariffs
and Trade 1947,
Taking note that China is a signatory to the Final Act Embodying the Results of the Uruguay
Round of Multilateral Trade Negotiations,
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 accedes to the WTO Agreement pursuant to Article XII of that
Agreement and thereby becomes a Member of the WTO.
2. The WTO Agreement to which China accedes shall be the WTO Agreement as rectified,
amended 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 annexed to the WTO Agreement that are to be implemented 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 Exemptions annexed to this Protocol and meets the conditions of the Annex 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 autonomous areas, Special
Economic Zones, open coastal 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, impartial 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 applied at the sub-national level (collectively referred to as "laws,
regulations and other measures") pertaining 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 mechanism 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 geographic boundaries
that define them. China shall notify the WTO promptly, but in any case within 60 days, of any
additions or modifications to its special economic areas, including notification of the laws,
regulations and other measures relating thereto.
2. China shall apply to imported products, including physically incorporated components,
introduced into the other parts of China's customs territory from the special economic areas, all
taxes, charges and measures affecting imports, including import restrictions and customs and tariff
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 fully 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 dedicated 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 monetary policy and other
measures the publication of which would impede 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 authoritative view of the Chinese government. Accurate and
reliable information shall be provided to individuals and enterprises.
(D) Judicial Review
1. China shall establish, or designate, and maintain tribunals, contact points and procedures for
the prompt review of all administrative actions relating to the implementation 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 entrusted 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 affected 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 favourable than that accorded to
other individuals and enterprises in respect of:
(a) the procurement of inputs 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 conformity with the WTO Agreement all
special trade arrangements, including barter 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
legislative procedures to implement 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
transparent, and in compliance 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
Interpretation of Article XVII of the GATT 1994, China shall also provide full information on the
pricing mechanisms of its state trading enterprises for exported goods.
7. Non-Tariff Measures
1. China shall implement the schedule for phased elimination of the measures contained in
Annex 3. During the periods specified 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 implementing 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 justified 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 allocate 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 Licensing
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 imposing such requirements. Without prejudice to the
relevant provisions of this Protocol, China shall ensure that the distribution of import licences,
quotas, 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, offsets, the transfer of technology, export performance or the conduct of research
and development in China.
4. Import and export prohibitions 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 authorization 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:
– by product, the list of all organizations, including those organizations
delegated such authority by the national authorities, that are responsible for
authorizing or approving imports or exports, whether through grant of licence or
other approval;
– procedures and criteria for obtaining such import or export licences or other
approvals, and the conditions for deciding whether they should be granted;
– 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;
– 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;
– any changes to the list of goods and technologies whose import and export are
restricted or prohibited.
Copies of these submissions in one or more official languages of the WTO shall be
forwarded to the WTO for circulation to WTO Members and for submission to the
Committee on Import Licensing within 75 days of each publication.
(b) China shall notify the WTO of all licensing and quota requirements remaining in effect
after accession, listed separately by HS tariff line and with the quantities associated with
the restriction, if any, and the justification 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 annually to the Committee on Import Licensing on
its automatic import licensing procedures, explaining the circumstances which give rise to
these requirements and justifying 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.
9. Price Controls
1. China shall, subject to paragraph 2 below, allow prices for traded goods and services in every
sector to be determined by market forces, and multi-tier pricing practices for such goods and
services shall be eliminated.
2. The goods and services listed in Annex 4 may be subject to price controls, consistent with the
WTO Agreement, in particular Article III of the GATT 1994 and Annex 2, paragraphs 3 and 4 of
the Agreement on Agriculture. Except in exceptional circumstances, and subject to notification
to the WTO, price controls shall not be extended to goods or services beyond those listed in
Annex 4, and China shall make best efforts to reduce and eliminate these controls.
3. China shall publish in the official journal the list of goods and services subject to state pricing
and changes thereto.
10. Subsidies
1. China shall notify the WTO of any subsidy within the meaning of Article 1 of the Agreement
on Subsidies and Countervailing Measures ("SCM Agreement"), granted or maintained in its
territory, organized by specific product, including those subsidies defined in Article 3 of the SCM
Agreement. The information provided should be as specific as possible, following the
requirements of the questionnaire on subsidies as noted in Article 25 of the SCM Agreement.
2. For purposes of applying Articles 1.2 and 2 of the SCM Agreement, subsidies provided to
state-owned enterprises will be viewed as specific if, inter alia, state-owned enterprises are the
predominant recipients of such subsidies or state-owned enterprises receive disproportionately
large amounts of such subsidies.
3. China shall eliminate all subsidy programmes falling within the scope of Article 3 of the
SCM Agreement upon accession.
11. Taxes and Charges Levied on Imports and Exports
1. China shall ensure that customs fees or charges applied or administered by national or
sub-national authorities, shall be in conformity with the GATT 1994.
2. China shall ensure that internal taxes and charges, including value-added taxes, applied or
administered by national or sub-national authorities shall be in conformity with the GATT 1994.
3. China shall eliminate all taxes and charges applied to exports unless specifically provided for
in Annex 6 of this Protocol or applied in conformity with the provisions of Article VIII of the
GATT 1994.
4. Foreign individuals and enterprises and foreign-funded enterprises shall, upon accession, be
accorded treatment no less favourable than that accorded to other individuals and enterprises in
respect of the provision of border tax adjustments.
12. Agriculture
1. China shall implement the provisions contained in China's Schedule of Concessions and
Commitments on Goods and, as specifically provided in this Protocol, those of the Agreement on
Agriculture. In this context, China shall not maintain or introduce any export subsidies on
agricultural products.
2. China shall, under the Transitional Review Mechanism, notify fiscal and other transfers
between or among state-owned enterprises in the agricultural sector (whether national or
sub-national) and other enterprises that operate as state trading enterprises in the agricultural
sector.
13. Technical Barriers to Trade
1. China shall publish in the official journal all criteria, whether formal or informal, that are the
basis for a technical regulation, standard or conformity assessment procedure.
2. China shall, upon accession, bring into conf