Tariffs
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China will reduce its average tariff on paper and paper products from 10.8
percent to 5.4 percent. Reductions will be fully implemented by January
1, 2006, with reductions for all but one paper product implemented by 2005.
Tariffs on U.S. priority paper products will reach 2 percent or 5 percent
by year 2004.
Trading Rights and Distribution
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Prior to its accession, through various means, China restricted the number
of companies that had the right to import and export goods as well as the
types of goods that these companies could import. China has agreed,
upon its accession, to eliminate any export performance, trade or foreign
exchange balancing, and prior experience requirements as criteria for obtaining
or maintaining the right to import and export. Chinese enterprises
will also have full trading rights upon accession, subject to certain minimum
registered capital requirements. Joint ventures with minority foreign ownership
will be granted full trading rights within one year after accession, and
joint ventures with majority foreign ownership will be granted full trading
rights within two years after accession. All enterprises, including
those in the paper industry, will be granted full trading rights within
three years after accession (except with regard to a limited number of
products reserved for state trading enterprises, as identified in Annex
2A to the Protocol).
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For enterprises and individuals that are not invested in China, the right
to import and export will be granted in a non-discriminatory and non-discretionary
way. Any requirements will be for customs and fiscal purposes only.
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Prior to its accession, China did not generally permit foreign companies
to distribute products through wholesale and retail systems in China or
to provide related distribution services, such as repair and maintenance
services. These prohibitions will be phased out over three years
for most products, including paper. (See sector report on Distribution
Services)
Import Procedures
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China has agreed to bring both its automatic and non-automatic import licensing
systems into conformity with the WTO Agreement on Import Licensing, ensuring
that these systems will not function as a trade barrier and will comply
with the principles of national treatment and nondiscrimination.
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China will no longer condition importation or investment approvals on whether
competing domestic suppliers exist or on performance requirements of any
kind, such as export performance, local content, technology transfer, offsets,
foreign exchange balancing, or research and development.
Intellectual Property Rights
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In accordance with the WTO agreement on Trade-Related Intellectual Property
Rights (TRIPs), China is obligated to comply with internationally accepted
norms for protecting and enforcing the intellectual property rights of
U.S. and other foreign companies and individuals in China.
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China is in the process of modifying its intellectual property laws and
regulations, including those relating to patents, trademarks, trade secrets,
test data, integrated circuits, and copyrights. In addition, China
has committed to strengthen the enforcement of these laws and regulations
by its courts and the responsible administrative agencies.
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China has further agreed that it will only impose, apply, or enforce laws,
regulations, or other measures relating to the transfer of technology that
are consistent with the WTO agreement on Trade-Related Investment Measures
(TRIMs) and the TRIPs agreement.
Taxes
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China has agreed to ensure that its laws, regulations and other measures
relating to internal taxes and charges levied on imports comply with WTO
rules and are applied uniformly to both foreign and domestic enterprises.
This obligation applies not only to national taxes but to provincial and
local taxes as well.
Subsidies
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China has agreed to eliminate all subsidies on industrial goods that are
prohibited under WTO rules, i.e., export and import substitution subsidies.
(See separate report on Import
Related Issues)
Other Commitments
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China has agreed that, for paper and paper products, any tariff rates applied
under a preference program, customs union, or free-trade area would be
applied to all imports of paper products, including those from the United
States.
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If WTO Members agree to and adopt the forest products sectoral initiative
that originated in APEC, China will join this initiative and eliminate
its tariffs on these products.
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