Tariffs
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China’s average tariff on steel and steel mill products is currently 7.5
percent. This will be reduced to an average rate of 6.0 percent.
These reductions will be completed by January 1, 2004.
Trading Rights and Distribution
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Prior to its accession, 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. Because steel products were also subject
to designated trading, as identified in Annex
2B to the Protocol, the number of companies that could import and export
these products was further restricted. After China’s accession, the number
of enterprises in China permitted to import and export steel products will
be increased over a three-year transition period. At the end of that
period, all enterprises in or outside of China will be able to import and
export all steel products.
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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 steel products. (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 trade barriers 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.
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)
Antidumping
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China has agreed that the United States (and other WTO members) may continue
to apply its non-market economy methodology for measuring dumping in antidumping
investigations of imports from China for the first 15 years following accession.
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China continues to have the opportunity to demonstrate that market conditions
prevail in its economy as a whole or in a particular industry, but any
such demonstration must be made to the satisfaction of the investigating
authority. (See separate report on Import
Related Issues)
Transitional China-Specific Safeguard Mechanism
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China's accession agreement includes a unique, China-specific safeguard
mechanism allowing a WTO Member to restrain increasing imports from China
that disrupt its market. This mechanism will be available for 12
years after accession. (See separate report on Import
Related Issues)
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