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  • 6.2.9-MARKET PROFILES-CHRONOLOGY OF POLICIES AND EVENTS RELATED TO CHINA’S COTTON IMPORT QUOTA

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  • Chronology of policies and events related to China’s cotton import quota

    Chapter 6 - Market profiles - China 

     
     

     

     

     

    Time

     

    Event

     
    11 December 2001 Catalogue of Goods Subject to the Management of Import Tariff Rate Quota was issued by the former Foreign Trade Commission.
    Early 2002 The former National Development and Planning Commission (NDPC) promulgated the Interim Measures for the dministration of Import Quotas of Agricultural Products, which regulated that the cotton import tariff-rate quota should be subject to the uniform management of the former NDPC.
    7 February 2002 NDPC issued the Quantity of Import Tariff Rate Quotas, Application
    Conditions and Distribution Principles of Key Agricultural Products in 2002, which regulated that the tariff-rate quota for cotton imports should be 818,500 tons. The quota is divided into two types, A and B, which can be applied for by enterprises fitting into one of the following categories:
    • State-owned trading enterprise;
    • Central enterprises with national reserve functions;
    • Enterprise with actual import achievements of general trade in 2001;
    • Cotton textile enterprise with over 50,000 spindles.
    9 August 2002 NDPC issued the Notice on Redistributing the Import Tariff Rate Quotas for Major Agricultural Products in 2002.
    30 September 2002 NDPC issued the Quantity of Import Tariff Rate Quotas, Application
    Conditions and Distribution Principals of Key Agricultural Products in 2003, which stipulated that the import quota of cotton should be 856,250 tons.
    2 January 2003 NDPC issued 2003 import quotas of agricultural products; the tariff-rate quota for cotton imports was set at 856,250 tons.
    28 March 2003 China National Cotton Reserves Corporation (CNCRC) was officially
    incorporated in Beijing. CNCRC, a State-funded corporation approved and entrusted by the State Council, is in charge of the operation and management of national cotton reserves.
    31 July 2003 The Ministry of Commerce and NDRC jointly issued the Interim Measures for the Administration of Import Quotas of Agriculture Products (Draft for Comment), which regulated that issuances related to cotton import quotas would be managed jointly by the Ministry of Commerce and NDRC, and the tariff-rate import quota for cotton would be publicized by NDRC. It also removed the division into A and B categories on tariff-rate quota certificates and specified that processing trade enterprises wanting to import should submit a processing trade business licence as well as the tariff rate quota certificate.
    11 August 2003 The Ministry of Commerce and NDRC issued the Notice on Redistributing the Import Tariff Rate Quotas of Agricultural Products in 2003.
    27 September 2003 The Ministry of Commerce and NDRC distributed the Interim Measures for the Administration of Import Quotas of Agriculture Products, affirmed the regulations in the Draft for Comment, and regulated that the valid period of the tariff-rate quota certificate could extend to the end of February of the next year
    30 September 2003 NDRC issued the Quantity of Import Tariff Rate Quotas, Application Conditions and Distribution Principles for Grains and Cotton in 2004, which set the tariff-rate cotton import quota at 894,000 tons. Article 2 in the application conditions, ‘Central Enterprise with National Reserve Functions’, was eliminated.
    Early November 2003 NDRC stated that it would issue an additional 500 000 tons of cotton import quota at a tariff rate of 1% before 31 December of that year.
    12 December 2003 NDRC issued a notice extending the valid period of 2003 tariff rate quota
    certificates for cotton imports from the original 31 December 2003 to 30 June 2004.
    30 December 2003 NDRC announced that the tariff-rate quota for cotton import in 2004 would be 894,000 tons.
    End of February 2004 NDRC issued an additional cotton import tariff-rate quota of 1 million tons at the tariff rate of 1%.
    4 March 2004 The additional 1 million tons of cotton import quota was distributed to the
    concerned economic and trade commissions and cotton textile enterprises.
    11 August 2004 The Ministry of Commerce and NDRC jointly issued the Notice on
    Redistributing the Import Tariff Rate Quotas of Agricultural Products in 2004
    .
    30 September 2004 NDRC issued the Quantity of Import Tariff Rate Quotas, Application Conditions and Distribution Principals of Grains and Cotton in 2005. 
    30 April 2005 NDRC and the General Administration of Customs in China issued the Notice on 2005 Cotton Import Beyond the Tariff Rate Quota, which for the first time put forward the concept of sliding tariffs and issued additional an 1.4 million tons of cotton quota, beyond the tariff-rate quota, in two lots.
    22 July 2005 NDRC distributed the remaining 700,000 tons of cotton import quota beyond the tariff-rate quota.
    15 August 2005 The Ministry of Commerce and NDRC issued the Notice on Redistributing the Import Tariff Rate Quotas of Major Agricultural Products in 2005. 
    13 September 2005 NDRC issued the Quantity of Import Tariff Rate Quotas, Application Conditions and Distribution Principals of Grains and Cotton in 2006. 
    27 December 2005 The General Administration of Customs promulgated the Scheme of 2006 on Imposing Sliding Tariff on Imported Cotton beyond the Tariff Rate Quota, which increased the pre-tariff price of imported cotton from CNY 10,029 per ton to CNY 10,746 per ton.
    4 January 2006 NDRC distributed 894,000 tons of tariff-rate quota for cotton imports.
    11 January 2006 An additional 1.5 millions tons of cotton import quota beyond the tariff-rate quota was issued.
    6 April 2006 WuYi, Vice Premier of the State Council, struck a deal worth US$ 4 billion with American companies in Los Angeles, including 500,000 tons of United States cotton procurement, among which 200,000 tons was distributed to the five State-owned large enterprises and the remaining 300,000 tons was for national reserve.
    24 May 2006 It was shown that the 1.5 million tons of cotton import quota beyond the
    tariff-rate quota had been distributed all at once.
    5 July - 31 August 2006 To facilitate the sale of Xinjiang cotton, the State practised a tie-in sales policy fixing the ratio of cotton import quota to Xinjiang cotton at 1:1.
    18 September 2006 NDRC issued the Quantity of Import Tariff Rate Quotas, Application Conditions and Distribution Principals of Grains and Cotton in 2007. 
    30 September 2006 The 700,000 tons of cotton import quota matched with the purchase of
    Xinjiang cotton at a proportion of 1:1 was distributed to the concerned textile enterprises. The valid period of the tariff-rate quota certificate was up to 31 December 2006.
    28 December 2006 The Customs Tariff Commission of the State Council issued the 2007
    Implementation Scheme on Customs Tariff
    , which raised the sliding tax cut-off point on the pre-tariff price from CNY 10,746 per ton to CNY 11,397 per ton and eliminated the so called ‘floor CIF for imported cotton’. The benchmark tariff rate was raised from the original 5% to 6%, and a sliding tax scheme of 6%–40% was in force.
    31 December 2006 NDRC began to distribute the 894,000 tons of tariff-rate quota for cotton
    import for 2007.