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  • 6.2.8-MARKET PROFILES-DETAILED RULES FOR QUOTA MANAGEMENT OF COTTON IMPORTS IN CHINA

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  • Detailed rules for quota management of cotton imports in China

    Chapter 6 - Market profiles - China 

     
     

     

     

     

    Name 

    Programme 

    Institution to distribute
    and issue quota

    The National Development and Reform Commission (NDRC) and the Ministry of Commerce.

    Time to apply for the
    tariff rate quota

    Between 15 and 30 October of the preceding year.

    Valid period of the tariff
    rate quota

    Beginning of January to end February of the next year.

    Who can apply for the
    tariff-rate quota?

    1. State-owned trading enterprise;
    2. Central enterprises with national reserve functions;
    3. Enterprise with actual import achievements in the previous year;
    4. Cotton textile mills with over 50,000 spindles.

    Institutions issuing the
    quota

    Institutions authorized by SDRC.

    Distribution principles for
    the quantity of tariff rate
    quota

    1. If the quantity for distribution is less than or equal to the total quantity
    applied for:
    • Distribute according to the quantity applied for, historical actual import achievements, the production capacity of the applicant, and other business standards.

    2. If the quantity for distribution exceeds the total quantity applied for:
    • Applicants with actual import achievements have priority.
    • For applicants without previous import performance, the quota is
    distributed proportionally according to production capacity.
    • If the quantity applied for is less than the quantity that would be
    distributed proportionally, distribution shall accord with the quantity
    applied for.
    • The minimal distribution quantity is determined according to
    commercially workable shipping volumes.

    Redistribution of
    tariff-rate quota

    1. Unused quota shall be returned before 15 September of that year.
    2. Other applicants can submit redistribution applications between 1 and
    15 September; the results will be released before 1 October.
    3. For those who do not return unused quota, their quota will be reduced
    accordingly during the quota distribution of the next year.

    For those who get the
    tariff-rate quota
    qualifications of cotton
    import

    Issue the Certificate of the Import Tariff-Rate Quotas of Agricultural Products
    stamped with the Special Seal of Certificate of the Import Tariff-Rate Quotas
    of Agricultural Products.

    Use of the tariff-rate
    quota certificate

    1. The certificate is applicable to imports in general trade, processing trade,
    barter trade, small amounts of border trade, or assistance from abroad.
    2. A license is not required for products entering bonded warehouses, free
    trade zones and export processing areas from abroad.
    3. For agricultural products with tariff-rate quota imported from bonded
    warehouses, free trade zones and export processing areas, Customs shall
    handle the import formalities by virtue of the Certificate of the Import
    Tariff-Rate Quotas of Agricultural Products according to the concerned
    import goods management.
    4. Under the ‘multi-lot one-certificate’ system, customs clearance formalities
    can be handled many times.
    5. The over-shipped volume for each lot of the bulk cargo shall not exceed 5%
    of the lot.

    Return of the tariff rate
    quota certificate

    1. Those who have exhausted their quotas shall return the original copy of
    the first sheet (the Sheet of Consignee to Handle the Customs Formalities) of
    the Certificate of the Import Tariff-Rate Quotas of Agricultural Products to
    the issue institution within 20 business days after the last lot of cargo is
    presented to Customs; otherwise it is deemed that the quota is uncompleted.
    2. Those who have not exhausted the quota shall return the first sheet (the
    Sheet of Consignee to Handle the Customs Formalities) of the Certificate of
    the Import Tariff Rate Quotas of Agricultural Products to the issuing
    institution prior to the end of January of the next year.

    State-owned trading
    enterprises entitled to the
    quantity distribution of
    tariff-rate quota

    Six State-owned trading enterprises are entitled to import cotton. They are as
    follows:
    1. Chinatex.
    2. Beijing Jiuda Textile Corporation.
    3. Tianjin Textile Industrial Supply and Sale Company.
    4. Shanghai Textile Raw Materials Co. Ltd.
    5. China National Cotton Reserves Corporation.
    6. Xinjiang Nongken Import and Export Co. Ltd.