Schedule CLII - People's Republic of China

                        PART III - NON-TARIFF CONCESSIONS

      Section A--Tariff-rate Quotas on Fertilizer and Wool Tops

      1. Tariff quotas indicated in the third column are volumes for calendar year 2001.  Tariff quota concessions will be implemented according to the date specified in the

      "implementation" column.  The implementation column indicates the date (referring to 1 January of the year indicated) when the final quota quantity will be achieved.  The tariff

      quota concessions are subject to equal annual adjustments (occurring on 1 January of each year), unless otherwise specified in the last column ("Other terms and conditions").

      2. An entity granted a tariff quota allocation (quota-holder) may engage in importation through state-trading enterprises and/or through entities possessing the right to trade other

      than state-trading enterprises, including direct importation by the quota holder, as indicated on documentation issued with the allocation or reallocation of the tariff quota

      quantities.

      3. Application:  All applications for an allocation of the tariff-quota will be submitted to the relevant organization.  Specific conditions for applying for a tariff-quota allocation will be

      published in the official journal one month in advance of the application period, which will be from 15 October to 30 October.

      4. Allocation:

         A. The entire tariff-quota quantity established in Part III shall be allocated to end users by 1 January each year.  Inquiries regarding tariff-quota allocations can be made to the

      relevant organization, with responses provided within 10 working days.  Any additional requirement for importation will be automatic under the terms of the Agreement on Import

      Licensing Procedures.  The People's Republic of China will equitably distribute allocations within each portion of the tariff-quota to ensure complete tariff-quota utilization and to

      establish a tariff-quota system that is open, transparent, fair, responsive to market conditions, timely, minimally burdensome to trade and reflects end

      user preferences.

         B. In the first year, allocations to end users by the relevant organization of the tariff-quota reserved for importation through state-trading enterprises shall be based on a

      first-come, first-served system or the requests of the applicants and their historical import performance, production capacity, or other relevant commercial criteria, subject to

      specific conditions to be published one month in advance of the opening of the application period so as to ensure an equitable distribution and complete tariff-quota utilization.  In

     the first year, no less than 10 % of the tariff-quota reserved for importation through state-trading enterprises will be allocated to new quota-holders.

         C. In the first year, allocations to end users by the relevant organization of the tariff-quota reserved for importation through entities other than state-trading enterprises shall be

      based on a first-come, first-served system or the requests of the applicants and their historical import performance, production capacity, or other relevant commercial criteria.  No

      less than 10 % of the tariff-quota reserved for importation through entities other than state-trading enterprises will be allocated to new quota-holders.  This tariff-quota will be limited

      to entities that do not receive any special or exclusive rights or privileges, and will include allocations to joint ventures, wholly foreign-funded enterprises, and private enterprises.

         D. Except in cases where tariff-quota is allocated on a first-come, first-served basis, and in accordance with China's Schedule of Concessions and Commitments on Goods, a

      quota-holder that has imported under a tariff-quota shall, upon application, receive an allocation of the tariff-quota in the following year for a quantity no less than the quantity

      imported the previous year.  For all methods of allocation, a quota-holder that does not import its full allocation under a tariff-quota will receive a proportional reduction in the

      tariff-quota allocation in the subsequent year unless the quantity is returned to the relevant organization prior to 15 September.  A quota-holder that has failed to import its full

      allocation in two consecutive years and has returned that unused portion by 15 September shall have its quota allocated in the following year on the basis of its fill rate in the most

      recent year, and shall not benefit from any additional reallocations until and unless there are no other applications.  The means of calculating the penalty will be included in the

      TRQ regulation in force and publicly available, and will be applied in a consistent and equitable manner. 

         E. Allocations will be established for commercially viable shipping quantities and provisions will be made for partial shipments against a single tariff-quota allocation.  All

      commercial terms of trade, including product specification, pricing, packaging, etc., will be at the sole determination of the importer and the exporter taking into full account the

      demands of the end user.  Tariff-quota allocations will be valid for any item or mixture of items subject to the same tariff quota.

         F. Inquiries on the entities which received the allocation can be made to the relevant organization  which will provide the information within 10 days.

      5. Term:  The tariff-quota for each product will be opened on 1 January each year, unless otherwise specified in the Schedule.  Tariff-quota allocations will be valid for the calendar

      year.

      6. Reallocation:

         A. In any year, if a quota-holder has not contracted for the total quantity by 15 September, it shall return the unused portion of the tariff-quota quantity to the relevant

      organization for reallocation.

         B. Applications for reallocation of the tariff-quota will be accepted by the relevant organization from 1 September to 15 September and new allocations will be assigned by 1

      October.  Specific conditions for applying for reallocation of tariff quotas will be published in the official journal one month in advance of the application period.  Such allocations,

      which will be to new applicants and to entities other than those returning quotas under sub-paragraph 6.A. above, will be assigned on a first-come, first-served basis. 

      Quota-holders allocated a share of the tariff-quota reserved for importation through entities other than state-trading enterprises may import through any entity that has a right to

      trade in any product as specified in Section 5 of the Protocol of Accession.

         C. Inquiries on the entities which received the reallocations can be made to the relevant organization  which will provide the information within 10 days.

         D. In situations where goods have been shipped from their port of origin before 31 December of any year, but are entered after 31 December of that year, the People's Republic of

       China shall extend the validity of the tariff quota documents and shall count such shipments against the tariff quota allocation for the year in which the tariff quota was initially

      allocated.

      Consultations:

      7. With a view to maintaining a transparent and open tariff quota system, upon request from any WTO Member, China shall consult with the Member

      on the administration of the tariff quota to ensure that the tariff quota will be allocated in a transparent, equitable and non-discriminatory manner and

      that the tariff quota will be fully utilized.

      Notes:

      1. The share of the tariff-quota reserved for importation through state-trading enterprises is specified in column 7 of Part III.  The remainder of the

      tariff-quota quantity is reserved for importation through any non-state trading enterprise possessing the right to trade in any product as set forth in

      Section 5 of the Protocol of Accession.

      In any year, if the quantity of the tariff-quota reserved for importation through state-trading enterprises has not been contracted for by 15 August,

      quota-holders will have the right to trade or to import through any entity with the right to trade any product under Section 5 of the Protocol of

      Accession. 

      2. All quota holders, that have already fully used or contracted their tariff-quota allocations in any year by 15 September will also be eligible for

      reallocation of tariff-quota from other quota holders that have returned their allocations.

      3. The quota quantities after the end of the implementation period will be the subject of further negotiation. Unless new quota quantities are agreed,

      the quantities at the end of the implementation period will continue.

      4.  The relevant organization referred to above for inquiries, allocations, and reallocations shall be:

         (a) for fertilizer, the State Economic and Trade Commission (SETC);

         (b) for wool top, the State Development and Planning Commission (SDPC).

      5.  After 1 January 2006, any annual growth in TRQ amounts provided to a fertilizer product subject to a TRQ shall be provided to all fertilizer products subject to a TRQ, including

      annual growth rates exceeding those provided for in this schedule.

  Description of         Tariff item      Initial quota       Final quota Implementation            Initial

           products             number     quantity and     quantity and               period      negotiating right       Other terms and conditions

   in-quota tariff rate      inquota tariff rate

Diammonium  5,400,000 mt  6,900,000 mt  2006 (See Note 3)  US  1) STE quantity = 90% to 51% (See Note 1),

hydrogenorthophosphate  31053000  4%  4%  decreasing 5 percentage points per year

(diammonium phosphate)  until reaching 51% in year 9. 2) The tariff

                        quota level will be increased by 5% annually.

Urea  1,300,000 mt  3,300,000 mt  2006 (See Note 3)  AU,MY,US  1)STE quantity = 90% (See Note 1);

                        31021000                        4%                        4%                        2) Year 2 - 1,300,000 mt

                            Year 3 - 1,800,000 mt

                            Year 4 - 2,300,000 mt

                            Year 5 - 2,800,000 mt

NPK  2,700,000 mt  CE15,MY,PH  1) Non-state trading share of 10% on

                        31052000                        4%                        accession increasing in equal steps to 49%

                        over 8 years; 2) A 5% annual growth rate;

                        3) The growth rate will be reviewed with

                        Members having an interest not before the

                        end of the 6 year implementation period,

                        following which it may be amended by

                        agreement.

Wool tops  68,750 mt  80,000 mt  2004  AU,CL,CO,MY,NZ,  1)The People's Republic of China will

                        UY

                        51051000                        3%                        3%                        allocate access to the WTO Members

                        51052100                        3%                        3%                        taking into account their bilateral historical

                        51052900                        3%                        3%                        trade flows.

                        2)  Year:     TRQ quantity:

                           2002        72,500 mt

                           2003        76,250 mt

                           2004        80,000 mt