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Rules for Foreign Trade Barrier Investigation Takes Effect on March 1st

Bureau of Fair Trade for Import and Export of MOFCOM Confirmed that Rules for Foreign Trade Barrier Investigation (hereafter referred to as "Rules") take effect on March 1st.

Wang Shichun, Director of Bureau of Fair Trade for Import and Export of MOFCOM, introduced that the revised Rules basically kept original structure and style of Interim Rules for Foreign Trade Barrier Investigation implemented on Dec. 1, 2002. (hereafter referred to as "Interim Rules"), only revised or regulated certain articles with ambiguous concept or out of line with standard, mainly related with the name of Rules, legislation target, name of investigation institution and definition of trade barriers etc. The Rules perfected itself to realign with WTO and other multi-lateral rules, enhance the interest protection of applicants, and was of much significant to do better the investigation work on trade barriers and protect the reasonable benefit of Chinese industries. Regarding to specific changes of the Rules before and after revision, Li Chenggang, deputy director of the Bureau, said that content of the Rules was more abundant than that of the Interim Rules, and the later focused on exports of China but the former on both imports and exports. Therefore, we should stress on not only export development environment but also on some unreasonable restrictions implemented by other trading partners against our exports and import. For instance, certain countries executed restrictions on Chinese imports of major raw materials and energy sources, which was out of accord with multi-lateral rules and also formed trade barrier.

Besides, Rules are more strict on documents submitted by applicant for investigation of trade barriers. Li Chenggang explained that Interim Rules only asked applicants to provide relative documents as possible as they could, nevertheless, Rules required applicants must offer relative basic info, like products concerned, Tariff Number, trade barrier measures taken by counterpart and the effect on applicants etc. Which did not mean that level of application was upgraded, but was convenient for investigation institution to work effectively and urged enterprises to understand deeply relative issues.

Wang Shichun pointed out that the release of Rules provided enterprises a new approach to settle down trade barriers. Compared with the status before access to WTO, Chinese enterprises could handle trade barriers with more sophisticated methods and in accordance with standard.

Trade barriers may exist in scales touched by WTO rules, e.g. abusing anti-dumping, anti-subsidy and technological trade measures etc. but trade barrier investigation did not always take effect.

Why to revise Interim Rules, Wang Shichun pointed out that the new Foreign Trade Law implemented on July 1, 2004 authorized foreign trade administrative departments to investigate trade barriers and formulated specific regulations.

It is said that recently enterprises and chambers attached high enthusiasm to the Rules, some of them were consulting with MOFCOM about how to apply for trade barrier investigation, but the Ministry did not receive formal application so far. Wang Shichun said that MOFCOM would maintain enhancing guide and training to agencies and enterprises.

Meanwhile, Mr. Wang pointed out that there were some problems when we responded to foreign trade barriers currently, e.g. Chinese enterprises did not completely realize the damage of trade barrier and were expected to improve the response capability to trade barriers; organization, coordination and aid of agencies were expected be further reinforced; coordination mechanism for responding to trade barriers should be further perfected etc. Therefore, enterprises and industrial organizations should actively maintain rights of themselves, timely report trade barrier info, submit appraisal and response suggestions on foreign measures, organize delegations to persuade foreign institutions and government departments, enhance industrial self-discipline, set up negotiation federation and initiate inner response work in industries.

(Source: Network Center of MOFCOM)


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