Laws of the People's Republic of China

Ministry of Commerce

Announcement of Ministry of Commerce on Termination of Trade Barrier Investigation on Japanese Management Measures on Laver Import

[2005] No.10

February 28, 2005

Ministry of Commerce decided to make a trade barrier investigation on Japanese management measures on laver import (hereinafter referred to as "Measures under investigation") on April 22, 2004 at the request of Jiangsu Laver Association in accordance with Temporary Rules of Foreign Trade Barrier Investigation (hereinafter referred to as "Temporary Rules").

During the investigation, Ministry of Commerce made investigations on the measures under investigation and consulted with relevant authorities of Japanese government. According to the results of investigation and consultation, and as well as Japanese adjustment of the measures under investigation, Ministry of Commerce decided to terminate this investigation in accordance with the provision of Article 25 of Temporary Rules. Relevant issues are hereby announced as follows:

1.

Applicant

The applicant Jiangsu Laver Association (hereinafter referred to as "the applicant") submit their application for trade barrier investigation, asking for trade barrier investigation on Japanese management measures on Laver import.

According the investigation, Jiangsu province is the main production area in China of the products relating to the measures under investigation, its output accounts for 95 per cent of total output of the products in China. The applicant has 107 members, accounting for 63 per cent of all the enterprises of laver cultivation and processing in Jiangsu. Laver cultivation area that the applicant represented by the applicant is 85 thousand mu, accounting for 51 per cent of the total laver cultivation area in Jiangsu province.

2.

The request of the applicant

The applicant thinks that Japanese government takes and maintains the measures, which violate relevant agreement of WTO, on import of Chinese dry laver and flavour laver. It has hindered and restricted unreasonably Chinese dry and flavour laver into Japanese market and caused injury to Chinese relevant industries. The applicant requested the investigatory apparatus to make investigations in accordance with Temporary Rules and believed that the management measures of Japanese government relating to laver import origin have violated relevant provisions in the agreement of WTO and constituted trade carrier in Chinese dry and flavour laver exporting to Japan. The applicant has also requested the investgatory apparatus to make consultation with Japanese government and asked them to cancel the management measures on import origin of dry and flavour laver according to the investigation.

3.

Investigation Procedures

(1)

Investigation Announcement

After the investigation, Ministry of Commerce thinks that the applicant meets with the provisions of Article 5 of Temporary Rules relating to the applicant qualification and the application and relevant proof materials accord with Article 6 and 7 of Temporary Rules concerning to the provisions of content and related proofs of the application needed by initiating trade carrier investigation. According to the result of the investigation, Ministry of Commerce published its Announcement No.16 on April 22, 2004, starting trade carrier investigation on Japanese management measures on laver import.

(2)

Investigation

After the publication of investigation announcement, the investigatory apparatus informed the applicant and Japanese embassy in China. During the investigation, the investigatory apparatus made investigations and verify the information by investigation questionnaires, investigation on the spot and distributing additional investigation questionnaires in accordance with Temporary Rules. At the request of the investigatory apparatus, the competent department of relevant industries and industrial intermediary organizations provided the investigatory apparatus with consultation comments on technique and truthfulness concerning the investigation.

(3)

Consultation

During the investigation, the investigatory apparatus has consulted with relevant authorities of Japanese government for three times on the measures under investigation. In the third time consultation held in Beijing in the middle of October 2004, Japanese part promised to take feasible measures and solve actively the problem Chinese paid attention to.

(4)

Termination of the investigation

For the purpose that Chinese and Japanese may continue the consultation and reach a satisfied result for both sides, Ministry of Commerce published it announcement No. 65 on October 21 2004 in accordance with Article 22 of Temporary Rules, terminating the investigation. After the termination of the investigation, Chinese and Japanese made consulted many times about concrete measures on solving the problems that Chinese part paid attention to.

(5)

Others

After the termination of the investigation, the applicants also raised the problem that Chinese baked laver could not be exported to Japan. The applicant thought that baked laver was also in the range of flavor laver and apply the investigatory apparatus made an investigation to it and consulted with Japanese government according to the investigation and finally solve the problem of export of Chinese laver to Japan.

According to the investigation, raw material of faked laver is dry laver, a kind of laver processing product after faking without any flavour. As for it, Japan has no legal basis or administrative regulations on prohibiting the import of laver, but in fact it does not permit laver import from any country. As for it, Japanese part promised to make continuous consultation with Chinese part on trade technical problems of laver including import of faked laver and try to solve the problem Chinese part paid attention to.

4.

Japanese adjustment of the measures under investigation

On February 21, 2005, Ministry of Economy and Industry of Japan published its "import notice" No. 19 in two Japanese newspapers, publishing Japanese import quota of laver in 2005. Import notice cancelled the management of the origin of imported dry and flavour laver, and made clear that total Japanese import quota of laver in 2005 is 0.4 billion pieces.

5.

Termination of the investigation

According to the result of the investigation, since Japanese government has cancelled the discriminative measures on Chinese dry and flavour laver and made relevant promise in solving Chinese laver exporting to Japan, Ministry of Commerce decided to terminate trade carrier investigation on Japanese management measures on laver import initiated on April 22 2004.

6.

Comments on the termination of the investigation

The comments of interested parties and the public on the termination of the investigation should be submitted to Ministry of Commerce in writing within 30 days as of the publication of the announcement.

7.

Address of Ministry of Commerce

Bureau of Fair Trade for Import and Export

Add: No.5 Dong Chang An Street, Beijing

Post code: 100731

Tel: 86-10-65198139กข65198487

Fax: 86-10-65198172

E-mail: boft_tbi@mofcom.gov.cn

Hereby notified.