ANNOUNCEMENT 02 Apr 2015
April 2nd, 2015 - The Chinese Ministry of Commerce announced that the cotton import quota would be limited to the WTO-agreed level of one-third total national production capacity.
NUMBER OF INTERVENTIONS
PRC Ministry of Commerce, 2nd April 2015. (2015年棉花进口关税配额申领条件和分配原则)
After relaxing import quotas in 2014, the Chinese Ministry of Commerce on the 2nd of April 2015 officially announced that the import quota would be lowered to the WTO-agreed level of 894,000 tonnes, i.e. 33% of national production capacity. Any overquota imports are subject to a 40% tariff.
Previously, a separate additional quota system was in place, but this was abolished. The 894,000 tonne limit would be in place until 2018 (see related act).
This intervention is intended to stimulate domestic production of cotton, in China, which, by the government's own admission, is a once world-class industry that has been flagging in China in recent years.
N.B.: Prior figures based on estimates from secondary sources. Official figures were not published.