Tariffs on beer, currently at 70%, will be eliminated by 2005.
Tariffs on U.S. priority exports of distilled spirits (whiskies, rum,
vodka, and liqueurs), currently at 65%, will be reduced to 10% by 2005.
Tariffs on wine, currently at 65%, will be reduced to 20% by 2004.
Quotas
Quotas and licenses will be eliminated upon accession.
Trading Rights and Distribution
Currently, U.S. companies’ ability to do business in China is strictly
limited because the right to engage in trade (importing and exporting) is
reserved for companies that receive specific authorization or who import
goods to be used in production. This limits U.S. exports. China has agreed
that any entity will be able to import most products, including distilled
spirits and beer, into any part of China. This commitment is phased-in over
the three- year period with full trading rights at the end of the period.
China -- which generally prohibits companies from distributing imported
products or providing related distribution services -- will permit foreign
enterprises to engage in the full range of distribution services. These
rights will be phased in over a three-year period for almost all products,
including distilled spirits and beer. (See separate papers on distribution
services and related services.)
Other Commitments
China has agreed not to apply or enforce export performance, local
content, and similar requirements as a condition on importation or
investment approval.
To alleviate the uncertainty associated with China’s inconsistent
application, refund, and waivers of its 17% VAT tax, China has agreed to
apply all taxes and tariffs uniformly to both domestic and foreign
businesses.
