ANNOUNCEMENT OF NATIONAL DEVELOPMENT AND REFORM COMMITTEE OF PEOPLE’S REPUBLIC OF CHINA

National Development and Reform Committee

Announcement of National Development and Reform Committee of People’s Republic of China

[2004] No. 58

The Quantity, the Application Conditions and the Principle of the Distribution of the Import Tariff Quotas of Grain and Cotton of
2005 is formulated in accordance with the Interim Measures for Administration of Tariff Quota of Import of Agricultural Products
and is hereby announced.

Attachment: The Quantity, the Application Conditions and the Principle of the Distribution of the Import Tariff Quotas of Grain and
Cotton of 2005

National Development and Reform Committee

September 30, 2004 Attachment:The Quantity, the Application Conditions and the Principle of the Distribution of the Import Tariff Quotas of Grain and Cotton of
2005

In accordance with the Interim Measures for the Administration of the Import Tariff Quotas of Agricultural Products (Decree No.4 of
the Ministry of Commerce and the National Development and Reform Commission of 2003), issues concerning the quantity, the application
conditions and the principle of the distribution of the import tariff quotas of grain and cotton of 2005 are now announced as the
following:

I.

The quantity of the import tariff quotas of grain and cotton of 2005 is: 9,636,000 tons of wheat, of which the state-run trade reaches
90%; 7,200,000 tons of corn, of which the state-run trade reaches 60%; 5,320,000 tons of rice (among which: 2,660,000 tons of long-grain
rice, 2,660,000 tons of medium-and-short-grain rice), of which the state-run trade reaches 50%; 894,000 tons of cotton, of which
the state-run trade reaches 33%.

II.

Any enterprise that imports the aforesaid agricultural products in such trade forms as general trade, processing trade, barter trade,
frontier small trade, assistance, donation, shall apply for the import tariff quotas of agricultural products, and handle the formalities
of Customs clearance by the certificate of the import tariff quotas of agricultural products. The products entering bonded warehouses,
bonded areas and export-oriented processing areas from abroad, shall be exempted from applying for the certificate of the import
tariff quotas of agricultural products.

III.

The fundamental conditions of the applicant who applies for the import tariff quotas of agricultural products are: Having registered
with the administration for industry and commerce of the state (a copy of the business license of the enterprise as a legal person
is required); Having good financial situation and tax payment record (it is necessary to provide relevant materials of 2003 and 2004);
Having no violation record in the field of the customs, industry and commerce, taxation, as well as inspections and quarantines from
2002 to 2004; Having passed the annual examination of enterprises of 2003; Committing no violation of the Interim Measures for the
Administration of the Import Tariff Quota of Agricultural Products.

On the premise of the above-mentioned conditions, the applicant of import tariff quotas shall also conform to one of the following
conditions:

1.

Wheat

(1)

State-run trade enterprise

(2)

Enterprise directly under the Central Government that has the function of national reserves;

(3)

Enterprise with actual achievements in import in 2004;

(4)

Manufacturing enterprise processing more than 400 tons of wheat every day;

(5)

Enterprise which is engaged in processing trade in which wheat is taken as raw materials, and which has no actual achievements in
import in 2004, but is enpost_titled to operate the import and export business and has obtained the certificate of the productive capacity
of processing trade issued by the local competent department of foreign trade and economic cooperation.

2.

Corn

(1)

State-run trade enterprise;

(2)

Enterprise directly under the Central Government that has the function of national reserves;

(3)

Enterprise with actual achievements in import in 2004;

(4)

Mixed fodder manufacturing enterprise that takes corn as raw materials and has an annual demand of more than 50,000 tons of corn;

(5)

Other manufacturing enterprise that takes corn as raw materials and has an annual demand of more than 100,000 tons of corn;

(6)

Enterprise which is engaged in processing trade in which wheat is taken as raw materials, and which has no actual achievements in
import in 2004, but is enpost_titled to operate in the import and export business and has obtained the certificate of the productive capacity
of processing trade issued by the local competent department of foreign trade and economic cooperation.

3.

Paddy and rice (respective application for long-grain rice and medium-and-short-grain rice is required)

(1)

State-run trade enterprise;

(2)

Enterprise directly under the Central Government that has the function of national reserves;

(3)

Enterprise with actual achievements in import in 2004;

(4)

Enterprise which has grain wholesale and retail qualifications and whose annual sale amount is more than 100 million RMB;

(5)

Trade enterprise whose annual amount of import and export grain is more than 25 million US dollars;

(6)

Enterprise which is engaged in processing trade in which paddy and rice are taken as raw materials, and which has no actual achievements
in import in 2004, but is enpost_titled to operate in the import and export business and has obtained the certificate of the productive
capacity of processing trade issued by the local competent department of foreign trade and economic cooperation.

4.

Cotton

(1)

State-run trade enterprise;

(2)

Enterprise with actual achievements in import in 2004

(3)

Cotton and textile enterprise with more than 50,000 ingots of weaving equipments;

IV.

The import tariff quotas of the above-mentioned agricultural products will be distributed in accordance with the applicant’s application
quantities, historic actual achievements in import, productive capacity, and other relevant commercial standards.

1.

If the quantity of the import tariff quotas may satisfy the overall application quantity of the eligible applicants, the quantity
of the import tariff quotas shall be distributed according to the applicant’s application quantity.

2.

If the quantity of the import tariff quotas can not satisfy the overall application quantity of the eligible applicants, the applicants
with actual achievements in import may have priority in obtaining quotas, while the applicants without actual achievements in import,
mainly based on their processing capacity or operation quantity, shall be distributed the import tariff quotas in proportion. If
the application quantity is less than the quantity distributed in proportion, the distribution shall accord with the application
quantity.

V.

The applying date of the import tariff quotas of grain and cotton of 2005 shall be from October 15, 2004 to October 30. The applicants
may obtain the application form of the import tariff quotas of agricultural products (See the attachment) from the institution entrusted
by the National Development and Reform Commission or download it in the website of the National Development and Reform Commission
(https://www.ndrc.gov.cn), and fill it in truthfully.

VI.

The institution entrusted by the National Development and Reform Commission shall be responsible for accepting enterprises’ applications
within its territory, and submit the applications that conform to the publicly announced conditions to the National Development and
Reform Commission before December 30, 2004. At the same time, a copy of aforesaid application shall be submitted to the Ministry
of Commerce.

VII.

The National Development and Reform Commission shall distribute the import tariff quotas of agricultural products to the final users
via the entrusted institutions before December 1, 2005.

Annex: the Application Form of the Import Tariff Quotas of Agricultural Products(omitted)