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3.41. Under the 2019 Automobile Purchase Tax Law, China levies a 10% tax on domestically produced and imported vehicles.(...) The tax does not apply to (...) electric motorcycles. Since 2014, the tax has been exempted for certain new energy vehicles (NEVs); this exemption will remain in place until end-2022. NEVs exempt from the tax/levy are administered by the Ministry of Industry and Information Technology (MIIT) and the State Taxation Administration through the regularly updated Catalogue of Models of New Energy Vehicles Exempted from Automobile Purchase Tax. Both domestically produced and imported NEVs that meet all the specific requirements (which relate to, inter alia, technical requirements and testing and services standards) can apply to be listed in the Catalogue, and all the Catalogue-listed models can enjoy tax exemptions. [50] As notified to the WTO, other preferential tax rates applied in 2017 and 2018 to urban public transportation enterprises that purchase public buses and trolleybuses, low emission cars, and trailers. (...).

[50] The exemption criteria for the period 2017-20 are contained in the Announcement of the Ministry of Finance, the State Taxation Administration, the MIIT, and the Ministry of Science and Technology on the Exemption of Automobile Purchase Tax for New Energy Vehicles (Announcement No. 172, 2017). Seemingly, the exemption was extended until end-2022. (...).

3.44. According to the Foreign Trade Law (last amended in 2016), China may maintain import prohibitions on the grounds of protection of human health or safety, protection of the lives or health of animals and plants, protection of the environment, (...).

3.45. China notified to the WTO its import prohibitions in place for the period 2018-20 (Table 3.6). These prohibitions applied to certain toxic substances and wild animal products; certain old/second hand mechanical and electrical equipment; certain hazardous chemicals, pesticides, and persistent organic pollutants; mercury-added products; certain solid wastes; ractopamine; certain types of filament lamp; and charcoal imported from Somalia. This list of prohibited products is also contained in MOFCOM's Catalogue of Commodities Subject to Import Prohibition. (...).

Table 3.6 Import prohibitions notified to the WTO for period 2018-20
Product: Certain toxic substances and wild animal products
Tariff line code(s) affected, based on HS17: ex0506, ex0507, ex1302, ex2903
WTO justification and grounds for restriction: Article XX of GATT 1994
National legal basis and entry into force: Former Ministry of Foreign Trade and Economic Cooperation (MOFTEC) Announcement No. 19, 2001

Table 3.6 Import prohibitions notified to the WTO for period 2018-20
Product: Certain old/second-hand mechanical and electrical equipment
Tariff line code(s) affected, based on HS17: ex7311, ex7321, ex7613, ex8402, ex8403, ex8404, ex8416, ex8417, ex8519, ex8520, ex8521, ex9018, ex9022, ex9504, ex8407, 84078408, 87
WTO justification and grounds for restriction: Article XX of GATT 1994
National legal basis and entry into force: MOFTEC, GACC, and AQSIQ Joint Announcement No. 37, 2001

Table 3.6 Import prohibitions notified to the WTO for period 2018-20
Product: Certain hazardous chemicals, pesticides, persistent organic pollutants, and mercury-added products
Tariff line code(s) affected, based on HS17: ex2524, ex2903, ex2908, ex2910, ex2915, ex2918, ex2919, ex2921, ex2924, ex2925, ex2932, ex2914, ex2909, ex2920, ex3808, ex3824, ex8506, ex8535, ex8536, ex8539, ex3304, ex3401, ex3808, ex9025, ex9026, ex9018
WTO justification and grounds for restriction: Article XX of GATT 1994, the Rotterdam Convention, the Stockholm Convention, and the Minamata Convention
National legal basis and entry into force: MOFCOM, GACC, and former State Environmental Protection Administration (SEPA) Joint Announcement (...).

Table 3.6 Import prohibitions notified to the WTO for period 2018-20

Product: Certain solid wastes (also including other solid waste of which tariff lines unspecified)
Tariff line code(s) affected, based on HS17: ex0501, ex0502, ex0505, ex0506, ex0507, ex0511, ex1522, ex1703, ex2517, ex2525, ex2530, ex2618, ex2619, ex2620, ex2621, (...).
WTO justification and grounds for restriction: Article XX of GATT 1994, the Basel Convention
National legal basis and entry into force:Ministry of Environmental Protection (MEP), MOFCOM, National Development and Reform Commission (...).

Product: Certain solid wastes
Tariff line code(s) affected, based on HS17: ex2618, ex2619, ex3915, ex7204, ex7404, ex7602, ex8908.
WTO justification and grounds for restriction: Article XX of GATT 1994, the Basel Convention
National legal basis and entry into force: MEE, MOFCOM, NDRC, and GACC Joint Announcement, No. 6, 2018

Product: Certain solid wastes
Tariff line code(s) affected, based on HS17: ex4401, ex4501, ex7204, ex8101, ex8104, ex8106, ex8108, ex8109, ex8112, ex8113
WTO justification and grounds for restriction: Article XX of GATT 1994, the Basel Convention
National legal basis and entry into force: MEE, MOFCOM, NDRC, and GACC Joint Announcement, No. 6, 2018

3.46. Since 1 January 2021, imports of all solid waste products have been prohibited, and the previous regime for allowing imports of certain wastes under licensing conditions has been terminated. These wastes were contained in the Catalogue of Restrictive Solid Waste (that can be used as raw materials) and the Catalogue of Non-restrictive Solid Waste. During the review period, questions and concerns about China's changes to measures restricting and prohibiting imports of solid waste were raised in the WTO Committee on Import Licensing by the European Union, the United States, Canada, the Republic of Korea, Australia, and Japan. Concerns related to, inter alia, the impact of these measures on global recycling processing capacity, and the apparent non application of the same bans and restrictive contaminant standards to domestically sourced solid wastes. China was urged to ensure transparency by notifying measures, both introduced and planned, and to consider less trade-restrictive measures. In response, China has drawn attention to, inter alia, pollution in China and the imperative of limiting the negative effects of solid waste. Certain recycling materials for brass, iron-steel materials, copper, and cast aluminium alloys may be imported if they meet the required standards.

3.51. (...) As noted in previous Reviews, imports subject to non automatic licences mainly include used mechanical and electronic equipment, and substances that deplete the ozone layer. The purpose of non-automatic import licensing for ozone-depleting substances is to fulfil China's obligations under the Montreal Protocol on Substances that Deplete the Ozone Layer, and the licensing requirements with respect to used machinery are to serve social interests and to protect the environment and consumer health and security. (...).

3.71. As stipulated by the Law on Inspection of Import and Export Commodities, exporters must comply with the requirements of the Catalogue of Import and Export Commodities Subject to Compulsory Inspection, which is regularly amended to add or subtract commodities. The inspection of import and export commodities aims to protect the health and safety of human beings, protect the life and health of animals or plants, protect the environment, (...).