The WTO Appellate Body maintained core content of WTO Panel’s preliminary ruling on China’s export duties and quotas for several industrial raw materials, including manganese, after China’s appeal based on environmental protection or supply shortage, saying such restrictions were inconsistent with WTO rules. SMM expects China to gradually lower or even remove manganese export tariff under the WTO ruling, but not excluding possibility that export restriction through other means, such as fees, will be added.

The WTO Dispute Settlement Body will decide within 30 days whether to accept opinions of the Panel, afterwards China have to submit proposals to conform to the ruling.

The Head of Treaty and Law Department under the Ministry of Commerce said: “WTO rules not only emphasize on free trade but also allow use of necessary measures to protect environment and resources. China will seriously assess the WTO ruling and perform scientific management of resource consuming products according to WTO rules for sustainable development.”

Things that are largely determined are that China is not likely to impose tariff on other kinds of manganese and manganese products, while possibility to remove present tariff on EMM export is also temporarily low. China may gradually lower or even remove manganese export tariff under the WTO ruling, but possibility that export restriction through other means, such as fees, will be added also exists.

Supplementary information:
– On August 1 2005, unwrought manganese (EMM) export rebate cancelled.
– On November 1 2006, 15% export tariff set for unwrought manganese.
– On January 1 2007, export license system established fro unwrought manganese.
– On January 1 2008, export tariff of unwrought manganese lifted to 20%.
– In 2009, export tariff of unwrought manganese kept at 20%.
– In 201, tax refund of wrought manganese and manganese scrap (including manganese briquette) cancelled.
– In 2011, export tariffs of unwrought and wrought manganese and manganese scrap maintained.