Supplement 2 to Chapter 2.3

A List Of Products Subject To Tariff Rate Quotas

(This table is adapted from Annex 8 of the Protocol. For standard interpretation of the commitments, please refer to the official text of Annex 8)

Product Category	Product	Supervision Condition	Detailed Description
Food	Wheat	1. State-Trading Enterprises (STE)	STE share: 90%
		2. Tariff Rate Quotas	2002: 8,468,000 MT 2003: 9,052,000 MT 2004: 9,636,000 MT Implementation period: 2004 In-quota tariff rate: 1% “10% Out-quota tariff rate: decrease from 71% to 65%
	Corn	1. State-Trading Enterprises	STE share: decrease from 68% to 60%
		2. Tariff Rate Quotas	2002: 5,850,000 MT 2003: 6,525,000 MT 2004: 7,200,000 MT Implementation period: 2004 In-quota tariff rate: 1% “10% Out-quota tariff rate: decrease from 71% to 65%
	Rice	1. State-Trading Enterprises	STE share: Short and medium grain: 50% Long grain: 50%
		2. Tariff Rate Quotas	Short and medium grain 2002: 1,995,000 MT 2003: 2,327,500 MT 2004: 2,660,000 MT Long grain 2002: 1,995,000 MT 2003: 2,327,500 MT 2004: 2,660,000 MT Implementation period: 2004 In-quota tariff rate: 1% “9% Out-quota tariff rate: decrease from 71% to 65%
Vegetable	Soybean Oil	1. State-Trading Enterprises	STE share: decrease from 34% to 10%, Oil eliminated on 1 January 2006
		2. Tariff Rate Quotas	2002: 2,518,000 MT 2003: 2,818,000 MT 2004: 3,118,000 MT 2005: 3,587,100 MT Implementation period: 2005 In-quota tariff rate: 9% Out-quota tariff rate: decrease from 52.4% to 19.9% 2006: 9% single tariff rate
	Palm Oil	1. State-Trading Enterprises	STE share: decrease from 34% to 10%, eliminated on 1 Jan 2006
		2. Tariff Rate Quotas	2002: 2,400,000 MT 2003: 2,600,000 MT 2004: 2,700,000 MT 2005: 3,168,000 MT Implementation period: 2005 In-quota tariff rate: 9% Out-quota tariff rate: decrease from 52.4% to 19.9% 2006: 9% single tariff rate
	Rape-seed Oil	1. State-Trading Enterprises	STE share: decrease from 34% to 10%, eliminated on 1,Jan 2006
		2. Tariff Rate Quotas	2002: 8,789,000 MT 2003: 1,018,600 MT 2004: 1,126,600 MT 2005: 1,243,000 MT Implementation period: 2005 In-quota tariff rate: 9% Out-quota tariff rate: decrease from 52.4% to 19.9% 2006: 9% single tariff rate
Sugar	Sugar	1. State-Trading Enterprises	STE share: 70%
		2. Tariff Rate Quotas	2002: 1,764,000 MT 2003: 1,852,000 MT 2004: 1,945,000 MT Implementation period: 2004 In-quota tariff rate: decrease from 20% to 15% Out-quota tariff rate: decrease from 60.4% to 50%
Cotton	Cotton	1. State-Trading Enterprises	STE share: 33%
		2. Tariff Rate Quotas	2002: 818,500 MT 2003: 856,250 MT 2004: 894,000 MT
Wool	Wool	1. Designated trading	Implementation period: 2004 In-quota tariff rate: 1% Out-quota tariff rate: decrease from 54.4% to 40% Eliminated 3 years after accession
		2. Tariff Rate Quotas	2002: 264,500 MT 2003: 275,750 MT 2004: 287,000 MT Implementation period: 2004 In-quota tariff rate: 1% Out-quota tariff rate: 38%
	Wool tops	1. Designated trading	Eliminated 3 years after accession
		2. Tariff Rate Quotas	2002: 72,500 MT 2003: 76,250 MT 2004: 80,000 MT Implementation period: 2004 In-quota tariff rate: 3% Out-quota tariff rate: 38%
Fertilizer	“ Diammonium hydrogenortho- phosphate (diammonium phosphate) “ Urea “ NPK	1. State-Trading Enterprises	STE share: Diammonium hydrogenorthophosphate (diammonium phosphate): decreasing 5 percentage points per year until reaching 51% in year 9. The tariff quota level will be increased by 5% annually Urea: 90% NPK: decreasing 5 percentage points per year until reaching 51% in year 8. The tariff quota level will be increased by 5% annually
		2. Tariff Rate Quotas	“ Diammonium hydrogenorthophosphate (diammonium phosphate) (31,053,000) Initial quota quantity: 5,400,000 Final quota quantity: 6,900,000 Implementation period: 2006 In-quota tariff rate: 4% Out-quota tariff rate: 50% “ Urea (31021000) Initial quota quantity: 1,300,000 Final quota quantity: 3,300,000 Implementation period: 2006 In-quota tariff rate: 4% Out-quota tariff rate: 50% “ NPK (31052000) Initial quota quantity: 2,700,000 Annual growth rate: 5% Implementation period: 2006 In-quota tariff rate: 4% Out-quota tariff rate: 50%