Source: Ukragroconsult (Ukraine)
The Chinese customs administration has imposed restrictions on the import of Kazakh wheat grain for companies registered in the duty-free zone, the Association of Grain Exporters told APK Novosti news agency. According to the representatives, there has been no official statement from China on the issue so far, but the market is in turmoil.
“The Chinese customs have completely banned wheat imports for mills registered in the bond zone, although it is not yet clear what this refers to. Wheat imports will be strictly according to the quota allocated by COFCO, once a year for each individual company. Those who do not have a quota will be able to import wheat at a duty rate of 65%, there will be no other option. Now the situation will be the same as 2 years ago, only with quota or duty,” said the exporters.
“The point is that exports will now increase. There will be quotas for receiving grain, there will be barriers. There are no explanations from the Chinese yet, we can only make assumptions,” market participants also told us.
It should be noted that almost all Kazakh grain exporters deliver their goods to the factories registered in the duty-free zone.
As Kairbek Zhalgapbayev, a grain trader from the Akmola region, explained, Kazakh wheat could be imported into China via Alashankou and Khorgos in the duty-free zone of the Xinjiang Uygur Autonomous Region, where imports were duty-free. With the ban, it will only be possible to import wheat duty-free under quotas to be set by COFCO or to pay customs duties.
The trader believes that China imposed the ban after Kazakhstan discussed tariffs.
“Our officials talked about customs, the Chinese were proactive. They have decided to freeze imports, and when they open them, everyone will be more accommodating,” Zhalgapbayev said.
Trader Amir Butyrkhanov said China has always been a highly bureaucratized market and has slowed down grain imports.
“China will always slow down in this way, you can’t bet on it, as our ministry and government are doing. Recently it was said that China’s volumes will increase to 3 million tons. No, China will displace our “to zero”. I believe that Kazakhstan will have to take retaliatory measures – not to bring Chinese cargoes to Kazakhstan. Or other mirror-image measures. When Chinese representatives come to us, we prefer not to cooperate with them, because they immediately start to describe so many problems, they want us to give them something for little money and owe them something. It is very difficult to do business with the Chinese,” says the retailer.
