June 6, 2007

 

China to require soy and soymeal imports reported in 72 hours
 

 

In a bid to make the trade more transparent and avoid upheavals in the market, China, the world's top soy importer, is drafting laws that would require buyers to report shipments to its Commerce Ministry.

 

The draft regulation, issued by the commerce ministry on its website, requires buyers to report purchases of soy or soymeal within 72 hours of signing contracts.

 

Under the new rules, importers must report details of the trade, including dates of cargo departure and arrivals.

 

Failure to report cargoes on time or false reports, would result in warnings or fines of up to RMB 50,000 (US$6,545).

 

The ministry would also suspend trade of severe violators for one to three years, it said.

 

The rule might be expanded to include other farm products, according to the regulation.

 

The ministry did not say when the rule would take effect but noted that the new system would bring China's system in line with that of that USDA.

 

It also explained that the measure should not be seen as intervention in the trade

 

Rising soy imports, along with declining domestic production have prompted concerns in China.

 

China's soy imports rose 6.3 percent last year over that in 2005 while domestic output fell 5 percent.

 

China charges a 3 percent import tariff on soy and 5 percent on soymeal, but uses a tariff-rate-quota system (TRQ) for corn, wheat, rice, sugar and cotton.