December 28, 2007

China to maintain soy import tariff at 1 percent

China will continue to levy a 1-percent tariff on soy imports until March 2008 to ensure domestic vegetable oil supply, according to People's Daily this week.

As of October 1, the National Development and Reform Commission, cut the tariff on soy imports from 3 percent to 1 percent, originally stating that it would lift the tariff rate again at end of December.

During October and November, China imported 6.2 million tonnes of soy, up 35 percent from the same period last year.

Wang Lina with Beijing Orient Agribusiness Consultant said that the surge of soy imports has been driven by favorable import tariff climate. Due to the extension of the 1-percent tariff, soy imports are expected to grow further in early 2008, Wang pointed.