March 31, 2004

China Soybean Importers Set To Receive GMO Permits Early
 
Chinese soybean importers are likely to get quarantine permits for soybean imports earlier than expected, as many had applied for the permits even before getting GMO safety certificates, traders associated with local crushers said on Wednesday.
 
"Some large crushers began applying for quarantine permits at least two or three weeks ago, well before they obtained GMO safety and labeling certificates," a trader from a Hong Kong-based oilseeds company said.
 
In late February, China's Ministry of Agriculture announced permanent rules governing the import of genetically modified agricultural crops, requiring foreign exporters and local importers to apply for six-month safety certificates and labeling permits before shipping their cargoes.
 
According to the regulations, local importers must present the GMO safety certificates while applying for quarantine permits from the State Administration of Quality Supervision, Inspection and Quarantine, or AQSIQ.
 
But talk has been circulating in the market that the AQSIQ has allowed local importers to apply for the key paper without presenting the GMO certificates issued by the MOA, so as to speed up the approval process to avoid any disruption to soybean imports during the transition period.
 
Chinese soybean prices have seen a sharp rally in recent weeks amid fears about a possible disruption in imports when the current licenses expire April 20, as importers may not get new quarantine permits before late April.
 
Traders expressed guarded optimism that the permits could be issued earlier than expected, as many importers had already applied for the certificates in early March.
 
"Large crushers should find little problem in getting the necessary documents in time, as quarantine authorities seemed to have (eased) the rules somewhat so that crushers could apply for quarantine permits at an earlier date," said a trader from China National Cereals Oils and Foodstuff Import & Export Corp, or COFCO.
 
But soybean imports in March and April are still expected to be relatively low, traders added.
 
In March, China received 22 cargoes or around 1.20 million tons of imported soybeans, and in April, this could fall further to 1.00 million tons, traders tracking soybean imports said.
 
According to official customs data, China imported a combined 4.07 million tons of soybeans in March and April 2003.