China to lift restrictions on Kazakh grain imports to bonded zone

The agitated situation, which was formed on the background of information about the introduction of severe restrictions on grain imports by China, is beginning to be clarified. For a long time market participants were waiting for official confirmation of the ban from China, but it was not forthcoming. As we learned, the competent authorities of China have revealed internal violations among their companies. As soon as the order is put in order, duty-free grain supplies to the bonded zone of China will resume, reports the agency “APK News”.

About a month ago, China’s customs administration banned wheat imports for mills that are registered in the bonded zone. It was reported that imports will now go strictly according to the quota allocated by COFCO. Or a duty of 60-65% would have to be paid. The reasons were not given for quite a long time. Exporters of grain Kazakhstan stated that shipments have stood up, the situation is quite unclear.

As it became known to the agency “APK News”, supplies of feed grain to the bonded zone of China without payment of duty were allowed only to Chinese companies that guaranteed processing. Moreover, it should be carried out there, in the bonded zone. However, the Chinese tax authorities revealed facts of non-fulfillment of this rule. It turned out that a number of companies worked as intermediaries. They bought feed grain at a discounted price and redirected it to the territory of domestic China, selling it as food grain. At the moment, the competent authorities of China are conducting proceedings. When the order is put in place, supplies from Kazakhstan to bonded zones in duty-free mode will resume.

“In addition to fines, Chinese companies are also held criminally liable. Supplies of feed grain to the bond zone were allowed without payment of customs duty (67%), with the condition of grain processing at the enterprises of the bond zone. But some unscrupulous Chinese companies began to resell the grain to domestic China as food grain. And this is already a serious criminal offense. The Communist Party of China loves its people and cares about their health. A similar situation has already occurred there in 2018-2019. We hope that the Chinese authorities will put order in this matter and the supply of feed grain will resume,” – commented to the agency ‘APK News’ official representative of the Grain Union of Kazakhstan Yevgeny Karabanov.

Meanwhile, last week Kazakhstan and China discussed grain supplies. China expressed a rather optimistic position. It was stated its intention to purchase Kazakhstani grain on a permanent basis. The Ministry of Agriculture, in turn, reported that Kazakhstan’s grain growers are ready to supply the Chinese market with 3 million tons, against the previously announced 2 million tons.

Tags: China, Kazakhstan, grain, restrictions