Sugar producers in Brazil concerned about China’s customs duty hike

23 May 2017

A rise from 50% to 95% on the customs duty applied to imported sugar decided by China may result in companies in Brazil failing to export about 800,000 tonnes of sugar to China over the next 12 months, the Union of the Sugarcane Industry (Unica) said.

Unica expected exports to China, the main purchaser of Brazilian sugar, to reach around 3 million tonnes this year, and this could now fall to 2.2 million tonnes over the period, following implementation of a 95% rate on the value of the imported product.

The chief executive of Unica, Eduardo Leão de Sousa, said that the association carried out a preliminary study that indicated a drop of 800,000 tonnes of exports of Brazilian sugar to China.

Leão de Sousa also said that Chinese sugar purchases in the next 12 months could decrease by 28%, from about 6 million to 4.5 million tonnes.

The government of China, in response to demands from the national industrial sector, started an investigation into sugar imports from September 2011 to March 2016, when purchases of this product increased 663% in September last year.

The Chinese Ministry of Commerce announced on Monday that foreign purchases seriously damaged the country’s industry and increased the import duty rate from 50% to 95%, as well as an import quota of 1.945 million tonnes per year.

This rate will be reduced to 90% after 12 months and to 85% after 24 months, with a rate of 15% being applied to imported sugar within the quota. (macauhub)