China Officially Bans Unofficial Rice Imports from Vietnam Aug 08, 2014
Chinese authorities have officially prohibited cross border rice imports from Vietnam in order to tighten control over tax payments made by Chinese rice importers, according to local sources. Rice merchants in the northern provinces of Vietnam, who sell rice to the Chinese traders, told local sources that the Chinese government has imposed the ban as it has found that many rice importers (who imported rice through borders) have been evading tax. The Chinese government is planning to legalize all rice imports from Vietnam and set up fixed tax rates for easier control, they added.However, some Vietnamese traders noted that the Chinese government has imposed the ban due to declining demand for fragrant rice, which most of the Chinese traders buy from unofficial channels.Vietnam rice exporters said the ban would not impact rice exports of Vietnam in any way as the demand from other countries such as Malaysia, Indonesia and the Philippines is quite high. They added that currently Vietnam is not overtly dependent on China for its rice exports.Unofficial rice exports to China through borders has been a major concern for Vietnam officials as well as exporters. Around 2 million tons of rice are exported to China unofficially, according to official sources. In March this year, the Ministry of Trade and Industry (MOIT) tried to legalize rice sales to China through borders. In that sense the development would be encouraging to the Vietnamese government.Vietnam exported around 3.62 million tons of rice in January -July 2014, down about 12% from around 4.1 million tons of rice exported in same time last year, according to data from the Vietnam Food Association (VFA). According to local sources, Vietnam rice exporters have so far signed contracts for around 5.3 million tons of rice in 2014 and they are planning to sign contracts for another one million tons of rice to meet the country's export target of 6.2 million tons. Tags: China rice imports, China unofficial rice imports, Vietnam rice exports
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