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China grants duty exemption on U.S. soybean imports - sources

Published 06/03/2020, 09:32
Updated 06/03/2020, 09:37
China grants duty exemption on U.S. soybean imports - sources

By Hallie Gu and Naveen Thukral

BEIJING/SINGAPORE (Reuters) - - China has granted tariff exemptions to some crushers for the import of U.S. soybeans, four sources told Reuters, after it announced the plan in February, aiming to fulfill commitments under its Phase 1 trade deal with the United States.

The exemption, which will take effect from the day of issue, will be valid for a year, sources briefed on the matter said.

"Many companies have applied for the exemption and got the approval. It was not difficult," said one of the four sources, who all sought anonymity because they were not authorised to speak to media.

As part of January's Phase 1 deal, China promised to buy at least an additional $12.5 billion worth of U.S. farm products in 2020, and at least $19.5 billion in 2021, over the 2017 level of $24 billion.

The government has asked applicants for monthly purchase plans, said a second source with a major trading house, who has applied for the exemption.

Late in February, Beijing announced it would grant exemptions on retaliatory duties imposed against 696 U.S. goods, including soybeans and grains.

Soybean importers will be exempt from the extra tariffs imposed on U.S. cargoes during a tit-for-tat trade war, which stand at 27.5% in total, after a small cut on Feb 14.

China has also granted tariff exemptions for some importers to buy U.S. wheat and grain used by distillers (DDGs), products on the government's list.

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