A value-added tax (VAT) of 11% on imports into China of distillers dried grains (DDGS) will be scrapped, Reuters reported last week, citing the country’s foreign ministry.
While anti-dumping and anti-subsidy tariffs on DDGS imports from the US, the world’s largest exporter of the corn ethanol byproduct, will remain in place, the measure could help lift purchases of US DDGS, Reuters commented. China imposed anti-dumping and anti-subsidy tariffs of up to 53.7% and of 11.2%-12%, respectively, in January, causing imports from the US to slump. A trader in Beijing was cited as saying that an import margin still does not exist but a fall in US corn prices could restart imports.
It was not specified when the VAT will be removed. The news came after talks between the Chinese and US presidents. It was preceded by rumours ahead of the visit of Donald Trump to China that duties on DDGS imports would be reduced, Reuters said.
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China to end VAT on imports of DDGS