China claims a new cut in import tax on certain seafood categories – applicable beginning 1 January - will be of particular benefit to U.S., Canadian and Russian exporters.
A circular from the Ministry of Finance sent to SeafoodSource this week showed duties on imports of tuna will be cut from 12 to six percent. Other species covered in the list include shrimp, cod, flatfish and ribbonfish.
Duties on Arctic shrimp will be cut from five to two percent, a cut which looks set to further a Chinese goal of increasing its fishing operations in the Arctic.
Import duties on cod will fall from 10 to five percent as of the new year.
A category of “flat fish” (which includes flounder and sole) will face import taxes at two percent, down sharply from 12 percent rate that has been applied up to now. Duties on ribbonfish (also known as hairtail) will be reduced from 10 to five percent.
China’s move to reduce taxes on seafood imports is driven by the “trend to import substitution,” according to a statement accompanying the ministry’s updated rate-table.
The statement explains that overfishing and increased consumption has depleted local resources of some of China’s favorite seafood species, like flounder, ribbonfish and shrimp and that government is making changes in import taxes to ensure “supplies remain plentiful” and prices are kept in check. Food price inflation has long been a sensitive issue for Chinese officials worried about social unrest.
While many of the species on the tax-reduction list are clearly Chinese dinner-table staples, there’s also the inclusion of cod and herring – species that appear to be seen as potential replacements for traditional household favorites.
More high-end species are also being favored with a rate cut, as duty on lobster is being cut from 15 to 10 percent and the rate on geoduck is being cut by a similar amount.
The customs duty cuts are most favorable to three nations – Canada, Russia and the U.S. – all leading suppliers of high-value as well as lower-priced seafood to China.
Interestingly, the tax cut will benefit the U.S. even as tensions over seafood trade between the United States and China have ramped up recently. Chinese authorities have been complaining about what’s seen as a tougher stance by the U.S. Food and Drug Administration on imports of Chinese seafood, particularly shrimp. Also, U.S. President-elect Trump has threatened action against what he’s described as unfair advantages enjoyed by Chinese exporters shipping to the U.S.
