China Announces Duty Reductions on Pork and Other Key Products
China Announces Duty Reductions on Pork and Other Key Products
China's ministry of finance has announced a temporary reduction of import duties on pork and 25 other categories of products, including soybean and groundnut meal, cotton, infant formula, yeast and select medicines. The temporary duty reductions are being made to stem rising inflation and to ease the importation of critical items in the wake of China's May 12th earthquake. The import duty on frozen pork (HS codes 02032200 & 02032900) will be reduced from 12 percent to 6 percent from June 1 to December 31.
In related news, China has increased its estimate of the number of hog deaths due to the Sichuan earthquake from 792,000 to 1.52 million head. If the numbers are accurate, losses are roughly 2.8 percent of provincial inventories. Other reports collected by USMEF suggest the loss could be as high as 4.3 percent. A loss of 1.52 million head would equal less than .3 percent of the national 2007 end-of-year inventory of just under 440 million head. The central government also has asked relevant municipal departments to increase local pork reserves to the equivalent of one week’s consumption. Some of the affected towns near the earthquake's epicenter ran surprisingly short of foodstuffs just days after the quake, prompting officials to warn towns to maintain adequate food reserves.
Early predictions from China-based commodity analysts stated that the 6 percent duty reduction in frozen pork would not generate significant additional import business. China imported a record 113,480 tons of pork in the first four months of 2008, roughly a ten-fold increase over the pace of last year. The United States had approximately 47 percent of the market share, with France, Denmark and Canada accounting for most of the remainder. USMEF reports some price resistance from China since U.S. pork prices started increasing in April. The average U.S. carcass cutout has increased 48 percent in price since March 31, surpassing 2007 cut-out values in mid-May. U.S. pork cut-out values are now 9 percent higher than 2007 values despite 10 percent larger year-to-date production, due to strong export and domestic demand. Chinese pork prices have dipped slightly over the last 5 weeks, averaging $1.39/lb. for carcasses this past week. The figure is down 1.7 percent from the previous week, according to China's Ministry of Commerce. USMEF also notes that with several large U.S. pork plants delisted for Ractopamine violations, exporters are cautious about undertaking aggressive new direct export activity with mainland buyers.
Hong Kong
Advice to Small Volume Shippers of Processed Meats
In a surprise move, Hong Kong's legislature voted down the Hong Kong government's proposal for more relaxed food nutrition labeling. Under a new law, which will be fully implemented on July 1, 2010, exporters of retail-ready food products to Hong Kong will have to comply with a mandatory nutrition-labeling scheme for prepackaged food. The labeling requires all prepackaged food to label energy content plus seven core nutrients — protein, carbohydrates, total fat, saturated fat, trans fat, sodium and sugars — and any nutrient which the product claims to have. Nutrition content will be specified in 100-gram serving sizes. The Hong Kong government, backed by foreign consulates, the local retail sector, and many food traders, had asked the legislature to exempt nutrition labeling for the thousands of product lines that are imported in small quantities (less than 30,000 units per year). Although a small-volume allowance will be granted, products imported under this scheme will have to provide nutrition labeling if a specific nutrition claim (e.g. "low trans-fat") is made. Labels may be printed on the package, or applied in sticker form. USMEF will provide additional information and guidance as it becomes available.
Middle East
Beef from Canadian Cattle Now OK for Egypt
Exporters should note that Egypt will now permit beef imports from Canadian cattle legally imported into the United States. The FSIS Export Library has been updated to reflect this change:
“For boneless beef, including beef livers, kidneys and hearts. In completing the FSIS Form 9060-6, Application for Export, the following statement must be included: “The product meets EV requirements for Egypt.” Obtain FSIS Form 9060-5, Meat and Poultry Export Certificate of Wholesomeness. A letterhead certificate must accompany the FSIS Form 9060-5 or the following statements must be included in the “Remarks” section:*
- The product was obtained from animals of less than thirty (30) months of age.
- The product was derived from animals born in the United States or from animals legally imported from Canada and/or Mexico.”
China Announces Duty Reductions on Pork and Other Key Products
China's ministry of finance has announced a temporary reduction of import duties on pork and 25 other categories of products, including soybean and groundnut meal, cotton, infant formula, yeast and select medicines. The temporary duty reductions are being made to stem rising inflation and to ease the importation of critical items in the wake of China's May 12th earthquake. The import duty on frozen pork (HS codes 02032200 & 02032900) will be reduced from 12 percent to 6 percent from June 1 to December 31.
In related news, China has increased its estimate of the number of hog deaths due to the Sichuan earthquake from 792,000 to 1.52 million head. If the numbers are accurate, losses are roughly 2.8 percent of provincial inventories. Other reports collected by USMEF suggest the loss could be as high as 4.3 percent. A loss of 1.52 million head would equal less than .3 percent of the national 2007 end-of-year inventory of just under 440 million head. The central government also has asked relevant municipal departments to increase local pork reserves to the equivalent of one week’s consumption. Some of the affected towns near the earthquake's epicenter ran surprisingly short of foodstuffs just days after the quake, prompting officials to warn towns to maintain adequate food reserves.
Early predictions from China-based commodity analysts stated that the 6 percent duty reduction in frozen pork would not generate significant additional import business. China imported a record 113,480 tons of pork in the first four months of 2008, roughly a ten-fold increase over the pace of last year. The United States had approximately 47 percent of the market share, with France, Denmark and Canada accounting for most of the remainder. USMEF reports some price resistance from China since U.S. pork prices started increasing in April. The average U.S. carcass cutout has increased 48 percent in price since March 31, surpassing 2007 cut-out values in mid-May. U.S. pork cut-out values are now 9 percent higher than 2007 values despite 10 percent larger year-to-date production, due to strong export and domestic demand. Chinese pork prices have dipped slightly over the last 5 weeks, averaging $1.39/lb. for carcasses this past week. The figure is down 1.7 percent from the previous week, according to China's Ministry of Commerce. USMEF also notes that with several large U.S. pork plants delisted for Ractopamine violations, exporters are cautious about undertaking aggressive new direct export activity with mainland buyers.
Hong Kong
Advice to Small Volume Shippers of Processed Meats
In a surprise move, Hong Kong's legislature voted down the Hong Kong government's proposal for more relaxed food nutrition labeling. Under a new law, which will be fully implemented on July 1, 2010, exporters of retail-ready food products to Hong Kong will have to comply with a mandatory nutrition-labeling scheme for prepackaged food. The labeling requires all prepackaged food to label energy content plus seven core nutrients — protein, carbohydrates, total fat, saturated fat, trans fat, sodium and sugars — and any nutrient which the product claims to have. Nutrition content will be specified in 100-gram serving sizes. The Hong Kong government, backed by foreign consulates, the local retail sector, and many food traders, had asked the legislature to exempt nutrition labeling for the thousands of product lines that are imported in small quantities (less than 30,000 units per year). Although a small-volume allowance will be granted, products imported under this scheme will have to provide nutrition labeling if a specific nutrition claim (e.g. "low trans-fat") is made. Labels may be printed on the package, or applied in sticker form. USMEF will provide additional information and guidance as it becomes available.
Middle East
Beef from Canadian Cattle Now OK for Egypt
Exporters should note that Egypt will now permit beef imports from Canadian cattle legally imported into the United States. The FSIS Export Library has been updated to reflect this change:
“For boneless beef, including beef livers, kidneys and hearts. In completing the FSIS Form 9060-6, Application for Export, the following statement must be included: “The product meets EV requirements for Egypt.” Obtain FSIS Form 9060-5, Meat and Poultry Export Certificate of Wholesomeness. A letterhead certificate must accompany the FSIS Form 9060-5 or the following statements must be included in the “Remarks” section:*
- The product was obtained from animals of less than thirty (30) months of age.
- The product was derived from animals born in the United States or from animals legally imported from Canada and/or Mexico.”