Chinese Customs Limit Foreign Corn Deliveries to Ease Domestic Oversupply

Chinese customs have implemented measures to restrict the delivery of foreign corn into bonded areas, aiming to alleviate domestic oversupply and bolster prices for farmers ahead of the planting season. Traders utilize this approach to import grain at reduced costs, capitalizing on China's official corn-import quota as well as lower tariffs within bonded areas. However, shipments exceeding the quota are subjected to higher duties. By blending corn with other components and converting it into animal feed within bonded areas, traders can benefit from lower import duties. This initiative seeks to regulate the flow of foreign corn to mitigate surpluses and stabilize the market for local producers.