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China decision on anti-dumping sugar probe expected May 22

Staff Writer | May 2, 2017
China is considering special import duties on sugar as part of an anti-dumping probe, according to two people familiar with the matter.
Trade   Some of the biggest industrial sugar users
That would be a win for domestic producers seeking help battling cheap imports from Brazil and other major growers.

China's Dairy Industry Association sent a document late last week to members asking them to comment on the Beijing proposal on duties, according to two people who reviewed it.

They declined to be named since the document, addressed to some of the biggest industrial sugar users in China, was not public.

Beijing is set to make its first ruling on the anti-dumping probe on May 22, having launched an investigation last September following complaints from domestic mills about rising farm costs and cheaper overseas arrivals.

If approved, the proposal would introduce a 45-percent duty this fiscal year, followed by an extra 40 percent in the following year and 35 percent in the year after that, according to the Dairy Industry Association document.

That would be on top of the 50-percent duty now imposed on out-of-quota shipments.

The dairy group represents some of China's biggest agribusinesses, including Inner Mongolia Yili Industrial Group, China Mengniu Dairy, and Bright Dairy and Food Co.

It's not clear if the government is considering other options, nor whether the proposal, first reported by Bloomberg earlier this week, will be implemented.