Ministry Of Commerce Prohibits Mainland Exports Of Grain To Hongkong

The Ministry of Commerce recently issued a circular calling for further strengthening the export management of food and flour milling for Hong Kong.

In addition to ensuring a stable supply of the Hongkong market, the notice also stresses that the supply of food and flour export permits for Hong Kong is limited to exports to Hongkong, and it is strictly prohibited for enterprises to export the above products to other countries and regions in any form.

In the remarks column of the export license, it is necessary to add the words "limited to export to Hongkong, not re export".

Wei Yongjie, deputy director of the trade and Industry Department, told reporters that the registration system in Hongkong was mainly in line with the export control of the mainland to ensure the supply of rice or flour to Hongkong.

An official of the Ministry of foreign trade of the Ministry of Commerce in charge of agricultural products (Market Forum) told our reporter that the introduction of this policy was mainly aimed at meeting and ensuring the needs of compatriots in Hong Kong and Macao.

"As a free port, Hongkong's pit trade is normal, but now that the global food crisis is deepening, our grain is mainly self-sufficient."

On April 14th, the Ministry of Commerce's research office also released a research report that the world will usher in the era of high grain prices. In the next 10 years, world grain prices will rise by at least 10%.

Hongkong Assault Patrol

According to the notice, the Hongkong SAR government should register the importers importing grain and flour from the mainland.

When the exporters export rice to Hongkong, the importers in Hongkong will have to obtain relevant approvals from the mainland exporters in the register.

Wei Yongjie said that the Hongkong SAR government will ensure that the mainland's grain will not be pferred to Hongkong through re inspection.

According to the new regulation, Hongkong importers must regularly declare the number of rice imported from the mainland to the HKSAR government, and promise to import rice from Hong Kong for sale locally.

In addition, the importers in Hongkong should agree with the relevant personnel of the SAR government to enter their business and storage locations under reasonable circumstances for inspection and verification.

At the same time, importers should take all reasonable and feasible measures to ensure that the rice imported from the mainland is only for local users in Hongkong.

According to the rice control scheme in Hongkong, there are about 100 registered rice traders. Among them, the rice traders who engage in substantial import of rice business in 2007 are eligible to participate in the registration system launched by the Ministry of Commerce.

As early as the beginning of this year, when the Ministry of Commerce issued the control arrangements for grain and flour milling (including rice and flour) exports, it was emphasized that rice exported to Hongkong and controlled flour milling should not be re exported.

Previously, the Hongkong trade and Industry Department has started the registration system for flour and rice flour. At present, 26 Hongkong importers are among the first register books announced by the Ministry of Commerce.

Since the Hongkong trade and Industry Department began to register the importers of rice in April 10th, three importers have applied for registration.

Wei Yongjie emphasized that the registration system only helps importers in Hongkong to import food products from the mainland, and the registration system does not involve import quantities or prices.

In fact, as far as rice is concerned, since Hongkong's local market is dominated by Thailand rice, Hongkong imported about 20 thousand tons of rice from the mainland last year, far from the amount of 50 thousand tons of rice supplied by the Ministry of Commerce to Hong Kong and Macao.

As to whether the Hongkong Special Administrative Region will import rice from the mainland this year, Wei Yongjie said that the specific import quantity and price are all the business decisions made by Hongkong importers based on market conditions.

Li Fengnian, one of Hongkong's rice importers, expects the price of mainland rice in Hongkong will continue to rise due to soaring oil prices, appreciation of the renminbi and continued weakness of the US dollar.

Prevention of grain export

Because of the rising international grain prices, the huge price gap between China and abroad has promoted the rapid growth of China's rice exports.

Although restrictions on food exports have been introduced since 2007, according to data released by China Customs, the number of rice exports increased by 39.4% over the first quarter of this year, and the export volume increased by 47.4%.

The Ministry of Commerce issued a new regulation to strengthen the supply of grain and its export to Hong Kong. It strictly prohibits enterprises from exporting products to other countries and regions in any form. Once it is found that such acts occur, the Ministry of Commerce will immediately cancel the quotas already allocated to export enterprises and the quota allocation after that.

An official of the Ministry of Commerce's Political Research Office told reporters that the policy was mainly aimed at preventing some enterprises from exporting grain to other countries and regions through Hongkong.

According to the information provided by the Hongkong industry and trade department, the import of rice in Hongkong is not only for local consumption in Hongkong, but also for Hongkong's re export to other places.

In 2007, a total of 7415 tons of rice were re exported through Hongkong, of which 5411 tons were re exported to Macao, the largest number of re exports, followed by re exports to Canada, 995 tons, 344 tons in the mainland of China, 324 tons in the United States, 341 tons in other countries and other regions.

The above data show that the number of rice pshipped to Macao in Hongkong last year accounted for a large proportion of the number of re exported rice in Hongkong.

In response, an official of the Ministry of foreign trade of the Ministry of Commerce in charge of agricultural products told our correspondent that the policy was mainly aimed at the Hongkong area. As for the food problem in Macao, if necessary, it would make arrangements after further consultation.

Although the rise in international grain prices has caused widespread concern, Ceng Liying, deputy director of the State Grain Administration, said recently that China has sufficient grain stocks.

//cn.