The EU opens a new tariff-rate quota for one year, benefiting China's €400 million worth of poultry products.


Release date:

2020-04-09

Since the EU opened a duck meat quota for China, we’ve exported 4,700 tons of Peking duck to the EU—representing a year-on-year increase of approximately 25%.

On April 8, reporters learned from Qingdao Customs that, since the EU opened a new tariff quota one year ago, Shandong's poultry meat exports—worth 400 million yuan—have benefited significantly.

 

 

"Since the EU opened up a duck meat quota for China, we’ve exported 4,700 tons of Peking duck to the EU—representing a year-on-year increase of around 25%. Not only has export volume surged significantly, but we’ve also finally broken free from the frustrating situation of exporting to the EU at a loss just to gain visibility," said Yang Laili, Manager of the International Trade Department at Yingyuan Co., Ltd.

 

Before the EU opened its new tariff quota last year, China shared a 220-ton quota with other countries, meaning any duck meat exported beyond this limit would have to pay a special tariff of €2,765 per ton. According to Yang Laili’s calculations, the price of duck meat in the EU market currently stands at over $6,000 per ton. However, after factoring in the special tariff, China’s domestic export price for duck meat would need to remain around $4,000 per ton—just enough to cover production costs. But once management expenses are added, businesses would inevitably face losses.

In November 2018, China and the EU reached an agreement granting China an import tariff quota of over 10,000 tons for chicken and duck meat products exported to the EU. Within this quota, duck and chicken products will be subject to tariff rates of 10.9% and 8%, respectively.

 

Yang Laili stated that under the new tariff rates, roasted duck now incurs approximately 3,000 yuan in duties per ton when cleared through EU customs—still 18,000 yuan lower than the special tariffs imposed before the EU opened up its tariff quotas. Over the course of a year, companies have exported up to 3,140 tons of duck meat within the EU quota, resulting in cumulative tariff savings exceeding 50 million yuan.

 

According to Yao Yong, a first-level researcher at the Qingdao Customs Tariff Division, Currently, all enterprises in China qualified to export poultry meat products to the EU are located in Shandong Province. Qingdao Customs is vigorously optimizing its rules-of-origin management services to help businesses leverage EU tariff quotas, thereby reducing tariff costs and boosting the market share of Chinese poultry products in the EU.

 

According to statistics, since the EU opened a new tariff quota for China's poultry meat one year ago, customs authorities have issued Certificates of Origin for 735 shipments of poultry exports to the EU under the special arrangement for non-preferential imports into the EU. These shipments qualified for the lower tariff rates within the EU quota, with a total value of 403 million yuan. As a result, Chinese exporters saved over 100 million yuan in tariff costs by benefiting from the reduced rates applicable within the quota.

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