030401

Asia Sugar: Big range in regional import tariffs despite WTO

HONG KONG: China and Taiwan have cut the import tariffs on some sugar imports following their entry into the World Trade Organisation, but some countries maintain high protective tariff and non-tariff barriers (see table below).

The outlook for 2003 is for little improvement in these trade barriers, given the high level of subsidies on sugar trade in the European Union and the United States, analysts said.

In line with its WTO membership agreement, China's import tariffs on sugar imports in 2003 are 20 percent on the first 1.85 million tonnes imported and 30 percent on any additional imports.

In 2004, a quota for the import of a total of 1.945 million tonnes at the low-tariff rate (THQs) of 20 percent rate will be issued; any additional imports will be charged at the 30 percent rate.

Taiwan said last year it would reduce subsidies granted the local sugar industry and would step up the timetable for the elimination of all tariffs on sugar.

Taiwan's Finance Ministry said it would lift all restrictions on sugar imports in 2004, one year than originally planned. Taiwan's sugar imports are also handled via import permits. Taiwan allowed the import of 120,000 tonnes of sugar with import quotas in 2002, its first year in the WTO, with an import tariff of 12.5 percent.

The country will permit free imports that is no import permit required of raw sugar in 2003. Duties on sugar imports will be cut to 6.25 percent.

At the same time, the import quota on refined sugar will be raised to 300,000 tonnes from 162,500 tonnes.

SOUTHEAST ASIA

In July, the Indonesian government raised the import duties on raw sugar to 550 rupiah per kilogram and 700 rupiah/kg for white and double refined sugar.

These are fixed rates as compared with the previous floating rates. Under the previous system, importers had to pay a tariff of around 500 rupiah/kg on raw sugar imports, based on a 20 percent tariff rate and the average sugar price, and 600 rupiah/kg for white import under a 25 percent tariff rate.

However, several new refineries have been granted preferential rates to allow them reach profitability. The market was liberalised to allow imported sugar under a 1998 agreement with the International Monetary Fund.

The Philippines has delayed the implementation of cuts in sugar import tariffs as stipulated under the free trade agreement of the Association of Southeast Asian Nations (ASEAN).

Under the agreement, tariffs on a list of commodities, including sugar, were to have been reduced to between zero and five percent starting in January 2003.

Thus, there will be no reduction in Philippine sugar tariffs until 2010. The quotas are currently 60 percent for the first 60,000 tonnes and 65 percent for all imports after that.

FREE PORTS

Singapore and Hong Kong do not charge any tariffs and are considered free ports. Listed below are the import tariffs for East Asian and Southeast Asian countries in descending order from the highest to the lowest.-Reuters