China is imposing restrictions on the import of Kazakh wheat for factories in the bonded zone, causing a stir in the market.

The Association of Grain Exporters told the APK News agency that the Chinese Customs Administration has established restrictions on the import of Kazakh wheat for factories registered in the bonded zone. Although there is no official statement from China on this issue yet, there is considerable excitement in the market.

Representatives of exporters shared information that “Chinese customs has completely banned the import of wheat for factories registered in the Bonded Zone, the reasons for this ban are not yet clear. Wheat imports will be carried out exclusively within the quotas provided by COFCO, once a year for each company individually. Companies that do not have a quota will be able to import wheat by paying a duty of 65%; there will be no other options. Now the situation will be similar to what it was two years ago, only with limited quotas or duties,” the exporters said.

Market participants also said: “The bottom line is that exports will be jeopardized. Restrictions on grain intake will be established, barriers will be installed. While the Chinese have no explanation, one can only guess.”

It is worth noting that almost all Kazakh grain exporters supplied their goods to factories registered in the bonded zone.

A grain trader from the Akmola region, Kairbek Zhalgapbaev, explained that Kazakh wheat had the opportunity to enter China through Alashankou and Khorgos into the bonded zone of the Xinjiang Uyghur Autonomous Region of China, where imports were carried out duty-free. With the introduction of the ban, the import of wheat duty-free will only be possible if quotas established by COFCO are met or a duty is paid.

The trader believes that China introduced the ban after Kazakhstan began to talk about the advisability of introducing a duty.

“Our officials started talking about the tariff, and the Chinese took swift action. We decided to freeze imports, and then, when they open them again, everyone will become more flexible,” noted K. Zhalgapbaev.

Trader Amir Butyrkhanov noted that China has always been a heavily regulated market and has made grain imports difficult.

“China will always make imports difficult; there is no need to place big bets on it, as our ministry and government do. They recently stated that supplies to China would reach 3 million tons. But no, China will squeeze us “to zero.” I believe that Kazakhstan should take retaliatory measures - not to allow Chinese goods into the country. Or apply other reciprocal measures. When representatives from China come to us, we prefer not to work with them, because they immediately begin to create a lot of problems, demand that we give goods at low prices and also pay them extra. Doing business with the Chinese is very difficult,” said the trader.

The APK News agency requested official information about the introduction of restrictions by China. Stay tuned for more news.