Agri trade panel to visit China

A high-level trade delegation led by the Agriculture and Processed Food Products Export Development Authority (APEDA) will visit China on July 18 to augment India's exports to the country, especially in marine and spices and spice-based products.

The delegation will meet Chinese government officials and other trade organisations in order to strengthen bilateral trade between the two nations. China is the second biggest recipient of marine products from India.

Seafood exporters from the country's west coast, especially Maharashtra and Gujarat, are eagerly awaiting the outcome of the visit as 60 per cent of marine products are exported to China.

A large volume of low value fish items such as Ribbon fish and Croaker are supplied to China from Gujarat, Maharashtra and Karnataka. There are many Gujarat-based producers who export exclusively to China. Around 77,000 tonnes of Croaker and Ribbon fish is exported annually to China from Gujarat alone.

According to exporters, China has been importing other items such as squid, cuttlefish and pomfrets. But the exporters' main concern is over the levy of high import duty and VAT (17 per cent each) of the value of imported goods.

It is alleged that most of the Chinese importers are using fraudulent methods to avoid such heavy duties on low value items. Few of them pay duty on the under invoiced value, fabricated by them, others clear goods under Self Catch Duty Free Import Quota, granted by the government to large Chinese companies involved in fishing operations in China and other parts of the world.

To be exempt from import duty, some Chinese companies declare that their goods are imported from ASEAN countries.

According to exporters, these fraudulent activities might cause problems to Indian exporters and the issue is expected to be resolved during the delegation's visit.

They argue that India should be included under ASEAN group of nations so that the companies can avoid the 17 per cent import duty. The delegation should also persuade the Chinese government to reduce VAT to a level compatible with the WTO norms.

Meanwhile, the US Food and Drug Administration (FDA) decided to detain and inspect shipments of catfish, shrimp and other species imported from China, following reports in the 'Washington Post' that a survey had found that 20 per cent of Chinese exports to be "substandard". The annual report on food safety of EU Health and Consumer protection division showed that China was the leading violator of food safety rules.

This will affect the business of major global seafood companies as they depend on China for seafood items. As China is a major importer of low value items from India, any move against China may affect the prospects of India's export to that country.