Ryan Olson
April 13, 2017
NAEGA President and CEO Gary Martin is back from Beijing, China where he engaged on multiple NAEGA and IGTC priorities with government and industry stakeholders. These priorities included the IPPC’s ISPM for Grain and ePhyto system, the World Bank’s Enabling the Business of Agriculture Project, production technology and Decree 177. Multiple meetings with Chinese officials and industry and representatives from the governments of Argentina, Australia, Brazil and the U.S. resulted in new and helpful findings to assist in achieving NAEGA’s China related and many other objectives. Thanks to all NAEGA member personnel who attended the reception on Friday evening. We expect to call on you again soon for more advice!
The U.S. situation in China remains a challenging one. Ongoing WTO litigation, including China’s U.S. DDGs and Sorghum trade remedy cases and the U.S. action over China’s support for domestic wheat, rice and corn growers, coupled with the uncertainty about how to comply with a host regulatory mandates, are all of NAEGA concern. Our work related to Decree 177 continues as their remains a lot of confusion regarding compliance with the Decree 177.
The newest development is Notification No. 18. The Department for Supervision on Animal & Plant Quarantine, AQSIQ has titled the notification “Further Strengthening Risk Early-warning of Entry Grains”. The notification falls under China’s Decree 177 and states that it is needed effectively prevent and control the safety risk of entry grains into China. With the Notification, AQSIQ is apparently instituting an early-warning system focused on corn and corn substitutes such as sorghum, barley, dried cassava, DDGS and other products. The early warning system is broken down by Type A and Type B violations. Type A applies to pesticides, biological toxins and pollutants, and other harmful substances in excess of existing residue levels. It includes products containing unapproved transgenic ingredients. Type B applies to grain found with quarantined live pests, toxic plant seeds, quarantine disease, treated seeds, mold, FM exceeding the contract agreement by 50 percent and shipments contaminated by rodents, birds and other serious quality problems. In the event of a Type A violation the enterprise would be subject to testing for three consecutive consignments. Two Type A violations would lead to the suspension of permit approval and registration. If Type B is detected field inspection will be strengthened and China will conduct laboratory testing and identification of the risk. The entry grain cannot be transferred out of the port before testing and identification is completed. For Type B, three violations would lead to suspension of permit approval and registration. For both type A and B of violations, resumption of approval of registration will only restart after the investigation and the relevant corrective measures have been enforced. Further, AQSIQ has stated they will reward custom officials with a high rate of detection and “set them up as good examples”.
The U.S. government is currently organizing meetings in Beijing the week of April 24 with AQSIQ and other related parties. Gary is planning on returning to Beijing at the request of USDA FAS to support those during their meetings with AQSIQ.
More information on these developments and this mission will be available in a forthcoming trip report. Your advice and questions are welcome. Please contact Gary to discuss.
