China is in the process of waiving 30 per cent retaliatory tariffs on imports of U.S. pork and soybeans, a signal that a trade deal is taking shape, reports Bloomberg news.
China’s finance ministry said it has started to process the applications after the firms purchased a certain amount of U.S. goods based on their needs. The ministry is working to waive the tariffs resulting from the trade war on those goods, it said in a statement on Friday.
While the waivers allow buyers to import U.S. soybeans without paying the 30 per cent retaliatory tariffs, some traders had difficulty clearing customs as they were required to pay a deposit in lieu of the levy before they could apply to the finance ministry for an exemption.
Many had been struggling to come up with the cash last month, Bloombrerg reported “according to people familiar with the matter”.
However, China’s customs authorities began allowing importers to use a letter of guarantee from banks instead of cash to pay the deposit, allowing the beans to flow again, according to the same sources.