SUGAR mills in China plan to ask the Ministry of Commerce to extend tariffs on sugar imports that the government imposed in 2017 to protect China’s struggling domestic sector, according to two sources and a draft document.

The plan to request an extension of the tariffs was discussed at a meeting organized by the China Sugar Association last week.

China’s trade measures on sugar imports, set to expire May 21, 2020, “have played an effective role in safeguarding the interest of the domestic industry, and promoting healthy and stable development of the sector,” said the draft document.

China’s domestic sugar sector has struggled to compete with foreign rivals due to higher production costs. Chinese white sugar prices CSRc1 also plunged in 2018, amid a global supply surplus, pushing many producers into the red.

The Guangxi Sugar Association, in China’s top producing region for the sweetener, will submit the application for the extension of the tariffs on behalf of the entire domestic sugar industry, according to the document.

A source familiar with the matter confirmed that the industry group is consulting lawyers and experts, and drafting the application to be submitted to the government.

It is not clear when the Guangxi association will submit the plan or what the government’s response will be.

China in May 2017 hit major exporting nations with tariffs on sugar shipments after years of lobbying by domestic mills. China started to levy extra tariffs on out-of-quota sugar imports from all origins last August.

China allows 1.94 million tons of sugar imports a year at a tariff of 15 percent as part of its commitments to the World Trade Organization. Out-of-quota imports are charged a higher tariff and need special permits. Imports beyond 1.94 million tons attract a 50 percent levy. (SD-Agencies)