Global Processing

China to Tax U.S. Chicken

February 8, 2010
The Wall Street Journal reports Chinese authorities have slapped preliminary import duties to as much as 105.4 percent on U.S. chicken products. The Ministry of Commerce which announced the decision said U.S dumping is hurting China''s domestic poultry industry. Once the new directive takes effect Feb. 13, U.S. exporters, including Pilgrim''s Pride Corp. and Tyson Foods Inc., will be required to deposit the duty with Chinese customs, pending a final decision on the matter. The ministry listed 35 companies, most of which will have to pay a duty of 64.5%. Pilgrim''s Pride will have to pay the highest duty among named companies, of 80.5%, while Tyson Foods will pay the least, at 43.1%. All other U.S. firms not named in the list will pay 105.4%, the ministry said. The affected companies have 20 days to appeal the decision. While China imports less than $800 million worth of U.S chicken products a year -- just a small portion of the total $77 billion in products imported from the U.S. and $1.01 trillion in overall imports last year—the move suggests Beijing has become more forceful in responding to trade disputes as governments around the world seek to revive their economies, sidelining earlier pledges to avoid protectionist measures. In a clear sign that China is getting increasingly bold in its response to an ongoing trade dispute with the U.S., China‚Äôs decision was announced after a five-month investigation on alleged dumping by U.S exporters.