China Takes A Different Tact Than The US, Eliminates Tariffs On African Nations To Boost Coffee Imports – CoffeeTalk

China has announced its decision to eliminate import tariffs on goods from 53 African nations, aiming to boost coffee imports from the continent. The General Administration of Customs announced the move, which expands duty-free access to 20 more African countries, including Nigeria, South Africa, Egypt, and Algeria. The move will lower the cost of importing African coffee beans into China, as China imposes an 8% levy on raw coffee beans from some African countries. Under the new zero-tariff regime, importers will save around USD320 on import levies and USD41 on value-added tax per ton of raw beans priced at USD4,000. China imported USD170 million of African coffee in 2023, with a compound annual growth rate of 42% from 2014 to that year. Around 12% of the world’s coffee is produced on the continent. Most of the beans used in China’s commercial coffee sector come from Southeast Asia and South America, mainly Brazil, which has large-scale production, highly industrialized production, and cost advantages. The Chinese government has used zero-tariff measures to encourage coffee exports from Africa, applying zero tariffs on 98% of imports, including coffee, from Ethiopia and two other countries since March 2023. China’s coffee industry grew 18% to CNY313 billion (USD43.6 billion) last year, with average consumption per head topping 22.2 cups.

Read More @ YiCai