China no longer nuts over Georgia goobers | www.myajc.com

3
Jun

China no longer nuts over Georgia goobers | www.myajc.com

In April, China all but quit purchasing U.S. peanuts after a whirlwind buying spree that had farmers from Donalsonville in southwest Georgia to Sylvania near the South Carolina line counting their blessings and profits. Peanut industry honchos blame China’s sudden enforcement of a 15 percent import tax and 13 percent value-added tax on peanuts.

U.S. brokers and shippers had sidestepped the taxes by shipping peanuts to Vietnam. The Vietnamese would either transship the peanuts on to China or turn raw peanuts into cooking oil. Both products would then enter China duty-free.

“Our smart Americans shipped to Vietnam (where) they violated the tariffs,” Tyron Spearman, executive director of the Peanut Buying Points Association headquartered in Tifton. “The Chinese found out and stopped all shipments.

“We’ve got ships taking peanuts to China and they refused them,” he continued. “They’re sitting out there on the docks trying to find somebody else to buy them.”

The sudden turnaround, blindsiding growers, dashed what was shaping up to be a promising year for Georgia’s $1.2 billion peanut industry.

via China no longer nuts over Georgia goobers | www.myajc.com.

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