China exempts value-added tax on U.S. wheat imports

China exempts value-added tax on U.S. wheat imports    The Chinese government has decided not to apply its 13-percent value-added tax extension on U.S. wheat imported through December.
   This was good news for American wheat farmers who plan to ship substantial volumes of wheat to China through the rest of the year.
   In the 2004-2005 marketing year, Chinese importers have contracted to buy 1.9 million metric tons of U.S. wheat. By mid-September, American farmers had shipped more than 60 percent of this year’s purchase commitments to China, according to U.S. Wheat Associates, a Washington-based trade group.
   While China is expected to increase domestic wheat production next year, it’s not expected to be enough to satisfy internal consumption.
   “We expect that China will import wheat, particularly with qualities not available domestically, in order to meet overall demand in a growing and diverse consumer market,” said U.S. Wheat Associates regional vice president Matt Weimar, in the group’s newsletter Thursday.
   “Millers in China like U.S. wheat for blending with domestic wheat or, in the case of U.S. hard spring wheat, for producing high gluten flour that is used in quality bread and noodle products,” Weimar added.