Complicated import and taxation procedures make it hard to import fresh fruit into China. Customs in Shanghai are trying to make the import of fresh products easier. Recently a new rule has been introduced. Instead of having to pay high taxes up front, companies can now sell products on the Chinese market at the lowest tax rate. After selling the products companies can pay the remaining tax difference.
This new rule has been applied to companies from South America first. During the first half of 2015 486,000 ton of South-American fruit has gone through Shanghai customs. This is 55% more than in 2014. 60,000 ton was imported from Chile and 40,000 ton from Ecuador; an increase of 58% and 90% respectively. Goodfarmer Agricultural International Trade Co., Ltd. has benefited from the rule. In July 2015 alone the company has imported 4.13 million Yuan worth of fruit, and its number of South American business partners has increased to 20. Market prises have also been affected by the new procedure. Unit prices of cherries and blueberries have dropped from 100 to 400 Yuan per 500 gram to 20 to 100 Yuan.
