Because there is flexibility at the local level in deciding whether to charge the official rates, often the actual duties are a result of negotiations between business people and Chinese custom officials. Tariffs and quotas have also been introduced but are not fixed and are applied inconsistently, particularly for oilseeds and related products. The question of who has the authority to import is subject to interpretation, loopholes, sudden changes and reversals of policy. Transportation continues to be a major problem. Unloading and handling at ports and inland is severely hampered by poor infrastructure.
China also suffers from the lack of proper storage facilities.
Very few temperature-controlled storage areas are available in China. There definitely exists a demand for Canadian grains, especially wheat, and oilseeds. Since implementing the Open Door Policy and deregulating the Agriculture Sector in the 1980s, China has imported increasing amounts of grains and oilseeds from abroad. Canadian grains are recognized for their high quality and high gluten content. Quality grains from abroad are only imported in quantities which adhere to pre-allocated quotas issued by the central government grain bureaus.