Importantly, although the Central government in Beijing issues grains quotas to the provinces, Provincial and Municipal Grain Bureaus are able to directly authorize local imports of grains. They are willing to import as long as imported grains are of high quality, and prices are reasonable. The Yangzi Delta can also benefit from Canadian agricultural technologies that improve quality and increase productivity. Opportunities have been identified in the areas of agricultural turf and seed. However China's compliance with respect to intellectual property rights is currently limited, impacting on the export of plant genetics.
Opportunities also exist for food quality soybeans.
It is important to note that every year a substantial amount of grain intended for Hong Kong ends up in Shanghai and other parts of China, without legal documentation or official records. Tariffs Aside from quotas, tariffs are placed on all imported grains and oilseeds. However, different ports of entry may charge different entry rates on the same or similar products. 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.