China is set to purchase 300,000 tonnes of rubber from Cambodia in 2018, according to a statement released by Cambodia’s Ministry of Commerce following a meeting between the ministry and Chinese and Japanese delegations.
“Recently, Shaanxi, China, has signed a memorandum of understanding with Cambodia to buy 300,000 tonnes of Cambodian rubber,” the statement said. “China is expected to begin importing it in 2018.”
Land for cultivating rubber has increased to about 437,000 hectares, 64% of which is controlled by rubber industry firms and the rest by family-run operations, according to the Agriculture Ministry. Cambodia exported about 50,000 tonnes of rubber in the first quarter of 2017.
The rubber price on the global market had dropped to between US$1,600 and US$1,700 per tonne from US$2,400 in January and February.
At present, the government levies US$50 in tax duty per tonne of rubber exported if the price is from US$1,000 to US$2,000 per tonne, and US$100 of tax duty per tonne of rubber if the export price is above US$2,000 per tonne. It takes zero tax if the price is below US$1,000 per tonne.
Separately, Cambodia’s Trade Centre in Xi’an city, Shaanxi province, is actively displaying Cambodian products to Chinese customers. The centre has packed 5,000 tonnes of rice purchased from Cambodia without tariffs into small packages for retail sale in the Free Trade Area in Shaanxi province.