China's lowered import tariff could lead to fuel ethanol flo
Imports of fuel ethanol from countries like Brazil could be increasing now that China has agreed to lower the tariff on imports of ethanol to five percent from the previous 30 percent.
The recent import tax change for alcohol and spirits will be implemented Jan. 1, 2010, and will carry over to fuel ethanol as well.
Brazil is the top ethanol exporter globally and has made an effort in the past to have China import its product as an addition to its own national fuel production. The Far East country has strict regulations that prevent grain-based ethanol production due to concerns over fuel security, as well as hinder the use of other feedstocks because of limited land and water resources.
China intends to combine 10 million tonnes of ethanol by 2020 to fulfill carbon emission targets, however there are doubts from some that the country will have the capacity to do so by then.
Learn more at: International Business Times
(Edited by Kevin Doyle)