Trade Minister Simon Birmingham hails China’s move to streamline iron ore imports
Trade Minister Simon Birmingham has joined the mining industry in hailing China’s ‘positive step’ on iron ore.
Trade Minister Simon Birmingham has joined Australia’s mining industry in welcoming moves by China to streamline its customs clearance of iron ore imports, describing it as a “positive example of the further opening of Chinese markets”.
Following recent clashes with the Communist nation over barley and beef imports, Senator Birmingham said Australia remained “committed” to a “mutually beneficial trade” relationship with China.
“We welcome any improvements in administrative arrangements that could streamline the customs clearance of iron ore imports,” Senator Birmingham said.
“Such easing of administrative barriers and costs would be a positive example of the further opening of Chinese markets that President Xi has previously committed to, as well as a reform that can help with global economic recovery.”
Minerals Council of Australia chief executive Tania Constable welcomed China’s move to streamline its iron ore testing, which “recognises the high quality of Australia’s iron ore”.
“As a key partner with China’s steel industry Australia supplies 60 per cent of China’s iron ore and these reforms will enhance this valued business partnership,” Ms Constable said.
“Australia’s iron ore miners have been the leading suppliers to China’s steel industry this year and supported its post-COVID economic recovery.
“Post COVID-19, world demand for metals and minerals – especially industrial metals such as steel, copper and aluminium – will grow in line with the expanding needs of highly populated nations.”
The administrative change is expected to speed-up the trade facilitation of iron ore into China and will come into effect from June 1.
The change means customs checks would no longer be mandatory and would now be at the discretion of the importer, who will decide if they want batches of iron ore to be inspected by customs officials.
A translated statement from China’s General Administration of Customs said “in order to further promote the reform of “delegation, management and service”, to further optimise the port business environment and to improve the level of trade facilitation, the General Administration of Customs decided to optimise the quality inspection and supervision of imported iron ore”.
With Brazil experiencing a surge in COVID-19 deaths and suffering major supply issues, Australia remains China’s most important iron ore market.
BHP, Fortescue welcome China move
It is understood Chinese authorities have been consulting with exporters, including Australian iron ore majors, on the proposed changes since October last year and the current rules changes have been well flagged with the industry.
A spokesman for BHP said on Thursday the iron ore major supports the changes, saying they would speed up the process for both exporters and BHP’s customers.
“We’re supportive of the changes to the iron ore inspection process and believe it will be create a more efficient supply chain for producers like us as well as our Chinese customers,” he said.
“Our customers will have greater option to choose which inspection service to use for iron ore imports and whether to do it from the load port or the discharge port, potentially speeding up the process for all parties.
“China Customs has been keeping us informed of their intention to change some of the iron ore inspection process for quite some time.”
Fortescue chief executive Elizabeth Gaines also welcomed the changes, saying the company remained a core supplier of iron ore to China.
“This is part of a broader suite of efficiency reform measures under development by the Chinese Government since 2015,” she said.
“We are committed to meeting the needs of our customers and follow strict, independent quality control processes to ensure the reliability and consistency of our delivered products. The Chinese steel industry produced 234.5 million tonnes of crude steel in the March quarter, an increase of 1.2% compared to the prior corresponding quarter, supporting strong ongoing demand for iron ore.”
Additional reporting: Nick Evans
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