US ethanol takes the slow boat to China in order to avoid import tariffs

February 7, 2019 |

In China, Reuters reports that by taking advantage of trade rules that allow ethanol to enter the country duty-free if blended with 40% Asian-origin fuel, US-origin ethanol was able to enter the Chinese market after a two-month journey, a stop in Malaysia, and ship-to-ship transfer. So far since the China-US trade war kicked off last summer and a 70% tariff was slapped on US-origin ethanol, Malaysia has exported 69,000 metric tons of ethanol to China despite not producing ethanol while Malaysia also imported 88,000 tons of the fuel from the US.

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