Brazil

China suspends Brazilian soya bean imports

China has decided to temporarily suspend the imports of soya beans from four Brazilian suppliers who are alleged to have violated China's regulations, the State Administration of Quality Supervision, Inspection and Quarantine announced.

The four suppliers are Noble Grain Pte Ltd, Cargill Agricola S/A, Irmaos Trevisan S/A-IND. Com E Agricultura and Bianchini S/A Industria Comercio E Agricultura.

The administration said that at end the end of April, the Xiamen Entry- Exit Inspection and Quarantine Bureau in Fujian province found soya beans that were dry red and mixed in a shipment of 59,000 tons of soya beans imported from Brazil. Test results showed that these soybeans with the 'red alert' contain a kind of farm chemical that if made of
bactericide, pesticide and some other compound chemicals and is used to coat seeds to prevent plant diseases and insects.

Source : Xinhua news 12 May

This situation emphasizes the importance for shipowners to charter vessels to charterers with the financial resources to meet the losses arising from the importing country rejecting the cargo. This situation is becoming a real risk as many countries are endeavoring to control the import of foreign disease into their country. In this situation a new buyer of the tainted cargo would need to be found which would necessarily require a new set of bills of lading. The shipowners needs to retrieve all original bills of lading issued and obtain an LOI from an acceptable guarantor indemnifying the shipowner for all losses. We have recently drafted a wording of an LOI for a shipowner who encountered a similar situation.