China urged to cut its tariff on carrageenan

The Philippine and Indonesian seaweed industries are joining forces to urge their governments to negotiate with China for the lowering of tariffs and value-added tax (VAT) on carageenan imports from the two countries.

Benson Dakay, president of the Philippine Seaweed Industry Association, said the objective is to get China to lower its tariff on carageenan imports which currently stands at 35 percent, as well as its high VAT on such imports.

Dakay noted that China could be a big market for carageenan, but it prefers to import raw seaweeds and process the raw material into carageenan which explains why it has imposed high duties and taxes on imported processed carageenan.

Since the Philippines and Indonesia are major sources of both raw seaweeds and processed carageenan, Dakay said, "we want to protect our carageenan industry which has more value added income."

Raw seaweed, costs less than processed carageenan which is used as a thickening agent for various food and cosmetic products.

Dakay said the Philippine seaweed industry is drafting a letter seeking the help of the Departments of Trade and Industry, Foreign Affairs, and Agriculture to negotiate with China.