Heath Ministry officials declined comment.

The market had been worried that the Health Ministry's new rules would hinder imports of U.S. and South American soybeans and soyoil and the decision would allow imports to flow freely at least for this year, they said.

Traders also said they expected about 200,000 to 300,000 tonnes of soyoil to arrive in July and be discharged without any major hindrance.

"It doesn't affect cargoes on the way and we should safe for now," said another trader at a global trading firm in Beijing. The ministry's rules are China's second set of GMO regulations: the Agriculture Ministry announced the first set last June and hampered more than $1 billion of soybean trade with top growers like the United States, Brazil and Argentina.

China and the United States reached a compromise in March, with Beijing agreeing to a shorter, simpler approval procedure for GMO permits applications so that imports could resume temporarily.

The Agriculture Ministry has issued 256 temporary GMO permits to foreign firms since March, when the ministry's rules were imposed, the official Farmers' Daily said yesterday.

CONFUSION RESURFACES

Just as trade resumed this month - with around five soybean cargoes discharged at ports including Tianjin, Rizhao and Chiwan so far - the Health Ministry emerged with its own proposed rules that failed to spell out specifics, worrying the market.

The Health Ministry draft, aimed at seeking public opinions on the rules, said importers of GMO foods covered by Agriculture Ministry's regulations would need permits.

The Agriculture Ministry said earlier this year its GMO rules applied to soybeans, corn and their oil products, as well as rapeseed oil and tomatoes.

Importers would need GMO safety certificates from the Agriculture Ministry and other documents related to production and sales before it could get the Health Ministry's approval.

Traders said the government would have to find better ways to synchronise its GMO policy later this year, especially when the Agriculture Ministry's temporary GMO measure only lasts until December 20.

"There are two sets of GMO rules now and hopefully the government will coordinate and find a more unified way to do this at the end of the year," said the second trader in Beijing.