May 06, 2024

China's fertilizer export tariff increased to 110%

According to the Ministry of Finance's news on the 30th, with the approval of the State Council, the Customs Tariff Commission of the State Council decided that from December 1st to December 31st 2010, China will levy an export tariff on some fertilizer products at a provisional rate of 35% and collect 75 % of special export tariffs.
The fertilizer products involved in this adjustment include urea, diammonium hydrogen phosphate, ammonium dihydrogen phosphate, and a mixture of ammonium dihydrogen phosphate and diammonium hydrogen phosphate. According to industry insiders, the move means that, as the year approaches, China's fertilizer exports will be adjusted from the current 7% off-season tariff to 110% on peak season tariffs, and the door for fertilizer exports is basically closed.
It is understood that China currently implements a differential tax system on chemical fertilizer export tariffs. Before December, China’s fertilizer exports still implement the off-season tax system. That is, if the price per ton of fertilizer is lower than the export base price of 2,300 yuan, it will be levied at an export tax rate of 7% if it is higher than The benchmark price is higher than the part of the implementation of full tax. However, after this adjustment, fertilizer exporters will implement a new export tax rate of 110% in the following month.
The Ministry of Finance stated that it is currently the off-season use of chemical fertilizers. This time, the export tariffs for fertilizers have been substantially adjusted to curb the recent export of chemical fertilizers, ensure the supply of domestic fertilizer market, stabilize the market price of chemical fertilizers, and reserve resources for the peak demand of spring fertilizers in the coming year. It will also help To curb the current excessive increase in prices of agricultural products.
Since the second half of this year, coal prices have risen in succession, and various “control measures” have gradually led to a decline in the output of some domestic fertilizer products. Prices have also shown an upward trend, which has also made it more difficult to reserve fertiliser in the off-season. According to a survey conducted by the China Nitrogen Fertilizer Association, this year's move to cut power consumption at least caused a 4 million-ton reduction in fertilizer production capacity.
Not long ago, the “Notice on Stabilizing the Basic Level of Consumer Price Protection for the Basic Level of Consumer Price” issued by the State Council clearly stated that it is necessary to guarantee the supply of chemical fertilizer production and continue to implement preferential policies for the price of electricity for fertilizer production, gas use, and railway transportation to ensure the normal production of fertilizer companies. Electricity and gas supply shall not be used to limit power supply to fertilizer companies. At the same time, it is necessary to control the export of chemical fertilizers, adjust the export tariff policy for chemical fertilizers, and adjust the periods for the season. Effectively implement the off-season reserve policy and plan arrangements for chemical fertilizers.
In response to the current hot-swapped power cuts and the sharp increase in the prices of some products, the Ministry of Industry and Information Technology also issued a notice on the 29th, proposing to coordinate according to the principle of “differential treatment and pressure to protect” to ensure the normal production and use of electricity by fertilizer companies. Use gas.
Li Futang, secretary general of the Shandong Chemical Fertilizer Industry Association, told reporters that due to the fact that the proportion of Shandong's chemical fertilizer exports was less than 10%, the adjustment of export tariffs had little effect on Shandong fertilizer companies. At present, Shandong's chemical fertilizer production is generally stable, and it is maintained at about 800,000 tons per month. From the perspective of the entire industry, the current domestic chemical fertilizer is still in a state of overcapacity. Coupled with the impending measures to curb exports, the use of spring plough and fertilizer next year should be guaranteed.
In addition, industry sources disclosed that the Customs Tariff Commission of the State Council has only issued the fertilizer export tariff control measures in the last month of this year. As for the continuation of the policy after one month and the subsequent adjustment and control measures, it will continue to be introduced in the next year's export tariff policy. Disclosure.

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