Fertilizer Export Control Loosened

By CnAgri2012-12-21 10:48:17 Print To help fertilizer producers to walk out of difficulties, the government is to adopt new policies to loosen its control of fertilizer exports in 2013.
 
The customs duty rate for urea exports during the off-season of consumption is reduced from 7% in 2012 to 7% in 2013 and the rate for DAP, MAP and TSP is to reduced from 7% to 5%. During the busy season of fertilizer consumption, exports of the above products are no longer subject to the busy-season tax of 35% (but the 75% special tax remains unchanged). NPK export tariff is reduced from 95 ~ 110% in 2012 to 80% in 2013.
 
With regard to exports of DAP, MAP, TSP and NP-compound fertilizer during the off-season of domestic consumption, the period of off-season is extended from June ~ September in 2012 to May 16 ~ October 15.
 
To cut tax burden, the base prices of urea, DAP and MAP exports during the off-season of consumption is raised from RMB2,100/MT, RMB3,400/MT and RMB2,900/MT in 2012 to RMB2,260/MT, RMB3,500/MT and 3,200/MT in 2013 respectively. Assuming urea export price to be RMB2,500/MT, the tariff is reduced from 23% in 2012 to 11.6% in 2013. The rise of fertilizer export price is conducive to a price recovery in the domestic market.
 
BOABC predicts that fertilizer exports may step up noticeably next year. Urea and DAP exports may increase more than 10% in 2013.

       

From “China Fertilizer Market Weekly Report”