According to the news of the Ministry of Finance, the State Council’s Customs Tariff Commission passed the review and submitted to the State Council for approval. The “2019 Provisional Tax Rate for Import and Export” (hereinafter referred to as the “Program”) was officially released and will continue from January 1, 2019. Export tariffs are imposed on 108 export commodities such as ferrochrome or the provisional tax rate for export, and the tax rate remains unchanged. 94 commodities such as fertilizer, apatite, iron ore, slag, coal tar and wood pulp are no longer subject to export tariffs.
In recent years, the competition in the fertilizer industry has become increasingly fierce, and the industry’s call for the elimination of export tariffs on fertilizers has never stopped. On December 23, 2016, the Customs Tariff Commission of the State Council promulgated the Notice on the Tariff Adjustment Plan for 2017 (The Taxation Committee [2016] No. 31), which will be implemented from January 1, 2017. The “Program” decided to eliminate export tariffs on fertilizers such as nitrogen fertilizers and phosphate fertilizers, and appropriately reduce the export tariffs on ternary compound fertilizers. On December 15, 2017, the Ministry of Finance announced the contents of the Notice of the Customs Tariff Commission of the State Council on the Tariff Adjustment Program for 2018 (TAC [2017] No. 27). The State Council has decided to properly adjust the export tariffs for phosphate rock and NPK compound fertilizers from January 1, 2018. The import and export tariff policies for other raw materials and other fertilizers will remain at 2017 levels.
Can the elimination of potassium export tariffs help the industry to a new level? Yan Zhaoying, deputy secretary-general of the Chemicals Professional Committee of the China Chemical Industry Association, believes that the introduction of zero tariffs on potash exports is related to the adjustment and change of the potassium resources industry structure. In the mature and stable stage, the ‘zero tariff’ has little effect on the domestic potash; the second is to build up its own potash base in the country with rich potassium resources for the potash fertilizer in China, and the potash fertilizer produced by the ‘returning’ domestic potassium chloride market The policy preparation is good; the third is that the domestic processing potassium sulfate, potassium nitrate, granular potassium fertilizer and other potash products are developing rapidly, and the market share, voice and competitiveness in the international market are improved.” Yan Zhaoying said.
Zhao, director of the marketing department of Lubon Industry Co., Ltd., believes that there are many domestic fertilizer production enterprises, but there are not many large-scale enterprises, and the production cost is higher than that of foreign countries. Before the integration of fertilizer industry is completed, zero tariffs will increase fertilizers to a certain extent. Export market competitiveness, but it is still very difficult to increase export volume in the short term.
According to China Customs data, from January to November 2018, China exported a total of 22.76 million tons of various fertilizers, a decrease of 1.5% year-on-year; the cumulative export value was 6.557 billion US dollars, an increase of 17.8%. The cumulative export of urea was 1.8 million tons, down 55% year-on-year; the total export of diammonium phosphate was 7.1 million tons, an increase of 18.7%.
According to the analysis of domestic potash traders, the export tariffs of potash fertilizer (including potassium fertilizer) will be cancelled. Domestic potassium sulfate will have stronger competitiveness in the world. The operating rate of processed potassium sulfate will increase and drive domestic potassium chloride price. rise.
