Guangzhou China Dec. 7, 2010 - On Nov. 29, 2010, Tariff Commission of the State Council (TCSC) carried out the notification of adjusting the export rate of fertilizers, which increases the export rate of urea, diammonium phosphate (DAP) and monoammonium phosphate (MAP) as well as mixture of DAP and MAP in traditional off-season. Therefore, it will obviously strike fertilizer export in December and hurt the fertilizer producers, which is also not good for the fertilizer supply in the next spring.
Table:Export Tax of Fertilizer, 2010
|
Fertilizer |
Period |
Provisional tax rates |
Special rate |
|
Urea |
Off-season (Jan. 2010, Jul. 1st, 2010~ Sep. 15th, 2010 and Oct. 16th ~ Dec. 31st in 2010) |
The export price is lower than trigger price :7.0%(tax rate);
The export price is higher than trigger price:
Rate= (1.07- trigger price/export price) *100%. |
0 |
|
Peak season (Feb. 2010 ~ Jun. 2010 and Sep. 16th 2010~ Oct. 15th 2010 ) |
35% |
75% |
|
DAP, MAP and their mixture |
Off-season (Jan. 2010,Jun. 1st, 2010~ Aug. 31st, 2010 and Oct. 16th, 2010~ Dec. 31st, 2010) |
The export price is lower than trigger price :7.0%;(tax rate)
The export price is higher than trigger price:
Rate= (1.07- trigger price/export price) *100%. |
0 |
|
Peak season (Feb.2010 ~ May.2010 and Sep. 1st ,2010~Oct. 15th , 2010) |
35% |
75% |
Source: CCM International and 2010 Tariff
Note: Trigger price of urea, DAP and MAP is USD336.75/t (RMB2,300/t), USD585.65/t (RMB 4,000/t) and USD541.73/t(RMB 3,700/t) respectively. The exchange rate of USD against RMB is 6.83.
Table:Actual Export Tax of Fertilizer, Dec. 2010
|
Fertilizer |
Period |
Provisional tax rates |
Special rate |
|
Urea, DAP, MAP and the mixture of DAP and MAP |
Dec.1st, 2010 ~ Dec. 31st, 2010 |
35% |
75% |
Source: CCM International and Notification of adjusting the export rate of fertilizers
The government aims at restraining the fertilizer export and stabilizing domestic fertilizer price, because the agricultural means of production has a great effect on the agricultural product price. However, the key reason of current rising fertilizer price is the rising cost caused by rising raw materials price.
The new policy impaires the fertilizers as it will reduce the export and enhance domestic competition to bring down the domestic fertilizer price. Besides, the fertilizer industry was in meager profit or even run at a loss in 2009 and the first half year of 2010.
Source: CCM International