According to the website news of the Ministry of Finance, China government has adjusted some import and export tariffs since January 1, 2019. The news pointed out that in order to adapt to the reform needs of the export management system, promote the structural adjustment, quality improvement and efficiency improvement of the energy resources industry, since January 1, 2019, chemical fertilizers, apatite, iron ore, slag, coal tar, 94 items such as wood pulp are no longer subject to export tariffs.
It is known that in 2018, China government imposes zero tariffs on exports of urea, fertilizers such as ammonium chloride, ammonium sulfate, monoammonium phosphate, diammonium phosphate, and calcium triple superphosphate. Ad valorem rate of potassium nitrate and phosphorus and potassium binary compound fertilizers is 5%, the potassium sulphate and potassium chloride is levied at 600 yuan/ton, and NPK ternary compound fertilizer is levied at 100 yuan/ton.
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. Among them, the cumulative export of urea was 1.8 million tons, down 55.0% year-on-year; the total export of diammonium phosphate was 7.1 million tons, an increase of 18.7%; the cumulative export volume of NPK compound fertilizer increased greatly, and the export from January to November was 341,100 tons.
According to fertilizer industry analysis, this tariff adjustment is a major positive for ternary compound fertilizer and potash fertilizer. The elimination of export tariffs on potash (including potassium-containing fertilizers) will increase the international competitiveness of domestically produced potassium sulfate and drive up the price of domestic potassium chloride. The ternary compound fertilizer is levied from 100 yuan per ton to the current cancellation. It is expected to further promote the export of domestic compound fertilizer, which is of great significance for Chinese compound fertilizer enterprises to export products, technologies, services and brands.