China has announced import tariff quotas on fertilisers 2018 11-13-2017

At the end of October, the Ministry of Commerce of the People's Republic of China (MOC) announced officially the import tariff quotas on fertiliser for the year 2018. According to the announcement, the total quantity of imported fertiliser quotas is 13.65 million tonnes, shared by 3.30 million tonnes of urea, 6.90 million tonnes of monoammonium phosphate (MAP) and 3.45 million tonnes of compound fertilisers.


The state-owned enterprises in China are the main consumers of fertilisers, accounting for the consumption of 2.97 million tonnes urea, 3.52 million tonnes MAP, and 1.76 million tonnes compound fertilisers.

The quota, under which the imported goods could enjoy favourable tariff for privately owned companies in China are 330,000 tonnes urea, 3.38 million tonnes MAP, and 1.69 million tonnes compound fertilisers.

Important for importers of fertilisers to China, the tariff quotas will be distributed on a first-come, first-served basis. Hence, the earlier companies are applying for the imports of fertilisers to China, the better are the chances they will enjoy the lower duty rate. The enterprises registered with Industrial & Commercial Administrations may apply for the tariff quota within their business scopes.

In the application for chemical fertilizer import tariff quotas, an enterprise's initial quota application will be dependent on past actual use of quota, and within the initial quantity, the enterprise may apply for Chemical Fertilizer Import Tariff Quota Certificate in several times. After import or after the return of unused quota, the enterprise may re-apply for the quota within initial quota quantity.

For exporters of fertiliser to China, the system implies that Chinese companies are eager to import fertilisers in the early period of the year. Hence, manufacturers should have this demand in mind when offering their fertilisers to the Chinese market.

Importers, which have never applied for this before, can only apply for 2,000 tonnes, while the limitation for other companies is between 2,000 tonnes and 500,000 tonnes.

Import and export tariffs changes in 2017

In 2017, the export tariffs on some goods like nitrogen fertilizers, phosphate fertilizers and natural graphite have been eliminated. Eight varieties of goods remained under tariff quota management: A temporary tariff rate of 1% was applied to urea, compound fertilizers and ammonium hydrogen phosphates.

China’s Trade regulations for fertilisers

As a member of the World Trade Organisation, China is constantly reducing its administrative barriers for trading. As a result, all different types of enterprises, no matter state-owned or private ones, are allowed to register for trading rights,

The VAT on imported goods is at a basic rate of 17% for general goods and at a lower rate of 13% for fertilisers, besides foodstuffs, grains and edible vegetable oils, gas and other energy products for domestic use, books and newspapers, magazines, and feedstuff. Foreign-invested export processing enterprises are required to pay VAT on imported raw materials, parts and components. Upon exports, the paid VAT will offset the VAT payable on the part of domestic sale goods. The excess will be rebated. 

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