Fertilizer export policy restrictions reduce

Due to the decline in China's fertilizer exports in 2012, the restrictive orientation of the fertilizer export policy in 2013 has been significantly weakened. This move aims to promote export recovery and help some Chinese fertilizer companies get out of trouble.

1, the tax rate is reduced. In the off-season urea, the export tariff rate was reduced from 7% in the previous year to 2%, and the DAP, MAP, TSP, and nitrogen-phosphorus compound fertilizers were reduced from 7% to 5%. In the peak season, when the original tariff rate for the above 35% of the fertiliser varieties was cancelled, only 75% of special tariffs were imposed. At the same time, as the most severe NPK export restrictions, its export tax rate also dropped from 95-110% in the previous year to 80%.

2. The off-season export term is extended. Among them, the export season of DAP, MAP, TSP, and nitrogen-phosphorus compound fertilizers was adjusted from May to September of the previous year to May 16 to October 15, extending for two weeks.

3, off-season export benchmark price increases. The benchmark export prices of urea, DAP and MAP were respectively increased from 2,100 yuan/ton, 3,400 yuan/ton and 2,900 yuan/ton in the previous year to 2,260 yuan/ton, 3,500 yuan/ton and 3,200 yuan/ton, which greatly reduced the same price. Under the pressure of taxation. Take urea as an example. At the export price of 2,500 yuan/ton, the applicable tax rate will drop from 23.0% in the previous year to 11.6%. As the above-mentioned export benchmark price level is also significantly higher than the domestic price level, it will also have a significant pull effect on the domestic market.

The relaxation of export policies will have a clear positive effect on the fertilizer market in 2013. It is expected that there will be a substantial recovery in fertilizer exports, of which the recovery of urea and DAP exports will be no less than 10%.