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Detailed explanation of fertilizer import and export tariffs in 2017 Author/Source: Front fire date: 2016-12-26 Click rate: 35 (Detailed interpretation of tariff policy, corrected clerical errors in previous quick interpretation ； Explained the classification rules for small packaging specifications below 10 kg ； Introducing the changes in phosphate fertilizer tariff numbers...) Detailed explanation of the 2017 fertilizer import and export tariff policy On December 23, 2016, the Tariff Commission of the State Council officially announced the "2017 Tariff Adjustment Plan". The adjustment of import and export tariffs on fertilizer-related products and raw materials is as follows:: 1. The overall import tariff rate remains unchanged ； 2. Except for listed potassium-containing fertilizer varieties, export tariffs on other fertilizers will be reduced to zero. ； 3. The total export quota of phosphate rock is reduced, and the export tariff rate is reduced. ； 4. The import and export tariff numbers of organic and inorganic compound fertilizers and phosphate fertilizers such as ordinary calcium and heavy calcium have changed. http://img8.fert.cn/image/20161226/20161226090292059205.jpg The overall import tariff remains unchanged. In 2017, China will continue to implement import tariff quota management for urea, diammonium phosphate, and nitrogen, phosphorus, and potassium ternary compound fertilizers. The nominal import tariff rate within the quota is 4%, and the actual provisional tariff is 1%. When importing these three fertilizers outside the tariff quotas, the most-favored-nation tax rate is 50% and the general tax rate is 150%. Over the years, actual import volumes of these three fertilizers have been well below TRQ amounts. For the import of nitrogen fertilizers other than urea, China’s promised most-favored-nation import tax rate is 4%. For imported phosphorus compound fertilizers other than diammonium phosphate and nitrogen-phosphorus-potassium ternary compound fertilizer, China's promised most-favored-nation import tax rate is nominally 3%, but is actually subject to a tentative tariff of 1%. For the import of various potassium fertilizers, China's promised most-favored-nation import tax rate is nominally 4%, but is actually implemented at a tentative tariff of 1%. from bilateral agreements signed with China * * or region and from least developed * * The import of these fertilizers that are not subject to tariff quota management can be based on the agreement or China * * Commitment to implement zero tariff at a minimum. In 2017, China implemented a tentative low tax rate on the import of some fertilizer raw materials.: The nominal MFN tax rate for sulfur is 3%, and the MFN nominal tax rate for sulfuric acid is 5.5%, both of which implement a tentative tax rate of 1%. ； The MFN nominal tax rate for phosphate rock and synthetic ammonia is 5.5%, and the tariff is tentatively set at zero. All unlisted potash-containing fertilizers are exported at zero tariff. Compared with 2016, the main changes in China’s fertilizer export tariff policy in 2017: Eliminate export tariffs on nitrogen fertilizers such as urea and ammonium chloride ； Eliminate export tariffs on heavy calcium, ordinary calcium and other phosphate fertilizers ； Eliminate export tariffs on compound fertilizers such as monoammonium phosphate, diammonium phosphate, nitrogen-phosphorus binary fertilizers, etc. ； Export tariff on nitrogen, phosphorus and potassium ternary compound fertilizer reduced from 30% to 20% ； Export tariffs on potash fertilizers such as potassium chloride, potassium sulfate and potassium nitrate remain unchanged. According to the new plan, China will retain export tariffs on fertilizers containing potassium listed in the tariff in 2017, and all other fertilizers will be exempt from export tariffs. Fertilizers containing potassium listed in the tariff include: Potassium chloride (specific amount 600 yuan/ton), potassium sulfate (specific amount 600 yuan/ton), potassium nitrate (ad valorem 5%), potassium-containing mineral fertilizer (ad valorem 30%), nitrogen, phosphorus and potassium ternary compound fertilizer (ad valorem 20%), phosphorus and potassium binary compound fertilizer (ad valorem 5%). For other fertilizers that may contain potassium, according to the goods classification rules, when exported, they will be declared according to the HS code containing unlisted potassium, and they will be exempted from export duties in accordance with the law. Such HS codes include 31051000, 31059010 and 31059090. HS31051000 refers to various goods of Chapter 31 "Fertilizer" made into sheets and similar shapes or with a gross weight of not more than 10 kilograms per package. Mineral potassium fertilizers such as potassium chloride, potassium sulfate, potassium magnesium sulfate, as well as nitrogen, phosphorus and potassium ternary compound fertilizers, and phosphorus and potassium binary compound fertilizers are made into packaging specifications with a gross weight of no more than 10 kilograms. They can be declared as 31051000 when exported, and no export duties are levied. Because potassium nitrate is classified as Chapter 28 goods, even if it is made into specifications with a gross weight of no more than 10 kilograms per package, it will not be declared under 31051000. For nitrogen-potassium binary compound fertilizers other than potassium nitrate, whether produced by compound or compound (blended) methods, they belong to 31059090 "Other (unlisted) fertilizers" according to the classification rules, and no tariffs are levied on exports. "Organic-inorganic compound fertilizers" that meet the classification requirements of HS31059010, regardless of whether they contain potassium or not, are not subject to export duties. In addition, according to the Ministry of Commerce Announcement No. 60 of 2016, China will continue to implement quota management on phosphate ore exports in 2017, and the total export quota will be reduced from 1 million tons in 2016 to 800,000 tons. The export tariff on phosphate rock was reduced from 20% to 15%. . China's tariff code adds organic-inorganic compound fertilizers. The import and export of organic-inorganic compound fertilizers have not been separately listed in the tariff code. The classification of China's import and export goods adopts the International Customs Organization's "Coordinated Commodity Description and Coding System" (HS first 6 positions), and sets its own subheadings (HS 7th and 8th positions) based on the International Customs Organization's classification principles. In the current "Coordinated Commodity Description and Coding System", organic-inorganic compound fertilizers have not been classified as separately listed goods due to small international trade volume and other reasons, but are classified in (HS310590) "Other Fertilizers". Therefore, the trade volume and trade volume data of organic-inorganic compound fertilizers cannot be obtained from the international trade statistics of various countries. According to China's "2017 Tariff Implementation Plan", starting from January 1, 2017, China will split "Other Fertilizers (HS31059000)" into "Organic-Inorganic Compound Fertilizers (HS31059010)" and "Other Fertilizers (HS31059090)" in its domestic subheading. In other words, starting from 2017, China Customs will separately count the import and export data of organic-inorganic compound fertilizers. “"Organic-Inorganic Compound Fertilizer (HS31059010)" has clear product standard requirements. The "2017 Tariff Implementation Plan" stipulates that goods with tariff number HS31059010 refer to fertilizers that comply with the standards of "Organic-Inorganic Compound Fertilizers" (GB18877-2009) ； And clearly stipulated, such as GB18877-2009 * * Standards are subject to updates and replacements, please follow the latest * * Standard implementation. The current GB18877-2009 standard applies to organic-inorganic compound fertilizers made from organic materials such as human and livestock manure, animal and plant residues, and agricultural product processing leftovers after fermentation and harmless treatment, and then added with inorganic fertilizers. The standard does not apply to organic-inorganic compound fertilizers with added humic acid. The quality requirements for organic-inorganic compound fertilizers are shown in the table below. http://img8.fert.cn/image/20161226/20161226090380428042.jpg In addition, according to the current VAT refund and exemption policy, unlike the export of other chemical fertilizers that are subject to export VAT (the tax rate is 13%), the export of organic-inorganic compound fertilizers is regarded as domestic sales and is exempt from export VAT (requires filing with the tax authorities). Tariff codes for heavy calcium and calcium chloride and other phosphate fertilizers were changed. In 2017, China's import and export tariff codes were changed simultaneously with the "Coordinated Commodity Description and Coding System" issued by the International Customs Organization. After the new version of the harmonized system comes into effect on January 1, 2017, China will change the tariff numbers of imported and exported goods accordingly based on the adjustment of the first 6 digits of the International Customs Organization HS code. In this edition revision, the coding of phosphate fertilizer products has been adjusted. In the 2012 version of the International Customs Organization's "Harmonized Commodity Description and Coding System", there are two 6-digit subheadings in the item "3103" mineral phosphate fertilizers and chemical phosphate fertilizers.: 310310 Superphosphate and 310390 Other single phosphate fertilizers except superphosphate. In accordance with the International Customs Organization Convention, when each contracting country adopts the Harmonized Commodity Description and Coding System, in view of regulatory needs such as trade statistics, inspection and quarantine, and export tax rebates, they can add digits after the 6-digit subheading to further subdivide the commodities. However, the subdivision of goods in a contracting country shall not exceed the classification rules of the top six items. As mentioned above, the organic-inorganic compound fertilizers added by China have added the 7th to 8th domestic sub-item tax code while the first 6 digits remain unchanged. By the end of 2016, the 310310 superphosphate item in China’s import and export tariffs was subdivided into two categories: 31031010 Heavy superphosphate and 31031090 Other superphosphates. During import and export customs declaration, the 8-digit product number of heavy superphosphate should be reported as "31031010", and the 8-digit product number of ordinary calcium phosphate and rich superphosphate should be reported as "31031090". After the version change in 2017, the 8-digit tariff number for heavy superphosphate was changed to "31031110", and the 8-digit tariff number for ordinary calcium phosphate was changed to "31031900". Other superphosphates (rich superphosphates) are divided according to content. Those with a phosphorus pentoxide (P205) content of 35% or more by weight shall be declared under the tariff number "31031190" ； If the content is less than 35%, it shall be declared as "31031900" (the same as ordinary calcium phosphate). In 2017, all superphosphate export tariffs are zero-tariff, and exports with incorrect HS tax numbers do not involve evading tariffs. However, the customs can still give a warning or impose a fine of not less than 1,000 yuan but not more than 10,000 yuan in accordance with the law on the grounds that it affects the accuracy of customs statistics. Therefore, import and export enterprises should pay attention to changes in the tariff numbers of relevant goods and make preparations in advance. (Huachang Li Haofeng)