The total import tariff quota for fertilizers in 2021 was 13.65 million tons

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The total tariff quota for fertilizer imports in 2021 is 13.65 million tons. Author/Source: Sinochem New Network. Date: November 4, 2020. Clicks: 12. On October 30, 2020, the Ministry of Commerce issued Announcement No. 52 of 2020, stating that in accordance with the \"Regulations on the Administration of Goods Import and Export of the People’s Republic of China\" and the \"Interim Measures for the Administration of Tariff Quotas for Fertilizer Imports\", the Ministry has formulated the \"Total Tariff Quota for Fertilizer Imports in 2021, Principles for Allocation, and Related Procedures\", which are now published herein for compliance. Total quantity of tariff quotas for fertilizer imports in 2021, allocation principles and relevant procedures Article 1 Total quantity of fertilizer import tariff quotas The total quantity of tariff quotas for fertilizer imports in 2021 is 13.65 million tons. Of which, urea amounts to 3.3 million tons ； 6.9 million tons of diammonium phosphate ； 3.45 million tons of compound fertilizers. Article 2: Tariff Quotas for State-owned and Non-state-owned Trade. The tariff quotas for fertilizer trade under state ownership in 2021 were as follows: 2.97 million tons for urea, 3.52 million tons for diammonium phosphate, and 1.76 million tons for compound fertilizers. The state-owned trading enterprises, Sinochem Group Corporation and China Agricultural Means of Production Group Corporation, apply for tariff quotas within the total volume of state-owned trade. The quotas for the non-state trade of fertilizers in 2021 were as follows: 330,000 tons for urea, 3.38 million tons for diammonium phosphate, and 1.69 million tons for compound fertilizers. The non-state trading enterprises China National Chemical Engineering Corporation and Huaken International Trade Co., Ltd. have applied for tariff quotas within the total volume of non-state trade. Other enterprises choose to apply for state-traded tariff quotas or non-state-traded tariff quotas based on their actual import needs, with state-traded enterprises or non-state-traded enterprises acting as agents for the imports. Article 3 Allocation Principles: For the fertilizer import tariff quotas in 2021, an first-come, first-served allocation method will be applied. Any enterprise registered with the administrative department for industry and commerce may apply for import tariff quotas for fertilizers within the scope of its business operations. Article 4: Application Method For enterprises applying for fertilizer import tariff quotas, the principle of first-come, first-served applies, until all the available fertilizer import tariff quotas have been allocated. When applying for fertilizer import tariff quotas, the initial amount of quota that a company can apply for is determined based on past actual usage of such quotas. Within this initial quota limit, the company can apply for the \"Fertilizer Import Tariff Quota Certificate\" in multiple installments. After a company completes the customs clearance for importation or returns any unused import tariff quotas for fertilizers, it can apply for additional import tariff quotas for fertilizers again, up to the amount of the initial quota. Article 5: Initial tariff quota amounts. The initial amounts for 2021 are based on those for 2020, with adjustments made as follows: (1) For enterprises whose cancellation rate in 2020 was above 80%, the amounts are increased by 40% ； (II) For enterprises with a write-off rate of 50%–79% in 2020, the rate shall be increased by 20% ； (III) For those with a write-off rate of 25%-49% in 2020, it remains unchanged ； (IV) If the write-off rate in 2020 is below 25%, a 50% deduction shall be applied ； (5) For enterprises that had performance before 2020 but did not apply for a certificate of fertilizer import tariff quota in 2020, the starting quantity remains unchanged ； (VI) New applicant enterprises: Initial tariff quota of 2,000 tons. (7) For the initial application period in 2021, the tariff quota amount shall not exceed 500,000 tons, and shall not be less than 2,000 tons. Article 6 Application Materials: When applying for fertilizer import tariff quotas, enterprises shall submit to the agency entrusted by the Ministry of Commerce to issue such quotas (hereinafter referred to as the quota-issuing agency) the original or copies of the following materials, as well as their photocopies: (1) The “Application Form for Fertilizer Import Tariff Quotas” and a letter affirming the authenticity of the submitted materials ； (II) A legally valid import contract or an import contract based on a power of attorney ； (III) Bank letter of credit or other payment documents ； (IV) Bill of lading or other valid document proving ownership of the goods ； (5) Other materials required by the tariff quota administration authority ； (VI) New applicant enterprises that file their applications for the first time in 2021 must, in addition to providing the materials specified above, also submit their business license and enterprise code. Sino-foreign joint venture enterprises, Sino-foreign cooperative enterprises, and foreign-funded enterprises must provide approval certificates or receipt of registration obtained in accordance with the Interim Measures for the Registration and Administration of the Establishment and Changes of Foreign-Invested Enterprises. Article 7: Application, acceptance, and issuance of the \"Certificate of Tariff Quota for Fertilizer Import\" The agencies responsible for issuing tariff quotas are tasked with accepting applications from local enterprises for tariff quotas on fertilizer imports. They shall issue the \"Certificate of Tariff Quota for Fertilizer Import\" to those enterprises whose application documents are complete and meet the requirements within 5 working days, while retaining copies of the enterprise’s application documents. The agencies responsible for issuing tariff quotas may submit, by mail, courier, or in person, to the Administrative Services Hall of the Ministry of Commerce, copies of the applications from enterprises that meet the requirements and wish to obtain import tariff quotas for fertilizers, along with copies of their business licenses, enterprise identification numbers, and approval certificates for Sino-foreign joint ventures, Sino-foreign cooperative enterprises, and foreign-funded enterprises (or registration receipts obtained in accordance with the Interim Provisions on the Registration and Management of the Establishment and Changes of Foreign-Invested Enterprises). These documents should also be sent to the Quotas and Licenses Bureau of the Ministry of Commerce. After being reviewed and filed by the Department of Foreign Trade, Ministry of Commerce, one may then apply to the tariff quota issuing authority for a certificate of import tariff quota for fertilizers. Article 8: Validity, Amendment, and Loss of the Certificate of Tariff Quota for Fertilizer Imports. The validity period of the Certificate of Tariff Quota for Fertilizer Imports is 3 months, with the deadline not exceeding December 31, 2021. In the event of a delay or change, the process must be repeated; the old certificate is revoked and a new one is issued, with the original certificate number indicated in the remarks section. In the event that the \"Certificate of Fertilizer Import Tariff Quota\" is lost, the enterprise shall, within 10 working days, file a report for loss with the original authority that issued the tariff quota and at the customs port specified on the certificate. Upon verification, the original customs quota issuing authority issues a new certificate and indicates the original certificate number in the remarks column. Article 9: Verification of the use of the \"Certificate of Tariff Quota for Fertilizer Imports\" Within 10 working days after importing the goods, the enterprise shall submit a written verification letter bearing the company’s official seal to the authority responsible for issuing tariff quotas in order to have the use of the said certificate verified. The verification letter must include details such as the number of the fertilizer import tariff quota certificate, the customs declaration number, the quantity imported, the date of declaration, and the port of entry. The pre-authorized used tariff quotas are not included in the initial amount of tariff quotas that a company is eligible to apply for; the company can apply for a \"Certificate of Fertilizer Import Tariff Quotas\" again based on the pre-authorized quantity. After completing all the procedures for making foreign currency payments and customs clearance, the enterprise must submit the customs declaration form and the payment proof to the authority responsible for issuing tariff quotas in order to formally have the \"Certificate of Tariff Quotas for Fertilizer Imports\" cancelled. The formal cancellation procedures must be completed within 3 months after customs clearance. For enterprises that truly need to defer the payment of foreign exchange, they must issue a letter explaining the situation and commit to submitting the overseas remittance application form (enterprise version) issued by the bank to the authority responsible for issuing tariff quotas in order to complete the formal verification process after making the payment. Article 10 Return of Unused Certificates for Import Tariff Quotas for Fertilizers Enterprises must return any unused or partially used certificates for import tariff quotas for fertilizers to the authority that issued those quotas within 15 working days after the expiration date of such certificates. The amount of unused fertilizer import tariff quotas returned by enterprises is included in the total national amount of unused fertilizer import tariff quotas. Article 11 Supervision and Management of the Verification of the \"Certificate of Tariff Quota for Fertilizer Imports\" The Quota and License Administration Bureau of the Ministry of Commerce is responsible for overseeing and managing the verification process of the \"Certificate of Tariff Quota for Fertilizer Imports\" across the country. It will monitor and publish on a quarterly basis the verification rate for such certificates, which is calculated as the amount of certificates that have been verified (including those pre-verified) divided by the total number of certificates applied for by the enterprises. The Quota and License Administration Bureau of the Ministry of Commerce urges the agencies responsible for issuing tariff quotas to remind enterprises whose cumulative utilization rate is below 25% by the end of the first quarter to return any unused tariff quotas promptly. Enterprises with a cumulative utilization rate below 25% by the end of the second quarter are given warnings, while those with such a rate below 25% by the end of the third quarter face measures such as a 50% reduction in their initial tariff quota amounts and a suspension in the issuance of new \"Fertilizer Import Tariff Quota Certificates\". The company’s annual write-off rate will serve as the basis for determining the amount of tariff quota allocated to that company for the following year. Article 12: Publication of the unutilized import tariff quota for fertilizers. When the remaining amount of the import tariff quota for fertilizers is less than 20% of the total annual quota, the Quota and License Administration Bureau of the Ministry of Commerce will publish the national remaining amount of the import tariff quota for fertilizers every two weeks. Article 13: Relevant responsibilities of the enterprise The applying enterprise shall comply with relevant laws and regulations on work safety and similar areas, be responsible for the accuracy of the materials it submits, and issue a commitment letter stamped with the enterprise’s official seal. Companies that forge or alter the materials submitted will be held legally accountable. Those who forge, alter, or buy and sell the \"Fertilizer Import Tariff Quota Certificate\" will be held criminally liable. For enterprises that commit the aforementioned illegal acts, the tariff quota administration authority will not accept their applications for a \"Fertilizer Import Tariff Quota Certificate\" for 3 years. Article 14: Other matters. As of December 15, 2020, the tariff quota administration authority shall accept applications for fertilizer import tariff quotas and issue the 2021 \"Fertilizer Import Tariff Quota Certificates\". Article 15: The Ministry of Commerce is responsible for interpreting this announcement.