Fertilizer Import Quotas, Principles For Their Allocation And Application Procedures In 2008, issued by the Ministry of Commerce on September 19, 2007 and became effective on September 19, 2007
1. What are the types of fertilizer that the tariff quotas will be applied to in 2008? And what is the maximum cap?
Urea 3.3 million tons, diammonium phosphate 6.9 million tons and compound fertilizers 3.45 million tons.
2. What is the basis for determining tariff quotas?
Quotas are to be awarded according to applying units’ past importing records, production ability, size of operation, sales records and quota utilization rates.
3. What is the tax rate?
The internal tax rate is 1% and the external tax rate is 50%.
4. What kind of units can apply for tariff quotas?
Units that may apply for tariff quotas for trading state-owned fertilizer include agricultural production companies, the “three stages of agriculture” (land fertilizer, seeds and agricultural technology) and chemical fertilizer production enterprises that have an import base and convincing production records, as well as new applicants that meet the conditions. Units that may apply for tariff quotas for trading non state-owned fertilizer include enterprises of small-scale border trade and enterprises with foreign investment that have an import base and convincing production records, as well as other new applicants that meet the conditions. The two kinds of quotas can not be applied for simultaneously by the same unit.
5. How to apply for tariff quotas?
Units that meet the conditions set forth must apply to the Ministry of Commerce or institutions that have its authorization before October 2007. They must report in the application their respective importing radix, data on the quota they obtained in recent years, past importing records, and the kinds and amounts of fertilizers.