Economy

China hikes fertilizer tariff to stem exports

(Xinhua)
Updated: 2010-12-01 09:54

BEIJING - China will impose a 110 percent tariff on some fertilizer exports in December in order to ensure adequate domestic fertilizer supplies for the coming spring, according to a statement released Tuesday by the Ministry of Finance (MOF).

The new export tariff includes a 35 percent increase in the temporary tariff and 75 percent in a special tariff.

Those fertilizer affected by the new tariff include urea, diammonium hydrogen phosphate, ammonium dihydrogen phosphate, and the mixture of diammonium hydrogen phosphate and ammonium dihydrogen phosphate.

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The MOF said the tariff hike seeks to curb fertilizer exports, ensure domestic fertilizer supplies for the coming spring and help control the rapidly rising prices of domestic agricultural products.

Prior to December, China had been implementing the slack season tariff for fertilizer. Under those rules, the exporter would pay a 7 percent tariff if the price is lower than 2,300 yuan?($345) a ton, and if the price is higher than 2,300 yuan, the exporter would pay a 100 percent tariff for the difference between the price and the 2,300 yuan.