Two weeks ago, may be adjusted by the fertilizer export tariff policy in 2013 news in the industry spread, say changes in the market are mainly two aspects: first, fertilizer off-season export tariffs from 7% down to 2%; second, fertilizer off-season export time will expand four to five months.

Multiple interviews informed that next year's fertilizer export tariff policy should be adjusted. As to cut the proportion of the Ministry of Finance recommended fertilizer off-season export tariffs from 7% to 5%, down only two points.

        Not only that, this month's upcoming new tariff Tariff Implementation Plan ("2013") file contains not only the tariff changes, fertilizer and steel, nonferrous metals and some agricultural products import and export duties will also involve additions and adjustments (tentative tax rate).

Typically, this file annual consultation with businesses and the Customs Tariff Commission of the State Council, the opinions of experts led by the Ministry of Finance, formed in mid-December, according to these views with the Ministry of Commerce, Development and Reform Commission and the Ministry of Agriculture and other departments to discuss the overall program to pay NPC audit through the final approval of the Premier, released by the State Council Tariff Commission. The program was implemented from January 1 of the second year.

The adjustments mainly for domestic products, overcapacity more serious policy more to encourage exports and allow enterprises to participate in international competition, appropriate to reduce the adverse impact of the artificially high tariffs on certain Chinese industry, promote excess capacity digestion, and that the main direction of the lower part of the import and export tariffs on products.

Galaxy Futures Fu Peng, chief macroeconomic adviser, said: "this line of thinking is that domestic demand will remain relatively stable in the next few years, to rely on overseas, even Third World countries demand to boost and digestion China domestic capacity, otherwise even the country can not digest, this alternative requirements in the transition process is necessary. Financial will tax down, may end up not just tax relief, and even export tax rebates to stimulate overseas. needs, this is possible. "Fu Peng said.

Two weeks prior to the meeting

Tax adjustment "on the fertilizer industry, our industry associations and five business leaders to the Ministry of Finance, the National Development and Reform Commission, the Ministry of Commerce and other departments jointly have talked many times a fertilizer industry association said," In early November, we also about leadership of the Ministry of Finance, the Financial Secretary made a special report. "

        Not only from the fertilizer industry to participate in this meeting, and also involves a lot of iron and steel, chemicals, fertilizers, raw materials, agricultural products and other industries.

        Ministry of Finance Tax Policy Department, was to devote the day to solicit the opinions and suggestions of the different sectors of the import and export tax adjustment in 2013, the participants mainly from the Expert Advisory Committee of the State Council Tariff Commission, the majority of these people are industry associations and business leaders.

Speak for five minutes each industry representatives, the meeting was presided over by the Customs of the Ministry of Finance Secretary Wang Wei, the purpose of the meeting is to prepare for the 2013 tariff adjustment.

Wang Wei, speaking at this meeting: "the overall direction of the 2013 tariff adjustments to tax cuts to encourage the import and export of many sectors of the living environment is very difficult because of the current economic situation is not good, overcapacity and imported raw materials overseas pressure is larger than the production and management are great difficulties in tax policy will make adjustments accordingly. "

Fertilizer exports as a microcosm of the overall foreign trade point of view, not too much.

Just attended the Fair last month, the Commerce Department said: "the current export situation is quite bad, worse than 2008."

Industry views

        This year, fertilizer export situation is grim, leading to intensified competition in the domestic market, the level of corporate profits decline, the industry needs through exports to ease capacity pressures. "In the case of the fertilizer industry operating pressure, the export tariff adjustment is conducive to enterprise out of the crisis." A Zhongnong Group executives said the reporter. The data show that in the first three quarters, China's chemical fertilizer production of 57.32 million tons, a year-on-year growth of 13.7%; exports of 10.75 million tons, down 11.7%. Sub-products, of urea export 2.6 million tons, a year-on-year rise of 36.2%; DAP export 2.7 million tons, down 6.3%; the monoammonium phosphate exports of 38 million tons, down 51.2%.

        In this meeting, the delegates of the fertilizer industry three points.

        First, starting next year onwards, cancel the fertilizer export "window period" set; Second, the fertilizer industry is currently taken a minimum of 7% of export tariffs, reduced to 1% of the domestic production capacity to encourage exports moderate digestion; Third , it is recommended that the exemption from the tax on imported sulfur and domestic sulfur raw material costs in order to reduce the domestic fertilizer business. "Window period" refers to the state in a specific period of some import and export goods, the product of preferential tariff reduction period. Nitrogen and phosphate fertilizer in order to ensure domestic supply of fertilizers, the implementation of more stringent export restrictions policy, nitrogenous fertilizer, phosphate fertilizer exports from the time will be divided into the off-season and the season, to impose high tariffs of 110% during the peak season, in order to ensure domestic supply, low season export prices set export tariffs, the minimum tax rate of 7%.

According to the tariff policy published in early 2012, the nitrogen fertilizer high season from January to June, November and December, the off-season from July to October; phosphate fertilizer High season is from January to May, 10-December, the off-season from June to September.

The Commerce Department said: "The significance of the window period of weakening."

Urea exports, for example, follow the system of the short season, July to October is divided into the off-season, the 7% tariff. Purported prepared fertilizer distributors period is missed, to avoid domestic fertilizer prepared and export conflict. The nearest few years the industry changes, there is not much sense in the practice of this division peak seasons.

The first is the Export Free Trade Zone "," set in Hong Kong ahead of the practice. Second, in the context of overcapacity, do not have too many dealers in advance stocking. As a result, there have been season fertilizer prices, get down, not go up with the price of fertilizer season paradox.

At present, the domestic fertilizer industry, there is a serious surplus, with the increase in domestic urea production plant (an increase of about 400 million tons annually), this problem is also worsened Although there will be some small urea business failures, but the overall size is still very large. In 2013, a conservative estimate of the the domestic urea enterprises total capacity will be over 75 million tons.

The fertilizer industry is currently taken a minimum of 7% of the export tariffs reduced to 1%, the Ministry of Agriculture may have opinions. "Commerce Department says one person. Because the country down urea export tariffs, while also taking into account the interests of farmers. Urea because the tariff reduction triggered massive exports, result in the highest bid of the domestic market Huojin next year, to the detriment of the interests of farmers, it is not the government wished. "We only mention these three recommendations, estimates can not be met in full, but there will certainly be part of the implementation of the fertilizer industry is currently operating the most difficult industry, enterprises generally losses in urgent need of a national policy support." The insider said of the Fertilizer Industry Association, "Some people may recommend the fertilizer off-season export tariffs reduced to 1% to modify reduced to 2%. recently heard news is, however, that may only decreased by 7% to 5%, which is only reduced by two percentage points. these still are not finalized. "We also recommend, if you can not cancel the sulfur tax, you should also correct treatment of the difference between imported and domestic tax policy, we have adopted the policy of domestic sulfur a 50% of the tax incentives, but imported sulfur industry believe that should be imported sulfur also enjoy tax concessions. "Informed sources said the Fertilizer Industry Association.

Sulphur is one of the main raw material for fertilizer production, China is a major importer of world sulfur, to import more than 30 million tons of sulfur annually.

China Steel Industry Association Deputy Secretary-General Qu Xiuli also participated in the meeting. "As early as two months ago, the departments have to adjust the tax problems of the steel industry, and to seek their views." She said. "Our proposal is to restore the export tax rebate policy canceled on July 15, 2010, in the domestic market in the doldrums, demand is not the case, as far as possible to the steel industry to have some tax incentive policies." Qu Xiuli .

July 15, 2010, the Ministry of Finance and the State Administration of Taxation on the abolition of the export tax rebate of some of the goods, explicitly canceled the export tax rebate of 406 tariff lines of products, including steel, non-ferrous metals and building materials. The tax rebate adjustment policy, depending on the product, the abolition of the tax rebate rate from 5% to 10%, involving the steel industry hot rolled sheet, plate and 48 varieties of steel. By the impact of large-scale iron and steel enterprises in export volume more obvious, about 40% of the exports of steel will be affected.

Qu Xiuli said: "The cancellation of export tax rebates, the impact of the iron and steel enterprises is great we have been calling, and the hope that the Government will be able to restore this policy."

To plate, for example, general plate export prices are above $ 600 per ton, in accordance with the original export tax rebate policy, every export one ton, can get a discount of a few hundred dollars. Even to catch up with some of the varieties of steel margins.

Some related to the varieties of long steel tariffs the export levy tariffs adopted by the State, these products are treated as two high a capital products, the normal 17% tax on the basis of levy of 5% to 10 % tariff. "This industry is of course also want to be able to appropriate to reduce or eliminate tariffs, to encourage domestic excess capacity able to digest part of the international market, but this part of the levy tariff adjustment is unlikely." She said.

Ministry of Commerce, a source said: "has received the initial program of the Ministry of Finance handed over, we also consulted the views of the enterprise. Reasonable opinion of the majority of enterprises through us will agree, but some may not be involved in two high a capital passed by the Council. "