On December 24, last year, the Ministry of Finance promulgated the detailed rules of import and export tariffs for 2019, which clearly indicated that since January 1, 2019, no export tariffs were imposed on 94 commodities such as fertilizer, apatite, iron ore, slag, coal tar, wood pulp, etc. The most significant change for compound fertilizer was that the export tariff of ternary fertilizer was adjusted from 100 yuan per ton in 2018 to zero tariff.

From 2016 to now, the adjustment of compound fertilizer export tariff from price quota to quantity quota and then to zero tariff fully reflects the trend of gradual loosening. Although ternary fertilizer accounts for a small proportion of total compound fertilizer export, according to the statistics of Chinese Customs, the cumulative export of nitrogen, phosphorus and potassium ternary compound fertilizer in January-March 2019 was 191,000 tons, an increase of 640.1% over the same period of last year. Such an obvious increase is bound to occur. It will have a great impact on the domestic compound fertilizer market.

Firstly, alleviate excess capacity. As we all know, the total production capacity of compound fertilizer in China has already been seriously excessive, the overall utilization rate is less than 40%, and the abolition of export tariffs is not only conducive to alleviating the domestic excess production capacity of compound fertilizer, but also to a certain extent, improving the international influence of our compound fertilizer products. Especially under the background of increasingly fierce domestic market competition, the increase of export may enhance the brand of enterprises. Confidence, through participating in international competition to improve the quality of their products, for the future stable development of China's compound fertilizer market to lay a strong heart.

Secondly, boost domestic market. Over the past two years, the domestic compound fertilizer market has been in a downturn, and the raw materials for production fluctuate frequently. However, the reaction of compound fertilizer and agricultural products is slow. Enterprises themselves are under great pressure from upstream and downstream. After the abolition of tariffs, the export road or another way out for domestic production enterprises. However, according to the current import and export market, the export price is much lower than the import price. It is not a long-term plan to exchange low price for sales volume. Only enterprises take the initiative to improve product quality can they have the opportunity to really drive domestic market in the international market.

Finally, export countries are diversified. It is understood that in 2018, China's ternary compound fertilizer exports to more than 70 countries and regions, of which the main export destination is Southeast Asia, such as Myanmar, Vietnam and other agricultural development-oriented countries; from the source point of view, mainly from Yunnan, Fujian, Jiangsu, Hubei and other places. The implementation of zero tariff in 2019 will also speed up the export of three yuan fertilizer to the countries and regions along the "one belt" road, including 65 such countries as China, with 63% of the world's population, 29% of the world's total economy, and 35% of the world's total foreign trade.

_Generally speaking, the implementation of zero export tariff is good for compound fertilizer market. However, due to the small export base of compound fertilizer in China, the frequent fluctuations of raw materials market and a series of uncertainties such as environmental protection and safety, will affect the market for a long time, compound fertilizer enterprises will still face considerable pressure.