2013 Urea and Ammonium Phosphate Tariff Reduction of Fertilizer Stocks

Yesterday (December 17th), the Customs Department of the Ministry of Finance issued a notice on the website of the Ministry of Finance and decided to adjust the import and export tariffs of certain goods from January 1, 2013. Urea and ammonium phosphate were impressively listed. Among them, the benchmark price of urea was raised from 2,100 yuan/ton to 2,260 yuan/ton, and the provisional tax rate was lowered by 2% from 7%. Taking the export price of 2,300 yuan/ton as an example, the adjusted tax-to-charge ratio is 275 yuan/ton less than before adjustment.

Hui Hui, an analyst at ICIS Fertilizer Industry, told the Daily Economic News reporter that the adjustment of the tariff is aimed at encouraging exports, which is a good thing for the entire fertilizer industry.

The export of ammonium phosphate was extended for one month. The Customs and Excise Department notice pointed out that the urea export benchmark price in 2013 was 2260 yuan/ton, when the export price was not higher than the benchmark price, the provisional tax rate was 2%; when the export price was higher than the benchmark price The provisional tax rate is calculated as (1.02-base price / export price) × 100%. The peak urea season is from January to June and from November to December. The special export tax rate is 75%. The resulting tax rate is 77%.

Ammonium phosphate is also adjusted along with urea. Among them, the export base price of diammonium phosphate is 3500 yuan/ton, when the export price is not higher than the benchmark price, the provisional tax rate is 5%; when the export price is higher than the benchmark price, the tentative tax rate is calculated as (1.05-base price / export price) × 100%. The peak season of diammonium phosphate is from January 1 to May 15, from October 16 to December 31, and the special export tax rate is 75%, from which the tax rate is 80%. As for ammonium dihydrogen phosphate, except for the export base price, it was adjusted to 3,200 yuan/ton, and the rest was the same as that of diammonium hydrogen phosphate.

“Daily Economic News” reporter noted that the urea export base price for 2010 and 2011 is 2,100 yuan/ton, when the export price is not higher than the benchmark price, the provisional tax rate is 7%; when the export price is higher than the benchmark price, The tentative tax rate is calculated as (1.07-base price / export price) × 100%. The urea season is January to June and November to December. The applicable tax rate for export during peak season is 110%. In 2010 and 2011, the export base prices of diammonium hydrogen phosphate and ammonium dihydrogen phosphate were 3,400 yuan/ton and 2,900 yuan/ton, respectively, and the provisional tax rate was 7%, and the peak season (January to May and October) December) The applicable tax rate for exports is 110%.

This shows that this time the urea export was raised by the benchmark price and the tax rate was lowered. In addition to the above two adjustments at the same time, the export time of the ammonium phosphate was extended by another month.

Urea export taxes and fees decreased by 275 yuan/ton. What is the impact of this tariff adjustment? Taking urea as an example, assume that the export price in the off-season is 2,300 yuan/ton, the tax rate before adjustment is (1.07-2100/2300) x 100%, the tax rate is 15.7%, and the tax rate after adjustment is (1.02- 2260/2300) × 100%, the tax rate is 3.74%, and the tax savings after adjustment are 275 yuan/ton.

After being informed by the "Daily Economic News" reporter that tariff adjustments had occurred, the staff of Luxi Chemical (000830, closing price of 3.91 yuan) admitted that this was good; IC Hui Huihui, an analyst of the fertilizer industry, agreed with this statement, she pointed out this time. Tariff adjustments are designed to encourage exports. There have been rumors in the industry that the export tariffs for fertilizers will be adjusted in 2013. This is a good time to cash out. But she also said: "Because the export of urea off-season will not begin until July 2013. What happens to the price will depend on the trend of the external market." Business club data shows that the price of urea in East China yesterday was 2057.5 yuan per ton, up by about 7% from the beginning of the month.

"Daily Economic News" reporter noted that there are currently many companies in Shanghai and Shenzhen, urea, ammonium phosphate companies, such as Hubei Yihua (000422, the closing price of 10.63 yuan), six countries Chemical Industry (600470, the closing price of 8.81 yuan), Tianhua (000912, closing price of 4.90 yuan), Yuntianhua (600096, closing price of 12.54 yuan), etc., in the past there is no urea or ammonium phosphate export business, the future will not be uncertain.