Export Tariffs on Fertilizers Raised Again      

China raises special export tariffs on nitrogenous fertilizers and synthetic ammonia to 150% from 135%, effective from September 1st, 2008 to December 31st, 2008, according to the Tariff Commission of the State Council released on August 29th.
   The move is to restrain exports of fertilizers, stabilize domestic fertilizers prices, protect farmers and ensure agricultural production.
   The 100% export tariffs on other fertilizer products and related raw materials previously-set, which were supposed to be withdrawn by the end of this September, will be extended to December 31st, 2008, that is to say, those are still imposed from October 1st, 2008 to December 31st, 2008.
   This is the fourth time in 2008 that China has raised export tariffs on fertilizers.
    In March, China increased export tariffs on di-ammonium phosphate and mono-ammonium phosphate to 35%, effective from February 15th to September 30th, 2008. (CCR2008 No. 7)
   Also in March, China raised temporary export tariffs on calcium superphosphate and potash fertilizers to 30%, effective from April 1st to December 31st, 2008. (CCR2008 No. 10)
   In April, China increased export tariffs on fertilizer products and related raw materials by 100% on the basis of the existing export tariffs 35%, effective April 20th to September 30th, 2008. (CCR2008 No. 13)
   According to insiders, the international prices of fertilizers have risen strongly and even with the hike in the export tariffs Chinese exporters can still profit from the gap between domestic and international prices because the government-directed prices of fertilizers are apparently lower than the international level.
   With the surging energy prices and growing cost of production, many fertilizer producers are difficult to operate domestically and have to export for making profit. But an analyst expects the export tariff on urea might be lifted to 185%.
   The government will also impose temporary export tariff on plant- or animal-based fertilizers excluding guano, at RMB460 per ton from September 1st, to the end of 2008.