MOFCOM Announcement No.70, 2014 (on 2015 Chemical Fertilizer Import Tariff Quota Rules)

In accordance with China's Goods Import & Export Regulations and Administrative Measures on Chemical Fertilizer Import Tariff Quota, the MOFCOM hereby promulgates the Chemical Fertilizer Import Tariff Quota Quantity, Allocation Rules and Procedures for 2015.

Contact Person: GENG Xiewei, Department of Foreign Trade
Address: MOFCOM, No. 2 East Chang'an Avenue, Beijing, China
Postal Code: 100731
Tel: 010-65197432
Fax: 010-65197434
Email: gengxiewei@mofcom.gov.cn
Annex: Chemical Fertilizers Import Tariff Quota Quantity, Allocation Rules and Procedures for 2015





Article 1 Chemical Fertilizers Import Tariff Quota Quantity

For 2015, the Chemical Fertilizers Import Tariff Quota totals 13.65 Million tons, including 3.30 Million tons for urea, 6.90 Million tons for diammonium phosphate, and 3.45 Million tons for compound fertilizers.

Article 2 Allocation Rules

For 2015, the tariff quota will be allocated in the order of application as "first come, first served". The enterprises registered with Industrial & Commercial Administrations may apply for the tariff quota within their business scopes.

Article 3 Tariff Quota for State-run and Non-state-run Trade

2015's tariff quotas for state-run trade are 2.97 Million tons for urea, 3.52 Million tons for diammonium phosphate, and 1.76 Million tons for compound fertilizers; state-run trade firms SINOCHEM GROUP and China National Agricultural Means of Production Group Corporation may apply for the quotas within the total volume of state-run trade.
2015's tariff quotas for non-state-run trade are 330,000 tons for urea, 3.38 Million tons for diammonium phosphate, and 1.69 Million tons for compound fertilizers; the registered non-state-run trade firms may apply for the quotas within the total volume of non-state-run trade.
Other enterprises may apply for state-run or non-state-run trade quotas and choose state-run trade firms or non-state-run trade firms to implement their imports.

Article 4 First Come, First Served

In application for chemical fertilizer import tariff quotas, an enterprise's initial quota application will be dependent on past actual use of quota, and within the initial quantity, the enterprise may apply for Chemical Fertilizer Import Tariff Quota Certificate in several times. After import or after return of unused quota, the enterprise may re-apply for the quota within initial quota quantity.

Article 5 Initial Tariff Quota Quantity

2015's initial quantity will be based on 2014's initial quantity and will be adjusted as below:
(1) For the enterprises with 80% and higher verification-cancel rate in 2014, the initial quantity of 2015 will be increased by 40%;
(2) For the enterprises with 50%-79% verification-cancel rate in 2014, the initial quantity of 2015 will be increased by 20%;
(3) For the enterprises with 25%-49% verification-cancel rate in 2014, the initial quantity of 2015 will be unchanged;
(4) For the enterprises with less than 25% verification-cancel rate in 2014, the initial quantity of 2015 will be deducted by 50%;
(5) For the enterprises with import performance before 2014 but without application for Chemical Fertilizer Import Tariff Quota Certificate in 2014, the initial quantity of 2015 will be unchanged;
(6) For a new applicant, the initial quota will be 2000 tons.

Article 6 Application Materials

Upon application to MOFCOM-authorized issuing agencies for Chemical Fertilizer Import Tariff Quota Certificate, an applicant shall submit the following materials:

(1) Chemical Fertilizer Import Tariff Quota Application form and commitment letter for document authenticity;
(2) Valid contract of import;
(3) Bank Letter of Credit or other evidence of payment;
(4) Bill of lading or other certificates for title to goods;
(5) Other documents required;
(6) New applicant shall also provide business license, enterprise code and governmental approvals.

Article 7 Chemical Fertilizer Import Tariff Quota Certificate issue

MOFCOM-authorized issuing agencies are responsible for the application for the Certificate by local enterprises and shall issue the Certificate to local compliant applicants.
The issuing agencies shall deliver to relevant MOFCOM bureaus any new applicant's business license, enterprise code, and governmental approvals for Chinese-foreign joint ventures, Chinese-foreign cooperative enterprises and wholly foreign-owned enterprises.

Article 8 Chemical Fertilizer Import Tariff Quota Certificate Validity

The Certificate shall keep valid for three months not later than December 31, 2015. Where the Certificate is extended or altered, the applicant shall re-apply for a new certificate by canceling the old certificate. Where the Certificate is lost, the holder shall, within ten workdays, report the loss to original issuing agency and the ports of entry listed on the Certificate; upon verification of the loss, the original issuing agency shall issue a new version of the Certificate with former certificate number noted in the remark thereof.

Article 9 Cancel of Chemical Fertilizer Import Tariff Quota Certificate Used

Within ten workdays upon import declaration, the Certificate holder shall apply to the issuing agency for preliminary verification and cancel of the used Certificate by submitting a stamped letter for cancel which shall contain the information of the Certificate number, declaration form number, declared quantity, declaration date, declaration port, etc. The used quota for pre-cancel will not be counted into the initial quota quantity that an enterprise may apply for and the enterprise may re-apply for the Certificate as per pre-cancel quantity. Upon completion of all payment and clearance formalities, the enterprise shall undertake formal cancel of the Certificate with the issuing agency by presenting declaration forms and payment vouchers; and the formal cancel formalities shall be completed within three months after import clearance.
Where an enterprise needs to defer its payment, the enterprise shall make a written statement on the deferral with a commitment that it will, after its payment, undertake the formal cancel with the issuing agency by presenting bank-issued overseas remittance application.

Article 10 Return of Chemical Fertilizer Import Tariff Quota Certificate Unused

The Certificate holder shall, within fifteen workdays upon the expiry, return the unused or non-totally-consumed Certificate to the original issuing agency. The unused quota quantity returned will be counted into nationwide unused quota total.

Article 11 Supervision on Cancel of Chemical Fertilizer Import Tariff Quota Certificate

The MOFCOM's Quota & License Administrative Bureau is supervising nationwide cancel of the Certificate and quarterly monitoring and releasing the cancel rate i.e. the cancel (pre-cancel) quantity/total issue quantity.

Under the supervision by the Quota & License Administrative Bureau, the Certificate issuing agencies will remind the enterprises with a total cancel rate below 25% at the end of the first quarter of timely returning unused quota, give warning to the enterprises with a total cancel rate below 25% at the end of the second quarter, and will, for the enterprises with a total cancel rate below 25% at the end of the third quarter, deduct 50% of their initial quota quantity and suspend issuing a new version of the Certificate to them.
The full-year cancel rate of an enterprise will be regarded as the basis for setting its initial quota quantity for 2016.

Article 12 Release of the Unused Quota Quantity

When the unused quota is less than 20% of annual total quota, the Quota & License Administrative Bureau will semi-monthly release the nationwide residual of the quota quantity.

Article 13 Enterprise Responsibilities

The applicants shall be responsible for the authenticity of their application materials and shall provide letters of commitment with their official stamps; any counterfeit thereof shall subject them to legal liability.
The counterfeiting and buy or sale of the Certificate herein shall be subjected to criminal punishment.
As regards an enterprise in violation as aforesaid, the tariff quota authorities will reject the application by the violating enterprise within three years.

Article 14 Other Matters

As of December 15, 2014, the tariff quota authorities will start to receive the applications for chemical fertilizer import tariff quotas and issue the Certificate for 2015 herein.

Article 15 Interpretation of this Announcement shall resort to the Ministry of Commerce of China (MOFCOM).

Annex 1 Chemical Fertilizer Import Tariff Quota Tax Items
Annex 2 MOFCOM-Authorized Chemical Fertilizer Import Tariff Quota Issuing Agencies


The Ministry of Commerce of China (MOFCOM)
October 15, 2014