The Russian government has further clarified the new duty on exports of most fertilizer products that became effective on Sept. 1 and will be in place until the end of 2024 (GM Sept. 1, p. 26).
According to an Interfax report, citing a Russian government resolution published on Sept. 21, “the ‘exchange rate rent’ for exporters of mineral fertilizers is a premium to the recently introduced duties rather than a separate duty.”
As previously reported, the ad valorem rate is 7% of the customs value, while the specific rate, meaning the minimum duty per tonne in roubles, varies according to the type of fertilizer and includes RUB1,100/mt (approximately $11.47/mt at current exchange rates) for nitrogen fertilizers; RUB1,800/mt ($18.77/mt) for potash; and RUB2,100/mt ($21.90/mt) for phosphate and compound fertilizers.
According to the resolution, the 7% rate is applicable when the exchange rate averages at or below 80 roubles/$1 for the month. However, the 10% rate is applicable when the exchange rate averages above 80 roubles/$1 for the monthly monitoring period.