The Chinese government released their newest tariff rates Nov. 14. The new rates retain the two-tier pricing for many products to discourage exports during periods of high domestic demand. A premium surcharge of 75 percent will be added to a high season duty of 35 percent for a total of 110 percent on urea, TSP, NPK, MAP, and DAP exports.
The low season duty varies by product. Urea, MAP, DAP, and TSP will have a 10 percent duty, while NPK will have a 95 percent export duty imposed.
The full list of products and duties follows.
| Name of Product | High season | Low season | High season total | Low season Total |
| Urea | 35 | 10 | 110 | 10 |
| AMSUL | 0 | 0 | 0 | 0 |
| AC | 0 | 0 | 75 | 75 |
| Other nitrogen | 0 | 0 | 75 | 75 |
| TSP | 35 | 10 | 110 | 10 |
| SSP | 30 | 30 | 105 | 105 |
| MOP | 30 | 30 | 105 | 105 |
| SOP | 30 | 30 | 105 | 105 |
| NPK(NP) | 35 | 20 | 110 | 95 |
| DAP | 35 | 10 | 110 | 10 |
| MAP | 35 | 10 | 110 | 10 |
| Others | 0 | 0 | 75 | 75 |
High season for urea is February through June and Sept. 1 through Nov. 15. High season for TSP is February through May. DAP/MAP high season runs February though May and August through October.
The tax authorities have also set base rates that could kick in additional duties. The urea export tax base is US$337/mt FOB. If the selling price is higher, a tax rate equal to 1.1-base/sales price times 100 is applied. A similar formula is used for TSP with a base rate of US$454/mt FOB, DAP at US$582/mt FOB, and MAP at US$542/mt FOB.
Asian sources had noted that Chinese urea and DAP producers have been facing a great deal of pressure in the past two months. Lower domestic prices combined with earlier purchases of expensive inputs to put a squeeze on the producers’ bottom line. Earlier reports out of China had the government planning to eliminate the DAP duty to encourage offshore sales.