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Imported fertilizers subject to provisional self-defense tariff

Released at: 18:57, 08/08/2017

Imported fertilizers subject to provisional self-defense tariff

Photo source: Internet

Tariff of $81.65 per ton imposed from August 19, MoIT decides.

by Tue Lam

DAP and MAP fertilizers imported into Vietnam will be subject to a provisional self-defense tariff of VND1,855,790 ($81.65) per ton from August 19, according to Decision No.3044 / QD-BCT from the Ministry of Industry and Trade (MoIT), which was issued after more than four months of investigations.

MoIT previously issued Decision No.1682A/QD-BCT on investigating the application of safeguard measures for certain imported fertilizers in Vietnam.

It said the temporary safeguard measures will be applied for a period of no more than 200 days from the date of effect, taking it to March 6, 2018, or when MoIT issues a decision to extend such measures.

Figures from the General Department of Vietnam Customs show that the country imported 4.15 million tons of fertilizer worth $1.1 billion last year.

In the first six months of this year, imports of all types fertilizers reached 2.34 million tons, valued at $628 million, up 23.7 per cent in volume and 17.6 per cent in value over the same period of 2016. Most came from China.

Fertilizer imports are creating difficulties for domestic production. Output fell nearly 47 per cent in 2016 against 2015 while imports were down from 1.2 million tons in 2015 to nearly 1.1 million tons in 2016.

Production has encountered difficulties in recent years, with fertilizer prices continuously falling due to oversupply. Droughts and salt intrusion in the south of the country negatively affected agricultural production last year, which drove down demand even further.

Fiercer competition from China and ASEAN countries, as well as fake and poor-quality products, have hurt domestic fertilizer producers.

The end of the El Nino weather pattern should improve weather conditions and support agricultural production in the south and drive demand for fertilizer.

The global fertilizer market is also beginning to firm up amid expectations that demand in Europe, the US, and Latin America will pick up after five years of decline. Prices of major products like ammonia, urea, phosphates, and potash began to rise earlier this year.

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