MOFCOM Announcement No.56 of 2016 on Total Quantity, Distribution Principle and Related Procedures of Import Tariff Quotas on Fertilizers in 2017

October 20, 2016 - 14:49 BJT (21:49 GMT)   MOFCOM

According to the Administrative Regulations of the People's Republic of China on Import and Export of Goods, and the Interim Administrative Measures for Import Tariff Quotas on Fertilizers, the Ministry of Commerce (the "MOFCOM") has formulated the Total Quantity, Distribution Principle and Related Procedures of Import Tariff Quotas on Fertilizers in 2017, which are hereby promulgated for implementation.

Contact: Yuan Hao and Geng Xiewei, Department of Foreign Trade
Address: the MOFCOM, No. 2 Dong Chang'an Avenue, Beijing
Postal code: 100731
Tel.: 010-65197470 65197432
Fax: 010-65197434
E-mail: yuanhao@mofcom.gov.cn,
 gengxiewei@mofcom.gov.cn

Ministry of Commerce of the People's Republic of China 
October 18, 2016

Total Quantity, Distribution Principle and Related Procedures of Import Tariff Quotas on Fertilizers in 2017

Article 1 Total quantity of import tariff quotas on fertilizers

In 2017, total import tariff quota on fertilizers is 13.65 million tons, including 3.3 million tons for urea, 6.9 million tons for diammonium phosphate and 3.45 million tons for compound fertilizer.

Article 2 Distribution principle

The import tariff quotas on fertilizers in 2017 will be allocated in the form of "first come, first served". Enterprises that have registered with the administrative department for industry and commerce may apply for import tariff quotas on fertilizers within their business scope.

Article 3 State trading and non-state trading tariff quotas

Quantities for state trading tariff quotas on fertilizers in 2017 are respectively 2.97 million tons for urea, 3.52 million tons for diammonium phosphate and 1.76 million tons for compound fertilizer. State trading enterprises, Sinochem Group and China National Agricultural Means of Production Group Corporation will apply for tariff quotas within the total quantity for state trading.

Quantities for non-state trading tariff quotas on fertilizers in 2017 are respectively 0.33 million tons for urea, 3.38 million tons for diammonium phosphate and 1.69 million tons for compound fertilizer. Non-state trading enterprises, China National Chemical Construction Corporation and HUAKEN International Trade Co., Ltd. will apply for the tariff quotas within the total quantity for non-state trading.

Other enterprises can choose to apply for the state trading tariff quotas or non-state trading ones based on their actual import needs, and imports will be conducted by the state trading enterprises or non-state trading ones on an agency basis.

Article 4 First come, first served

"First come, first served" will be adopted for enterprises that apply for import tariff quotas on fertilizers, until the total quantity for import tariff quotas on fertilizers is used up. When an enterprise applies for import tariff quotas on fertilizers, the threshold quotas it may apply are set according to its use of actual tariff quotas, and the enterprise can apply for the Certificate of the Import Tariff Quotas on Fertilizers in several times within the threshold quotas. After the enterprise makes customs declaration or returns the import tariff quotas that have not been used, it may again apply for import tariff quota on fertilizers without exceeding the threshold quotas.

Article 5 Threshold quotas

The threshold quotas in 2017 will be based on those in 2016 and be adjusted as follows:

(I) up 40% for enterprises with a verification rate of over 80% in 2016;
(II) up 20% for enterprises with a verification rate between 50% and 79% in 2016;
(III) remaining unchanged for enterprises with a verification rate between 25% and 49% in 2016;
(IV) down 50% for enterprises with a verification rate of below 25% in 2016;
(V) remaining unchanged for those enterprises that had performance prior to 2016 but did not have the certificate to apply for and receive the quota in 2016;
(VI) setting the threshold quota of new enterprises at 2,000 tons.
(VII) the threshold quota in 2017 will not be more than 500 thousand tons at the most and not less than 2000 tons at the lowest.
Article 6 Application materials

To apply for the import tariff quota on fertilizers to the quota certificate issuing agencies as commissioned by the MOFCOM (the "quota certificate issuing agencies"), the enterprise shall provide the originals or duplicates and copies of the following materials:

(I) the Application Form for Import Tariff Quotas on Fertilizers and a letter of undertaking stating the authenticity of the materials submitted;
(II) import contract or import contract on entrustment of an agent of legal effect;
(III) the bank letter of credit or other payment vouchers;
(IV) bill of lading or other valid certificates proving the ownership of the goods;
(V) other materials as required by the tariff quotas authorities;
(VI) for new enterprises that make application for the first time in 2017, in addition to the above materials, they are required to provide at the same time the business license and the enterprise code; moreover, certificates of approval are required for Sino-foreign equity joint venture, Sino-foreign cooperative joint venture and foreign-funded enterprises.

Article 7 Application, acceptance and issue of the Certificate of the Import Tariff Quotas on Fertilizers

Quota certificate issuing agencies are responsible for accepting the application made by the enterprises within their jurisdictions for import tariff quotas on fertilizers, and will issue the Certificate of the Import Tariff Quotas on Fertilizers to eligible enterprises that submit complete application materials within five working days; at the same time, they shall keep copies of the application materials submitted by the enterprises.

The quota certificate issuing agencies may send by post, courier, or submit at site to the MOFCOM service hall for administrative affairs, the application made by the eligible enterprises that apply for the import tariff quota on fertilizers for the first time and the copies of such application materials as business license, enterprise code, and certificates of approval for Sino-foreign equity joint venture, Sino-foreign cooperative joint venture and foreign-funded enterprises, and send a copy to the Quota & Licence Administrative Bureau. After the MOFCOM department of foreign trade reviews and registers, the enterprise can apply for the Certificate of the Import Tariff Quotas on Fertilizers with the quota certificate issuing agencies.

Article 8 Term, alteration and loss of the Certificate of the Import Tariff Quotas on Fertilizers

Certificate of the Import Tariff Quotas on Fertilizers is valid for 3 months, no later than December 31, 2017 at the latest. In the event of any extension or change, it is required to handle again with the old certificate being revoked for a new one. Moreover, the original certificate number shall be indicated in the remark column. In the event of any loss of the Certificate of the Import Tariff Quotas on Fertilizers, enterprises shall report the loss with the original quota certificate issuing agencies and the port of entry listed on the certificate within 10 working days. After verification, the original quota certificate issuing agencies will issue a new certificate and indicate the original number in the remark column.

Article 9 Cancellation after verification of the used Certificate of the Import Tariff Quotas on Fertilizers

Within 10 working days as of the import declaration, enterprises shall cancel after verification the used Certificate of the Import Tariff Quotas on Fertilizers with the quota certificate issuing agencies by presenting written verification letter bearing their common seals and indicating the certificate number of the import tariff quotas on fertilizers, customs declaration form number, quantity declared at customs, date and port of entry and others. Used tariff quotas that have been verified will not be included in the threshold quotas available for the enterprises, which may again apply for the Certificate of the Import Tariff Quotas on Fertilizers based on the quantity verified in advance. After completing all payment and customs clearance procedures, enterprises shall cancel after verification the used Certificate of the Import Tariff Quotas on Fertilizers with the quota certificate issuing agencies by presenting customs declaration forms and payment vouchers. Formal verification procedures should be completed within 3 months after the clearance.

For any enterprises in need of deferred payments, they are required to write to make explanations and promise to handle after the payment, official verification procedures with the quota certificate issuing agencies by presenting the overseas remittance application (a copy retained by enterprises) issued by the bank.

Article 10 Return of the unused Certificate of the Import Tariff Quotas on Fertilizers

Enterprises need to return the Certificate of the Import Tariff Quotas on Fertilizers that has not been used or fully used to the quota certificate issuing agencies within 15 working days after the expiration of the validity of the Certificate of the Import Tariff Quotas on Fertilizers. The unused import tariff quota on fertilizers returned by enterprises will be included in the total quantity of unused import tariff quota on fertilizers all over the country.

Article 11 Supervision and management on the cancellation after verification of the Certificate of the Import Tariff Quotas on Fertilizers

The Quota & Licence Administrative Bureau will be responsible for the supervision and management on the cancellation after verification of the Certificate of the Import Tariff Quotas on Fertilizers all over the country, and monitor and make available the verification rate of the Certificate of the Import Tariff Quotas on Fertilizers on a quarterly basis, that is, the quantity being written off (including the quantity being written off in advance)/ total quantity applied.

The Quota & Licence Administrative Bureau will urge the quota certificate issuing agencies to remind the enterprises with a cumulative verification rate of less than 25% in the first quarter to return the unused tariff quotas in a timely manner. For enterprises with a cumulative verification rate of less than 25% at the end of the second quarter, warning will be given; for those with a cumulative verification rate of less than 25% at the end of the third quarter, deduction of 50% threshold quotas, suspension of the issuance of new Certificate of the Import Tariff Quotas on Fertilizers and other measures will be taken.

Annual verification rate of enterprises will be the basis for setting their threshold quotas in 2018.

Article 12 Release of the unused import tariff quotas on fertilizers

When the remaining import tariff quota on fertilizers is less than 20% of the total annual quota, the Quota & Licence Administrative Bureau will publish the remaining import tariff quota on fertilizers all over the country once every half month.

Article 13 Related responsibilities of enterprises

The applying enterprises shall be responsible for the authenticity of the materials they have submitted, and at the same time issue a letter of commitment bearing their official seals. If the enterprise forges or alters the materials submitted, its legal liabilities will be pursued.

Any person who forges, alters or sells the Certificate of Import Tariff Quotas of Fertilizers will be held criminally liable.

For any enterprises that have the above violations, the tariff quotas authorities will not accept their applications for Certificate of the Import Tariff Quotas on Fertilizers within three years.

Article 14 Miscellaneous

Since December 15, 2016, the tariff quota authorities will accept the applications for import tariff quotas on fertilizers and issue Certificate of the Import Tariff Quotas on Fertilizers in 2017.

Article 15 The right to interpret the MOFCOM Announcement No.56 of 2016 on Total Quantity, Distribution Principle and Related Procedures of Import Tariff Quotas on Fertilizers in 2017 is vested in the MOFCOM.

(All information published in this website is authentic in Chinese. English is provided for reference only. )