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Recently, the Ministry of Commerce officially announced the amount of import tariff quotas for fertilizers, namely: 6.9 million tons of diammonium phosphate, 3.45 million tons of compound fertilizer and 3.3 million tons of urea. Judging from the distribution of quotas, the state-owned trade such as China Agricultural Production Information Group Co., Ltd. and China National Chemical Corporation takes absolute advantage of the total import tariff quotas for fertilizers.
The import tariff quotas for fertilizers were formulated by the Ministry of Commerce in accordance with China’s accession to the WTO and the “Provisional Measures for the Administration of Import Tariff Quotas for Chemical Fertilizersâ€. The reporter noted that, as in previous years, tariff quotas for fertilizers in 2007 are still on the rise. However, customs statistics show that in recent years, the actual imports of urea, diammonium phosphate and compound fertilizer in China have been far below the quotas. Take urea as an example. In 2004, China’s actual import volume was 38,000 tons, far below the quota of 2.3 million tons. In 2005, China imported 71,000 tons of urea, which is also far below the import quota of 2.8 million tons. According to customs statistics, from January to April of last year, the Guangdong port imported 801,000 tons of fertilizer, a decrease of 30.3% over the same period of last year. Some experts analyzed that in the future, the imports of urea, diammonium phosphate and compound fertilizers in China will still be far below the quotas. In other words, quotas are no longer the key factors affecting China's imports of chemical fertilizers. Market factors are becoming the main factor affecting China's fertilizer trade. This also shows that China's fertilizer market mechanism is gradually maturing after joining the WTO.
It is understood that the major reasons for the drastic decline in fertilizer imports in recent years are as follows: First, domestic fertilizer supplies are relatively abundant, self-sufficiency rates continue to increase, and quality is good, which can completely replace imported fertilizers from abroad. Second, the increase in the prices of natural gas and petroleum products in the international market has increased the production costs of chemical fertilizers and increased the price of fertilizers in the international market, which has, to some extent, curbed the enthusiasm of domestic importers. Third, the national macro-control policies have played a role. First of all, the state gives interest subsidy to the light-storage enterprises of chemical fertilizers. Second, in order to protect domestic resources, China's taxation on urea exports has prompted the recovery of domestic fertilizer supplies, which has correspondingly weakened the demand for imported fertilizers.
Fertilizer imports in China have been declining in recent years
It was learned from the Ministry of Commerce that with the official announcement of the import tariff quota for fertilizers in 2007, the fertilizer import business will begin in full swing this year. However, the import of fertilizers has been declining in recent years.