Since the beginning of 2008, resource issues have been plaguing the Chinese fertilizer industry. In order to limit the output of phosphorus resources, the State Council made a decision on May 14 under the repeated calls of relevant domestic authorities: "Since May 20, 2008 to December 31, 2008, all trade forms, regions, Phosphorus products exported by enterprises are subject to a special export tariff of 100%.†This policy is basically a “blocking order†relative to the export of domestic phosphorus resources. This policy allows a part of the phosphate fertilizer companies that rely on excessive export profits to make up for the increase in domestic raw material costs. Worried. In order to solve this problem, the new tariff policy for sulfur, the key raw material for phosphate fertilizers, has also been introduced: Since May 20, 2008, sulfur import VAT has been exempted.
First, it embodies the state's regulation of resource flows. Under WTO framework rules, the most convenient control method for domestic resources is the tariff policy. The State Council promulgates a vertical tariff policy on phosphorus resources and sulfur, which clearly reflects the country’s Regulatory expectations for the flow of two kinds of resources.
Since 2007, the global price of phosphate rock and phosphate fertilizer has risen rapidly, driving domestic phosphate fertilizer prices to soar. In order to protect the poor phosphorus resources, the United States, the major exporter of phosphate fertilizers in history, has used policy forces to stop exporting since 2002 and become a major importer. China is a country with severe phosphorus deficiency, and there is a serious shortage of domestic rich ore resources. The Ministry of Land and Resources has included phosphate rock resources as one of the important minerals that cannot meet the development needs of the national economy after 2010. In recent years, while the major foreign demand countries have gradually reduced the development of domestic phosphorus resources, the expansion of China's phosphate fertilizer companies has been surging. A large amount of capacity expansion has caused a large amount of phosphorus resources to be overdrawn and wasted. The domestic supply and demand situation has been completely reversed and gradually imported from phosphate fertilizers. Big countries are transformed into exporting countries. In the global chemical fertiliser boom of 2007, the production enthusiasm of China's phosphate fertilizer enterprises was extremely high, and a large number of phosphorus resources were rapidly exported. This is inconsistent with China's national conditions. The State Department this year issued three consecutive times a stringent tariff policy on phosphorus resources is precisely based on this concern, fully explain the country's hope and determination to retain domestic phosphorus resources. If this special tariff policy cannot effectively curb the export of phosphorus resources, it is believed that the country will surely introduce more stringent policies.
Although the direction of sulfur control is reverse to that of phosphorus, it is homologous to the control policy of phosphorus resources. China is the world's largest importer of sulphur. Domestic demand for sulphur is extremely high, but its production is minimal, and it almost depends on imports. For domestic fertilizer companies, sulphuric acid accounts for 46.6% of the total acid requirement for phosphate fertilizers. Phosphate fertilizer producers in Yunnan province are all based on sulphur-based sulphuric acid production. A considerable part of the fertilizer companies also use sulphur-based sulphuric acid production technology. Affected by the global increase in the price of sulfur, in the past year, China's import CIF prices have soared by more than 900%, and domestic prices for sulfur products have risen by more than 500%. While the country severely restricts the export of phosphorus resources, if it cannot effectively interfere with sulfur, it will inevitably cause the domestic phosphate and compound fertilizer producers to fall into a difficult situation, which is extremely unfavorable for safeguarding domestic fertilizer market supply and domestic fertilizer prices, and may even jeopardize domestic food security. . Therefore, while introducing the policy of restricting the export of phosphorus resources, the state introduced an exempted import value-added tax for sulfur, which aims to encourage the import of sulfur imports from China, and at the same time reduce the production costs of phosphate and compound fertilizer enterprises, thus protecting domestic phosphate fertilizer production enterprises and stabilizing the domestic phosphate fertilizer market balance. the goal of.
2. Explain that the focus of national policy support is that the large-scale production enterprises in the country's sulfur tariff policy chose VAT as a breakthrough point. On the surface, it is a general analysis of the demand-supply industry. After careful analysis, the “linlin†can only come to an end. To large-scale production enterprises, they can only achieve the goal of maintaining large and small enterprises. Both large-scale enterprises have the absolute ability to control the Chinese market, both in terms of resource occupancy and market share. The value-added tax policy can exert pressure on them to achieve effective intervention. Market regulation goals. At the same time, the support for large enterprises makes them in a more favorable position in the fierce chemical fertilizer industry integration. Inducing the decentralized resources to concentrate on advantageous enterprises is in line with the state's requirements and direction for the integration of resource enterprises. Perhaps this is the goal of national policy regulation.
The control method of this tariff policy is “Exemption from VAT on the import of sulfurâ€, which means that only the enterprises participating in the import will enjoy VAT exemption. Most domestic small and medium-sized phosphorus fertilizer companies purchase sulphur only through traders and other middlemen. For traders, although the value-added tax of the import link is exempted, they still need to issue value-added tax invoices when selling sulphur products to production enterprises. The value-added tax is still passed on to production companies, so the country's exemption from VAT tariff policy is to be discounted at this stage. In addition, due to the fact that domestic sulphur has always been in short supply, despite the implementation of import preferential policies, the policies obtained by middle and small-sized production enterprises through middlemen and traders are obviously being greatly reduced. For most small and medium-sized manufacturing enterprises that do not have independent import capabilities, policy belts It is just a hope that the prospects are coming. There are not many benefits that fall into place.
For a large-scale production enterprise that has sulphur independent import rights, this VAT policy is indeed a de facto decompression, because exemption of value-added tax is directly reflected in the substantial reduction in import costs. For chemical fertilizer production enterprises, the reduction of raw material costs means an increase in profits and an improvement in profits. Large enterprises will be able to obtain a more adequate competitive advantage from their policies. This is exactly what the country wants to see. Perhaps it is this time. One of the key goals of policy regulation.
Phosphate fertilizer is not produced, and sulfur is reduced. This is a good thing worth the first-time celebration of the fertilizer industry. At least after half a year of confusion, he finally saw hope.
First, it embodies the state's regulation of resource flows. Under WTO framework rules, the most convenient control method for domestic resources is the tariff policy. The State Council promulgates a vertical tariff policy on phosphorus resources and sulfur, which clearly reflects the country’s Regulatory expectations for the flow of two kinds of resources.
Since 2007, the global price of phosphate rock and phosphate fertilizer has risen rapidly, driving domestic phosphate fertilizer prices to soar. In order to protect the poor phosphorus resources, the United States, the major exporter of phosphate fertilizers in history, has used policy forces to stop exporting since 2002 and become a major importer. China is a country with severe phosphorus deficiency, and there is a serious shortage of domestic rich ore resources. The Ministry of Land and Resources has included phosphate rock resources as one of the important minerals that cannot meet the development needs of the national economy after 2010. In recent years, while the major foreign demand countries have gradually reduced the development of domestic phosphorus resources, the expansion of China's phosphate fertilizer companies has been surging. A large amount of capacity expansion has caused a large amount of phosphorus resources to be overdrawn and wasted. The domestic supply and demand situation has been completely reversed and gradually imported from phosphate fertilizers. Big countries are transformed into exporting countries. In the global chemical fertiliser boom of 2007, the production enthusiasm of China's phosphate fertilizer enterprises was extremely high, and a large number of phosphorus resources were rapidly exported. This is inconsistent with China's national conditions. The State Department this year issued three consecutive times a stringent tariff policy on phosphorus resources is precisely based on this concern, fully explain the country's hope and determination to retain domestic phosphorus resources. If this special tariff policy cannot effectively curb the export of phosphorus resources, it is believed that the country will surely introduce more stringent policies.
Although the direction of sulfur control is reverse to that of phosphorus, it is homologous to the control policy of phosphorus resources. China is the world's largest importer of sulphur. Domestic demand for sulphur is extremely high, but its production is minimal, and it almost depends on imports. For domestic fertilizer companies, sulphuric acid accounts for 46.6% of the total acid requirement for phosphate fertilizers. Phosphate fertilizer producers in Yunnan province are all based on sulphur-based sulphuric acid production. A considerable part of the fertilizer companies also use sulphur-based sulphuric acid production technology. Affected by the global increase in the price of sulfur, in the past year, China's import CIF prices have soared by more than 900%, and domestic prices for sulfur products have risen by more than 500%. While the country severely restricts the export of phosphorus resources, if it cannot effectively interfere with sulfur, it will inevitably cause the domestic phosphate and compound fertilizer producers to fall into a difficult situation, which is extremely unfavorable for safeguarding domestic fertilizer market supply and domestic fertilizer prices, and may even jeopardize domestic food security. . Therefore, while introducing the policy of restricting the export of phosphorus resources, the state introduced an exempted import value-added tax for sulfur, which aims to encourage the import of sulfur imports from China, and at the same time reduce the production costs of phosphate and compound fertilizer enterprises, thus protecting domestic phosphate fertilizer production enterprises and stabilizing the domestic phosphate fertilizer market balance. the goal of.
2. Explain that the focus of national policy support is that the large-scale production enterprises in the country's sulfur tariff policy chose VAT as a breakthrough point. On the surface, it is a general analysis of the demand-supply industry. After careful analysis, the “linlin†can only come to an end. To large-scale production enterprises, they can only achieve the goal of maintaining large and small enterprises. Both large-scale enterprises have the absolute ability to control the Chinese market, both in terms of resource occupancy and market share. The value-added tax policy can exert pressure on them to achieve effective intervention. Market regulation goals. At the same time, the support for large enterprises makes them in a more favorable position in the fierce chemical fertilizer industry integration. Inducing the decentralized resources to concentrate on advantageous enterprises is in line with the state's requirements and direction for the integration of resource enterprises. Perhaps this is the goal of national policy regulation.
The control method of this tariff policy is “Exemption from VAT on the import of sulfurâ€, which means that only the enterprises participating in the import will enjoy VAT exemption. Most domestic small and medium-sized phosphorus fertilizer companies purchase sulphur only through traders and other middlemen. For traders, although the value-added tax of the import link is exempted, they still need to issue value-added tax invoices when selling sulphur products to production enterprises. The value-added tax is still passed on to production companies, so the country's exemption from VAT tariff policy is to be discounted at this stage. In addition, due to the fact that domestic sulphur has always been in short supply, despite the implementation of import preferential policies, the policies obtained by middle and small-sized production enterprises through middlemen and traders are obviously being greatly reduced. For most small and medium-sized manufacturing enterprises that do not have independent import capabilities, policy belts It is just a hope that the prospects are coming. There are not many benefits that fall into place.
For a large-scale production enterprise that has sulphur independent import rights, this VAT policy is indeed a de facto decompression, because exemption of value-added tax is directly reflected in the substantial reduction in import costs. For chemical fertilizer production enterprises, the reduction of raw material costs means an increase in profits and an improvement in profits. Large enterprises will be able to obtain a more adequate competitive advantage from their policies. This is exactly what the country wants to see. Perhaps it is this time. One of the key goals of policy regulation.
Phosphate fertilizer is not produced, and sulfur is reduced. This is a good thing worth the first-time celebration of the fertilizer industry. At least after half a year of confusion, he finally saw hope.