Notice on the 2025 Fertilizer Import Tariff Quota Total, Allocation Principles, and Related Procedures

Issued by: Ministry of Commerce
Date: November 2, 2024

Article 1: Total Fertilizer Import Tariff Quota

The total 2025 fertilizer import tariff quota is set at 13.65 million metric tons, including:

• Urea: 3.30 million metric tons
• Diammonium phosphate (DAP): 6.90 million metric tons
• Compound fertilizers: 3.45 million metric tons

Article 2: Quotas for State-Trading and Non-State-Trading Enterprises

State-Trading Quotas:

• Urea: 2.97 million metric tons
• DAP: 3.52 million metric tons
• Compound fertilizers: 1.76 million metric tons

State-trading enterprises, including Sinochem Group and China National Agricultural Means of Production Group Corporation, may apply for these quotas within the state-trading allocation.

Non-State-Trading Quotas:

• Urea: 0.33 million metric tons
• DAP: 3.38 million metric tons
• Compound fertilizers: 1.69 million metric tons

Non-state-trading enterprises may apply for these quotas within the non-state-trading allocation.

Article 3: Allocation Principles

The 2025 fertilizer import tariff quota will be allocated on a first-come, first-served basis. Enterprises registered with the Administration for Industry and Commerce are eligible to apply within their approved business scope.

Article 4: Application Procedures

Enterprises may apply for quotas on a first-come, first-served basis until the total quota is exhausted. Initial allocations are determined based on historical quota utilization. Enterprises may apply for multiple "Fertilizer Import Tariff Quota Certificates" (Certificates) within their allocated initial quota.

Unused quotas or quotas returned after customs clearance will be reallocated to the enterprise within its initial quota limit.

Article 5: Initial Quota Allocation

The initial allocation for 2025 will be based on 2024 figures, adjusted according to the following utilization rates:

1. Utilization rate ≥ 80%: Increase by 40%
2. Utilization rate 50%–79%: Increase by 20%
3. Utilization rate 25%–49%: No adjustment
4. Utilization rate < 25%: Decrease by 50%
5. Enterprises with past performance but no allocation in 2024: No adjustment
6. New applicants: Initial quota of 2,000 metric tons

The maximum initial quota per enterprise is 500,000 metric tons; the minimum is 2,000 metric tons.

Article 6: Required Application Documents

Applications must include:

1. Application form and statement of authenticity
2. Legally binding import contract or agency agreement
3. Bank-issued letter of credit or other payment proof
4. Bill of lading or proof of ownership
5. Other documents as required
6. New applicants must also provide business licenses, enterprise codes, and approval or registration documents for foreign-invested enterprises.

Article 7: Application and Issuance of Certificates

Quota issuance agencies will process applications within five working days if all conditions are met. First-time applicants must submit documents to the Ministry of Commerce for review before receiving Certificates.

Article 8: Validity and Amendment of Certificates

Certificates are valid for three months and no later than December 31, 2025. Amendments require reapplication, with the original certificate canceled and a new one issued.

Article 9: Verification of Used Certificates

Within ten working days of customs clearance, enterprises must submit verification requests via the unified platform. Verified quotas can be reapplied for within the initial limit. Formal verification must be completed within three months of clearance.

Enterprises needing payment extensions must provide written explanations and submit payment proofs post-payment for verification.

Article 10: Return of Unused Quotas

Enterprises must return unused or partially used quotas within 15 working days after certificate expiration. Returned quotas will be reallocated to the national pool.

Article 11: Supervision and Management

The Ministry of Commerce will monitor verification rates quarterly. Enterprises with low rates will face warnings, reductions, or suspensions of quota allocations.

Article 12: Publication of Remaining Quotas

When remaining quotas fall below 20% of the annual total, updates will be published biweekly.

Article 13: Responsibilities of Enterprises

Applicants must comply with relevant laws and bear responsibility for the authenticity of their submissions. Forging or altering documents will result in legal consequences and a three-year ban from applying for quotas.

Article 14: Miscellaneous

Quota applications for 2025 will be accepted starting December 15, 2024.

Article 15: Interpretation

The Ministry of Commerce reserves the right to interpret this notice.

Attachments:

1. Tariff Categories and Rates
2. List of Authorized Quota Issuance Agencies