| Last updated at: (Beijing Time) Thursday, November 15, 2001 |
China Seeks Public Comment on Draft Rules of New Tariff Quotas for Fertilizer |
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According to a new set of draft rules governing tariff quotas on imported fertilize Wednesday released by SDPC, the government will provide for a specified level of fertilizer imports up to a quota limit, with 4 percent tariff on the imports that fall within the quotas. Imports above that quota would be assessed a 50 percent duty. The regulation is expected to take effect next year.
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As a step taken to honor the commitment to lower duties on agricultural products, China State Development Planning Commission (SDPC) Wednesday released a new set of draft rules governing tariff quotas on imported fertilizer to seek public comment. Shortly after China's entry into the World Trade Organization (WTO), the SDPC unveiled a draft regulation on tariff quotas for imported agricultural products as well.
The new rules, formulated to fit into the WTO framework, stipulate that the government will provide for a specified level of fertilizer imports up to a quota limit, with 4 percent tariff on the imports that fall within the quotas. Imports above that quota would be assessed a 50 percent duty.
A SDPC official revealed that China is to expand its fertilizer import in response to WTO participation. The Commission has decided the tariff rate quota for 2002 will include 1.3 million tons of carbamide and 2.7 million tons of compound fertilizer.
Meanwhile, the import tariff rate quota is designed to increase by 5 percent every year on the basis of 2002.
As sources say, the regulation is expected to take effect next year.
Deal called on duties of agricultural products
For the accession of the World Trade Organization, China agreed in June to cap its future spending on farm subsidies at 8.5 percent of the value of domestic farm production. Duties on agricultural products will fall from 22 percent to 17 percent; and on US priority products from an average 31 percent to 14 percent by January 2004. China will cut import tariffs on products such as rape oil, butter, mandarins and wine to a range of nine to 18 percent from the present 25 to 85 percent.
WTO membership's Impact on domestic agriculture
The 8.5 percent cap will give it room to pay more to help the farmers after WTO entry. China's producers will be major losers because tariff cuts and freer imports will mean domestic grains like corn and soybeans must compete with higher quality imports.
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