EC Proposes To Nullify Import Duties On Ammonia And Urea
The European Commission (EC) proposes to eliminate import taxes on urea and ammonia, except for supply from Russia and Belarus, until the end of 2024. Their respective taxes are now 5.5 percent and 6.5 percent. The potential budget losses from duty nullification will total €11 million annually, according to EC estimations.
The proposal is published in the European Union’s Official Journal. The document claims that the EC plan will help to lessen reliance on Russia and diversify raw material supply for the production of fertilizers. It is suggested to cancel the duties before the start of the autumn sowing season due to the emergency situation on the market for fertilizer raw materials, which has been brought on by a significant increase in raw material prices and sanctions against Russia, the EU’s second-largest supplier of nitrogen fertilizers.
According to the agency, the European Union reduces a large portion of the demand for ammonia at the expense of supplies from outside sources. The EU imported 4.7 million tons of urea and 2.9 million tons of ammonia for a combined €1.8 billion last year. This quantity was imported duty-free in excess of 60%.