Apply ‘0%’ tariff rate on industrial urea and urea until June next year

On the 10th, urea water was produced at a urea water plant in Ansan, Gyeonggi-do. joint coverage

Until June of next year, 0% quota tariff will be applied when importing industrial (industrial + automobile) water and urea water.

At an ad hoc cabinet meeting on the 11th, the government announced that it had decided to amend the tariff quota regulations (Presidential Decree) to lower the tariff rate on industrial elements (including the number of urea) from the current maximum of 6.5% to 0%. Earlier, the government held the 2nd External Economic and Security Strategy Meeting on the 7th and discussed ‘the current status of supply and demand of industrial elements and urea supply and countermeasures’, and predicted a cut in tariff quotas.

The quota tariff is a system that temporarily lowers or raises the tariff rate on a certain amount of imported goods for a certain period of time. Accordingly, from the 12th to the 30th of June next year, industrial urea and the number of urea for import declaration can be imported into Korea without duty. The period of application of quota tariffs will be considered for extension in consideration of future market supply and demand and price trends.

Currently, industrial urea and urea count are imported without duty when imported from countries that have signed free trade agreements (FTAs) such as China and Australia, but 5% when imported from ASEAN (Association of Southeast Asian Nations), A tariff rate of 6.5% is applied respectively.

Of the 835,000 tons of urea imports last year, industrial urea accounted for 290,000 tons, 34.7% of the total import, and 80,000 tons for automobiles, 9.8%, respectively.

The government expects that this measure will contribute to the normalization of supply and demand for industrial urea water and early stabilization of prices.

Reference-www.khan.co.kr

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