Reprinted from agtoday.info.

China’s Ministry of Commerce has officially announced the total volume, allocation principles, and procedures for the 2026 fertilizer import tariff quota, setting the overall quota at 13.65 million metric tons.

The breakdown by fertilizer type is as follows:

• Urea: 3.3 million tons

• Diammonium Phosphate (DAP): 6.9 million tons

• Compound Fertilizer: 3.45 million tons

The quota system delineates portions for state-owned and non-state-owned trade. The state-owned trade quotas are allocated to designated enterprises, specifically China National Chemical Group (ChemChina) and China Agricultural Means of Production Group (CAMP Group). The non-state-owned trade quota is open to application by other registered enterprises.

Key Allocation Principles and Procedures:

• First-Come, First-Served: The quota will be allocated on a “first-come, first-served” basis until the total volume is exhausted.

• Initial Quota Calculation: A company’s initial quota amount for 2026 is based on its 2025 quota usage rate, with adjustments as follows:

  • Usage rate ≥80%: 40% increase in initial quota.

  • Usage rate 50%-79%: 20% increase.

  • Usage rate 25%-49%: Unchanged.

  • Usage rate <25%: 50% reduction.

  • New applicants receive an initial quota of 2,000 tons.

• Quota Cap and Floor: The initial quota for any single enterprise in 2026 is capped at 500,000 tons, with a minimum of 2,000 tons.

• Application Start Date: The application process for the 2026 Fertilizer Import Tariff Quota Certificate will commence on December 15, 2025.

• Electronic Management: The electronic Fertilizer Import Tariff Quota Certificate will be linked with customs declaration data for streamlined oversight.

• Usage Monitoring: The authorities will closely monitor quota usage rates throughout the year. Enterprises with low usage rates by the end of each quarter may face warnings or penalties, including quota reductions and suspension of new certificate issuance.

This announcement, based on the “Regulations on the Administration of Import and Export of Goods” and the “Interim Measures for the Administration of Fertilizer Import Tariff Quotas,” provides clarity for market participants and aims to ensure a stable supply of key fertilizers for China’s agricultural sector in the coming year.