Petition Seeks CV Duties on Phosphate Fertilizers From Morocco and Russia
A domestic manufacturer filed a petition on June 26 with the Commerce Department and the International Trade Commission requesting new countervailing duties on phosphate fertilizers from Morocco and Russia. Commerce will now decide whether to begin a CV duty investigation. The investigation was requested by The Mosaic Company.
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Mosaic said the Moroccan and Russian governments have heavily subsidized their domestic phosphate fertilizer industries for years. “This government support takes various forms, including artificially cheap debt and specific tax breaks, but the most distortive form of support is the provision of phosphate rock mining rights on below-market terms,” the petition said. “This significant subsidy dramatically lowers the cost to obtain the essential input in all phosphate fertilizers. Armed with this unfair cost advantage, large export champions like OCP, S.A. of Morocco ... and PhosAgro and Eurochem of Russia have penetrated the U.S. market and taken sales and market share from the domestic industry.”
Proposed Scope
The petition proposes the following scope for the investigations:
The merchandise covered by these investigations is phosphate fertilizers in all physical forms (i.e., solid or liquid form), with or without coating or additives such as anti-caking agents. Phosphate fertilizers in solid form are covered whether granular, prilled (i.e., pelletized), or in other solid form (e.g., powdered).
The covered merchandise includes phosphate fertilizers in the following forms: ammonium dihydrogenorthophosphate or monoammonium phosphate (MAP), chemical formula NH4H2PO4; diammonium hydrogenorthophosphate or diammonium phosphate (DAP), chemical formula (NH4)2HPO4; normal superphosphate (NSP), also known as ordinary superphosphate or single superphosphate, chemical formula Ca(H2PO4)i-CaSO4; concentrated superphosphate, also known as double, treble, or triple superphosphate (TSP), chemical formula Ca(H2PO4)2·H2O; and proprietary formulations of MAP, DAP, NSP and TSP.
The covered merchandise also includes other fertilizer formulations incorporating phosphorous and non-phosphorous plant nutrient components, whether chemically bonded, granulated (e.g., when multiple components are incorporated into granules through, e.g., a slurry process), or compounded (e.g., when multiple components are compacted together under high pressure), including nitrogen, phosphate, sulfur (NPS) fertilizers, nitrogen, phosphorous, potassium (NPK) fertilizers, and proprietary formulations thereof that may or may not include other nonphosphorous plant nutrient components. For phosphate fertilizers that contain non-phosphorous plant nutrient components, such as nitrogen, potassium, sulfur, zinc or other non-phosphorous components, the entire article is covered, including the non-phosphorous content, provided that the phosphorous content (measured by diphosphorous pentaoxide, chemical formula P2Os) is at least 5% by weight.
Phosphate fertilizers that are otherwise subject to this investigation are included when commingled (i.e., mixed or blended) with phosphate fertilizers from sources not subject to this investigation. Phosphate fertilizers that are otherwise subject to this investigation are included when commingled with substances other than phosphate fertilizers subject to this investigation (e.g., granules containing only non-phosphate fertilizers such as potash or urea). Only the subject component of such commingled products is covered by the scope of this investigation.
The Chemical Abstracts Service (CAS) numbers for covered phosphate fertilizers include, but are not limited to: 7722-76-1 (MAP); 7783-28-0 (DAP); and 65996-95-4 (TSP). The covered products may also be identified by Nitrogen-Phosphate-Potash composition, including but not limited to: NP 11-52-0 (MAP); NP 18-46-0 (DAP); and NP 0-46-0 (TSP).
The covered merchandise is currently classified in the Harmonized Tariff Schedule of the United States (“HTS US”) at subheadings 3103.11.0000; 3103.19.0000; 3105.20.0000; 3105.30.0000; 3105.40.0010; 3105.40.0050; 3105.51.0000; and 3105.59.0000. Phosphate fertilizers subject to these investigations may also enter under subheadings 3103.90.0010; 3105.10.0000; 3105.60.0000; 3105.90.0010; and 3105.90.0050. Although the HTSUS subheadings and CAS registry numbers are provided for convenience and customs purposes, the written description of the scope is dispositive.
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate a countervailing duty investigation. Comments are due July 16.
Email ITTNews@warren-news.com for a copy of the petition.