The U.S. Department of Commerce (DOC) increased the tariff rate on Moroccan phosphate fertilizers imported into the United States, according to the OCP.
The DOC raised the tariff rate from a preliminary 14.21% to a final 16.81%, after a second administrative review of the countervailing duty (CVD) order on phosphate fertilizers from Morocco.
This rate will be retroactively applied to 2022 imports and will serve as the new standard for cash deposits required by U.S. Customs for future imports, potentially until 2026 or beyond.
OCP says that the DOC’s decision is flawed, relying on inadequate methodologies and unsupported determinations.
Despite providing detailed evidence and arguments during the review process, OCP says that there is no legitimate basis for imposing CVD tariffs on its U.S. fertilizer imports.
Read also: How US lobbying on Moroccan phosphates led to a global food crisis
The company intends to continue its legal challenges against these tariffs in the U.S. Court of International Trade and is considering appealing the DOC’s latest decision.
OCP says that despite this decision, it remains committed to full cooperation with U.S. agencies in any future analyses.
“We will continue our full and transparent cooperation with U.S. agencies as they conduct any future analyses,” says the company.
OCP added that “U.S. farmers need additional reliable, high-quality providers of sustainable phosphate fertilizers to ensure the supply chain resiliency that enables them to feed their fellow citizens and the wider world.”
Last month, the U.S. government increased the countervailing duties (CVD) on imported Moroccan fertilizers from 2.12% to 14.21%.
This decision followed a U.S. Department of Commerce investigation that found the OCP had allegedly benefited from various subsidies, including discounted natural gas purchases, mining rights, tax breaks, regional development programs, and low-interest government loans.
The dispute dates back to 2020, when Mosaic, a major U.S. phosphate producer, petitioned the U.S. Department of Commerce to investigate government subsidies for phosphate fertilizers in both Russia and Morocco.
Mosaic claimed that these subsidies gave OCP and Russia’s PhosAgro an unfair competitive advantage in the U.S. market, harming domestic fertilizer producers.
The U.S. Department of Commerce responded by imposing a 23.46% duty, which was later reduced to 19.97% and then to 2.12% late last year due to flaws in the initial analysis. However, the duties were recently raised again to 14.21% following a review.
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