EU import duties take effect again on ammonia, urea

Urea and ammonia import duties came back into effect on 17 June, after a six-month suspension. But a key report by the European Commission on the impact of the suspension remains pending, meaning that the EU could seek to suspend duties again.

The duty reimposition means a return to traditional trade flows is likely, after the last six months have seen an influx of urea and ammonia from non-typical origins.

The standard rates of 5.5pc on ammonia imports and 6.5pc on urea imports are now in place again, after the suspension — which was introduced in December — expired on 17 June. But several key origins remain exempt from the tariffs, including Egypt, Algeria and Trinidad and Tobago.

The European Commission was due to submit a report on the impact of the duty suspension on 17 May, with the report informing a decision on whether to extend the measure. But the report remains pending. The commission had been divided on whether duties should resume. It is still preparing the report and may still submit a proposal for a new suspension "subject to its assessment of the market situation", a spokesperson said.

The duty removal has partially altered trade flows to Europe in the past six months, making it more attractive to ship from non-traditional origins, such as Nigeria and the UAE. For urea, Malaysia has also become an attractive origin. And 181,000t of ammonia have shipped from the US to the EU in January-May, up from none in recent years, according to line-up data.

By Claudia Wlk