Regulation 2022/2465 - Amendment of Annex I to Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff - Main contents

EN

Official Journal of the European Union

L 322/81

The Union market for certain nitrogen fertiliser inputs depends considerably on imports from third countries. In 2021, the Union imported 2,9 million tonnes of ammonia and 4,7 million tonnes of urea to produce nitrogen fertilisers. The prices for those products have increased substantially in 2021 and have further risen during the current year.

Currently, a significant part of those inputs for nitrogen fertilisers is imported into the Union from third countries that benefit from preferential access to the Union market, and thus the imports are duty-free. Notwithstanding this, the Union imports a large volume of inputs for nitrogen fertilisers originating in countries subject to the Common Customs Tariff set out in Council Regulation (EEC) No 2658/87 (1), with tariff rates currently ranging between 5,5 % and 6,5 %.

In the communication of the Commission of 23 March 2022 on safeguarding food security and reinforcing the resilience of food systems, the Commission notes that already before the Russian invasion of Ukraine, commodity markets were witnessing a significant price surge, which was reflected in agricultural markets through increases in energy and fertiliser costs, and a consequent increase in the prices of agricultural goods. The Commission notes that the invasion of Ukraine and a global commodity price boom have further driven up prices in agricultural markets and are exposing the vulnerabilities of the Union’s food system, which is partially reliant on imports of fertilisers. This increases the costs for producers and affects the price of food, raising concerns as regards the purchasing power of consumers, and the income of farmers in the Union. The Commission stresses that, in the short term, the cost and availability of mineral fertilisers must be priorities, pending the transition to the use of sustainable types of fertilisers or methods of fertilising. During that period, the fertiliser industry in the Union must be able to access the necessary imports, including inputs to produce fertilisers within the Union itself. The Commission also highlights that fertiliser prices and supplies for farmers will be monitored to ensure that the prospects for Union harvests are not jeopardised.

In light thereof, it is appropriate to take action to reduce the costs faced by Union producers of fertilisers when importing inputs necessary for the production of nitrogen fertilisers.

Moreover, at a time of scarcity of nitrogen fertilisers on the international markets, tariffs on the importation into the Union of intermediate inputs such as ammonia and urea constitute a disincentive to supply the Union market, compared to other world markets which have no import tariffs. The tariff differential also hinders efforts for the diversification of Union imports.

It is therefore appropriate to temporarily suspend the Common Customs Tariff rates duties referred to in Article 56(2), point (c), of Regulation (EU) No 952/2013 of the European Parliament and of the Council (2) for certain nitrogen fertilisers inputs. This temporary measure should apply for a period of six months from the date of the entry into force of this Regulation. In order to allow for the effects of the measure to be assessed, the Commission should carry out a report and submit it to the...