U.S. Department of Commerce opens duty-free window for Moroccan phosphate imports amid domestic supply concerns

The U.S. Department of Commerce has opened an eight-month period during which Moroccan phosphate fertilizer may enter the United States without countervailing duties, following the emergency declaration issued on June 29 to strengthen fertilizer supplies for American farmers. The measure took effect on July 8 with its publication in the Federal Register.

According to the notice, exporters and importers may request duty-free treatment for Moroccan phosphate fertilizer shipments covered by the current countervailing duty order under Section 318(a) of the Tariff Act of 1930. Commerce stated the exemption is necessary “to ensure that United States farmers have a sufficient and timely supply of fertilizers during the planting and growing season,” and noted that Moroccan producers, led by OCP Group, can meet U.S. demand. Approved shipments must enter the U.S. within 60 days of authorization or will again be subject to standard countervailing duties.

This decision temporarily reopens the U.S. market to Moroccan phosphate fertilizer imports, which have been restricted since the 2021 countervailing duty order prompted by a petition from Mosaic. The exemption follows reduced domestic phosphate availability, following Mosaic’s announcement of further production curtailments at facilities in Florida, Louisiana, and Brazil due to sulfur supply disruptions related to tensions near the Strait of Hormuz. StoneX Vice President of Fertilizers Josh Linville expressed “mixed feelings” about the suspension, noting it may ease short-term supply constraints for U.S. buyers but could introduce new competitive challenges for domestic producers.

Source: Federal Register

What you need to know about Morocco’s duty-free phosphate window