Egypt swaps $90/t nitrogen export levy for a flexible 10% duty

Egypt has replaced its fixed $90 per metric ton export levy on nitrogen fertilizers with a 10% ad valorem duty calculated on free-on-board invoice value. The Egypt nitrogen export duty was introduced under Decree No. 258 of 2026, issued by Minister of Investment and Foreign Trade Mohamed Farid and published in the Official Gazette on June 25.

The shift ties the charge directly to prevailing export prices. The flat $90/t duty was set in May when urea traded above $800/t, but the subsequent slide to the low $400s/t by late June sharply raised its relative burden and eroded Egyptian competitiveness. Unlike the May measure, which ran for three months, the new decree carries no expiry date and stays in force until amended or cancelled.

Pure ammonium nitrate with nitrogen concentration above 34.2% is exempt, as are shipments destined for productive enterprises in Egypt’s free zones. Exporters claiming the exemption must submit samples for analysis by a joint committee drawn from the Egyptian Customs Authority and the General Organization for Export and Import Control.

Export invoices also require certification by the Chamber of Chemical Industries, part of the Federation of Egyptian Industries, adding an administrative step. Egypt allocates roughly 350,000 to 400,000 metric tons of urea a month to export, and separately restarted phosphate rock shipments in June while weighing further curbs for 2027.

Source: Arab Finance