The Colombian government will maintain a zero tariff on ammonium sulfate.

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In order to reduce production costs, the Colombian government will maintain a zero tariff on a group of agricultural inputs for twelve months.

Through Decree 0809 of May 25th, the Ministry of Commerce, Industry, and Tourism partially modified the customs tariff for the importation of certain agricultural inputs.

This measure was adopted based on a series of precedents related to the suspension of tariffs for the importation of certain agricultural inputs in order to reduce production costs.

Thus, Decree 504 of April 4th, 2022 was previously issued, establishing a zero percent tariff for twelve months for the importation of products corresponding to agricultural inputs.

Subsequently, it was decided to extend the zero percent tariff for the importation of products corresponding to agricultural inputs for a period of six months. Then, through Decree 1176 of July 11th, 2022, the national government established a zero percent tariff for the importation of fertilizers and pesticides, effective until April 5th, 2023. (Read: Agricultural input prices show a downward trend)

According to the decree, it is necessary to partially modify the customs tariff in order to protect the development of agricultural, livestock, and fishing activities, as well as to provide adequate protection to domestic production since inputs have an impact “ranging from 5% to 78% on production costs.”

According to the Ministry of Agriculture, the increase in the cost of agricultural inputs has impacted the agricultural sector, resulting in a marked increase in production costs, which is passed on to producers and final consumers.

Oscar Cubillos, Head of the Planning and Economic Research Office at Fedegán–FNG, highlighted that pasture seed remains tariff-free, which is important, although it should be noted that they already had a reduced tariff.

It should be considered that El Niño phenomenon is approaching, and in that regard, producers are unlikely to invest in seeds because it will not work. Furthermore, the phenomenon is expected to last eight months, while the exemption lasts twelve months, so the benefit is not very significant either.

Alongside the importation of seeds, there should be other products that have the same benefit, such as irrigation machinery and water storage instruments. “The initiative is important, but it needs to be more connected to the environmental and climatological realities that will arise,” Cubillos pointed out.

The raw materials that will benefit from this measure include:

  • Onions
  • Garlic for sowing
  • Fresh sweet potatoes
  • Palm nuts and almonds for sowing
  • Sugar beet seeds
  • Forage seeds such as alfalfa, lettuce, vegetable seeds for sowing, and tobacco seeds
  • Milk substitutes for calf feeding
  • Propionic acid salts
  • Veterinary medicines, fertilizers, albumins, fungicides, and manganese minerals
  • Fertilizers containing phosphates and nitrates
  • Double salts and mixtures of ammonium sulfate and ammonium nitrate, among others.

The measure established in the regulation will undergo a semi-annual review by the Customs, Tariffs, and Foreign Trade Affairs Committee to assess its effects.

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