On Thursday, November 7, the United States Department of Commerce (DOC) issued the final results of its second administrative review of the countervailing duty (CVD) order on phosphate fertilizers from Morocco. In these final results, the DOC, which promotes conditions for economic growth and opportunity, increased the tariff rate for Moroccan phosphate fertilizers imported into the U.S. from 14.21% to 16.81%, according to a press release from OCP. The new rate will apply retroactively as the final tariff rate for Morocco's 2022 imports into the United States. It is also the new rate for cash deposits that U.S. importers must pay to U.S. Customs at the time of importation, applicable from now until at least 2026. This rate may be updated if a future administrative review of the CVD order is conducted. Morocco's phosphate fertilizer producer and exporter OCP criticized the DOC's decision, calling it «deeply flawed», despite what it described as «detailed and robust evidence and arguments provided during the DOC's review». OCP argued that «the increase in the CVD rate results from the DOC's use of inadequate methodologies that are inconsistent with U.S. law and regulations, and determinations that are not supported by the record evidence». The company emphasized that «there is no justification for any CVD tariffs on our U.S. fertilizer imports», and stated it will continue its «ongoing appeals against these tariffs in the U.S. Court of International Trade». OCP said it will appeal this latest DOC decision. The Moroccan phosphate giant also pledged to continue cooperating with U.S. agencies during any future analyses. «U.S. farmers need additional reliable, high-quality providers of sustainable phosphate fertilizers to ensure the supply chain resilience that enables them to feed their fellow citizens and the wider world», the company stated, expressing its hope to resume its role as a partner to U.S. farmers once these tariffs are resolved. In November 2023, the DOC announced the final results of its first administrative review of the CVD order on certain Moroccan phosphate fertilizer imports, which resulted in a reduction of the overall tariff rate from 19.97% to 2.12%. At that time, OCP welcomed the decision, noting that the significantly lower rate would serve as the final tariff rate for 2021 imports and as the provisional rate required to be deposited with U.S. Customs for imports from November 2023 onward, until the conclusion of the next administrative review in Q4 2024.
