Ponta do Félix port re-exports fertilizers for 2nd time

The Port of Ponta do Félix, located in Antonina, on the coast of Paraná, concluded its second re-export operation of fertilizers on Monday, October 24. This time, 23.4 thousand tonnes of the product were re-exported.

The cargo, which had been stored in a bonded warehouse since June 16, came from Jordan and will be sent to Turkey.

This is the second re-export of fertilizers by Ponta do Félix in less than one month. On September 22, 17 thousand tonnes of the crop-enhancing input were re-exported to the United States. Altogether, the two operations add up to 40,400 tonnes in the re-export system to other countries.

Unprecedented operations

This type of operation is unprecedented in the Port of Ponta do Félix. Due to the large volume of the product that Brazil imported to secure enough supplies for its harvest period, as well as the drop in the prices of fertilizers registered in recent weeks, mainly phosphorus and potassium, re-export has been a strategy largely adopted by the sector.

The existence of bonded warehouses with a static storage capacity of 320 thousand tonnes at the terminal, which allows the suspension of tax collection under fiscal control, facilitates re-export operations at Ponta do Félix.

Gilberto Birkhan, the president of the port of Ponta do Félix, explains that because the cargo was in a bonded warehouse, the trader was able to renegotiate and re-export the product with the nationality of origin despite being on Brazilian soil.

In such circumstances, the fertilizer remains in the storage area but remains the exporter’s property without being imported and nationalized.

“In other words, it’s as if the cargo never set foot on Brazilian soil. The bonded area is considered a neutral zone and is common in international trade ports. As a result, there is more marketing flexibility, which allows re-exporting without the impact of national taxes,” according to the president.

The modality also reduces costs in movements within the national territory. “The product can stay in the warehouses at Ponta do Félix, in the state of Paraná, or it can be nationalized and sent to another state in the country, thus avoiding double taxation,” concludes Birkhan.

Fertilizer Consumption

Fertilizers are essential for agriculture, and Brazil depends on foreign suppliers to supply the demand.

Brazil imports 85% of the fertilizer used in crops. The country bought a record volume of fertilizers this year. The measure guaranteed sufficient inputs for expanding the planted area in the face of scarcity fears due to the war between Ukraine and Russia, which is an important supplier.

According to data from the Administration of the Ports of Paranaguá and Antonina, in September, 580,603 thousand tonnes of fertilizers were handled through the ports of Paraná.

Sharing is caring!