SAO PAULO (ICIS)–The Brazilian federal government has
greatly increased import tariffs for some
polymers and tires, the Foreign Trade Chamber
(Camex) said over the weekend.
According to the federal government body, low import
tariffs for some plastics has actually had “hazardous
repercussions” for the Brazilian chemical sector
as imports have actually increased and domestic rates have
fallen.
“The [plastics] sector has actually already signed up
a blockage in a minimum of one animal [polyethylene
terephthalate] resin assembly line in
Pernambuco [state],” said Camex.
However, a source in Brazil’s petrochemical
market which imports a big quantity of
polymers said the step was a “negative”
surprise and business had actually not been cautioned in
advance.
| Brazil import tariffs | New | Old |
| Ethylene copolymers | 11.2% | 3.3% |
| Propylene copolymers | 11.2% | 4.4% |
| Polyvinyl chloride (PVC) | 11.2% | 4.4% |
|
Polyethylene terephthalate (FAMILY PET) |
11.2% | 4.2% |
| Tyres | 16% | 0% |
Camex likewise said Brazilian tires manufacturers had
been “facing a drop in production” brought on by an
boost in imports and as an outcome, manufacturers
were threatening to “paralyse production and
perform layoffs.”
However, it did state that after a boost in
import tariffs, tire manufacturers had actually “signified
the retreat” with their risks to stop
production and lay off employees.
Tyres are an essential end market for
styrene-butadiene-rubber (SBR).
Tariffs for propylene homopolymers were
validated at 6.5% till July at the earliest.
‘NEGATIVE SURPRISE’
A
source from Brazil’s petrochemical market,
which imports a big quantity of polymers,
mainly from Asia, said the boost in tariffs
had actually come as a “negative surprise” and was not
happy that business had actually not been informed in
advance about the modifications.
The source said “it is unclear what’s going
on” with the present federal government administered by
Luiz Inacio Lula da Silva, particularly with
concerns to tax policy, and the abrupt walking in
import tariffs fell under that dynamic.
“This federal government doesn’t make some things
clear, particularly for little business like
ours. Today [Friday 17 March], we received
details that import tariffs for some
products will be greater. While this was
anticipated to take place, it wasn’t anticipated to
take place now,” the source said.
“We import a big quantity of polymers consisting of
FAMILY PET, so this has actually come as an extremely negative
surprise. We are examining now just how much this
will increase our expenses.”
Brazil’s chemicals and plastics trade groups,
Abiquim and Abiplast, respectively, had not
reacted to an ask for remark at the time
of composing.
