Brazil increases import tariffs for more than 80 chemical, fertilizers products
The Brazilian government’s committee on foreign trade Gecex-Camex approved late on Wednesday an increase in import taxes on more than 80 chemical and fertilizers products, with the new rate up to 20% for most materials.
Among some of the products affected are widely used chemicals such polypropylene (PP), polyethylene, (PE), polyvinyl chloride (PVC), polystyrene (PS), and polyethylene terephthalate (PET).
See bottom list for details.
Previous rates stood between 7.6% and 12.6%. The new rates will apply from October and are valid for one year.
The decision is yet to be approved by Mercosur, the trading common area formed by Argentina, Paraguay, and Uruguay, as well as Brazil, which is the dominant economy in Mercosur.
The cabinet, thus, gave in partly to the pressure by chemical producers in Brazil. Earlier this year, individual companies as well as the trade group representing producers, Abiquim, had proposed to increase tariffs in more than 100 chemicals.
The decision was widely anticipated by analysts, and it is expected to immediately prop up earnings for some of Brazil’s largest producers such polymers major Braskem or chlor-alkali major Unipar.
Brazil has been the recipient of large amounts of imports from Asia and, to a lesser extent, the US which have greatly dented domestic producers’ market share.
Sectors that opposed increasing tariffs, including plastic transformers represented by Abiplast, expressed their disappointment after Wednesday’s measure by Gecex-Camex.
“[The decision was taken even though] Abiplast and other trade groups have exhaustively demonstrated to the government the harmful impacts of increases in import tariffs on raw materials,” said Jose Ricardo Roriz Coelho, president of Abiplast, in a letter to the trade group’s members seen by ICIS.
“We will continue to fight to ensure that these unreasonable measures are reversed.” – Source: ICIS –
Product | Current Tax Rate | Proposed Tax Rate | Plaintiff |
| Phosphoric acid with iron content less than 750 ppm | 9% | 17.50% | Abiquim |
| Sodium hydrogen carbonate (bicarbonate) | 9% | 20%* | Abiquim |
| Isobutyl alcohol (2-methyl-1-propanol) | 10.80% | 20% | Abiquim |
| Isobutyl alcohol (2-methyl-1-propanol) | 10.80% | 20% | Elekeiroz Inc. |
| Phenol (hydroxybenzene) and its salts | 7.20% | 12.6%* | Abiquim |
| Phenol (hydroxybenzene) and its salts | 7.20% | 12.6%* | Rhodia Brasil SA |
| Butanone (methyl ethyl ketone) | 10.80% | 20% | Abiquim |
| Ethyl acetate | 10.80% | 20% | Abiquim |
| n-butyl acetate | 10.80% | 20% | Abiquim |
| n-butyl acetate | 10.80% | 20% | Rhodia Brasil SA |
| Other saturated acyclic monoalcohol acetates, c atom <= 8 | 10.80% | 20% | Abiquim |
| Methacrylic acid methyl esters | 10.80% | 20% | Abiquim |
| Methacrylic acid methyl esters | 10.80% | 20% | Unigel Holdings Inc. |
| Adipic acid | 9% | 20% | Abiquim |
| Adipic acid | 9% | 20% | Rhodia Brasil SA |
| Maleic anhydride | 10.80% | 20% | Abiquim |
| Maleic anhydride | 10.80% | 20% | Elekeiroz Inc. |
| Fumaric acid, its salts and esters | 10.80% | 20% | Abiquim |
| Dioctyl orthophthalates | 10.80% | 20% | Abiquim |
| Dioctyl orthophthalates | 10.80% | 20% | Elekeiroz Inc. |
| Dinonyl or didecyl orthophthalates | 10.80% | 20% | Abiquim |
| Hexamethylenediamine and its salts | 10.80% | 20% | Abiquim |
| Monoethanolamine and its salts | 12.60% | 20% | Abiquim |
| Other anionic organic surface-active agents, whether or not put up for retail sale, not classified under previous codes | 12.60% | 20% | Abiquim |
| Polyethylene with a density of less than 0.94, with filler | 12.60% | 20% | Abiquim |
| Polyethylene with a density of less than 0.94, without filler | 12.60% | 20% | Abiquim |
| Other unfilled polyethylenes, density >= 0.94, in primary forms | 12.60% | 20% | Abiquim |
| Other copolymers of ethylene and vinyl acetate, in primary forms | 12.60% | 20% | Abiquim |
| Copolymers of ethylene and alpha-olefin, with a specific gravity of less than 0.94 | 12.60% | 20% | Abiquim |
| Unfilled polypropylene in primary form | 12.60% | 20% | Abiquim |
| Propylene copolymers, in primary forms | 12.60% | 20% | Abiquim |
| Expandable polystyrene, unfilled, in primary form | 12.60% | 18% | Abiquim |
| Other styrene polymers, in primary forms | 12.60% | 20% | Abiquim |
| Other styrene polymers, in primary forms | 12.60% | 20% | Unigel Holdings Inc. |
| Polyvinyl chloride, unmixed with other substances, obtained by suspension process | 12.60% | 20% | Abiquim |
| Polyethylene terephthalate of a viscosity index of 78 ml/g or more | 12.60% | 20% | Abiquim |
| Polyethylene terephthalate of a viscosity index of 78 ml/g or more | 12.60% | 20% | Alpek Polyester Pernambuco SA |
| Other unsaturated polyethers, in primary forms | 12.60% | 20% | Abiquim |
| Ex – Surfactant polymer class preparation, silicone free | 12.60% | 12.60% | Abiquim |
| Ex – Solvent-free modified polyester class preparation | 12.60% | 12.60% | Abiquim |
| White mineral oils (vaseline or paraffin oils) | 3.60% | 35% | Abiquim |
| Silicon dioxide obtained by chemical precipitation | 9% | 18% | Abiquim |
| Silicon dioxide obtained by chemical precipitation | 9% | 17% | Rhodia Brasil SA |
| Other silicon dioxides | 0% | 18% | Abiquim |
| Commercial ammonium carbonates and other ammonium carbonates | 9% | 18% | Abiquim |
| Styrene | 9% | 18% | Abiquim |
| Styrene | 9% | 18% | Unigel Holdings Inc. |
| Butan-1-ol (n-butyl alcohol) | 10.80% | 20% | Abiquim |
| Butan-1-ol (n-butyl alcohol) | 10.80% | 20% | Elekeiroz Inc. |
| Propylene glycol (propane-1, 2-diol) | 10.80% | 20% | Abiquim |
| Dipropylene glycol | 12.60% | 20% | Abiquim |
| Triacetin | 10.80% | 20% | Abiquim |
| Triacetin | 10.80% | 20% | Denver Specialty Chemicals |
| 2-Ethylexanoic acid (2-ethylexoic acid) | 10.80% | 20% | Abiquim |
| 2-Ethylexanoic acid (2-ethylexoic acid) | 10.80% | 20% | Elekeiroz Inc. |
| Salts and esters of adipic acid | 10.80% | 20% | Abiquim |
| Other esters of orthophthalic acid | 10.80% | 20% | Abiquim |
| Other esters of orthophthalic acid | 10.80% | 20% | Elekeiroz Inc. |
| Phthalic anhydride | 10.80% | 20% | Abiquim |
| Phthalic anhydride | 10.80% | 20% | Petrom Petrochemicals Mogi das Cruzes S/A |
| Ammonium nitrate, even in aqueous solution | 0% | 15% | Abiquim |
| Pigments and preparations based on these pigments | 12.60% | 20% | Abiquim |
| Linear alkylbenzene sulfonic acids and their salts | 12.60% | 23% | Abiquim |
| Organic surface-active agents, non-ionic | 12.60% | 23% | Abiquim |
| Alkylbenzene mixtures | 10.80% | 20% | Abiquim |
| Stearic acid (industrial monocarboxylic fatty acid) | 5.40% | 35% | Abiquim |
| Stearic alcohol (industrial fatty alcohol) | 12.60% | 20% | Abiquim |
| Sodium methylate in methanol | 12.60% | 20% | Abiquim |
| Other ethylene polymers, in primary forms | 12.60% | 20% | Abiquim |
| Filled polypropylene, in primary form | 12.60% | 20% | Abiquim |
| Other polystyrenes in primary forms | 12.60% | 20% | Abiquim |
| Other polystyrenes in primary forms | 12.60% | 20% | Unigel Holdings Inc. |
| Polyvinyl chloride, unmixed with other substances, obtained by emulsion process | 12.60% | 20% | Abiquim |
| Polymethyl methacrylate, in primary form | 12.60% | 20% | Abiquim |
| Polymethyl methacrylate, in primary form | 12.60% | 20% | Unigel Holdings Inc. |
| Other polyether polyols, in primary forms | 12.60% | 20% | Abiquim |
| Other polyesters in liquids and pastes | 12.60% | 20% | Abiquim |
| Other polyurethanes in liquids and pastes | 12.60% | 20% | Abiquim |
| Carboxymethyl cellulose with content >=75%, in primary forms | 12.60% | 20% | Abiquim |
| Carboxymethyl cellulose with content >=75%, in primary forms | 12.60% | 20% | Denver Specialty Chemicals |
| Styrene-butadiene rubber (SBR), food grade according to the Food Chemical Codex, in primary forms | 10.80% | 22% | Abiquim |
| Acrylonitrile-butadiene rubber in sheets, plates, etc. | 10.80% | 35% | Abiquim |
| Latex of other synthetic or artificial rubbers | 10.80% | 35% | Abiquim |
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