Brazil temporarily cuts plastic import taxes

Imports and Exports | | MIC Customs Solutions |

The duties being applied to thermoplastics entering Brazil have been reduced.


The government in Brazil has decided to temporarily lower the import tariffs for a range of thermoplastics, something that could affect businesses trading with the Latin American country.

According to a statement from the Ministry of Economy seen by S&P Global, the levies on polyethylene, polypropylene and PVC will be cut from 14 per cent to 12.6 per cent from now until December 2022.

The reductions relate to particular grades and codes for polyethylene and polypropylene, but all grades of PVC.

This new statement did not make any reference to the anti-dumping measures ad valorem of 16 per cent and 18 per cent that currently apply to the US and Mexico respectively for PVC.

However, it did say the anti-dumping measure of 21.6 per cent applicable to China and South Korea will remain in place until December 2025.

It is not the first time that import taxes on thermoplastics and resins have been in the spotlight - temporary reductions were announced back in July 2019 in response to a range of market factors.

Brazil's government had also decided in March this year to cut polypropylene import tariffs from 14 per cent to zero for a three-month period.

The latest news comes after Valor International reported that prices for PVC in particular have hit all-time highs in Brazil of late, tripling since the beginning of the COVID-19 pandemic alone.

This was attributed to a range of factors, including rising logistics costs, China's energy crisis and unscheduled shutdowns in factories in the US and Europe that usually act as key suppliers.

High demand was also cited as a contributing factor, with the Brazilian Chemical Industry Association saying domestic demand for the main thermoplastic resins had risen by nearly a quarter in the first six months of 2021.

Consequently, as demand outstripped local production, the amount of imported resins being brought in grew by four per cent year-on-year.

Brazil currently gets much of its thermoplastic raw materials from the US, China, South Korea and Mexico.