Ordinance defines rules for ethanol import quota without tariff

The ordinance of the Ministry of Economy, published on Monday (10/21), defines the division of the quota of importation of ethanol from Brazil, maintaining the limit of 750m liters per year. In the Northeast’s ethanol harvest, from August 31, 2019 to February 29, 2020, a maximum of 200m liters with zero aliquot may be imported.

In the off season, there will be two quotas of 275m: from March 1, 2020 to May 31, 2020 and from June 1, 2020 to August 30, 2020. The establishment of smaller quotas in the Northeastern crop was negotiated by the Minister of Agriculture, Livestock, and Supply, Tereza Cristina.

During the negotiations, the minister met with the sugar and alcohol sector. She also spoke by telephone with US Secretary of Agriculture Sonny Perdue. According to 2018 data, 99.7% of Brazilian ethanol imports come from the United States.

Currently, the import tax for ethanol is 20%, but the tariff is only charged if the country exceeds the quota. Within the limit, the tariff is zero for any country.

The previous import quota was 600m liters of ethanol per year. The 750m limit was set last August, valid for 12 months.

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