Brazilian gov’t announces return of 16% tariff on tire and resin imports

The return of the 16% tariff for the importation of tires will be included in Brazil’s Official Gazette dated March 21. The decision was taken last week by the Executive Management Committee (Gecex) of the Foreign Trade Chamber (Camex) in its first meeting under the new Lula administration.

According to the Committee, the decision revokes Gecex Resolution No. 148 of January 20, 2021, a measure that brought to zero the tariff levied on imports of five models of cargo tires. The organization also highlights, in a note, that the action should encourage the national manufacture of the products.

“The measure is good news for national tire manufacturers, who have been facing a drop in production caused by the increase in imports and, with full stocks, threatening to paralyze production and carry out layoffs. With the end of the tax exemption for imported cargo tires, the industry has already hinted at a retreat in its workforce dismissal plans,” says the note.

Plastic resins

In another measure, Gesex decided to recompose the import rates charged for four plastic resins, raising the import tariffs to 11.2%.

The reduction of import taxes had been imposed by resolutions issued in July and August of last year for ethylene copolymers, propylene copolymers, PVC obtained by suspension process, and Polyethylene terephthalate, PET.

All of the Camex meeting’s considerations are available on the Camex website.

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