Brazilian gov’t restores import tariffs for five steel products

Five steel products that had their import tariffs reduced in 2022 will return to paying the original rates to enter the country. The Executive Committee of the Foreign Trade Chamber’s Management (Gecex-Camex) approved the measure on Thursday (8) in Brasília, partially addressing requests from domestic producers who claimed unfair competition.

Two years ago, the government unilaterally lowered the Import Tax by 10% for a range of industrial inputs. According to Gecex-Camex, today’s decision represents a restoration. The agency continues to review requests to restore the tariff on other products covered by the tariff reductions.

The five products that will face increased tariffs to enter the country are as follows:

• Hot-rolled, non-alloy iron or steel bars, not further worked than forged, hot-rolled, or twisted after rolling, with indented surfaces, ribs, grooves, or other deformations produced during rolling;
• Seamless iron or steel pipes and hollow profiles used for oil or gas pipelines;
• Alloy steel tubes, uncoated, seamless, for well casing;
• Welded circular cross-section iron or steel pipes;
• Welded square or rectangular cross-section iron or steel pipes.

According to Gecex-Camex, the Import Tax for one of these products will rise from 10.8% to 12%. The tariff on two items will increase from 12.6% to 14%. For the remaining two products, it will go up from 14.4% to 16%. The agency did not specify which rate applies to each product, only emphasizing that the tariffs will return to the Mercosur Common External Tariff (TEC).

The chart below shows Brazilian steel imports between Jan 2020 and Dec 2023. The data is from DataLiner.

Brazilian Steel Imports | Jan 2020 – Dec 2023 | TEUs

Source: DataLiner (click here to request a demo)

Non-Surgical Gloves

Also today, Gecex approved the provisional application of antidumping duties on the import of non-surgical gloves from companies in China, Malaysia, and Thailand. These equipment are used in dentistry, veterinary, and medical procedures.

The surcharges range from 6.2% to 119.3%, depending on the foreign exporter. According to the Ministry of Development, Industry, Trade, and Services (MDIC), investigations began last year and confirmed not only the practice of dumping but also the existence of harm to the domestic industry. Due to unfair competition, domestic industries reduced domestic production by 90%.

Dumping occurs when a foreign company sells an item below cost to gain external markets. Condemned by the World Trade Organization (WTO), this practice can be retaliated against by affected countries, which may impose antidumping duties.

Source: Agência Brasil

Click here to read the original article: https://agenciabrasil.ebc.com.br/economia/noticia/2024-02/gecex-restaura-tarifas-de-importacao-para-cinco-produtos-de-aco

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