River drought alters Paraguay’s export route, increasing shipments to Paranaguá

The Port of Paranaguá registered an increase of more than 30% in shipments of soybean meal from Paraguay destined for export last month, according to the Brazilian federal tax authority. The main reason is drought. The water crisis is affecting the Mercosur countries, so the Paraguayan soybean meal, which was normally sent by ships to Argentina, needed a new logistical format.

“Since the merchandise’s destination is not Brazil, it is necessary for it to cross the country through the Customs Transit regime. In this modality, the products introduced in the country have the tax payments suspended until they leave Brazil again”, explains the tax authority.

Due to drought and low levels in rivers, especially the Paraná River, most of the soybean meal enters the country via Porto Seco de Foz do Iguaçu, in the west of the state. There, customs transit starts under the inspection of the federal tax authority followed by truck transport to the Port of Paranaguá, on the coast of Paraná, where the transit is finalized by the agency’s servers and the product goes on to its destination by ship.

However, with the water crisis and the consequent increase in demand for transport, the Internal Revenue Service last week tested incorporating the rail network into transit traffic, using Porto Seco de Cascavel.

“The cargo arrives by road in Foz do Iguaçu, thus continuing to Cascavel, where it is loaded on trains that travel to Paranaguá for the loading of the bulk product on export ships”, details the tax authority.

Source: Paraná Portal

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