Bilgioil — Brazilian government decided to decrease its polyvinyl chloride import duty from 14% to current 4%, it published Dec. 11 at the official gazette.
Quota limit is for 160,000 mt of imports
Three-month period could be extended
Petrotahlil — Brazilian government decided to decrease its polyvinyl chloride import duty from 14% to current 4%, it published Dec. 11 at the official gazette.
The new duty is valid for products under the HS code 3904.1010, valid for PVC obtained by the suspension process, the document says. The measure is already valid from Dec. 11.
The 4% import duty will be valid for an initial period of three months, "extendable for an equal period if the Executive Management Committee of the Chamber of Foreign Trade understands that the market offer conditions for the item in question have not been fully restored," it said.
Imports will have a limit quota of 160,000 mt per quarter.
"Imports were necessary anyway to cover the demand, but this will make import PVC more attractive," a US trader said.
"It was a gift for importers, but we're having a very hard situation in Asia. We do not see offers of PVC from Taiwan nor China. It is a chaos, plus freight going up to $10,000," a Brazilian trader said.
The official gazette said the measure was a result of an extraordinary meeting on Dec. 8. Market sources were expecting a resolution by the government, saying local construction and plastics associations were pressuring due to the lack of material in the market.
"News is just positive; it'll increase the demand for imported PVC. I think this is because local producers will continue 2021 with production issues," the Brazilian trader said. "We cannot have import duties so high as Brazil does if domestic production is not self-sufficient in terms of meeting market needs."
"Imports from countries with which Brazil has a trade agreement that establishes free trade for the good in question will not be able to enjoy the established quota," the document said.
"Material will keep lacking on the market. There's no point decreasing the import duty but maintaining the AD," a second Brazilian trader said.
Brazil has current antidumping measures against PVC imports from Mexico (ad valorem of 18%) and the US (ad valorem of 16%), valid until the end of September 2021, and definitive AD against PVC imports from South Korea (varying from 2.7% to 18.9%, depending on the producer) and China (AD of 21.6%).