02 April 2013 17:27 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Brazil’s chamber of foreign trade (Camex) said on Tuesday that it has restored the import tariff on monoethylene glycol (MEG) to the South American trading block Mercosur’s common external tariff (TEC) rate of 12%, with immediate effect.
The tariff was reduced from 20%, which had been in effect since last September after Camex had increased the rates on a number of items to help protect domestic industry.
According to Camex, the reinstatement of the 12% rate for MEG was a result of the “continuous monitoring” of those items that had been subject to the tariff increases.
“The evaluation of domestic and international market situations, observed during the tariff increase period, showed the TEC offered sufficient protection to domestic production,” Camex said.
The higher rates that came into effect in September affected 100 items, including MEG, and were valid for an initial period of 12 months, with the possibility of a one-year extension.
Camex said the increases were designed to protect the country's petrochemical, steel, pharmaceutical and capital goods sectors and stimulate domestic production.
At the time, Brazil’s chemical industry association Abiquim welcomed the increased rates, maintaining that they would benefit the nation’s chemical industry.
Conversely, the country’s plastics association Abiplast blasted the decision as a “hard slap” to local plastic processors.
The association argued that the hikes would increase costs for plastic processors, adversely affect the supply chain and only benefit Brazilian chemical major Braskem.
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