Brazil regulator to conduct consultation on PET preform imports

07 May 2013 23:28  [Source: ICIS news]

HOUSTON (ICIS)--CADE, the regulator for free competition in Brazil, is conducting a public consultation to review the current zero import duty applied to shipments of bottle preforms into Brazil from neighbouring countries, local sources said on Tuesday.

The consultation will take place on 9 May, and is the result of a request for a consultation from ABIPET, the Brazilian polyethylene terephthalate (PET) industry association.

Resin from Asia pays no duties when imported by Argentina, Uruguay and Paraguay, and when it is intended for re-export as processed products.

As a result, PET enters countries that participate in the MERCOSUR free-trade agreement as resin at zero duty, where it is transformed into preforms, which in turn are exported into Brazil, again at zero duty.

The preforms are then blown into bottles in Brazil before being filled with beverages or soft drinks for public consumption.

However, the same virgin PET from Asia pays duties of 14% when entering Brazil, placing preform makers in Brazil at a disadvantage against the preform exporters from other MERCOSUR countries.

PET produced in Brazil is also more expensive than resin imported by the MERCOSUR countries.


By: Ron Coifman
+1 713 525 2653



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