01 August 2013 23:19 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Brazil’s Chamber of Foreign Trade (Camex) has temporarily reduced the nation’s import tariff on partially oriented yarn (POY) to alleviate a shortage in domestic supply, the government agency said on Thursday.
POY is a raw material used in the production of polyester fibre.
The tariff was cut from South American trading bloc Mercosur’s common external tariff (TEC) rate of 18% to a rate of 2% until 17 January 2014, Camex said. The new tariff is limited to a maximum import quota of 40,400 tonnes.
The move follows the levying of a previous tariff cut on POY imports from 18% to 2% that expired in June, the agency said.
A Mercosur resolution allows member countries to temporarily reduce the TEC to ensure product supply or to increase it to protect domestic industry.
Current Mercosur members are Brazil, Argentina, Uruguay, Paraguay and Venezuela. Bolivia, currently an associate member, is in the process of becoming a full member.
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