Brazil increases import tariffs for more than 80 chemical, fertilizers products

SAO PAULO (ICIS)–The Brazilian government’s committee on foreign trade Gecex-Camex approved late on Wednesday an increase in import taxes on more than 80 chemical and fertilizers products, with the new rate up to 20% for most materials.

Among some of the products affected are widely used chemicals such polypropylene (PP), polyethylene, (PE), polyvinyl chloride (PVC), polystyrene (PS), and polyethylene terephthalate (PET).

See bottom list for details.

Previous rates stood between 7.6% and 12.6%. The new rates will apply from October and are valid for one year.

The decision is yet to be approved by Mercosur, the trading common area formed by Argentina, Paraguay, and Uruguay, as well as Brazil, which is the dominant economy in Mercosur.

The cabinet, thus, gave in partly to the pressure by chemical producers in Brazil. Earlier this year, individual companies as well as the trade group representing producers, Abiquim, had proposed to increase tariffs in more than 100 chemicals.

The decision was widely anticipated by analysts, and it is expected to immediately prop up earnings for some of Brazil’s largest producers such polymers major Braskem or chlor-alkali major Unipar.

Brazil has been the recipient of large amounts of imports from Asia and, to a lesser extent, the US which have greatly dented domestic producers’ market share.

Sectors that opposed increasing tariffs, including plastic transformers represented by Abiplast, expressed their disappointment after Wednesday’s measure by Gecex-Camex.

“[The decision was taken even though] Abiplast and other trade groups have exhaustively demonstrated to the government the harmful impacts of increases in import tariffs on raw materials,” said Jose Ricardo Roriz Coelho, president of Abiplast, in a letter to the trade group’s members seen by ICIS.

“We will continue to fight to ensure that these unreasonable measures are reversed.”

Product	Current Tax Rate	Proposed Tax Rate	Plaintiff
Phosphoric acid with iron content less than 750 ppm	9%	17.5%	Abiquim
Sodium hydrogen carbonate (bicarbonate)	9%	20%*	Abiquim
Isobutyl alcohol (2-methyl-1-propanol)	10.80%	20%	Abiquim
Isobutyl alcohol (2-methyl-1-propanol)	10.80%	20%	Elekeiroz Inc.
Phenol (hydroxybenzene) and its salts	7.20%	12.6%*	Abiquim
Phenol (hydroxybenzene) and its salts	7.20%	12.6%*	Rhodia Brasil SA
Butanone (methyl ethyl ketone)	10.80%	20%	Abiquim
Ethyl acetate	10.80%	20%	Abiquim
n-butyl acetate	10.80%	20%	Abiquim
n-butyl acetate	10.80%	20%	Rhodia Brasil SA
Other saturated acyclic monoalcohol acetates, c atom <= 8	10.80%	20%	Abiquim
Methacrylic acid methyl esters	10.80%	20%	Abiquim
Methacrylic acid methyl esters	10.80%	20%	Unigel Holdings Inc.
Adipic acid	9%	20%	Abiquim
Adipic acid	9%	20%	Rhodia Brasil SA
Maleic anhydride	10.80%	20%	Abiquim
Maleic anhydride	10.80%	20%	Elekeiroz Inc.
Fumaric acid, its salts and esters	10.80%	20%	Abiquim
Dioctyl orthophthalates	10.80%	20%	Abiquim
Dioctyl orthophthalates	10.80%	20%	Elekeiroz Inc.
Dinonyl or didecyl orthophthalates	10.80%	20%	Abiquim
Hexamethylenediamine and its salts	10.80%	20%	Abiquim
Monoethanolamine and its salts	12.60%	20%	Abiquim
Other anionic organic surface-active agents, whether or not put up for retail sale, not classified under previous codes	12.60%	20%	Abiquim
Polyethylene with a density of less than 0.94, with filler	12.60%	20%	Abiquim
Polyethylene with a density of less than 0.94, without filler	12.60%	20%	Abiquim
Other unfilled polyethylenes, density >= 0.94, in primary forms	12.60%	20%	Abiquim
Other copolymers of ethylene and vinyl acetate, in primary forms	12.60%	20%	Abiquim
Copolymers of ethylene and alpha-olefin, with a specific gravity of less than 0.94	12.60%	20%	Abiquim
Unfilled polypropylene in primary form	12.60%	20%	Abiquim
Propylene copolymers, in primary forms	12.60%	20%	Abiquim
Expandable polystyrene, unfilled, in primary form	12.60%	18%	Abiquim
Other styrene polymers, in primary forms	12.60%	20%	Abiquim
Other styrene polymers, in primary forms	12.60%	20%	Unigel Holdings Inc.
Polyvinyl chloride, unmixed with other substances, obtained by suspension process	12.60%	20%	Abiquim
Polyethylene terephthalate of a viscosity index of 78 ml/g or more	12.60%	20%	Abiquim
Polyethylene terephthalate of a viscosity index of 78 ml/g or more	12.60%	20%	Alpek Polyester Pernambuco SA
Other unsaturated polyethers, in primary forms	12.60%	20%	Abiquim
Ex – Surfactant polymer class preparation, silicone free	12.60%	12.60%	Abiquim
Ex – Solvent-free modified polyester class preparation	12.60%	12.60%	Abiquim
White mineral oils (vaseline or paraffin oils)	3.60%	35%	Abiquim
Silicon dioxide obtained by chemical precipitation	9%	18%	Abiquim
Silicon dioxide obtained by chemical precipitation	9%	17%	Rhodia Brasil SA
Other silicon dioxides	0%	18%	Abiquim
Commercial ammonium carbonates and other ammonium carbonates	9%	18%	Abiquim
Styrene	9%	18%	Abiquim
Styrene	9%	18%	Unigel Holdings Inc.
Butan-1-ol (n-butyl alcohol)	10.80%	20%	Abiquim
Butan-1-ol (n-butyl alcohol)	10.80%	20%	Elekeiroz Inc.
Propylene glycol (propane-1, 2-diol)	10.80%	20%	Abiquim
Dipropylene glycol	12.60%	20%	Abiquim
Triacetin	10.80%	20%	Abiquim
Triacetin	10.80%	20%	Denver Specialty Chemicals
2-Ethylexanoic acid (2-ethylexoic acid)	10.80%	20%	Abiquim
2-Ethylexanoic acid (2-ethylexoic acid)	10.80%	20%	Elekeiroz Inc.
Salts and esters of adipic acid	10.80%	20%	Abiquim
Other esters of orthophthalic acid	10.80%	20%	Abiquim
Other esters of orthophthalic acid	10.80%	20%	Elekeiroz Inc.
Phthalic anhydride	10.80%	20%	Abiquim
Phthalic anhydride	10.80%	20%	Petrom Petrochemicals Mogi das Cruzes S/A
Ammonium nitrate, even in aqueous solution	0%	15%	Abiquim
Pigments and preparations based on these pigments	12.60%	20%	Abiquim
Linear alkylbenzene sulfonic acids and their salts	12.60%	23%	Abiquim
Organic surface-active agents, non-ionic	12.60%	23%	Abiquim
Alkylbenzene mixtures	10.80%	20%	Abiquim
Stearic acid (industrial monocarboxylic fatty acid)	5.40%	35%	Abiquim
Stearic alcohol (industrial fatty alcohol)	12.60%	20%	Abiquim
Sodium methylate in methanol	12.60%	20%	Abiquim
Other ethylene polymers, in primary forms	12.60%	20%	Abiquim
Filled polypropylene, in primary form	12.60%	20%	Abiquim
Other polystyrenes in primary forms	12.60%	20%	Abiquim
Other polystyrenes in primary forms	12.60%	20%	Unigel Holdings Inc.
Polyvinyl chloride, unmixed with other substances, obtained by emulsion process	12.60%	20%	Abiquim
Polymethyl methacrylate, in primary form	12.60%	20%	Abiquim
Polymethyl methacrylate, in primary form	12.60%	20%	Unigel Holdings Inc.
Other polyether polyols, in primary forms	12.60%	20%	Abiquim
Other polyesters in liquids and pastes	12.60%	20%	Abiquim
Other polyurethanes in liquids and pastes	12.60%	20%	Abiquim
Carboxymethyl cellulose with content >=75%, in primary forms	12.60%	20%	Abiquim
Carboxymethyl cellulose with content >=75%, in primary forms	12.60%	20%	Denver Specialty Chemicals
Styrene-butadiene rubber (SBR), food grade according to the Food Chemical Codex, in primary forms	10.80%	22%	Abiquim
Acrylonitrile-butadiene rubber in sheets, plates, etc.	10.80%	35%	Abiquim
Latex of other synthetic or artificial rubbers	10.80%	35%	Abiquim