Brazil cuts PP copolymer, suspension-made PVC import tariffs through Aug 2023

The Brazilian government has decided to temporarily reduce polypropylene copolymer and suspension-made polyvinyl chloride import tariffs to 4.4%, from 11.2%, effective Aug. 5 until Aug. 4, 2023, the Ministry of Economy said Aug. 4.

There is no established quota limit for the import of both products.

For polypropylene copolymer, products under the HS code 3902.3000 were considered. For suspension-made PVC, products under the HS code 3904.1010 were considered.

Ethylene and alpha olefin copolymer products of density inferior to 0.94 under the HS code 3901.4000 also had import tariffs reduced to 3.3%, from 11.2%.

Brazil July 20 suspended its 12.6% import tariff on emulsion-made PVC, effective July 25 until July 24, 2023. The suspension of the tariffs was for the first 12,000 mt volume during the period.

Brazil also temporarily reduced polypropylene homopolymer import tariffs July 20 to 6.5%, from 11.2%, effective July 20 until July 31, 2023. For polypropylene homopolymer, products under the HS code 3902.1020 were considered.

All reductions were included to the List of Exceptions to the Mercosur Common External Tariff (LETEC).

Braskem says measures to affect business

Brazil's petrochemical producer Braskem said the measures will affect its business in Brazil, including investment plans.

"Such reduction is effective for one year from Aug. 5, 2022, and during this period will negatively impact the company's results in Brazil," Braskem said in a statement Aug. 4. "It is worth noting that Braskem has always prioritized supplying the Brazilian market and that there are currently no indications of a lack of product in this market."

"Finally, the company will assess the implications of such a reduction in its business in Brazil, including the review of the operational and strategic investment plan in the country," Braskem said.

Brazil PVC, PP antidumping measures

Brazil had a definitive antidumping measure of 16% ad valorem for suspension-made PVC from the US and 18% from Mexico under the HS code 3904.1010 valid until end-September 2021. The government has not given any updates on the tariff. A definitive antidumping measure of 21.6% on suspension-made PVC from China and South Korea remains valid until December 2025.

Brazil has a quarterly quota limit for suspension-made PVC imports of 160,000 mt. Imports of suspension-made PVC from countries with existing free trade agreements do not count in the 160,000 mt/quarter quota.

Brazil also has a current antidumping measure on polypropylene homopolymer and copolymer against South Africa (4.6% to 16%) and India (6.4% to 9.9%) valid until December 2025. Brazil had a definitive antidumping measure against both the grades of PP from the US at 10.6% ad valorem valid until Nov. 1, 2021.

The government March 30, 2021, decided to lift polypropylene import tariffs of 14% for three months, with a 77,000 mt polypropylene homopolymer imports cap, which sold out quickly.