Brazil announces new tariffs on natural rubber imports

Sao Palo, Brazil – At a meeting of Camex’s Executive Management Committee, held August 15, the Federal Government of Brazil approved the increase in the tax rate applied to imports of natural rubber. The elastomer tax will increase from 3.2% to 10.8% for a period of 24 months.

The Brazilian heveiculture faces conjunctural difficulties due to the sharp drops in the international price of elastomer and the consequent loss of competitiveness compared to products imported from Southeast Asian countries.

When commenting on the increase in the rate, the Minister of Agriculture and Livestock, Carlos Fávaro, pointed out that “the industry has returned to consuming more products here in Brazil, but it must buy from Brazilian producers.

“Today we approved a 10.8% tax on imports of natural rubber. This will strengthen the producers, the production chain and the industry as well”.

He explained that at the beginning of the year the government needed to resume taxation of tires imported into Brazil. The previous government had withdrawn the taxation.

“This work was done with great dedication by our Secretary of Commerce and International Relations, Roberto Perosa, with our Vice President Geraldo Alckmin, there at Camex, an important measure that strengthens the entire natural rubber chain, from the producer to the national industry”.

Fávaro clarifies that another important decision regarding rubber was taken. “The president of Conab, Edegar Pretto, and his entire board, have already launched public notices to support the sale of rubber”.

“It is the government making itself present in order to strengthen both the industry and the producers. It is Brazil now on the right path”, concludes the minister. ■