Report: Brazil rejects request to eliminate ethanol tariff
On October 17, 2024, Brazil’s Tariff Changes Committee (CAT) of the Chamber of Foreign Trade (CAMEX) denied a request to remove the 18% tariff on ethanol imports. The petition was filed by the Brazilian Association of Fuel Importers (ABICOM) and the U.S. Grains Council. This is the second denial since the tariff’s implementation in February 2023.
October 22, 2024
The Tariff Changes Committee (CAT) of Brazil’s Chamber of Foreign Trade (CAMEX) on Oct. 17 rejected a request to remove the 18% tariff on ethanol imports to Brazil, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network.
The Brazilian Association of Fuel Importers (ABICOM) and the U.S. Grains Council had petitioned CAMEX to remove the tariff. According to the report, this is the second time CAMEX has denied a request to reduce the ethanol tariff since its implementation in February 2023.
ABICOM, with support from the USGC, in October 2023 formally submitted a request to CAMEX asking for a tariff reduction on ethanol imported into Brazil. A public comment period on the request was open through April 2024. The USGC, Renewable Fuels Association, Growth Energy, the USDA and U.S. Trade Representative were among those urging CAMEX to eliminate the tariff.
According to the report, a request to reduce the ethanol tariff must include approval from all members of Mercosur bloc, a South American trade bloc that includes Argentina, Bolivia, Brazil, Paraguay and Uruguay. CAMEX must take the initial step to approve the claimant’s request.
CAMEX in June 2024 rejected ABICOM’s request and maintained the 18% tariff. ABICOM, supported by the USGC, on May 8, 2024, submitted a new request to CAMEX seeking elimination of the ethanol tariff. That request sought to include ethanol in Brazil’s list of exceptions to the Common Eternal Tariff. CAMEX opened a new public comment period on May 15. The request was denied on Oct. 17.
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