Brazil's ethanol importers are now required to follow the same rules as domestic producers 

regarding stocks of supply, according to the country's official gazette. 

The National Council for Energy Policy in mid-April proposed the new rule, in which importe

rs  of  ethanol would have to follow the same rules as national producers of keeping stocks 

of anhydrous of 25% in January of each year and 8% in March, based on previous-year sa

les. The text published by the Official Gazette on Monday makes the rule official. 

The  measure  aims to protect the domestic ethanol market amid a recent surge of imports 

of US product. 

The original rule, ANP 67/2011, was created to ensure enough supply of anhydrous ethan

ol  in  the  country  during  the  intercrop season in Center-South Brazil following a serious 

disruption of supply that forced the country to turn to imports. 

The intercrop period in CS Brazil runs from December until March 31. 

Amid  surging  imports throughout 2016 and early 2017, Brazilian ethanol producers have 

been pushing the government to reinstate the import tax. 

The import tax was suspended in October 2011 because Brazil was undergoing an ethanol 

shortage due to crop problems. The tariff is currently suspended until 2019. 

A vote by Brazilian foreign trade board Camex to reinstate the country's ethanol-import tarif

f  has  been  postponed  until  June. The  vote was scheduled to take place May 2 during a 

meeting of several government ministries and Camex. 

Brazil's  agricultural  sector  has  opposed  the tariff, with the farmers' group Brazilian Rural 

Society arguing it could lead to retaliatory tariffs from the US on other commodities. 

North-Northeast  ethanol  producers  have been very vocal about the damage that ethanol 

imports have brought to the local prices. The imports are usually via ports located in Paraib

a and Maranhao states, where no local tax applies to imported ethanol.