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  • Brazil's ethanol-import tax vote postponed until July 26

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

    has been postponed until July 26, market sources said late Tuesday. 


    The vote, which had already been rescheduled once from early May, was supposed to have 

    taken  place  on  Tuesday  during  a meeting of the  Executive  Management  Committee  of 

    Camex. 


    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. 


    Amid  surging  imports  throughout   2016  and early 2017, ethanol producers in the North-

    Northeast region and Brazilian sugar industry group Unica have made strong appeals to th

    e  federal   government  to  impose a 17% tariff to restrict imports as the local biofuel loses 

    competitiveness against US product. 


    The imports   are  usually  via  ports  in  the North-Northeast region, mainly in Paraiba and 

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


    ETHANOL IMPORTS SURGE 

    Brazilian imports of ethanol surged in 2016, totaling 834.6 million liters, a 63% year-on-year 

    rise. Roughly 90% of the imports entered the country through North-Northeast ports. 


    The  country's  January-May imports totaled 1.08 billion liters of ethanol, up 310% from the 

    same period last year, according to customs data. 


    In May alone,  Brazil  imported  248 million liters, up more than sixfold year on year and up 

    122% month on month. 


    The rise in imports in May and June was expected by industry participants because importe

    rs increased  shipments  in those months due to worries that the October 2011 import tariff 

    could return. 

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