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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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