On Monday, the Foreign Trade Chamber of the Brazilian Ministry of Economy announced the extension of the definitive anti-dumping duty on suspension PVC imports under the HS code 3904.1010 from the United States and Mexico for up to five years. The tariff on the US and Mexican suspension polymer will slip from 16% ad valorem to 8.2% and from 18% ad valorem to 13.6% respectively. According to government officials, they will suspend the reduction if PVC exports from Mexico to Brazil rise to a level that could damage the Brazilian economy. The anti-dumping duty will be levied at the rate charged on the customs value of the goods. The Chamber’s decision also includes assessing PVC imports from Mexico that occurred during the period when the duty collection was suspended. Brazil has a quarterly quota limit for suspension-made PVC imports of 160,000 t. Imports of suspension-made PVC from countries with existing free trade agreements are not included in this quota, though.
Reminder: On July 20, government officials suspended its 12.6% tariff on emulsion PVC imports. The legislation will be effective from 25 July 2022 to 24 July 2023 but only for the first 12,000 t imported during the period. On 5 August, the Brazilian government reduced separate duties on all PVC imports from 11.2% to 4.4%, which will be valid until August 2023. All reductions were included to the List of Exceptions to the Mercosur Common External Tariff (LETEC).
Although demand is currently weak in Brazil amid forthcoming elections in October, this decision has the potential to increase shipments from the United States and Mexico to Brazil in the long run.