Brazil Approves New Tariff-Free Import Quota For Primary Aluminum
S&P Global reported last week that Brazil’s government has announced the enforcement of a new tariff-free import quota for primary aluminum that will last through December 31, 2019.
The new quota level will exempt up to 141,250 metric tons from the six percent import duty (charged over the all-in price). The quota twill allow for half of the volume from the previous tariff-free quota, but for half the period. The previous quota expired at the end of June a fact that S&P Global said “forced some market participants either to pay the duty or to store the imported units in bonded warehouses since early July.”
The report noted Brazil has been a net importer of primary aluminum since 2015. The country imported 245,000 metric tons from July 2018 to June 2019.