Yesterday, during its monthly meeting, the Foreign Trade Chamber of Ministers (Camex) made a decision that will affect the steel industry. The chamber has approved a Notice that will exclude 12 steel-related tariff codes (NCMs) from a list that has been enjoying a reduced import tax rate of 10% since May 2022. This change came in response to a request from the Brazilian steel industry.
The decision will be published in the Brazilian Official Gazette and will come into effect from October 1, 2023, when the import tax will return to its original percentage, increasing from 9.6% to 12.8%.
The affected tariff codes include a range of steel products such as thick coils, hot coils, cold coils, galvanized sheets, wire rods, and more. The complete list is as follows:
7208.37.00 – Thick Coils
7208.38.90 – Hot Coils
7208.39.10 – Hot Coils
7209.16.00 – Cold Coil
7209.17.00 – Cold Coils
7210.49.10 – Galvanized Sheets
7210.61.00 - Aluminum-Zinc Coated Sheets
7213.91.90 - Wire rods
7222.20.00 – Cold Stainless Steel Bar
7304.19.00 – Seamless tubes
7304.29.39 - Seamless pipes
The rationale behind this decision stems from the adverse effects felt by the domestic steel sector due to recent changes in import tax rates on steel products originating from countries like the USA and Mexico. Since 2018, the United States has escalated import tariffs on steel and aluminum products, while the Mexican government has imposed a 25% import tariff until July 2025 on various items, including iron and steel.
Consequently, it is asserted that steel sector products from countries such as China are entering the Brazilian market at prices below market standards, adversely affecting the purchase of domestic goods. In the first half of this year, 1.5 million tons of these products were imported, marking a significant increase compared to the first half of 2022, with variations reaching up to 714%.
Stay tuned for more updates!
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