IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 31 Jul 2015 | Removal date: 28 Jan 2018
Still in force

State loan

On 31 July 2015, Brazil's development bank BNDES and the Funding Authority for Studies and Projects (Finep) announced the 'Development and Innovation Plan for the Chemical Industry' (PADIQ). The plan will be granted 2.2billion real (about USD 660 million) for projects in 2016 and 2017.
 
PADIQ represents the first initiative of the second phase of the Business Innovation Plan (Plano Inova Empresa) which was launched in 2011. PADIQ's goals are to increase industry competitiveness, reduce sectoral trade balance deficit, incentivize FDI and to develop goods of higher aggregated value.
 
Beneficiaries of PADIQ are projects in the field of food additives for animals, silicon derivatives, carbon fibers, chemicals for the extraction and production of petroleum, raw material for cosmetics, and chemicals obtained from biofuels. Projects are required to represent a minimum value of 1 million real (USD 300'000) for technological development and 20 million real (USD 6 million) for the installation of plants.
 
State support and national content
The measure is considered discriminatory since, in general, the Brazilian Development Bank provides credits with below-market interest rates only to legal persons (private or public) based in Brazil. Besides this, the bank imposes local content requirements on goods (mainly capital goods), services and software financed through its credit lines.
 
GTA note
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
 
Affected tariff lines
The announcement by BNDES did not state the tariff lines of the affected products. For this reason, the GTA reverted to approximate tariff lines and thus researched for goods that are representative for the abovementioned chemicals.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

120 Crude petroleum & natural gas
2711 Petroleum gases and other gaseous hydrocarbons.
271111 Natural gas
271121 Natural gas
334 Petroleum gases & other gaseous hydrocarbons, except natural gas
2711 Petroleum gases and other gaseous hydrocarbons.
271112 Propane
271113 Butanes
271119 Other
335 Petroleum jelly, coke or bitumen; paraffin wax & similar products
2713 Petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained from bituminous minerals.
271311 Not calcined
271312 Calcined
271320 Petroleum bitumen
341 Basic organic chemicals
2902 Cyclic hydrocarbons.
290211 Cyclohexane
290219 Other
290241 oXylene
290243 pXylene
290244 Mixed xylene isomers
290250 Styrene
290290 Other
2903 Halogenated derivatives of hydrocarbons.
290311 Chloromethane (methyl chloride) and chloroethane (ethyl chloride)
290312 Dichloromethane (methylene chloride)
290315 Ethylene dichloride (ISO) (1,2dichloroethane)
290323 Tetrachloroethylene (perchloroethylene)
290339 Other
290371 Chlorodifluoromethane
290373 Dichlorofluoroethanes
290379 Other
290391 Chlorobenzene, odichlorobenzene and pdichlorobenzene
290399 Other
2905 Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives.
290511 Methanol (methyl alcohol)
290512 Propan1ol (propyl alcohol) and propan2ol (isopropyl alcohol)
290513 Butan1ol (nbutyl alcohol)
290514 Other butanols
290517 Dodecan1ol (lauryl alcohol), hexadecan1ol (cetyl alcohol) and octadecan1ol (stearyl alcohol)
290519 Other
290522 Acyclic terpene alcohols
290529 Other
290531 Ethylene glycol (ethanediol)
290532 Propylene glycol (propane1,2diol)
290539 Other
290541 2Ethyl2(hydroxymethyl)propane1,3diol (trimethylolpropane)
290542 Pentaerythritol
290544 Dglucitol (sorbitol)
290559 Other
2907 Phenols; phenolalcohols.
290711 Phenol (hydroxybenzene) and its salts
290713 Octylphenol, nonylphenol and their isomers; salts thereof
290715 Naphthols and their salts
290719 Other
290721 Resorcinol and its salts
290722 Hydroquinone (quinol) and its salts
290723 4,4'Isopropylidenediphenol (bisphenol A, diphenylolpropane) and its salts
290729 Other
2910 Epoxides, epoxyalcohols, epoxyphenols and epoxyethers, with a threemembered ring, and their halogenated, sulphonated, nitrated or nitrosated derivatives.
291020 Methyloxirane (propylene oxide)
291030 1Chloro2,3epoxypropane (epichlorohydrin)
291090 Other
2912 Aldehydes, whether or not with other oxygen function; cyclic polymers of aldehydes; paraformaldehyde.
291219 Other
291229 Other
291241 Vanillin (4hydroxy3methoxybenzaldehyde)
291249 Other
291260 Paraformaldehyde
2917 Polycarboxylic acids, their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives.
291711 Oxalic acid, its salts and esters
291712 Adipic acid, its salts and esters
291713 Azelaic acid, sebacic acid, their salts and esters
291714 Maleic anhydride
291719 Other
291720 Cyclanic, cyclenic or cycloterpenic polycarboxylic acids, their anhydrides, halides, peroxides, peroxyacids and their derivatives
291732 Dioctyl orthophthalates
291733 Dinonyl or didecyl orthophthalates
291734 Other esters of orthophthalic acid
291736 Terephthalic acid and its salts
291739 Other
2921 Aminefunction compounds.
292111 Methylamine, di or trimethylamine and their salts
292119 Other
292121 Ethylenediamine and its salts
292122 Hexamethylenediamine and its salts
292129 Other
292130 Cyclanic, cyclenic or cycloterpenic mono or polyamines, and their derivatives; salts thereof
292141 Aniline and its salts
292142 Aniline derivatives and their salts
292143 Toluidines and their derivatives; salts thereof
292149 Other
292151 o, m, pPhenylenediamine, diaminotoluenes, and their derivatives; salts thereof
292159 Other
2922 Oxygenfunction aminocompounds.
292211 Monoethanolamine and its salts
292212 Diethanolamine and its salts
292219 Other
292221 Aminohydroxynaphthalenesulphonic acids and their salts
292229 Other
292239 Other
292249 Other
292250 Aminoalcoholphenols, aminoacidphenols and other amino compounds with oxygen function
2929 Compounds with other nitrogen function.
292910 Isocyanates
292990 Other
2933 Heterocyclic compounds with nitrogen heteroatom(s) only.
293329 Other
293333 Alfentanil (INN), anileridine (INN), bezitramide (INN), bromazepam (INN), difenoxin (INN), diphenoxylate (INN), dipipanone (INN), fentanyl (INN), ketobemidone (INN), methylphenidate (INN), pentazocine (INN), pethidine (INN), pethidine (INN) intermediat
293339 Other
293349 Other
293361 Melamine
293371 6Hexanelactam (epsiloncaprolactam)
293372 Clobazam (INN) and methyprylon (INN)
293379 Other lactams
293391 Alprazolam (INN), camazepam (INN), chlordiazepoxide (INN), clonazepam (INN), clorazepate, delorazepam (INN), diazepam (INN), estazolam (INN), ethyl loflazepate (INN), fludiazepam (INN), flunitrazepam (INN), flurazepam (INN), halazepam (INN), lorazepam
293399 Other
342 Basic inorganic chemicals n.e.c.
2804 Hydrogen, rare gases and other nonmetals.
280429 Other
280469 Other
280470 Phosphorus
280490 Selenium
2807 Sulphuric acid; oleum.
280700 Sulphuric acid; oleum.
2811 Other inorganic acids and other inorganic oxygen compounds of nonmetals.
281111 Hydrogen fluoride (hydrofluoric acid)
281119 Other
281121 Carbon dioxide
281122 Silicon dioxide
281129 Other
343 Tanning or dyeing extracts; tannins; colouring matter n.e.c.
3204 Synthetic organic colouring matter, whether or not chemically defined; preparations as specified in Note 3 to this Chapter based on synthetic organic colouring matter; synthetic organic products of a kind used as fluorescent brightening agents or as lumin
320411 Disperse dyes and preparations based thereon
320412 Acid dyes, whether or not premetallised, and preparations based thereon; mordant dyes and preparations based thereon
320413 Basic dyes and preparations based thereon
320414 Direct dyes and preparations based thereon
320415 Vat dyes (including those usable in that state as pigments) and preparations based thereon
320416 Reactive dyes and preparations based thereon
320417 Pigments and preparations based thereon
320419 Other, including mixtures of colouring matter of two or more of the subheadings 3204.11 to 3204.19
320420 Synthetic organic products of a kind used as fluorescent brightening agents
320490 Other
3206 Other colouring matter; preparations as specified in Note 3 to this Chapter, other than those of heading 32.03, 32.04 or 32.05; inorganic products of a kind used as luminophores, whether or not chemically defined.
320611 Containing 80 % or more by weight of titanium dioxide calculated on the dry matter
320619 Other
320620 Pigments and preparations based on chromium compounds
320641 Ultramarine and preparations based thereon
320649 Other
345 Miscellaneous basic chemical products
2707 Oils and other products of the distillation of high temperature coal tar; similar products in which the weight of the aromatic constituents exceeds that of the nonaromatic constituents.
270730 Xylol (xylenes)
270750 Other aromatic hydrocarbon mixtures of which 65 % or more by volume (including losses) distils at 250 ?C by the ASTM D 86 method
270799 Other
2905 Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives.
290545 Glycerol
352 Pharmaceutical products
2922 Oxygenfunction aminocompounds.
292241 Lysine and its esters; salts thereof
292242 Glutamic acid and its salts
2933 Heterocyclic compounds with nitrogen heteroatom(s) only.
293311 Phenazone (antipyrin) and its derivatives
293319 Other
293321 Hydantoin and its derivatives
293353 Allobarbital (INN), amobarbital (INN), barbital (INN), butalbital (INN), butobarbital, cyclobarbital (INN), methylphenobarbital (INN), pentobarbital (INN), phenobarbital (INN), secbutabarbital (INN), secobarbital (INN) and vinylbital (INN); salts there
293359 Other
293369 Other
2936 Provitamins and vitamins, natural or reproduced by synthesis (including natural concentrates), derivatives thereof used primarily as vitamins, and intermixtures of the foregoing, whether or not in any solvent.
293621 Vitamins A and their derivatives
293622 Vitamin B1 and its derivatives
293623 Vitamin B2 and its derivatives
293624 D or DLPantothenic acid (Vitamin B3 or Vitamin B5) and its derivatives
293625 Vitamin B6 and its derivatives
293626 Vitamin B12 and its derivatives
293627 Vitamin C and its derivatives
293628 Vitamin E and its derivatives
293629 Other vitamins and their derivatives
293690 Other, including natural concentrates
2941 Antibiotics.
294110 Penicillins and their derivatives with a penicillanic acid structure; salts thereof
294130 Tetracyclines and their derivatives; salts thereof
294140 Chloramphenicol and its derivatives; salts thereof
294150 Erythromycin and its derivatives; salts thereof
294190 Other
354 Chemical products n.e.c.
3817 Mixed alkylbenzenes and mixed alkylnaphthalenes, other than those of heading 27.07 or 29.02.
381700 Mixed alkylbenzenes and mixed alkylnaphthalenes, other than those of heading 27.07 or 29.02.
373 Refractory products & structural non-refractory clay products
6815 Articles of stone or of other mineral substances (including carbon fibres, articles of carbon fibres and articles of peat), not elsewhere specified or included.
681591 Containing magnesite, dolomite or chromite
379 Other non-metallic mineral products n.e.c.
6815 Articles of stone or of other mineral substances (including carbon fibres, articles of carbon fibres and articles of peat), not elsewhere specified or included.
681510 Nonelectrical articles of graphite or other carbon
681599 Other

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