ANNOUNCEMENT 31 Aug 2019

The Government of Brazil has established new tariff-rate quotas on ethanol. 

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Ministry of Agriculture, Fishing and Development of Brazil. Ministário da Agricultura, Pecuária e Abastecimento. Notícias. "Cota de importação de etanol sem tarifa é elevada para 750 milhões de litros" Available at: http://www.agricultura.gov.br/noticias/cota-de-importacao-de-etanol-sem-tarifa-e-elevada-para-750-milhoes-de-litros

Official Gazette of Brazil. Diário Oficial da União. Portaria Nº 547 de 31 de Agosto de 2019. Available at: http://www.in.gov.br/web/dou/-/portaria-n-547-de-31-de-agosto-de-2019-213571719

Brazilian Foreign Trade Council. Câmara de Comércio Exterior. Resolução 1 de 17 de outubro de 2019. Available at: http://www.camex.gov.br/resolucoes-camex-e-outros-normativos/58-resolucoes-da-camex/2483-resolucao-n-1-de-17-de-outubro-de-2019

Ministry of Foreign Affairs of Brazil. Ministério das Relaçoes Exteriores. Declaraçao Conjunta sobre o Comércio do Etanol entre o Brasil e os Estados U"nidos" de 11 de Setembro de 2020. Available at:http://www.itamaraty.gov.br/pt-BR/notas-a-imprensa/21727-declaracao-conjunta-sobre-o-comercio-de-etanol-entre-o-brasil-e-os-estados-unidos

Inception date: 31 Aug 2019 | Removal date: 30 Nov 2020

Import tariff quota

On 31 August 2019, the Ministry of Agriculture, Fishing and Development of Brazil has adopted Ordinance 547/2019 increasing the duty-free quota set on ethanol.  

The new quota has been set at 750 million litres while the previous quota was set at 600 million litres (please, see related state acts). The quota is limited to 187.5 million litres per term.

The import duty outside the quota has been kept at 20%.

According to data from 2018, 99.7% of Brazilian ethanol imports come from the United States.

Ordinance 547/2019 has entered into force on 31 August 2019 and applies for twelve months. 

 
Update
On 17 October 2019, the Brazilian Foreign Trade Council (CAMEX) has published Resolution 1/2019 defining how the quota is to be distributed throughout the year, establishing the following volumes:
  • 200 million litres between 31/08/2019 and 29/02/2020;
  • 275 million litres between 01/03/2020 and 31/05/2020; and
  • 275 million litres between 01/06/2020 and 30/08/2020.

On 11 September 2020, the Ministry of Foreign Affairs of Brazil announced that the tariff-rate quota on ethanol was renewed for another 90 days. During this period the total available quota will correspond to 187.5 million litres as it was agreed in Ordinance 547/2019. During this period of time, both governments will discuss options to renew again this quota.

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