Brazil’s Chamber of Foreign Trade will not increase tariffs

Brazil’s Chamber of Foreign Trade will not increase tariffs on metal packaging used in food and construction

The Executive Management Committee of the Brazilian Chamber of Foreign Trade decided not to increase import duties for metal sheets used in the packaging of food and construction products. The Brazilian Steel Packaging Association warned the Ministry of Development, Industry, Trade and Services that any change in these rates could have a negative impact on the prices of basic foodstuffs such as sardines, vegetables and powdered milk, as well as construction materials that are traditionally canned in steel.

According to the Brazilian Food Industry Association, sheet metal makes up only a small part of the steel produced in Brazil, less than 1% in total. However, in some cases, they can represent up to 25% of processed food costs. In addition, they are used in the entire domestic production of steel cans.

Thais Fagury, president of ABEAÇO – Associação Brasileira de Embalagem de Aço – stated that the organization has represented the sector before the Ministry of Industry and has provided data showing how the only company to benefit from the increase in tariffs on steel sheet metal would be the National Steel Company (CSN), which has a monopoly on this type of material used in packaging. In addition, it was revealed that the specific request for NCM (Mercosur Common Nomenclature) for steel sheets used in packaging was exclusive to CSN.

According to Thais, the decision to separate steel used for packaging from all imports is aimed at keeping prices stable and avoiding increases in basic products such as food and affecting important social programs such as Mi Casa Mi Vida. In addition, this measure will protect some 20,000 direct jobs in the domestic industry, compared to the 600 jobs that would be generated if CSN were to opt to produce steel sheets at CSN.

The decision to increase taxes on imported sheet metal was made at a meeting of the Executive Management Committee (GECEX) of the Foreign Trade Chamber (CAMEX) of the Ministry of Development, Industry and Commerce (MDIC). GECEX is made up of 10 Executive Secretaries and Minister Geraldo Alckmin.