As of May 5, the 529,113 mt of quotas of steel products allowed for import at regular steel import rates with a total utilization of 88 percent, a small change from the previous 87 percent on April 7, according to the Brazilian foreign trade authority, Siscomex.
The utilization by product was as follows:
• Plates in coils: unchanged at 2.6 percent
• HRC: unchanged at 36 percent
• CRC: 87 percent, from 82 percent previously
• Zinc Coated: unchanged at 100 percent
• Galvalume: unchanged at 100 percent
• Wire rod: 75 percent, from 72 percent previously
• Seamed piping: 11 percent, from 9 percent previously
These quotas are valid until May 31, for imports at regular import taxes, 10.8 percent for most steel products.
Volumes exceeding the quotas are subject to a 25 percent import tax if clearing customs is concluded during the validity of the quotas.
Local steel producers remain claiming that this strategy is insufficient to reduce steel imports, which they claim are traded at dumping prices, primarily from China.
More recently, the producers are complaining that significant imports of steel products are being made via Zona Franca de Manaus, the tax-free zone of Manaus, capital of the northern state of Amazonas, without paying import tax even if the products are subsequently shipped to consumers in other states.