Brazil Raises Import Tariffs On Products Such As Fiber Optic Cables And Fibers

Recently, the Brazilian government issued a public announcement stating that it had reviewed a series of matters and decided to implement corresponding measures such as reducing or exempting import tariffs, increasing import tariffs, and imposing anti-dumping duties on the relevant products respectively.

I. Basic content of the announcement In order to help relevant enterprises to understand the announcement, China Chamber of Commerce for Electrical and Mechanical Services (CCCEMS) has translated and organized the information as follows. Please note that the following translation is for reference only, please refer to the original announcement in Portuguese.

1. The reduction or exemption of import tariffs relates to products that are not produced domestically in Brazil or whose production is insufficient to meet the demand of the domestic market.

① Electric motors for blenders and food processors: reduced from 18% to 0%;

② Acrylonitrile (mainly used as a raw material for the production of other chemical compositions): reduced from 10.8% to 0%; no domestic production in Brazil;

③ Polyester yarn for technical fabrics, tires, grills, tarpaulins, PVC laminates and sewing thread: reduced from 18% to 0%;

④ Glyphosate (a herbicide used in rice, corn, soybeans, beans, sugar cane, grapes, coffee, etc.): reduced from 10.8% to 3.8%.

2. Increase in import tariffs According to the announcement, the reason for the increase in tariffs is that the significant increase in imports of these products has led to damage to the products of the Brazilian domestic industry. The specific tariff changes are as follows.

① Sodium chlorite: increased from 9% to 10.8%;

② Steel products: increased to 25%;

③ Fiber optic cables and fibers (cabos e fibras óticas): from 11.2% and 9.6%, respectively, to 35%; for a period of six months.

3. Collection of anti-dumping duties The Brazilian government has decided to impose provisional anti-dumping duties on four other products at the following rates.

① Metal foils from Chinese companies, with import surcharges ranging from US$257.97 to US$341.28 per ton;

② Nebulizers from Chinese companies, with import surcharges ranging from US$0.83 to US$2.62 per imported unit;

③ Rutile titanium dioxide pigments (white pigments used in paints, cosmetics, foodstuffs, etc.) from Chinese companies, with import surcharges ranging from US$577.33 to US$1,772.69 per ton;

④ Polyester fiber from companies in China, India, Vietnam, Malaysia and Thailand, with an import surcharge of US$68.32 to US$397.04 per ton.

II. Interpretation of key information Regarding fiber optic cables and fiber optic products, the Brazilian investigating authority has issued announcements on July 5, 2024 and August 2, 2024 respectively at the local time, formally initiating two anti-dumping investigations on the above products originating in China.

According to the Brazilian anti-dumping investigation procedures and time requirements, if there is a preliminary ruling procedure, the Brazilian investigating authority shall make a preliminary ruling (“preliminary ruling”) within at least 60 days and not more than 120 days from the date of filing of the case (which may be extended to 200 days after the commencement of the investigation under special circumstances).

The preliminary ruling includes all relevant factual and legal findings on dumping, injury to the domestic industry, and the causal relationship between the two. If the conclusion of the preliminary ruling is positive, then the investigating authority may issue a public notice deciding to take provisional anti-dumping measures, i.e., to impose provisional anti-dumping duties.

Anti-dumping duties and import tariffsAnti-dumping duties are an additional import tax imposed by the importing country on imports that are dumped in the country. Therefore, once an anti-dumping duty is imposed, the rate will be stacked with existing import tariffs.

In view of the Brazilian government on fiber optic cables and optical fibers to increase import tariffs to 35% of the effective period of six months, this time and the above two anti-dumping investigation of the preliminary ruling (if any) time, will likely overlap.

Third, the work done by the China Chamber of Commerce for Electrical and Mechanical Services (CCCME) on fiber optic cable products Brazil has launched anti-dumping and countervailing investigations on fiber optic cable products (Portuguese: cabos de fibras ópticas) originating from China on May 11, 2023 and June 22, 2023, respectively, local time.

Under the relevant working mechanism, the Ministry of Commerce (MOFCOM), local commerce authorities, the China Chamber of Commerce for Electrical and Mechanical Services (CCCEMS), and enterprises involved in the case formed a synergy, and the enterprises involved in the case actively defended against dumping and effectively carried out no-damage defenses of the industry against damages and causation under the organization of CCCEMS, so as to respond to the investigations together.

On September 4 and 5, 2023, the Brazilian investigating authorities decided to terminate the anti-dumping and countervailing investigations on Chinese optical fiber cable products. Our enterprises achieved the positive result of closing the case without measures.

About fiber optic cables and fiber optic products About fiber optic cables and fiber optic products, I will always pay close attention to the relevant trends, in 2023 Brazilian fiber optic cables after the conclusion of the anti-dumping investigation, has been repeatedly issued to the relevant enterprises of anti-dumping, increase import tariffs and other content of the various early warning.

Local time 2024 July 5 and August 2, Brazilian investigating authorities issued a public notice, respectively, on China’s optical fiber cable products to launch a second anti-dumping investigation, China’s optical fiber products to launch the first anti-dumping investigation. After the case, China Chamber of Commerce for Electrical and Mechanical Services (CCCME) quickly analyzed the case, closely contacted the enterprises, held a timely meeting to respond to the complaint, sent the statement of response, and actively organize the enterprises involved in the case to carry out the industry’s defense of damage and causation. At present, the second anti-dumping investigation against Brazilian fiber optic cable industry defense work is in order.