In response to the decision of Brazil's Ministry of Finance to reduce the import duty rates on 100 items including steel products, the Brazil Steel Institute (IABr) said that lower import duty rates will negatively affect the Brazilian steel industry. The IAbr also suggested that alteration of the current duty rates before their expiry date is not compliant with the law.
On August 1, Brazil's Ministry of Finance announced that it will reduce the import duty rates to generate greater market competitiveness and lower inflation pressure. The new duty rate regulations will see import duty rates lowered to 8-12 percent from around 25 percent announced in September 2012. The new import duty rates will be effective as of October 1.