Brazil's foreign trade system, Siscomex, reported progress on the utilization of the 394,657 metric tons (mt) of steel product quotas that can be imported at regular tax rates of 9 to 16 percent. Volumes above the quotas are subject to a 25 percent import tax.
As of 29 September, the average utilization rate reached 60 percent, up from 56 percent on 9 September.
The quotas, approved on 26 June and valid until 25 October 2026, total 394,657 mt, down from the 445,469 mt allocated in the previous round, which expired in June.
The current round covers plates in coils, hot-rolled coil (HRC), cold-rolled coil (CRC), zinc-coated, galvalume and wire rod.
Utilization by product family is as follows:
Plates in coils: 34 percent of 899 mt, unchanged
HRC: 22 percent of 25,284 mt, up from 8 percent
CRC: 45 percent of 54,375 mt, up from 34 percent
Zinc-coated: 73 percent of 144,285 mt, up from 69 percent
Galvalume: 67 percent of 147,038 mt, unchanged
Wire rod: 5 percent of 22,774 mt, unchanged
Sources said the quota system has not succeeded in reducing imports, as substantial volumes still enter through the Manaus tax-free zone, in the northern state of Amazonas, without paying duties, even when the material is moved to markets in the south of the country.
