Brazil Import Duties on Aluminum Sheets
Brazil has temporarily reduced import duties on aluminum sheets, opening an opportunity for U.S. companies interested in exporting Aluminum sheets to Brazil.
The Brazilian Association of Beverage Cans Manufacturers (ABRALATAS) notified the U.S. Commercial Service office in Rio de Janeiro that the Brazilian government will reduce the import duty on aluminum sheets to produce can body stock (CBS) from 10.8% to 0%, for a period of 12 months and a quota of 50,000 tons. This opens an exciting opportunity for U.S. companies interested in exporting to the large Brazilian market soon.
Brazil is the third largest aluminum can for beverages market, after the United States and China. The country also recycles 98% of the cans produced. The aluminum cans market has experienced exponential growth in recent years, growing 18.3% from 2019 to 2021 in sales volume.
Due to the growth of the can market, ABRALATAS and the Brazilian Brewers Association (SINDICERV, whose members include AMBEV and Heineken) conducted a study with the specialized consulting company CRU and concluded that domestic production is unable to keep up with the growth in demand in future years.
There is a strong risk of shortages of material. Thus, the two Associations started a plea with the Brazilian authorities for a temporary reduction of the import duty on aluminum sheets, for 24 months, for a quota of 200,000 tons, as the current import tax significantly burdens the product imports, aggravating the current shortage situation.
The process was opened before the Ministry of Economy, which announced in May 2022 that it a reduction to 0% been approved by the Brazilian Government for a yearly quota of 50,000 tons. This is now to be approved by the Southern Cone Common Market (Mercosul) authorities, which should happen in June 2022.
This presents an interesting business opportunity for U.S. aluminum suppliers and unique moment to enter a lucrative market. There will undoubtedly soon be competition from other countries which makes researching the market now a critical first step to export success.
For further details and introductions to the Brazilian aluminum industry, please contact Patrick Levy, Commercial Specialist – US Commercial Service, Rio de Janeiro, Brazil