BRAZIL August 04 2016 5:41 PM
BRASILIA(Scrap Register): If the US International Trade Commission (ITC) applies anti dumping duties on Brazilian cold-rolled steel, Brazil ministry will be appealing to the World Trading Organization's dispute-settlement system.
ITC is scheduled to make its final rulings in September 3, followed by the duty determination by the US Department of Commerce made on July 21. If the ITC confirms Commerce's determination, Brazil expects the duty to enter into force on September 5.
Brazilian flats producer CSN may have a surcharge of 11.31% in its cold rolled products, while Usiminas is expected to receive a 11.09% duty on its goods. The US Department of Commerce focused the investigation on Brazilian government incentives given to exporters called ex-tariff, drawback and Reintegra.
The ex-tariff scheme refers to imports of listed machinery and equipments which has no domestic counterparts and allowing buyers to skip paying the normal tariff. Drawback refers to a program allowing tax free inputs for outputs destined to export. And Reintegra is an incentive program that returns to exporters taxes charged during production.