RIO DE JANEIRO, BRAZIL – The GECEX (Management Executive Committee) of the CAMEX (Foreign Trade Chamber) decided to zero the tax rate on imports of hulled and processed rice until December 31st of this year.
The temporary reduction is restricted to a quota of 400,000 tons, levied on products covered by codes 1006.10.92 (non-parboiled hulled rice) and 1006.30.21 (semi-milled or milled rice, non-parboiled) of the NCM (Mercosur Common Nomenclature).
The decision was taken on Wednesday, September 9th, during the 8th Extraordinary Meeting of the GECEX, as proposed by the Ministry of Agriculture, Livestock, and Supply.
The federal government aims to ease the entry of foreign products of a number of items in the market basket. Rice prices have skyrocketed in recent weeks, with the five-kilo package costing as much as R$40 (US$8) in some websites (it is typically sold for about R$15).
The increase in food imports from China and the depreciation of the real against the dollar has raised the price of basic products in the country – and also led to a tug-of-war between supermarket chains and the food industry on the transfer of increased costs to consumers.
Source: R7