Brazil Intends To Change The Way Of Tax Assessment Of Imported Textiles To Crack Down On Low Price Declarations

Brazil finance minister in December 28, 2011 said that in order to protect its domestic textile industry from external unfair competition, Brazil The government is currently formulating a new tariff measure, which will be changed from the current "ad valorem tariff" (calculated according to the product value) to the "quantity tariff" (calculated according to the product weight). The government of Brazil also plans to apply to the WTO to turn the measure into a temporary special guarantee.

The new measure is expected to take effect within 3 months and is valid for 10 years, calling it an effective blow. Low price declaration Acts of unfair competition.

He said, "the declaration price of some imported suits is as low as 1.5 to 3 dollars, which can not even buy a button." Mantega said the Brazil government is also prepared to apply this measure to other countries. field But there is no specific disclosure.

The Ministry of industry and foreign trade of Brazil said the measure needed approval from the Foreign Trade Committee. It is believed that even though the finance minister has announced the measure, the industry is still controversial.

The chairman of the Brazil textile and garment industry association said that foreign unfair competition in 2011 has led to the unemployment of 15000 employees in the Brazil textile industry. Brazil and Mainland China, India and Pakistan are not equal in the competitive environment of textile industry, while the latter rely on government support and subsidies.

It is reported that the Brazil government will also encounter strong resistance in the WTO. The "quantity tariff" is mainly used for bulk commodities, such as agricultural products and mineral products. The application of "quantity duty" in textiles is unprecedented, because it can not reflect the true added value of textiles, for example, 1 high-quality suits and 1 cheap suits are the same.

Brazil's finance minister said the move was aimed at combating low price declarations and other unfair competition activities, but WTO believes that the problem should be solved at the policy level rather than on the tax level. If Mr Mattek wants to file a special safeguard against the WTO, the resistance will not be small as it is necessary to prove to the WTO that the volume of imports has increased significantly and has caused huge losses to its domestic industry.