A recent ruling by Brazilian Justice has forced the Federal Administration of Public Revenues (AFIP) to inform them of the name, CNPJ, and process number by which the companies that import Chinese garlic, without paying anti-dumping duty, are requesting an exception to paying this duty.
Currently, the anti-dumping duty that Brazilian companies must pay to import Chinese garlic stands at US $7.80. In addition, these importers must pay a 35% tariff for this product, as it comes from a country that is not part of the Mercosur. The sum of these two extra charges for Chinese garlic allows Argentine exporters in the province of Mendoza and Brazilian garlic producers to obtain a price for their product that will make their activity reasonably sustainable. Chinese garlic is very cheap due to this Asian country's overwhelming amount of exportable balances, which allows them to set the international price of this product.
The anti-dumping duty is a measure that countries can take to safeguard their productions when, for different reasons, which often include undercover subsidies, the price in the international market is systematically lower than the sale price in the domestic market.
The maintenance and renewal of the anti-dumping duty, whose expiration will take place in October of this year, is a key objective to achieve in the Brazilian courts in this legal battle that has been undertaken by ProMendoza, Asocamenm and Anapa to sustain the export activity of this product that has generated so much work, activity, and income to the economy of Argentina.
Source: losandes.com.ar
