Brazilian wet blue duty behind upturn in wet salted hide exports
The recent upturn in Brazil’s wet salted exports is widely thought to be the result of last December’s 9% duty on wet blue exports.
Prior to December, Brazilian wet salted hides were exported much less frequently than their wet blue counterparts as they have always been subject to a 9% duty. With the introduction of the wet blue duty, however, wet salted hides are once again being viewed as a viable export commodity, and exports have rise commensurately. In February alone, wet salted exports increased by 22% over the previous month, and all the signs are that their resurgence will continue.
Commenting on the trend, Jose Roberto Scarabel, president of CICB - Centre for the Brazilian Tanning Industry said: "We are obviously concerned at the situation, given its potential for causing supply problems for our members. Our cause is not helped by the fact that it is frequently cheaper to airfreight hides to Europe than other parts of Brazil. We always thought the wet blue duty might have this effect, and now we must find a way of keeping those hides in Brazil."
