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Brazil takes action against steel imports found to have origin diversion

Brazil's Ministry of Development, Industry, Trade and Services (MDIC) has uncovered a steel import scheme in violation of trade defense measures.

Brazil takes action against steel imports found to have origin diversion

The investigation, conducted by the Ministry's Secretariat of Foreign Trade (Secex), found that the origin information of the steel products in question was misleading and that importers resorted to origin diversion in order to avoid high customs duties.

As part of the investigation, it was determined that most of the cold-rolled steel products examined were produced in Indonesia, which is located in Southeast Asia, contrary to what was shown in the documents. Brazil has been imposing an additional duty of 18.79 percent on these Indonesian products since 2022. Secex announced that as a result of the investigation, these products are in fact of Indonesian origin and should be subject to the measure in force.

“This decision reinforces the federal government's commitment to strictly enforce rules of origin and protect national industry against unfair trade practices,” Foreign Trade Minister Tatiana Prazeres announced in an official statement.

Published on June 24, 2025 in the Official Gazette, the decision was formalized by a regulation that found irregularities in a total of five different types of cold-rolled steel products. The Ministry also announced that it will implement stricter inspections in import processes to prevent similar cases in the coming period.

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