Brazil has introduced higher import tariffs on certain polyurethane products, a move that could affect international suppliers exporting polyurethane raw materials to the Brazilian market, including companies from China, Europe, Japan and the United States.
The Executive Management Committee of the Brazilian Foreign Trade Chamber (GECEX) issued Resolution No. 949 on August 11, 2026. The resolution was officially published in Brazil's Official Gazette on August 12 and took effect on August 17, 2026. The measures will remain valid until August 16, 2027.
Under the new policy, certain polyurethane products in primary forms classified under NCM code 3909.50.29 will face an import tariff of 20%, compared with the previous Mercosur Common External Tariff rate of 14%. This represents a six-percentage-point increase for the products covered by the standard rate.
The measure was introduced by adding the relevant products to Brazil's Mercosur Common External Tariff Exception List, known as LETEC. Although Mercosur generally applies a common external tariff among its member countries, Brazil can use this exception mechanism to temporarily adjust tariffs on selected products according to domestic industrial and supply conditions.
The new tariff policy covers polyurethane raw materials used by a wide range of Brazilian industries, including furniture, footwear, automotive manufacturing, construction and adhesives. However, not all polyurethane products under NCM 3909.50.29 are subject to the same tariff.
Certain thermoplastic polyurethane elastomers, excluding polyester-based TPU, will be subject to a tariff rate of 12.6%. Granular TPU used to manufacture expanded thermoplastic polyurethane, or ETPU, with particle sizes between 0.3 mm and 1.5 mm, will also have a 12.6% tariff rate. For this category, Brazil has established an import quota of 1,500 metric tons, with imports within the quota exempt from customs duty.
The tariff adjustment is relevant to international polyurethane suppliers because Brazil is one of the largest manufacturing and consumer markets in Latin America. Imported polyurethane materials are widely used by local manufacturers, and changes in import duties can directly affect landed costs and purchasing decisions.
For Chinese exporters, the higher tariff may reduce the price competitiveness of some polyurethane products in Brazil. Suppliers may need to reconsider export quotations by taking into account the additional customs cost, logistics expenses, exchange-rate movements and local distribution margins.
At the same time, the differentiated tariff treatment means exporters should not simply apply the 20% rate to all polyurethane products. Product composition, physical form and intended use may affect the applicable NCM classification and tariff rate. Companies should therefore confirm the correct customs classification before quoting or shipping.
The new policy will remain in effect for one year, from August 17, 2026, to August 16, 2027. During this period, polyurethane suppliers targeting Brazil should closely monitor tariff changes, quota utilization and local market conditions.
For overseas suppliers, the tariff increase creates additional cost pressure, but it does not eliminate opportunities in the Brazilian market. Companies with competitive products, reliable supply, technical support and flexible pricing strategies may still find opportunities among Brazilian importers, distributors and manufacturers.