Brazilian Ethanol to US via Costa Rica

Costa Rica will import raw alcohol from Brazil to dehydrate it and re-export it to the US with zero-tariff, in accordance with DR-CAFTA rules.

Thursday, June 4, 2009

The Brazilian president's visit to Costa Rica formalized at the government level what was already in the works between businesses in both countries.

In his article in Nacion.com, Juan Fernando Lara S. stated: "Recently, the Agro-Industrial Sugar Cane League (LAICA) obtained a contract from a Brazilian firm that will bring raw alcohol to the country. It will be dehydrated in Punta Morales and then it will be placed as ethanol in the United States."

Direct exports of ethanol from Brazil to the United States pay a tariff of $ 0.54 per gallon upon entry, while the FTA allows an annual quota of 31 million gallons of ethanol produced in the region with raw material from third countries to enter free from tariffs.



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U.S. Not Respecting Costa Rica's Ethanol Quota

December 2013

Exporters of dehydrated ethanol claim that the U.S. is applying an ad valorem tax of 2.5% which is outside of the provisions of DR-CAFTA.

According to Anabel González, the Minister of Foreign Trade (Comex), Costa Rica has not exported the product during the second half of 2013, because the annual quota for receiving the benefits is 31 million gallons.

Ethanol Production in El Salvador

February 2010

The upcoming visit by President Lula will be the stage for discussing Brazil’s cooperation in boosting Ethanol production in the country.

When oil prices where above $100, Brazil and the United States signed an “Understanding Memorandum” to boost bio-fuel production. In it, they identified El Salvador as the beneficiary of three-way cooperation, as it has adequate conditions for developing an ethanol industry.

Brazil Commits Aid for El Salvador

September 2009

During the visit by the Salvadoran President, the government of Brazil offered technical cooperation for ethanol production.

Brazilian president Luiz Inácio Lula da Silva highlighted that El Salvador 'has all the conditions to become a relevant exporter of ethanol to the U.S.".

Costa Rican companies and CAFTA

January 2009

Costa Rica exporters still have a lot of work to do in order to benefit from the FTA, despite the fact that since January 1st their products can enter the US with zero tariff.

A study on the exploitation of the CAFTA-DR that was published in the El Financiero weekly from Costa Rica points out that "six years after waiting for CAFTA, the tuna, textiles and ethanol sectors, which will benefit immediately from the agreement, will see the results little by little.

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