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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