US Government Lifts Tariffs on Import of Ethanol

The US Government has done away with all the tariffs that were imposed for thirty years on the subsidies at the domestic ethanol industry and those on the import of ethanol. Effective from January 2012, the US market will be open for the import of ethanol, without any tariffs.

The taxes imposed on ethanol currently are $ 0.54 per gallon for imported ethanol and $ 0.45 per gallon for blenders.

A Washington-based representative of the Brazilian Sugarcane Industry Association (UNICA) stated that with the lifting of the tariffs, the US market, which is the largest for ethanol, will be more open to import of ethanol, including that made from sugarcane. Sugarcane-based ethanol has been recognised by the US Environmental Protection Agency (EPA) as an advanced biofuel mainly due to the significant reductions it causes in the greenhouse gas emissions. The tariffs that have been in effect so far were put in place to keep the Brazilian sugarcane ethanol out of the US market. With the tariffs being scrapped out the US market will be able to derive benefit from the fossil fuel that is readily available at a much lower cost and be able to improve environmental sustainability. The lifting of the tariff is the result of prolonged efforts by UNICA in fighting against unnecessary subsidies levied by the US. The President of UNICA explained that they will first focus on fulfilling the demands of the domestic market and then work towards new investments.