Brazil Softens the Blow: AIA Engineering Gets Relief as Countervailing Duty Slashed to 2.90%

In a welcome development for Indian exporters, Brazil has officially reduced the countervailing duty (CVD) on high chrome cast iron grinding media imported from India to 2.90%, down from the earlier rate of 3.36%. The move comes as part of Brazil’s latest trade policy recalibration aimed at balancing domestic industry protection with global supply chain competitiveness.

 

The decision is a significant win for AIA Engineering Ltd, a leading manufacturer of wear-resistant castings, which had been under scrutiny in Brazil’s anti-subsidy investigations. The revised duty rate follows a detailed review by Brazil’s Secretariat of Foreign Trade (SECEX), which acknowledged a lower incidence of actionable subsidies than previously estimated.

 

Key Highlights:

 

Brazil’s revised CVD rate of 2.90% applies specifically to Indian-origin grinding media, including AIA Engineering’s exports.

The reduction follows a sunset review initiated in 2023, which reassessed subsidy levels and market impact.

AIA Engineering had earlier faced a combined duty burden of over 9%, including anti-dumping levies.

The new rate is expected to improve AIA’s pricing competitiveness in the Brazilian mining and cement sectors.

Industry analysts suggest this could boost export volumes and help AIA regain lost market share in Latin America.

The company has not yet issued a formal statement but is likely to recalibrate its Brazil strategy in light of the relief.

 

This development also signals a broader shift in Brazil’s trade posture, potentially opening doors for other Indian exporters facing similar duties.

 

Sources: Yieh Corp, AIA Engineering official filings, Brazil SECEX