The producer wants to change rule of packing

The national paper industry will ask the internal revenue service that the compulsory paper identification label tax-free is not, at first, applied to the product sold in coils. The obligatory differentiated packaging will enter into force in the country on July 1 and could derail business with tax exempt paper in coil, especially imported, because of the difficulties of adjustment in production lines.
"The machines in Europe produce more than one reel at a time and it is impossible, technically, customize the packaging of only one of them," says the Director General of sales of Swedish-Finnish Stora Enso for Latin America, Debra helm. "By having smaller machines, the Brazilian industry able to meet the requirement, but the non-European."
The decision to ask for the change than is provided in Normative 1,316, of 4 January, regulating the mandatory label for paper for the printing of books and periodicals sold in reams, "skids" (bulk) and coils, was taken on Friday, at a meeting in the Brazilian pulp and Paper Association (Bracelpa).
Local producers, as Suzano Papel e Celulose and International Paper (IP) of Brazil, support the change. "We will ask the recipe that the requirement is not applied immediately to the role in coil, without changing the rules for the reams and skids," explained helm. "Later, we would discuss that matter".
The adoption of specific labelling for the tax exempt paper is discussed for at least five years by the local paper industry as a means of combating fraud-when paper duty-free is used for purposes other than those provided for by law. This deviation of purpose represents one of the main problems of the sector and, in addition to result in loss of revenue, distorts the prices in the domestic market-the difference, according to manufacturers, can reach 40%. In 2011, according to estimates of Bracelpa, more than 600 thousand tons of paper were used in a manner immune declared illegal.
On the evaluation of the helm, the exclusion of the coils of the new labeling rule does not bring prejudice to the industry. "The biggest problem of diversion is paper ream resale," she explains.
For the APP, the Asian import tax reduction would be more effective in the fight against fraud than the label. "We support the wrap project, however this will not solve the problem of diversion of purpose of tax exempt paper. This is one more way to hinder and bureaucratise the importation, "said Geraldo Ferreira, Managing Director of Cathay, Brazil representative of app. For the Executive, an efficient measure would be the reduction of the rate of import for a maximum of 5%-25% compared to today. "Then Yes you won't see more detours and the State will raise more taxes."
In addition to the specific labelling, will enter into force on 1 June the national Recopi system of supervision of transactions with tax exempt paper which is now restricted to the State of São Paulo in Brazil. Among the States that acceded to the system are Bahia, Goiás, Minas Gerais, Pará, Paraná, Rio de Janeiro, Rio Grande do Sul and Santa Catarina, plus the Federal District.
According to Eduardo Oliveira, partner at M.P.O Consulting, specializing in the subject, at least three States-Bahia, Paraná and Goiás-already have the regulations. In Sao Paulo, since the tightening of surveillance of operations with the role tax-free, the recipe has more than $ 300 million in fines.