Professional Documents
Culture Documents
Optativa IV
Bogotá D.C
2021
Corporación Universitaria Republicana
Optativa IV
Docente: Jesus Salcedo
Camilo Mayorga
Fase III
Bogotá D.C
1. TRENDS THAT WILL SHAPE THE CHEMICAL INDUSTRY IN 2021.
Some companies immediately the previous year (2020) emerged, manufacturers of
disinfectants and diagnostic reagents, while others had to struggle, such as those exposed
to the automotive, refining and construction markets, to name just a few cases. However,
whether preparing to meet sudden big demands or struggling to survive, in both cases the
results caused great upheaval.
The pandemic exposed weaknesses in the industry and significantly accelerated
transformation programs. As companies navigated uncharted territory, it was digital
transformation that provided an opportunity. The use of digital technologies will continue
its quick growth in the chemical industry, as one of the five key trends that will shape the
year 2021.
While the challenges of last year are not behind us, there is strong evidence to support the
need for the chemical industry to stay focused on the following five areas that could
become critical this year.
1.1 Extended digitization.
The pandemic made everyone know about of the importance of technology, digital leaders
entered the current crisis due to the pandemic much more prepared, especially because
they had a better infrastructure to face the immediate need for teleworking and remote
operations.
The chemical industry, which is slower that others, should leverage the leading digital
practices of industries that have successfully made this transition to a connected
enterprise.
1.2 Leveraged Goals of E.S.G..
The chemical industry has been a leader in environmental, social and governance (E.S.G.)
factors, but there is definitely much more to do. Consumers publicly demand that this
industry go beyond symbolic gestures to take real action for environmental awareness.
The chemical industry has the key to
unlock climate strategies through the
industrial manufacturing value chain.
This can be achieved by supplying
sustainable products in the industry.
4 MARKET CHARACTERISTICS
So we can define the market size, the evolution by segment is first detailed and then the
chemical products for industrial use and final use will be explained separately. Chemical
products for industrial use have been decreasing in absolute value but the percentage in
relation to total billing has remained constant (45% to 50%). Pharmaceutical products have
kept their turnover constant in the last 7 years. The products that have increased their
turnover and their weight in the last 6 years are agricultural products, with a turnover of
3,700 million dollars, which constitutes 3.11% of the total net turnover.
National production of chemical products for industrial use fell 3.7% in 2019 compared to
the previous year, according to the Brazilian Chemical Industry Association (ABIQUIM).
It is the second worst performance in the sector in the last 13 years. ABIQUIM affirms that
the result reflects the economic crisis in the country. Chemicals are used by the
automotive industry, construction, household appliances, food, and packaging, among
others.
According to the data, in addition to production, demand for industrial chemicals
decreased 7.3% and domestic sales fell 1.8% in the same comparison period. Imports
grew 6.4% in volume, occupying 43% of the domestic demand for chemical products, a
record for the sector.
5 BILLING BY CHEMICAL PRODUCT GROUPS
6
8. MARKET OPPORTUNITY
Despite all the challenges, the scenario offers numerous opportunities for the resumption
of growth and investment in the chemical industry, both local and foreign investment.
There will be a massive influence on technologies, productive portfolios and the value
creation structure, in addition to new business models in the chemical industry, as well as
customers and suppliers. Examples of changes that disrupt technological processes can
be found in biotechnology and the use of renewable resources and energy.
9 CLAVES DE ACCESO
In general, foreign investment in Brazil is covered by a legal regime comparable to
that of other countries with Latin legal inspiration, as is the case of our country
Colombia. However, in the enforcement of regulations, the Brazilian legal context
presents some peculiarities for foreign investors:
- Complexity of the tax system.
- Non-adherence to some of the most widely used international conventions in
international business practice.
- There is an exchange control and investment registration regime in the Central
Bank of Brazil.
There are some other considerations to take into account, such as the mandatory
nature of the Electronic Declaratory Registry (RDE) of foreign investments to obtain
the certificate from the Central Bank that is necessary so that the remittance of
profits, reinvestment and repatriation of capital are later allowed. Repatriation can
take place at any time without prior authorization if there has been no reduction in
investment.
Import costs include the Import Tax (II), the Goods and Services Circulation Tax
(ICMS), and the Industrialized Product Tax (IPI). Import tax is a federal product-
specific tax levied on a CIF (Cost, Insurance and Freight) basis.
In general, the rates vary between 10% and 35%. The IPI is a federal tax levied on
most domestic and imported manufactured products. The IPI is not considered a
cost for the importer, since the value is paid back to the importer. The IPI rate
varies between 0% and 15%. The ICMS is a state value-added tax applicable to
both imported and domestic products. Although importers must pay the ICMS to
clear the imported product through customs, it is not necessarily a paid item to the
importer because the value paid represents a credit to the importer. ICMS fees
vary by state. In the State of São Paulo, the rates vary between 7% and 18%.
Some industries may apply for an ICMS exemption.INFORMACION
The activity developed by Brazil during the elaboration of standards has been very intense,
being one of the first Latin American countries to begin to implement the United Nations
Globally Harmonized System (GHS) for the classification and labeling of chemical
products.
Since 2010 the above standards apply to substances and since June 2015, all mixtures
must be classified, packaged and labeled according to NRB 14725-2 and 3 respectively.
The Safety Data Sheet (SDS) must be made in accordance with standard NRB 14725-4
Brazil has already adopted the United Nations Globally Harmonized System of
classification and labeling of chemical products (GHS / GHS) from its third revision with a
standard divided into 4 parts:
• ABNT NBR 14725-1: Terminology
• ABNT NBR 14725-2: Classification
• ABNT NRB 14725-3: Labeling
• ABNT NRB 14725-4: Safety data sheets
The agencies in charge of applying the standard are the Ministry of Health, the Ministry of
Labor and Employment, and the Ministry of Transport.
The adaptation of the GHS / GHS by this standard in Brazil has some peculiarities, such
as the possibility of using EUH risk phrases on the labeling, these phrases being exclusive
of the European adaptation of the GHS / GHS.
Like the Globally Harmonized System (GHS / GHS), ABNT NBR 14725-2 has three
types of hazards for classification and labeling purposes:
- Physical Hazards.
- Health Hazards.
- Dangers for the Environment.
However, the following hazard categories have been excluded from ABNT NBR
14725 with respect to the UNECE GHS / GHS for physical hazards:
- Flammable Gases, category 1B.
- Chemicals under pressure, all categories.
No hazard category has been excluded from the UNECE GHS / GHS for Health Hazards
and Environmental Hazards.
This part of ABNT NBR 14725 establishes the safety information related to the chemical
product that must be included in the labeling, without defining a fixed format.
In the CPSIS, any other regulatory information on the substance or mixture that is not
described in other sections must be described, such as the requirements of the Ministry of
Health (ANVISA), Ministry of the Army, Federal Police Department, Mercosur Agreement,
Arms Convention Chemicals, Stockholm Convention, Rotterdam Convention, Montreal
Protocol, Kyoto Protocol, etc.
The user's attention should be drawn to the possible existence of local regulations. The
user must cite the substances subject to any prohibition or restriction in the country or
region.