Umberto Ciliao Sachelli, director of Apucacouros upholstery and footwear leather tannery, was invested as president of the Brazilian tanning industry association CICB, on September 14. The ceremony was held at the Courovisao fair in Novo Hamburgo.
Taking over the role from Amadeu Pedrosa Fernandes, Sachelli told Leather International that he aims to continue with current CICB programmes in priority areas such as export promotion, taxation and wet-blue.
There is currently a 7% tax on exports of wet-blue from Brazil but this is being phased out by the government and will be reduced to 4% in 2006 and 0% in 2007. CICB wants the tax to be maintained at 7% for 2006. Sachelli will be working to raise awareness in the federal government that the sector depends on government support on this issue.
According to Sachelli, ‘if the tax is not maintained, in the short term this will affect the price of raw materials. In the long term it will discourage tanners from investing in the facilities to produce finished leather. The reason we ask for this small protection measure is to level the playing field with competitors who benefit from a much lower interest rate.’ This is known in the sector as the ‘custo Brazil’ or the price of operating in Brazil.
CICB will also continue to work with government department Apex in supporting Brazilian tanners to attend exhibitions across the globe.
The association would like to see an overhaul of the tax recovery system. It currently takes between six months and one year for taxes already paid on purchasing materials and chemicals.
Sachelli is upbeat about propects for the coming year and expects the global economy to remain stable, which is good for the sector.
He believes that the advantage of Brazilian leather in the quality of the raw materials. ‘Great advances have been made in the production of upholstery leather for both furniture and automotive. The size of Brazilian hides is very large, making them particularly suitable for upholstery. The price is also very competitive when compared with European and North American raw materials. Brazilian hides are also appropriate for use in footwear leather due to their thickness.’
Members of the directive council of CICB from September 2005 to August 2007:
President Umberto Ciliao Sacchelli; 1st vice-president Leonardo Swirski; 2nd vice-president Gladston Jose Dantas Campelo; foreign trade Augusto Sampaio Coelho; corporate management Roberto Mota; raw materials and products Leogenio Luis Alban; strategic management Luis Eduardo Fuga; internal market Paulo Enzweiller; marketing and commercial promotion Arnaldo Frizzo; new technologies Wayner Machado Silva; environment and sustainable development Amadeu Pedrosa Fernandes.
