Protectionist measures are no news in Brazil as the country has created initiatives to enhance the national industry. However, in some cases there are no options but importing certain products that are not produced in Brazil. Ex-tarifário was created to encourage but also regulate this type of importing scheme.
In order to reduce the costs of investments, modernize the national industrial park and improve the infrastructure of services in the country, there can be a temporary reduction of the Import Tax to 2%, for two years. It can happen when there is the acquisition of capital goods that aren't produced in Brazil. This scheme is called Ex-tarifário.
Any product can have its tax reduced?
Ex-tarifário regime consists of the temporary reduction of the Import Tax only of goods characterized as BK (Bens de Consumo or Consumption Goods) and/or BIT (Bens de Informática e Telecomunicações or IT Goods) in the Tarifa Externa Comum do Mercosul (Common External Tariff of Mercosur) that are not produced in Brazil.
This regime doesn't apply to used goods or integrated systems. Only combinations of machines (similar to the integrated systems) which are in the list of the Harmonized System are being analyzed by the CAEx (Comitê de Análise de Ex-tarifários, translated as Ex-tarifário Analysis Committee). CAEx is the organization responsible for checking in if the good to be exported is not produced in Brazil and for providing the tax reduction.
This regime is an attempt to stimulate productive investments in the country, increasing the technological innovation of the companies from different sectors of economy and the number of employments, as well as their income. It's also a mechanism to protect national industries.
How does it work?
For every concession is created an “Ex” (the abbreviation for exception) in the NCM, which is a list of products organized according to the international convention SH (Sistema Harmonizado or Harmonized System). Each product is described with it's most general characteristics and the most specific details that distinguish it from all the other goods.
The process for getting the reduction of the tax is made in two steps. First, it's necessary to request the issue of the certificate for non-similarity of the class, which will take about 30 days to be issued. Then, it's necessary to request the Ex-tarifário in the Secretaria de Desenvolvimento da Produção (Secretary of Production Development).
This document must have information about the company or entity that is making the request, the technical information about the product, an estimate volume of import, the investments and the purpose of the request. Once the request is recorded in a protocol, the process takes from three to five months to be completed.
The Camex resolutions with new “Ex” are published every three months. It's important to read carefully the new resolutions because the exceptions are exclusive to the products that are precisely described in them.
With the concession of the temporary reduction of the aliquot of the Import Tax, the Brazilian government provides a relevant tax reduction to the importer, considering that it is the basis for the calculation of the other taxes, such as: