Temporary Elevations and Reduction of Import Duties

Rebeca Duran

Staff Writer
The Brazil Business

Updated

10 March 2014

The Brazilian government time after time releases new lists of products included on the Ex-tarifário regime. This articles explain who makes this decision, why and also provides the most recent lists published of the products comprised.

The regime of Ex-tarifário stimulates investments in production with the temporary reduction of import duties for capital goods and information and telecommunication goods that are not produced domestically. The system's main objectives are:

• increase the technological innovation, job creation and income
• have special role in the adaptation and improvement of the nation's infrastructure
• stimulate investment to supply the domestic consumer goods market.

The requests for import duty reductions over BK and BIT are analyzed by the Production Development Secretariat of the Ministry of Development, Industry and Foreign Trade. They must be delivered in two copies to the General Protocol of this Ministry and be delivered electronically to sdp.extarifário @ mdic.gov.br.

It is up to the Comitê de Análise de Ex-tarifários, the Review Committee of Ex-tariff (Caex), to verify the non-existence of domestic production of goods registered in Ex-tarifário. They are also responsible for analyzing the objectives and the investments involved in goods allowed in the regime.

General Protocol address:

Esplanada dos Ministérios, Bloco J

Brasília (DF), CEP 70.053-900.

Import Duty Reduction

In October 2013, the publication of the Official Gazette of Brazil included two new Camex resolutions that reduced the import tax rates for 110 Ex-tarifários, the Resolution 88 and the Resolution 89. These 110 products are linked with global investment projects of 449.959 million USD that will be from the following economic sectors:

• food (19,48%)
• logistic (15,83%)
• mining (12,08%)
• plastics (10%)
• agribusiness (8,26%)
• capital goods (7,41%)
• metallurgy (7,05%)
• construction (5,13%).

The value related to direct investments in imported machinery and equipment is 133 million USD. The products with reduced import tax rates come mainly from Germany (29.34%), Japan (18.19%), Italy (16.23%), the USA (11.73%) and Switzerland (9.98%).

Resolution 88: For Information and Telecommunications Goods

The Information and Telecommunications Goods are also known as BIT in Brazil. They had their import tax reduced from a 16% rate to 2% rate through the Camex Resolution 88. The document informed that this rate should be charged over:

Resolution 89: For Capital Goods

Also named as BK, the Capital Goods had also their import tax rate diminished by the Camex Resolution number 89. Now, instead of the 14% import tax rate, the products determined by Resolution 89 will have a 2% rate. Products like the ones listed below are included in these new reductions, the rest of them can be seen in the Resolution.