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Brazil Expands Rules on Temporary Import Duty Reductions

Friday, August 22, 2014
Sandler, Travis & Rosenberg Trade Report

Brazil’s Foreign Trade Chamber (CAMEX) published Aug. 15 an expanded set of rules for seeking and obtaining under the Ex-Tarifário regime temporary duty reductions on capital goods and information technology and telecommunications goods not produced in Brazil. This tax incentive program is used to encourage investment for the expansion and restructuring of domestic production in order to improve Brazil’s competitiveness in the global economy.

The 27 articles of CAMEX Resolution #66/2014, which replace the nine articles of Resolution #17/2012, codify some of the practices already in place but also add stricter requirements for qualifying for Ex-Tarifário benefits. The primary objective is to give the Brazilian government a better picture of the impact of Ex-Tarifário on domestic manufacturing and economic activity. Specific provisions include the following.

- requirements regarding global investments and import and export amounts linked to the application

- terms and procedures for claims presented by local producers in the course of the public consultation

- new criteria for applications concerning parts and components of IT and telecommunications goods

- further details on the process for renewing or modifying duty reductions already in force

- a requirement for Brazilian Customs to provide statistics regarding goods imported under the Ex-Tarifário regime

- clarification that import duty reductions for automotive parts and components should be sought under CAMEX Resolution #71/2010, which is specific to the automotive sector

- any change in a tariff schedule provision does not invalidate a reduced duty rate on the affected product

- procedures for revoking a duty reduction before it is scheduled to expire

- tools allowing authorities to determine whether goods imported under the program are actually used as intended

- new requirements for submitting petitions that eliminate the option of sending email

Sandler & Travis Trade Advisory Services offer services to help Brazilian importers use the Ex-tarifário regime to lower their import costs and improve their operations. For more information, please contact Fernanda Herrmann or Veronica Diniz.

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