Brazil Lowers Import Tariffs on More Than 500 Additional Goods
CAMEX (Brazil’s Foreign Trade Chamber) announced July 28 the temporary lowering of tariffs on imports of more than 500 goods under the country’s Ex-Tarifário system. Tariffs on 494 items of industrial machinery and equipment, as well as seven information technology and telecommunications goods, will be reduced from 14-16 percent to two percent through Dec. 31, 2015. CAMEX notes that affected imports originate primarily from the United States (30.3 percent), Germany (23.4 percent), Italy (17.6 percent) and China (8.9 percent) and that total annual Brazilian imports of the affected goods are estimated at $1.8 billion. These goods will be used in projects involving light rail, wind farms, vaccine and veterinary medicine production, and farm tractor production.
Ex-Tarifário is a tax incentive used by the government to encourage investment for the expansion and restructuring of domestic production of certain goods and services and thus improve the competitiveness of Brazil in the global economy. Ex-tarifários may be requested by importers and are granted if certain requirements are met, including no domestic production of the goods at issue.
Sandler & Travis Trade Advisory Services offers services to help Brazilian importers use the Ex-Tarifário system to lower their costs and improve their operations. For more information, please contact Fernanda Herrman.