Brazil lowers import duties on various products
Brazilian authorities have announced the addition of 727 items to a list of foreign capital goods and information technology and telecommunications goods that benefit from duty-free treatment under the Ex-Tarifario regime.
The capital goods are classified in HS chapters 82, 84, 85, 86, 87 and 90 (Resolutions nº 11/2020 and 15/2020), while IT and telecom goods are classified in HS chapters 84, 85 and 90 (Resolutions nº 10/2020 and 14/2020). The goods will benefit from duty-free treatment through 31 December 2021.
Brazil has also established tariff-rate quotas on imports of several products to correct a lack of supply in the Brazilian market. The current list includes products that are classified in several HS chapters, as some are highlighted as follows:
- up to 170 units of certain generator circuit breaker systems classified under NCM 8537.20.90 – duty reduced to 2% for a period of 12 months from January 16, 2020;
- up to 170 units of certain plug and switch systems classified under NCM 8537.20.90 – duty reduced to 2% for a period of 12 months from January 16, 2020;
- up to 10,000 tons of post-condensate polyethylene terephthalate with an intrinsic viscosity no lower than 0.98 dl/g and no higher than 1.10 dl/g, classified under NCM 3907.61.00 – duty reduced to 2% for a period of 12 months from 30 December 2019;
- up to 2,200 tons of bicomponent elastic polyester non-textured filament yarn, known as elastomultiester, classified under NCM 5402.47.10 – duty reduced to 2% for a period of 12 months from January 2, 2020;
- up to 88,000 tons of sodium hydroxide (caustic soda) in aqueous solution used exclusively in the production of alumina or aluminium oxide, classified under NCM 2815.12.00 – duty reduced to 2% for a period of 12 months from 28 December 2019; and
- up to 910,000 tons of anhydrous disodium sulphate for the manufacture of powder detergents classified under NCM 2833.11.10 – duty reduced to 2% for a period of 12 months from 31 January 2020.
Moreover, Brazil has excluded 50 items from the list of automotive parts that benefited from a reduced 2% duty, while the exemptions for 9 items have been modified, according to Resolutions nº 24, of December 30, 2019 and nº 9, of January 30, 2020. Lastly, Brazil has provided duty-free treatment (down from 8%) to certain medicines classified under NCM 3004.90.69, according to Resolution n° 26, of December 30, 2019.
