The Federal Government issued Law n. 14.060/2020, extending the exceptional one-year deadline postponement of the Drawback Regime compliance terms. The law aims at avoiding further production insecurity than the one caused by the pandemic.
Law n. 14.060/2020 extended the one-year deadline postponement for compliance with the terms of the Drawback Suspension regime and included the Drawback Exemption regime to that postponement.
Since their final product exports might not compensate their import costs, due to the pandemic-related demand drop, the law allows companies under those regimes to conclude their 2020 authorized input products imports in 2021, avoiding further harm.
Companies under the Drawback Suspension regime, which had their concessionary acts’ 2020 duty payment provisions postponed for one year by the Fiscal Authorities, in accordance with Provisional Measure n. 960/2020, have that postponement extended in accordance with the new law. Companies under the Drawback Exemption regime can now postpone their duty payment and exemption provisions by one year.
The law turned the Provision Measure n. 960/2020 into law.
The Drawback regime has been recently updated, including alterations to the arrangement of different rules on three categories, namely Suspension, Exemption and Atypical regimes (see the Regulatory Report from July 2020).
