ANNOUNCED AS TEMPORARYNo
On 17 December 2015 the Brazilian Foreign Trade Council (Camex) issued Resolution No. 117 decreasing the import tariff on 724 tariff codes related to capital goods from 14% to 2% or 0% depending on the good. These are either prolonged or new import tariff level. The measure took effect on 18 December 2015 and is in force until 30 June 2016 or 30 June 2017 depending on the good.
The tariffs were reduced under Brazil's ex-tarifário regime, which allows temporary customs duty exceptions under the Mercosur Common External Tariff on capital and IT goods. Such an exception can be invoked in case the good in question has no domestically produced equivalent. The goal of this is to restructure Brazil's industrial park and infrastructure services (see WTO Trade Policy Review).
The measure was introduced simultaneously with Camex Resolution no. 116 which reduces the tariff on IT goods (see related measure). According to Camex, both measures produce 796 ex-tarifários and should encourage global investments worth USD 2.678 billion.
Sectors and countries of origin accourding to Camex
The main affected sectors are capital goods (20.89%); mining (14.97%); energy (14.70%); graph (10.50%); wood and furniture (4.84%); and petrochemical (4.26%).
The products' country of origin are mainly from United States (37.90%); Germany (17.65%); Italy (7.03%); Finland (6.53%); Austria (5.51%); and China (4.89%)
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