ANNOUNCED AS TEMPORARYYes
On 26 January 2016, the Brazilian Foreign Trade Council (Camex) issued Resolution No. 6 decreasing the import tariff on 22 products from the IT and telecommunications sector from 18%, 16%, 14%, 12% 10% and 8%, depending on the good, to 2%. Out of the 22 products, seven tariff lines are prolonged and the remaining fifteen are new. The measure entered into force 27 January 2016 and is in effect until 31 December 2017.
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. 7 that reduces the tariff on capital goods (see related measure). Both measures produce 382 ex-tarifários.
Sectors and countries of origin according to Camex
The main affected sectors by both measures are environment and recycling (17.46%); auto parts (15.56%); Beverages (13.76%); capital goods (5.11%); energy (4.61%); Packaging (4.61%); wires and cables (4.37%); and food (3.96%)
The products' country of origin by both measures are mainly from United States (29.23%); Germany (14.24%); China (9.80%); Italy (7.59%); Belgium (6.02%); France (5.07%); Sweden (3.70%); Norway (3.64%); and Switzerland (3.57%)
Affected trading partners are identified based on UN Comtrade's import data from 2014.
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