ANNOUNCED AS TEMPORARYYes
On 18 February 2016 the Brazilian Foreign Trade Council (Camex) issued Resolution No. 9 decreasing the import tariff on 243 products related to capital goods from a maximum 14% level to 2% or 0% depending on the good. Out of the 243 products 54 tariff lines are prolonged and the remaining 189 are new. The measure entered into force 19 February 2016 and is in effect until the 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. 8 that reduces the tariff on IT goods (see related measure). Both measures produce 275 ex-tarifários.
Sectors and countries of origin according to Camex
The main affected sectors by both measures are rail (20.83%); electronics (11.79%); pharmaceutical / chemicals (10.31%); capital goods (10.22%); energy (G, T and D) (9.25%); agribusiness (5.96%); medical and hospital (4.27%); Oil (4.25%); Graph (3.14%); automotive (2.03%) and auto (1.79%).
The products' country of origin by both measures are mainly from United States (47.66%); Germany (22.66%); China (6.75%); Italy (5.11%); United Kingdom (2.80%) and Japan (2.24%).
Affected trading partners are identified based on UN Comtrade's import data from 2014.
⚑ Please report this page in case you detect an inaccuracy in its content.