ANNOUNCED AS TEMPORARYYes
On 28 March 2016 the Brazilian Foreign Trade Council (Camex) issued Resolution No. 22 decreasing the import tariff on 151 products related to capital goods from 14% level to 2%. Out of the 151 products 65 tariff lines are extended and the remaining 86 are new. The measure entered into force 28 March 2016 and is in force until 31 December 2016 or 31 December 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. 21 that reduces the tariff on IT goods (see related measure). Both measures produce 168 ex-tarifários.
Affected sectors and countries of origin according to Camex
The main affected sectors by both measures are energy (35.24%);mining (21.73%); rail (21.29%); auto parts (7.64%); wood and furniture (2.92%); agribusiness (1.89%); . capital goods (1.58%) and telecommunications (1.53%) .
The products' country of origin by both measures are United States (23.29%); Spain (22.16%); Germany (12.80%); China (12.70%); Poland (7.97%), South Korea (3.40%); India (3.30%); Italy (3.07%) and the Netherlands (2.58%)
Affected trading partners are identified based on UN Comtrade's import data from 2014.
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