IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 16 Sep 2011 | Removal date: 14 Jan 2013
Still in force

Internal taxation of imports

On September 15, 2011, the Brazilian government announced an increase from 25 to 30 percentage points of Brazil's industrialized products tax for vehicles.
 
The increase applies to motor vehicles, tractors, buses, trucks and light commercial vehicles imported into Brazil until December 31, 2012.
 
The vehicles that meet the following requirements may be excluded from this tax increase:

  • At least 65% of the final product must originate in one of the MERCOSUR members or Mexico;
  • The research and development expenses in Mercosur countries or Mexicoare equal to or at least 0.5 percent of the company's sales;
  • At least six of the following eleven activities must take place in Brazil, or by a company in which 80% of its production carries out six of the following eleven operations in a Mercosur country or Mexico.

 
The listed operations are:
1. The assembly, final review and compatibility tests
2. Printing
3. Welding
4. Corrosion and paint treatment
5. Plastic injection
6. Engine manufacture
7. Fabrication of transmissions
8. Steering systems, electric suspension, brakes, axle, engine and transmission gearbox installation
9. Chassis and body mounting
10. Final assembly of cabs or bodies, with the installation of its elements, including acoustic and thermal coating and finishing
11. Manufacture of the body, using mainly parts with stamp or regional format
 
Local manufacturers that invest in technological innovation and those who carry out most of its processes on Brazilian soil are exempted of this measure.
 
The tax increase entered into force on September 16, 2011.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

441 Agricultural or forestry machinery & parts
8701 Tractors (other than tractors of heading 87.09).
870130 Tracklaying tractors
870190 Other
444 Machinery for mining, quarrying & construction; parts
8704 Motor vehicles for the transport of goods.
870410 Dumpers designed for offhighway use
491 Motor vehicles, trailers & semi-trailers; parts
8701 Tractors (other than tractors of heading 87.09).
870120 Road tractors for semitrailers
8702 Motor vehicles for the transport of ten or more persons, including the driver.
870210 With compressionignition internal combustion piston engine (diesel or semidiesel)
870290 Other
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870321 Of a cylinder capacity not exceeding 1,000 cc
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc
870324 Of a cylinder capacity exceeding 3,000 cc
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc
870333 Of a cylinder capacity exceeding 2,500 cc
8704 Motor vehicles for the transport of goods.
870421 g.v.w. not exceeding 5 tonnes
870423 g.v.w. exceeding 20 tonnes
870431 g.v.w. not exceeding 5 tonnes
8705 Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete mixer lorries, road sweeper lorries, spraying lorries, mobile wor
870510 Crane lorries
870530 Fire fighting vehicles
870590 Other

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