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: 05 Jul 2012 | Removal date: open ended
Still in force

Tax or social insurance relief

On July 5, 2012, the Government of Brazil, announced the exemption of the Tax on Industrialized Goods (IPI, for its acronym in Portuguese) applicable to certain types of motor vehicles for the transport of ten or more persons.
 
According to three decisions (Ato Declaratório Executivo) published on 5 July 2012, these types of vehicles from the companies Volkswagen, Mercedes-Benz, and Ford Motor Company will be exempted of the IPI rate. This measure discriminates against other foreign companies that compete with the three beneficiaries of this measure.
 
Following producers and products are affected:

  • Man Latin América Indústria e Comércio de Veículos Ltda. (producer): VW 15.190E OD HD - Escolar (Carroceria Marcopolo), VW 15.190E OD/Escolar Power (Carroceria Comil), VW 15.190E OD/Escolar Super (Carroceria Induscar)
  • Mercedes-Benz/Caio Induscar (producer): M.BENZ OF 1519R/ESCOLAR FOZ SUPER (Carroceria Induscar)
  • Ford Motor Company (producer): Transit

 
The products subject to the tax reduction are classified under the following item of the MERCOSUR´s Harmonized Tariff: 8702.10.00.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

491 Motor vehicles, trailers & semi-trailers; parts
8702 Motor vehicles for the transport of ten or more persons, including the driver.
870210 With compressionignition internal combustion piston engine (diesel or semidiesel)

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