IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 12 Aug 2014 | Removal date: open ended

Local sourcing

On 3 July 2014, Mauricio Tolmasquim, the head of the Energy Research Agency (EPE), announced that EPE and the Brazilian development bank (BNDES) are working on new local content regulations with the intention to boost the domestic solar industry.

The idea is, that only producers using a certain amount of locally produced components in solar farms will be eligible for BNDES funding. These rules are also binding for the bidders at the first national auction for solar-power contracts on 31 October this year.

UPDATE:
On 12 August 2014, BNDES presented a document, outlining the details of the local content requirements for solar projects. The rules currently specify various degrees of required local content for different components of the solar panel. The announcement further states that the aim is to impose a 60 percent local content requirement on all modules by 2020. A summary of the exact rates can be found on p.9-11 of the official document listed in the sources below.

All new projects need to be registered at the BNDES in order for them to get funding from the development bank and the responsible companies need to be headquartered in Brazil. Registration started in July 2014.

The proposed rules are comparable to those already in force in the wind energy and domestic manufacturing sectors.
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

171 Electrical energy
2716 Electrical energy. (optional heading)
271600 Electrical energy. (optional heading)
461 Electric motors, generators & transformers; parts
8502 Electric generating sets and rotary converters.
850211 Of an output not exceeding 75 kVA
850212 Of an output exceeding 75 kVA but not exceeding 375 kVA
850213 Of an output exceeding 375 kVA
850220 Generating sets with sparkignition internal combustion piston engines
850231 Windpowered
850239 Other
8504 Electrical transformers, static converters (for example, rectifiers) and inductors.
850410 Ballasts for discharge lamps or tubes
850421 Having a power handling capacity not exceeding 650 kVA
850422 Having a power handling capacity exceeding 650 kVA but not exceeding 10,000 kVA
850423 Having a power handling capacity exceeding 10,000 kVA
850431 Having a power handling capacity not exceeding 1 kVA
850432 Having a power handling capacity exceeding 1 kVA but not exceeding 16 kVA
850434 Having a power handling capacity exceeding 500 kVA
850440 Static converters
850450 Other inductors
850490 Parts
462 Electricity distribution & control apparatus; parts
8536 Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lampholders and other connectors, junction boxes), for
853610 Fuses
853620 Automatic circuit breakers
853630 Other apparatus for protecting electrical circuits
853641 For a voltage not exceeding 60 V
853649 Other
853650 Other switches
853661 Lampholders
853669 Other
853670 Connectors for optical fibres, optical fibre bundles or cables
853690 Other apparatus
8537 Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 85.35 or 85.36, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of Chapter 90, and nu
853710 For a voltage not exceeding 1,000 V
853720 For a voltage exceeding 1,000 V
8538 Parts suitable for use solely or principally with the apparatus of heading 85.35, 85.36 or 85.37.
853810 Boards, panels, consoles, desks, cabinets and other bases for the goods of heading 85.37, not equipped with their apparatus
853890 Other

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