ANNOUNCED AS TEMPORARYNo
On 5 March 2015, the Brazilian Foreign Trade Council (Camex) issued Resolution no. 12 decreasing the import tariff on 262 tariff codes related to capital goods from 14% to 2%. However, only for 187 codes the reduced tariff is new. The tariff for the remaining 75 ones were renewed. The measure which took effect on 6 March 2015 lasts until 30 June 2016.
The tariffs were reduced under Brazil's ex-tarifário scheme which allows for a temporary customs duty exception to 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 the 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. 11 which reduces the tariff on IT-goods (see 'Related Measures' or measure Nr. 8755). According to Camex, both measures produce 289 ex-tarifários representing global investments worth USD 2,012 billion and USD 416 million of imported goods.
The main affected sectors are civil construction (36.48), railway (22.72) as well as the iron and steel industry (11.09). The products' main countries of origin are the USA (19.47), Japan (15.11), Germany (13.96) and France (10.35).The imported products will be used for, amongst others, the construction of metro lines, production of trains and plants for the supply of sodium chloride and oxygen gas.
⚑ Please report this page in case you detect an inaccuracy in its content.