ANNOUNCED AS TEMPORARYNo
On 31 March 2015, the Brazilian Foreign Trade Council (Camex) issued Resolution no. 22 decreasing the import tariff on 263 tariff codes related to capital goods from 14% to 2%. For 206 codes the reduced tariff is new, while for the remaining 57 it was extended. The measure which took effect on 1 April 2015 lasts until 30 June 2016.
The tariffs were reduced under Brazil's ex-tarifário regime 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 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 which reduces the tariff on IT-goods (see 'Related Measures' or measure Nr. 8758). According to Camex, both measures produce 281 ex-tarifários representing USD 450 million of imported goods and global investments worth USD 2,679 billion.
The main affected sectors are civil construction (64, 43%), railway (5.38), metal-mechanic (4.70), auto parts (4.13) and nutrition (4.10). The products' main countries of origin are the USA (23.13), Germany (17.98), Italy (12.88), Spain (10.89) and Japan (5.29).
The imported products will be used, amongst others, for the construction of a high-voltage transmission line in the North and Northeast Regions, the capacity increase of Niobium alloy production in Minas Gerais as well as for urban mobility, including the implementation of light weight railway vehicles in some municipalities of interior Săo Paulo.
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