ANNOUNCED AS TEMPORARYNo
On 29 April 2015, the Brazilian Foreign Trade Council (Camex) issued Resolution no. 30 decreasing the import tariff on 177 tariff codes related to capital goods from 14 per cent to 2 per cent. Out of the 177 items 158 are new while the remaining 19 have been renewed. The measure took effect on 30 April 2015 and lasts until 31 December 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. 29 which reduces the tariff on IT goods (see under Related Measures measure no. 9766). According to Camex, both measures produce 187 ex-tarifários (some new, others extended) representing USD 186 million of imported goods for projects worth USD 1,902 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 Germany (30.63), USA (26.32), Italy (12.92), Japan (9.45), Austria (4.53), Netherlands (3.22), Taiwan (2.85), South Korea (2.84) and Spain (1.65).
The imported products will be used for an industrial unit for the production of ammonium and CO2 in Minas Gerais; the increase of engine capacity, also in Minas Gerais; a maize processing facility for the production of Ethanol in Goiás; a pellets production facility in Rio Grande do Sul; the production of photovoltaic components in Săo Paulo for domestic use and exports; and the establishment of a production line of auto body works in Paraná.
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