ANNOUNCEMENT 18 Feb 2016
In February 2016, the government of Brazil announced a change in import duties.
NUMBER OF INTERVENTIONS
Ministry of Development, Industry and Trade (MDIC), press release of 19 February 2016 on Camex Resolution no. 9/16
Available at: http://www.mdic.gov.br/sitio/interna/noticia.php?area=1¬icia=14337
Brazilian Foreign Trade Council (Camex), Resolution no. 9 of 18 February 2016, (published in the Official Gazette of 19 February 2016)
Available at: http://www.camex.gov.br/component/content/article/62-resolucoes-da-camex/em-vigor/1604-resolucao-n-9-de-18-de-fevereiro-de-2016
WTO. (26 July 2013). Trade Policy Review, Report by the Secretariat, Brazil. Report prepared for the sixth Trade Policy Review of Brazil. Document WT/TPR/S/283/Rev., p. 53, para. 3.38
Available at: https://www.wto.org/english/tratop_e/tpr_e/s283_e.pdf
On 18 February 2016 the Brazilian Foreign Trade Council (Camex) issued Resolution No. 9 decreasing the import tariff on 243 products related to capital goods from a maximum 14% level to 2% or 0% depending on the good. Out of the 243 products 54 tariff lines are prolonged and the remaining 189 are new. The measure entered into force 19 February 2016 and is in effect until the 31 December 2017.
The tariffs were reduced under Brazil's ex-tarifário regime, which allows temporary customs duty exceptions under 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. 8 that reduces the tariff on IT goods (see related measure). Both measures produce 275 ex-tarifários.
Sectors and countries of origin according to Camex
The main affected sectors by both measures are rail (20.83%); electronics (11.79%); pharmaceutical / chemicals (10.31%); capital goods (10.22%); energy (G, T and D) (9.25%); agribusiness (5.96%); medical and hospital (4.27%); Oil (4.25%); Graph (3.14%); automotive (2.03%) and auto (1.79%).
The products' country of origin by both measures are mainly from United States (47.66%); Germany (22.66%); China (6.75%); Italy (5.11%); United Kingdom (2.80%) and Japan (2.24%).
Affected trading partners are identified based on UN Comtrade's import data from 2014.