ANNOUNCEMENT 20 Apr 2016

In April 2016, the government of Brazil announced a change in import duties.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



Ministry of Development, Industry and Trade, press release of 22 April 2016 concerning Resolution No. 40 of 20.04.2016: http://www.mdic.gov.br/index.php/noticias/109-comercio-exterior/919-camex-zera-imposto-de-importacao-para-milho-em-grao

Camex resolution No. 40 of 20 April 2016, published in the Official Gazette of 22 April 2016: http://www.camex.gov.br/legislacao/interna/id/1538


Foreign Trade Council (Camex). Resolution No. 96 of October 10, 2016, published in the Official Gazette of October 11, 2016. http://www.camex.itamaraty.gov.br/component/content/article/62-resolucoes-da-camex/em-vigor/1734-resolucao-n-95-de-10-de-outubro-de-2016

Inception date: 22 Apr 2016 | Removal date: 31 Dec 2016

Import tariff

On 20 April 2016, the Brazilian Foreign Trade Council (Camex) issued Resolution No. 40 temporarily decreasing the import tariff on maize from 8% to 0%. The Resolution entered into force 22 April 2016 and is in force for a period of six months. The affected good falls under Mercosur Common Nomenclature (NCM): 1005.90.10. The import tariff was reduced following the subject good's inclusion on the List of Exceptions to the Common External Tariff (LETEC).
Subsequently, cotton falling under NCM 5201.00.20 was removed from the LETEC and thus returned to its initial level of import duty.

List of Exceptions to the Common External Tariff
The tariff codes were included in the List of Exceptions to the Common External Tariff (LETEC) of Mercosur. LETEC is a mechanism that allows member states of Mercosur to apply customs duties that are lower or higher than otherwise listed in the Mercosur Common External Tariff schedule. However, the tariffs shall not surpass the ceilings given by the WTO.

Mercosur Decision CMC no. 26/15 gives Brazil the right to maintain a LETEC of 100 codes based on the NCM until 31 December 2021. Due to this restriction, Brazil had to retrieve one other good from the LETEC, which was NCM 5201.00.20.

Affected trading partners are identified based on UN Comtrade's import data from 2014.

Update

On October 10, 2016, the Brazilian Foreign Trade Council (Camex) issued Resolution No. 96 extending until December 31, 2016, the 0% import tariff including a quota of 1,000,000 tonnes.

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 22 Apr 2016 | Removal date: open ended

Import tariff

On 20 April 2016, the Brazilian Foreign Trade Council (Camex) issued Resolution No. 40 temporarily decreasing the import tariff on maize from 8% to 0%. The Resolution entered into force 22 April 2016 and is in force for a period of six months. The affected good falls under Mercosur Common Nomenclature (NCM): 1005.90.10. The import tariff was reduced following the subject good's inclusion on the List of Exceptions to the Common External Tariff (LETEC).
Subsequently, cotton falling under NCM 5201.00.20 was removed from the LETEC and thus returned to its initial level of import duty.

List of Exceptions to the Common External Tariff
The tariff codes were included in the List of Exceptions to the Common External Tariff (LETEC) of Mercosur. LETEC is a mechanism that allows member states of Mercosur to apply customs duties that are lower or higher than otherwise listed in the Mercosur Common External Tariff schedule. However, the tariffs shall not surpass the ceilings given by the WTO.
Mercosur Decision CMC no. 26/15 gives Brazil the right to maintain a LETEC of 100 codes based on the NCM until 31 December 2021. Due to this restriction, Brazil had to retrieve one other good from the LETEC, which was NCM 5201.00.20.
Affected trading partners are identified based on UN Comtrade's import data from 2014.