ANNOUNCEMENT 05 May 2016

In May 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 6 May 2016 concerning Resolution No. 42 of 05.05.2016: http://www.mdic.gov.br/index.php/noticias/109-comercio-exterior/1034-camex-altera-lista-de-excecoes-a-tarifa-externa-comum

Camex resolution No. 42 of 5 May 2016, published in the Official Gazette of 6 May 2016: http://www.camex.gov.br/legislacao/interna/id/1540


Brazilian Foreign Trade Council. Câmara de Comércio Exterior. Resolução 82, de 25 de Outubro de 2018. Available at: http://www.camex.gov.br/component/content/article/62-resolucoes-da-camex/em-vigor/2128-resolucao-n-82-de-25-de-outubro-de-2018

Inception date: 06 May 2016 | Removal date: 25 Oct 2018

Import tariff

On 5 May 2016, the Brazilian Foreign Trade Council (Camex) issued Resolution No. 42 changing the import tariff on a number of specific goods by including or excluding them from the List of Exceptions to the Common External Tariff (LETEC). Such goods are specified under the Mercosur Common Nomenclature (NCM) product codes.

The import tariff was reduced on the following four goods subsequent to their removal from LETEC: certain preserved peaches (NCM 2008.70.71) reduced from 55% to 35% and bricks (NCM 6902.10.18) reduced from 35% to 10%.

 
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 a number of other goods, as noted above.
Affected trading partners are identified based on UN Comtrade's import data from 2014.

Update
On 25 October 2018, the Brazilian Foreign Trade Council has adopted Resolution 82 revoking 124 resolutions including this one.

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 06 May 2016 | Removal date: 25 Oct 2018

Import tariff

On 5 May 2016, the Brazilian Foreign Trade Council (Camex) issued Resolution No. 42 changing the import tariff on a number of specific goods by including or excluding them from the List of Exceptions to the Common External Tariff (LETEC). Such goods are specified under the Mercosur Common Nomenclature (NCM) product codes.

The import tariff was increased on the following four goods subsequent to their inclusion on LETEC: palm oil (NCM 1511.90.00) from 10% to 20%, certain polyester fibres (NCM 5503.20.10) from 2% to 10%, Clonazepam (NCM 2933.91.13) from 2% to 12%; and Sevoflurane (NCM 2909.19.90) 2% to 14%.
The Resolution entered into force on 6 May 2016.
 
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 a number of other goods, as noted above.
Affected trading partners are identified based on UN Comtrade's import data from 2014.

Update
On 3 July 2018, CAMEX issued Resolution 46 modifying the List of Exceptions to the Common External Tariff (LETEC) of Mercosur eliminating NCM 1511.90.00 from the list (please see related state acts).
 
On 25 October 2018, the Brazilian Foreign Trade Council has adopted Resolution 82 revoking 124 resolutions including this one.