ANNOUNCEMENT 15 Sep 2011

In September 2011, the government of Brazil announced a change to the import-specific domestic duties.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Presidential Decree no. 7.567 of 15 September 2011, published in Official Gazette of 16 September 2011: http://www.planalto.gov.br/CCIVIL_03/_Ato2011-2014/2011/Decreto/D7567.htm


Inception date: 16 Sep 2011 | Removal date: 14 Jan 2013
Still in force

Internal taxation of imports

On September 15, 2011, the Brazilian government announced an increase from 25 to 30 percentage points of Brazil's industrialized products tax for vehicles.
 
The increase applies to motor vehicles, tractors, buses, trucks and light commercial vehicles imported into Brazil until December 31, 2012.
 
The vehicles that meet the following requirements may be excluded from this tax increase:

  • At least 65% of the final product must originate in one of the MERCOSUR members or Mexico;
  • The research and development expenses in Mercosur countries or Mexicoare equal to or at least 0.5 percent of the company's sales;
  • At least six of the following eleven activities must take place in Brazil, or by a company in which 80% of its production carries out six of the following eleven operations in a Mercosur country or Mexico.

 
The listed operations are:
1. The assembly, final review and compatibility tests
2. Printing
3. Welding
4. Corrosion and paint treatment
5. Plastic injection
6. Engine manufacture
7. Fabrication of transmissions
8. Steering systems, electric suspension, brakes, axle, engine and transmission gearbox installation
9. Chassis and body mounting
10. Final assembly of cabs or bodies, with the installation of its elements, including acoustic and thermal coating and finishing
11. Manufacture of the body, using mainly parts with stamp or regional format
 
Local manufacturers that invest in technological innovation and those who carry out most of its processes on Brazilian soil are exempted of this measure.
 
The tax increase entered into force on September 16, 2011.

AFFECTED SECTORS