ANNOUNCEMENT 03 Jul 2018

On 3 July 2018, the Brazilian Foreign Trade Council (CAMEX) issued Resolution 46 modifying the List of Exceptions to the Mercosur Common External Tariff (LECET).

NUMBER OF INTERVENTIONS

3

  • 1 harmful
  • 0 neutral
  • 2 liberalising

SOURCE

Brazilian Foreign Trade Council. Câmara de Comércio Exterior. Resolução 46 de 03 de Julho de 2018. Available at: http://www.camex.gov.br/component/content/article/62-resolucoes-da-camex/em-vigor/2052-resolucao-n-46-de-03-de-julho-de-2018

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: 03 Jul 2018 | Removal date: 25 Oct 2018
Still in force

Import tariff

One of the changes introduced by CAMEX in Resolution 46 adopted on 3 July 2018, led to the increase of the import duties set on under the following tariff subheadings: NCM 0901.21.00, 3002.20.29, 3004.90.69, 3006.30.29, 3926.90.40, 8716.39.00 and 9021.10.20. The new import tariffs range between 4% and 1222% according to the WTO database. Previously, the applicable duties range between 0% and 4%, depending on the product.

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.

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

Inception date: 03 Jul 2018 | Removal date: 25 Oct 2018
Still in force

Import tariff

The removal of certain products from the LETEC announced on Resolution 46 issued by CAMEX on 3 July 2018 also lead to the decrease of the import duty set on the following tariff subheadings: NCM 1511.90.00, 8480.41.00, 3001.20.90 and 3002.15.90. The new import duties have been reduced to 0%, 10% and 14% depending on the product. Previously, according to the data available at the WTO database, the applicable tariffs ranged between 3% and 30%.

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.

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

Inception date: 03 Jul 2018 | Removal date: 25 Oct 2018
Still in force

Import tariff quota

Resolution 46 adopted by CAMEX on 3 July 2018 also established new import tariff quotas on 3 tariff lines (NCM 4805.92.90, 5501.30.00 and 7601.10.00). The new duties, according to the data provided by the WTO and the Resolution, have been reduced as it follows:

  • from 12% to 2% for a quota of 31,985 tonnes for NCM 4805.92.90;
  • from 16% to 2% for a quota of 6,240 tonnes for NCM 5501.30.00; and
  • from 6% to 0% for a quota of 282,500 tonnes for NCM 7601.10.00.

Prior to this resolution, none of the above tariff lines enjoyed an import tariff quota.

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.

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