ANNOUNCEMENT 24 Dec 2020

The Brazilian authorities amended the List of Exceptions to the Common External Tariffs leading to changes in 8 products.

 

NUMBER OF INTERVENTIONS

4

  • 1 harmful
  • 0 neutral
  • 3 liberalising

SOURCE

Official Gazette of Brazil. Diário Oficial da União. Órgão: Ministério da Economia/Câmara de Comércio Exterior/Comitê-Executivo de Gestão. Resoluçao Nº 129 de 24 de dezembro de 2020. Available at: https://www.in.gov.br/en/web/dou/-/resolucao-gecex-n-129-de-24-de-dezembro-de-2020-296799071

Inception date: 01 Jan 2021 | Removal date: 31 Dec 2021

Import tariff quota

On 24 December 2020, the Executive Committee of the Brazilian Foreign Trade Chamber issued Resolution Nº 129 announcing new applicable import tariff quotas several products. In the case of malt and sardines, the new volumes announced represent an increase in the quota when compared to the previous applicable tariff-rate quota.

In the case of malt, the import duty was reduced from 14% to 0% for a quota of 300,000 tonnes for products classified under tariff line NCM 1107.10.00. Previously to this regulation, no tariff-rate quota applied to the affected commodity. This new quota applies as of 1 January 2021 until 31 December 2021.

As for sardines, the import duty was reduced from 14% to 0% for a quota of 60,000 tonnes, for the period ranging between 1 January 2021 and 30 June 2021, and another 60,000 tonnes for the period ranging between 1 July 2021 and 31 December 2021. The affected products were classified under tariff subheading NCM 0303.53.00. Notably, the previously applicable quota on this product was also divided into two-distribution periods but was limited at 55,000 tonnes per period (please, see related state acts).

In addition to the two import tariff quotas above-mentioned, the new regulation renewed the tariff rate quotas applicable to rutile pigments and papers for the manufacture of gypsum plasterboard sold in rolls (please, see related state acts). Furthermore, Regulation Nº 129 also reduced the volume of the tariff-rate quota applicable to aluminium (please, see related interventions). Moreover, the new regulation also introduced import tariff changes on 3 produces (please, see related interventions).

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 01 Jan 2021 | Removal date: 31 Dec 2021

Import tariff quota

On 24 December 2020, the Executive Committee of the Brazilian Foreign Trade Chamber issued Resolution Nº 129 announcing new applicable import tariff quotas several products.

In the case of unalloyed aluminium, in the form of standard ingots, sow or T-bar classified under tariff line 7601.10.00, the new volume was decreased from 300,000 tonnes to 262,000 tonnes when compared to the previously applicable tariff-rate quota (please, see related state acts). As for the applicable import tariff, products imported within the quota will enjoy a 0% import duty whereas the outside-of-quota tariff was kept at 6%.

In addition to the import tariff quota above-mentioned, the new regulation renewed the tariff rate quotas applicable to rutile pigments and papers for the manufacture of gypsum plasterboard sold in rolls (please, see related state acts). Furthermore, Regulation Nº 129 also increased the volume of the tariff-rate quota applicable to malt and sardines (please, see related interventions). Moreover, the new regulation also introduced import tariff changes on 3 produces (please, see related interventions).

 
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Inception date: 16 Jan 2021 | Removal date: 31 Dec 2021

Import tariff

On 24 December 2020, the Executive Committee of the Brazilian Foreign Trade Chamber issued Resolution Nº 129 announcing new changes to the List of Exceptions to the Common External Tariff (LECET). As a consequence of the changes introduced, the import duties on certain semi-trailers and velvets were reduced.

In the case of modular hydraulic semi-trailers classified under NCM 8716.39.00, the new regulation temporarily reduced the applicable import tariff from 35% to 0% whereas, in the case of warp-knitted velvets classified under tariff line NCM 6001.92.00, the import tariff was reduced from 26% to 0%.

The new duties apply for the period ranging between 16 January 2021 and 31 December 2021.

Notably, the new import tariff does not affect the member state of Mercosur.

List of Exceptions to the Common External Tariff
The tariff codes were included in the List of Exceptions to the Common External Tariff (LECET) of Mercosur. LECET 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.

 
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Inception date: 30 Dec 2020 | Removal date: open ended

Import tariff

On 24 December 2020, the Executive Committee of the Brazilian Foreign Trade Chamber issued Resolution Nº 129 announcing new changes to the List of Exceptions to the Common External Tariff (LECET). As a consequence of the changes introduced, the import duty on bicarbonate classified under tariff line NCM 2836.30.00 was reduced.

Concretely, the affected product was removed from the LECET effective as of 30 December 2020. As a consequence, the 20% import tariff established on this product no longer applies and the import tariff was restored to the usual import duty. According to the WTO tariff download facility, the usual average import duty is 10%. 

Notably, the new import tariff does not affect the member state of Mercosur.

List of Exceptions to the Common External Tariff
The tariff codes were included in the List of Exceptions to the Common External Tariff (LECET) of Mercosur. LECET 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.