ANNOUNCEMENT 11 Feb 2021

The government of Brazil eliminated the import duties on 529 capital goods enclosed in 189 eight-digits tariff lines. In addition, it also terminated the temporary import tariff exemption set on 39 products.

 

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Official Gazette. Diário Oficial da União. Órgão: Ministério da Economia/Câmara de Comércio Exterior/Comitê-Executivo de Gestão. Resoluçao GECEX Nº 155 de 11 de fevereiro de 2021. Avaialble at: https://www.in.gov.br/en/web/dou/-/resolucao-gecex-n-155-de-11-de-fevereiro-de-2021-303795062

WTO. (26 July 2013). Trade Policy Review, Report by the Secretariat, Brazil. Report prepared for the sixth Trade Policy Review of Brazil. Document WT/TPR/S/283/Rev., p. 53, para. 3.38. Available at: https://www.wto.org/english/tratop_e/tpr_e/s283_e.pdf

WTO Tariff Download facility, http://tariffdata.wto.org (retrieved on 15/09/2020)

Inception date: 19 Feb 2021 | Removal date: 30 Apr 2022

Import tariff

On 11 February 2021, the Executive Committee of the Brazilian Foreign Trade Chamber (Gecex) issued Resolution No. 155 eliminating the import tariffs on 491 capital goods. Furthermore, 38 additional ex-tarifários were added to previous regulations (please, see related state acts). In total, the changes introduced affected 189 eight-digits tariff lines.

According to the WTO database, previous applicable duties ranged between 3.5% and 17.3% depending on the product. 

The list of capital goods announced in the new regulation is added to the list adopted in February via Resolution Nº 14, hence the application period of these regulations is linked (please, see related state acts). 

Resolution No. 155 was published on the Official Gazette on 17 February 2020 but the new import tariffs apply as of 19 February 2021 until 31 December 2021.

Update

On 21 December 2021, the Executive Committee of the Brazilian Foreign Trade Chamber (Gecex) adopted Resolution No. 291 extending the validity of Resolution No. 14 until 30 April 2022.

Ex-tarifário regime
The tariffs were reduced under Brazil's ex-tarifário regime, which allows temporary customs duty exceptions under the Mercosur Common External Tariff on capital and IT goods. Such an exception can be invoked in case the good in question has no domestically produced equivalent. The goal of this is to restructure Brazil's industrial park and infrastructure services (see WTO Trade Policy Review).

The measure was additionally introduced simultaneously with Gecex Resolution No. 156 that reduces the tariff on IT and telecommunications products (see related state act). Both resolutions produced 562 ex-tarifários.

Inception date: 19 Feb 2021 | Removal date: open ended

Import tariff

Resolution No. 155 issued by the Executive Committee of the Brazilian Foreign Trade Chamber (Gecex) on 11 February 2021, eliminated from the ex-tarifário regime 39 capital goods enclosed in 27 eight-digits tariff lines. The change introduced lead to an increase in the import duties applicable to the affected products.

According to the information available in the WTO database, the new applicable duties increased from 0% to values ranging between 3.5% and 16.2% depending on the product. 

Resolution No. 155 was published on the Official Gazette on 17 February 2021 and the new import tariffs apply as of 19 February 2021.