ANNOUNCEMENT 28 May 2021

The Government of Brazil approved a new import tariff quota for palm oil increasing the total volume available with a reduced import duty.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Official Gazette of Brazil: Diário Oficial da União. Órgão: Ministério da Economia/Câmara de Comércio Exterior/Comitê-Executivo de Gestão. Resoluçao No 210, de 28 de maio de 2021. Available at: https://www.in.gov.br/en/web/dou/-/resolucao-gecex-n-210-de-28-de-maio-de-2021-322992399

Official Gazette of Brazil: Diário Oficial da União. Órgão: Ministério da Economia/Câmara de Comércio Exterior/Comitê-Executivo de Gestão. Resoluçao No 36, de 4 de maio de 2020. Available at: http://www.in.gov.br/en/web/dou/-/resolucao-n-36-de-4-de-maio-de-2020-255166625

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

Inception date: 01 Jun 2021 | Removal date: 16 Aug 2021

Import tariff quota

On 28 May 2021, the Executive Committee of the Brazilian Foreign Trade Chamber (GECEX) issued Resolution No. 210 increasing the temporary tariff-rate quota on palm oil applicable until 31 August 2021. The affected product was classified under tariff line NCM 1513.29.10. The previous import tariff quota was adopted in May 2019 and extended in 2020 (please, see related state act).

The regulation established the total volume of palm oil that can be imported with a 0% import tariff at 59,500 tonnes for a period of 3 months. There was no applicable import tariff quota immediately prior to this announcement. 

According to the WTO tariff download facility, the average applicable import duty outside the quota was 10%.

Notably, the special import tariff concession was granted by adding this product to the List of Exceptions to the Common External Tariff of MERCOSUR, therefore it only affects countries outside the trading block. 

Resolution No. 210 entered into force on 1 June 2021. 

Update

On 6 August 2021, the Executive Committee of the Brazilian Foreign Trade Chamber (GECEX) issued Resolution No. 229 increasing the in-volume quota for NCM 1513.29.10. The new import tariff-rate quota applies from 16 August 2021 until 16 August 2022 (see related state act).

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 LECET of 100 codes based on the NCM until 31 December 2021.

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AFFECTED PRODUCTS