ANNOUNCEMENT 21 Dec 2021

In December 2021, the Brazilian Foreign Trade Chamber (Camex) adopted GECEX Resolution No. 285 replacing the list of auto parts not locally manufactured applicable for the import duties exemptions mechanism. The new measure revokes and replaces CAMEX Resolution No. 102/2018 and its amendments (see related state acts).

 

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Diário Oficial da União. Official Gazette. "RESOLUÇÃO GECEX Nº 285, DE 21 DE DEZEMBRO DE 2021, Regulamenta os procedimentos para comprovação da condição da ausência de capacidade de produção nacional equivalente e relaciona as autopeças objeto de isenção do Imposto de Importação, no âmbito do regime tributário de autopeças não produzidas instituído pela Lei nº 13.755, de 10 de dezembro de 2018, e regulamentado pelo Decreto no 9.557, de 8 de novembro de 2018". 23/12/2021. Available at:
https://www.in.gov.br/en/web/dou/-/resolucao-369787334

WTO Tariff Download Facility (Retrieved on 15/10/2021). Available at: http://tariffdata.wto.org/

Ministério da Economia. Regime de Autopeças Não Produzidas. Last update on 14/02/2020. Available at: https://www.gov.br/produtividade-e-comercio-exterior/pt-br/assuntos/competitividade-industrial/setor-automotivo/regime-de-autopecas-nao-produzidas

Inception date: 01 Jan 2022 | Removal date: open ended

Import tariff

On 21 December 2021, the Brazilian Foreign Trade Chamber (Camex) issued GECEX Resolution No. 285 replacing the list of auto parts not locally manufactured applicable for the import duties exemptions mechanism. The new list consists of 1'190 products, enclosed in 211 8-digit subheadings, that will now be subject to duty-free imports. Notably, the previous iteration of the list was established via CAMEX Resolution No. 102/2018 and had been modified by different amendments from December 2018 until September 2021 (see related state acts). The present measure revokes and replaces all the aforementioned. 

The measure is an update of the regime of auto parts not produced in the country and only applies to the importation of new auto parts for the production of vehicles (see related intervention). According to the WTO Tariff Download Facility, the previously applicable MFN duties ranged between 3.5% and 20%.

Resolution No. 285 was published on 23 December 2021 and the new duties apply from 1 January 2022. On the same day, the Brazilian authorities also updated the list of auto parts subject to the import duties reductions mechanism (see related state act). 

Update

On 28 January 2022, the Executive Committee of the Brazilian Foreign Trade Chamber (GECEX) issued Resolution No. 299 removing one product from the present list. In particular, ex tárifario 020 of NCM 8413.91.90 was removed, leading to an increase in the product's import duty (see related state act). 

On 24 February 2022, the Executive Committee of the Brazilian Foreign Trade Chamber (GECEX) issued Resolution No. 313 adding one product and removing 7 other products to the present list (see related state act).

On 21 June 2022, the Executive Committee of the Brazilian Foreign Trade Chamber (GECEX) issued Resolution No. 360 removing 2 products from the present list. In particular, ex tárifarios 009 of NCM 8409.99.69 and 005 of NCM 8409.99.99 were removed, leading to an increase in the products' import duties (see related state act).

Inception date: 01 Jan 2022 | Removal date: open ended

Tax or social insurance relief

On 21 December 2021, the Brazilian Foreign Trade Chamber (Camex) issued GECEX Resolution No. 285 replacing the list of auto parts not locally manufactured applicable for the import duties exemptions mechanism. As the zero duty only applies to the importation of new auto parts for the production of vehicles, the measure also implies a selective tax cut in favour of the automotive sector.

Resolution No. 285 was published on 23 December 2021 and the new duties apply from 1 January 2022. 

Non-locally manufactured auto parts regime

As an industrial policy, the regime aims to support the automotive sector by allowing the import of auto parts (inputs) without equivalent domestic production at a reduced or duty-free rate. Companies that wish to be subject to the duty-free treatment need to apply to the Department of Foreign Trade Operations (Decex in Portuguese) of the Ministry of Development, Industry and Foreign Trade (MDIC in Portuguese) of Brasil. 

Since 2020, two sets of regulations coexist and set the basis of the regime (CAMEX Resolution No. 102/2018 for import duties exemptions and GECEX Resolution No. 23/2019 for import duties reductions). The present measure revokes and replaces CAMEX Resolution No. 102/2018 and its amendments.