Brazil Modifies Duties on Various Products
21 July 2017
Brazilian authorities recently announced the addition through Resolution 50/2017 and Resolution 51/2017 of 880 items to a list of foreign capital goods and information technology and telecommunications goods that benefit from reduced duty or duty-free treatment under the Ex-Tarifario regime. Of this total, 787 items are capital goods and the remaining 93 are IT and telecom goods. Classified in HS chapters 73, 84, 85, 86, 87 and 90, the capital goods will benefit from a reduced duty of two percent through 30 June 2019 (for 441 of these items, the reduction will apply from 1 August 2017), with the exception of three items that will benefit from such reduction through 31 December 2017 or 30 June 2018 and one item that will benefit from duty-free treatment through 30 June 2019. The IT/telecom goods, which are classified in HS chapters 84, 85 and 90, will benefit from a reduced duty of two percent through 30 June 2019 (for 76 of these items, the reduction will apply from 1 August 2017).
Brazil’s Foreign Trade Chamber (CAMEX) also recently added through Resolution 52/2017 a total of 94 items to the list of automotive parts that benefit from a reduced two percent duty, down from 14, 16, 18 or 20 percent. Three of these items will be subject to a tariff-rate quota ranging from 500 to 6,000 units, depending on the product. Moreover, CAMEX has established through Resolution 49/2017 and extended through Resolution 53/2017 the TRQs on the products listed below.
- Sodium Hydroxide
A maximum of 180,000 tonnes of sodium hydroxide (caustic soda) in aqueous solution used exclusively in the production of alumina or aluminium oxide, classified under NCM 2815.12.00, will benefit from a reduced duty of two percent for a period of 12 months. Out-of-quota merchandise will be subject to a regular MFN rate of eight percent.
- Unalloyed Aluminium
The TRQ on unalloyed aluminium ingot, sow and t-bars classified under NCM 7601.10.00 has been extended through 31 June 2018, subject to a 346,000 tonne limit. In-quota imports will benefit from duty-free treatment while out-of-quota merchandise will be subject to a regular MFN rate of six percent.
Finally, Brazil has amended its tariff schedule through Resolution 54/2017 to incorporate certain changes to the Mercosur common external tariff, effective 1 January 2018.
- Photographic plates and film for X-ray, sensitised on one side, classified under NCM 3701.10.10 – duty will fall from 14 to two percent.
- Lauric industrial fatty acids classified under NCM 3823.70.20 – duty will rise from two percent to 14 percent.
- Stearic alcohol classified under NCM 2905.17.30 – duty will rise from two to 12 percent.
- Certain copolymers classified under new tariff breakouts 3907.99.93, 3907.99.94 and 3907.99.95 – duty will drop from 14 percent to two percent
- Other plastics of poly(vinyl butyral) classified under NCM 3920.91.00 – duty will fall from 16 percent to two percent
- Other plates, sheets, film, foil and strip of certain reinforced copolymers of tetrafluoroethylene classified under new tariff breakout 3921.90.19 – duty will decline from 16 percent to two percent
- Sinkers classified under new tariff breakout 8448.51.10 – duty will increase from zero to 14 percent
- Certain capacitors for surface mounted devices classified under NCM 8532.23.10, 8532.24.10, 8532.25.10, 8532.29.10 and 8532.30.10 – duty will fall from 16 percent to two percent
- Varistors for a voltage of 1,000 volts or lower classified under new tariff breakout 8533.40.12 – duty will decline from 16 percent to two percent
- Gas burners classified under new tariff breakout 8536.30.10 – duty will fall from 16 percent to two percent
- Certain transistors for surface mounted devices classified under NCM 8541.21.20 – duty will fall from six to zero percent
- Central & South America