Brazil Lowers Duties on Various Products

Brazilian authorities have announced the addition of 349 items to a list of foreign capital goods and information technology and telecommunications goods that benefit from duty-free treatment under the Ex-Tarifario regime, down from 14 or 16 percent. Many of these goods could potentially be imported from mainland China and/or Hong Kong.

Of the total added, 325 items are capital goods and the remaining 24 are IT and telecom goods. The added capital goods are classified in HS chapters 84, 85, 87, 90 and 94, while subject IT and telecom goods are classified in HS chapters 84, 85 and 90. These goods will benefit from duty-free treatment through 31 December 2021.

Additionally, Brazil has made a number of changes to the list of automotive parts that qualify for a duty exemption under the special import regime for such products, including the addition of 192 items, the removal of four items, and the modification of 21 product descriptions.

Finally, Brazil has established or renewed the tariff-rate quotas on imports of the following eight products to correct a lack of supply in the Brazilian market.

• Polycarbonate. Up to 35,040 tonnes of polycarbonate in powder or flakes classified under NCM 3907.40.90 (reduced two percent duty for a period of 12 months from 1 June 2020).

• Permanent Magnets. Up to 360,000 units of certain permanent magnets of neodymium-iron-boron (NdFeB) or other rare earth metal composition, for generating high performance magnetic fields, of the type used in engines and generators, classified under NCM 8505.11.00 (reduced two percent duty for a period of 12 months from 27 May 2020).

• Voltage Switches. Up to 500 voltage switches having certain features, classified under NCM 8505.11.00 (reduced two percent duty for a period of 12 months from 27 May 2020).

• Anatase Titanium. Up to of 12,000 tonnes of anatase titanium oxide classified under NCM 2823.00.10 (reduced two percent duty for a period of 12 months from 27 May 2020).

• Polymeric MDI. Up to 105,000 tonnes of polymeric MDI presented in liquid form classified under NCM 3909.31.00 (reduced two percent duty for a period of 12 months from 27 May 2020).

• Palm Kernel Oil. Up to of 224,785 tonnes of palm kernel oil classified under NCM 1513.29.10 (reduced two percent duty for a period of 12 months from 27 May 2020).

• Certain Mixtures. Up to 1,250 tonnes of certain mixtures based on odoriferous substances, in the form of microcapsules, of a kind used as raw materials in the personal care and cleaning industry, classified under NCM 3302.90.90 (reduced two percent duty for a period of 12 months from 27 May 2020).

• Partially Oriented Polyester. Up to 127,575 tonnes of partially oriented polyester yarn classified under NCM 5402.46.00 (reduced two percent duty for a period of 12 months from 4 July 2020).