Brazil Lowers Duties on Toys

Effective 1 December, Brazil will reduce from 35 percent to 20 percent its most-favoured nation duties on imports of toys classified under NCM 9503.00.10, 9503.00.21, 9503.00.22, 9503.00.31, 9503.00.39, 9503.00.40, 9503.00.50, 9503.00.60, 9503.00.70, 9503.00.80, 9503.00.91, 9503.00.97, 9503.00.98 and 9503.00.99. Toy imports have faced a 35 percent MFN rate in Brazil since 2011, when Mercosur members were authorised to increase their duties on those products.

Brazilian authorities indicate that this decision should lower retail prices for toys anywhere from 5.1 percent to 5.7 percent and result in a 6.9 percent to 7.7 percent increase in domestic toy sales. Other expected benefits outlined by the government include reduced smuggling as well as lower shipments of counterfeit toys.