Since last year, Brazil's domestic inflation has remained high. In order to stabilize domestic prices and ease inflationary pressures, Brazil has repeatedly introduced policies to reduce or exempt import tariffs.
01, Brazil decides on 628 kinds of machinery
and equipment products exempt from import duties
Local time on May 9, the Brazilian Foreign Trade Commission Executive Management Committee made a decision to 628 kinds of machinery and equipment products exempt from import duties, duty-free measures continue until 2025 December 31.
The committee said that the tax exemption policy will allow companies to import more than 0.8 billion U.S. dollars of machinery and equipment products, from metallurgy, electric power, gas, car, paper and other industries will benefit.
Since there is no domestic production, about 80% of the tariff relief equipment needs to be imported from the United States, China, Germany and Italy.
It is reported that among the 628 kinds of machinery and equipment products, 564 kinds are manufacturing industry and 64 kinds are information technology and communication. Prior to the introduction of the duty-free policy, Brazil's import tariff on such products was 11%.
The decision will be published in the coming days in the form of two new Camex resolutions in the Official Journal of the Union (DOU), informing the Ministry of Development, Industry, Commerce and Services.
02, the Brazilian government has repeatedly announced tariff reduction policy
On March 10, 2023, Brazilian Vice President Alckmin announced through social media that Brazil would cancel import tariffs on six commodities from the 10th. The six products include two different types of steel, two types of aluminum plates, bracelets to measure blood pressure and pulse, and radar antennas. Alkmin said that the import tariffs on the above-mentioned goods ranged from 12% to 16%, and the government will implement a "zero tariff" policy for such goods in the future.
May 23, 2022, the Brazilian Ministry of Economy announced a reduction of import tariffs on beans, meat, pasta, biscuits, rice and building materials by 10%. The policy covers 87% of all categories of Brazilian importers, covering a total of 6195 items, and will be valid from June 1, 2022 to December 31, 2023. According to data from the Brazilian Ministry of Economy, through two adjustments, the import tariffs on the above-mentioned goods will be reduced by 20%, or directly reduced to zero tariffs.
On May 11, 2022, the Brazilian Ministry of Economy announced that in order to alleviate the impact of high inflation in the country on production and life, the Brazilian government officially reduced import tariffs on 11 products. Products subject to tariff removal include frozen deboned beef, chicken, wheat flour, wheat, biscuits, bakery products and confectionery, sulphuric acid and corn kernels. In addition, the import tariff of CA50 and CA60 rebar was reduced from 10.8 per cent to 4 per cent, and the import tariff of mancozeb (fungicide) was reduced from 12.6 per cent to 4 per cent.
April 29, 2022, the Brazilian government published a decree in the official gazette to increase the tax reduction on industrial products from 25% to 35%. The Brazilian government said that the reduction of industrial product tax is conducive to the production and sales of a series of industrial products such as metallurgical products, audio-visual equipment and furniture.
On March 21, 2022, in order to enhance industrial competitiveness and reduce the impact of inflation on low-income people, the Special Meeting of the Management Executive Committee (Gecex) of the Foreign Trade Commission (Camex) of the Brazilian Ministry of Economy approved the reduction of import tariffs on some commodities. The Brazilian government has further reduced import duties on capital goods (industrial machinery and equipment) and IT and telecommunications products such as computers, tablets and mobile phones by 10 per cent. This is the second cut in import tariffs on capital goods and telecommunications.
Source: China Cargo Association