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Brazil Eases Non-Automatic Import Licencing Mechanism, Implements Proposal to Enhance Special Import Regime for Capital and IT Goods

Brazil is now allowing goods subject to non-automatic import licencing to be shipped to Brazil prior to the issuance of the applicable import licence. The licence must be obtained prior to the customs clearance of the goods. This action forms part of the on-going efforts by the Brazilian government to facilitate international trade by reducing the administrative burdens faced by trade operators.

In a separate action, Brazil has implemented a proposal to provide duty-free treatment, rather than a reduced two percent duty, to foreign capital goods and information technology and telecommunications goods that are included in the Ex-Tarifario regime (a special import regime for goods for which there is no domestic production). While Brazilian authorities had previously reported that this action would apply to any new items added to the Ex-Tarifario list, the duty exemption has been implemented with immediate effect and covers all duty concessions that are currently in place on 4,903 items (4,552 capital goods and 351 IT and telecom goods). Sectors benefiting from this action include, among others, the medical, automotive parts, food, electronics and packaging sectors.

The Ex Tarifario regime allows Mercosur members to individually reduce import duties on pre-determined lists of capital goods and IT and telecom equipment without a domestically produced equivalent. Rates are typically reduced to two percent for a period of two years, down from 14 percent in the case of capital goods and 16 percent in the case of IT and telecom goods. Besides the lack of equivalent domestic production, Brazilian decisions on the granting of import duty reductions take into account other considerations, such as adoption of new technologies, investment in infrastructure improvements and complexity of the imported good.

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