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Brazil Establishes New Mandatory Requirements for Imported Motor Vehicles

Brazil recently implemented new mandatory requirements for the importation and sale of new motor vehicles classified in headings 8701 through 8706, as well as a new import regime for automotive parts not made in Brazil. Among other actions, Brazilian authorities will set new provisions on motor vehicle marking/labelling, energy efficiency, and structural performance associated with power steering technologies. The government will also have the authority to reduce the federal value-added tax (IPI) by up to two percentage points for vehicles that comply with certain minimum energy efficiency standards. Additionally, automotive parts, components, tyres, and finished and semi-finished assemblies and sub-assemblies that are not produced in Brazil will benefit from duty-free treatment if imported by an authorised entity for further automotive manufacture.

Brazil has also modified the federal VAT (IPI) rates for hybrid and mixed use vehicles, including alcohol fuelled vehicles and flexible fuel engine vehicles, classified under various subheadings within heading 8703.

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