8 Jan 2016
Brazil Lowers Duties on Additional Products
Brazilian authorities recently announced the addition of 796 items to a list of foreign capital goods and information technology and telecommunications goods that benefit from reduced duty or duty-free treatment under the Ex-Tarifario regime. Of this total, 724 items are capital goods and the remaining 72 are IT and telecom goods. Classified in HS chapters 73, 82, 84, 85, 86, 87 and 90, the capital goods will benefit from a reduced duty of two percent through 30 June 2017, with the exception of one item that will benefit from such treatment through 30 June 2016 and ten items that will benefit from duty-free treatment through 30 June 2017. The IT/telecom goods, which are classified in HS chapters 84, 85 and 90, will also benefit from a reduced duty of two percent through 30 June 2017.
Brazil’s Foreign Trade Chamber (CAMEX) indicates that 20.89 percent of the goods benefiting from the duty reductions under resolutions 116/2015 and 117/2015 will help the domestic capital goods sector, 14.97 percent will benefit the mining sector, 14.70 percent will benefit the energy sector, 10.50 percent will help the graphics sector, and 4.84 percent will help the wood products and furniture sector. CAMEX adds that 37.90 percent of the goods benefiting from the duty reductions under these resolutions originate in the United States, 17.65 percent originate in Germany, 7.03 percent originate in Italy, 6.53 percent originate in Finland, 5.51 percent come from Austria, and 4.89 percent come from mainland China.
CAMEX has also established a tariff-rate quota on certain phosphates of calcium to correct a lack of supply in the Brazilian market. Specifically, a maximum of 25,000 tonnes of certain phosphates of calcium with a phosphorous content not exceeding 22 percent, classified under NCM 2835.26.00, will benefit from a two percent duty for a period of 12 months. Out-of-quota merchandise will be subject to a regular MFN rate of 10 percent.
Finally, Brazil has provided duty-free treatment to three drugs (basiliximab, temsirolimus and erlotinib hydrochloride) used in cancer treatment and kidney transplants.