19 Sept 2019
Brazil Lowers Duties on Additional Products
Brazilian authorities have announced the addition of 897 items to a list of foreign capital goods and information technology and telecommunications goods that benefit from duty-free treatment under the Ex-Tarifario regime, down from 14 or 16 percent. Many of these goods could potentially be imported from mainland China and/or Hong Kong.
Of this total, 845 items are capital goods and the remaining 52 are IT and telecom goods. The capital goods covered by these actions are classified in HS chapters 82, 84, 85, 86, 87, 90 and 94, while subject IT and telecom goods are classified in HS chapters 84, 85 and 90. Most of these goods will benefit from duty-free treatment through 31 December 2021, while certain IT and telecom products will benefit from such treatment through 31 December 2020.
Brazil has also established tariff-rate quotas on imports of four additional products to correct a lack of supply in the Brazilian market. As a result, the following goods will benefit from a reduced two percent duty for a period of 12 months:
- up to 24,650 tonnes of sodium metabisulfite with a Na2S2O5 content of 98 percent or more by weight, classified under NCM 2832.10.10;
- up to 2,500 tonnes of nickel-chromium-molybdenum alloy pipes, with an external diameter of 114.3 mm or greater but not exceeding 406.4 mm, suitable for the internal lining of other types of iron or steel pipe, classified under NCM 7507.12.00;
- up to 6.5 million units of silicone hydrogel contact lenses designed for the treatment of myopia, hyperopia and astigmatism, classified under NCM 9001.30.00; and
- up to 2.5 million bands of a kind suitable for use on arms or wrists, suitable for use in blood pressure measuring devices, classified under NCM 9018.90.92.
Separately, Brazil has clarified the new administrative procedures to analyse requests to add new items to the Ex-Tarifario list, which had previously been suspended at the behest of the domestic industry. Among other things, the government indicates that petitions for used goods will receive a technical recommendation of denial, thereby addressing domestic industry concerns that the new procedures would have led to an influx of used goods into the country. For purposes of determining whether equivalent domestic production exists, four parameters will be evaluated in the following order of priority: (i) previous deliveries made, (ii) performance or productivity, (iii) delivery time, and (iv) price.