16 Dec 2016
Brazil Modifies Duties on Various Products
Brazilian authorities recently announced the addition through Resolution 113/2016 and Resolution 114/2016 of 106 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, 96 items are capital goods and the remaining 10 are IT and telecom goods. Classified in HS chapters 84, 85, 86, 87, 90 and 94, the capital goods will benefit from a reduced duty of two percent through 30 June 2018, with the exception of two items that will benefit from duty-free treatment through 31 December 2017. The IT/telecom goods, which are classified in HS chapters 84, 85 and 90, will benefit from a reduced duty of two percent through 30 June 2018.
Brazil’s Foreign Trade Chamber (CAMEX) also recently added through Resolution 112/2016 a total of 45 items to the list of automotive parts that benefit from a reduced two percent duty, down from 6, 14, 16 or 18 percent. In addition, CAMEX has established through Resolution 123/2016 the tariff-rate quotas on the products listed below.
- Unroasted Malt
A maximum of 156,531 tonnes of unroasted malt, whole or broken, classified under NCM 1107.10.10, will benefit from a reduced duty of two percent for a period of 12 months. Out-of-quota merchandise will be subject to a regular MFN rate of 14 percent.
- Frozen Sardines
A maximum of 80,000 tonnes of frozen sardines classified under NCM 0303.53.00 will benefit from a reduced duty of two percent for a period of 12 months from 15 December 2016. Out-of-quota merchandise will be subject to a regular MFN rate of 10 percent.
- Diphenylmethane Diisocyanate
A maximum of 23,000 tonnes of diphenylmethane diisocyanate classified under NCM 2929.10.10 will benefit from a reduced duty of two percent for a period of 12 months from 11 January 2017. Out-of-quota merchandise will be subject to a regular MFN rate of 14 percent.
Brazilian authorities have also provided duty-free treatment for a period of 12 months to certain dengue vaccines classified under NCM 3002.20.29. In addition, they have announced the following changes to Brazil’s list of exemptions to the Mercosur common external tariff. As a result, the duties on the following products have either increased or decreased.
- Medicaments containing sodium mycophenolate classified under NCM 3004.90.59 – duty has risen from zero to eight percent.
- Certain industrial monocarboxylic fatty acids and acid oils classified under NCM 3823.19.00 – duty has increased from two percent to 20 percent.
- Certain insulated modules and three-phase generator circuit breakers classified under NCM 8537.20.90 – duty has risen from zero to 18 percent.
- Bicomponent polyester staple fibre with different melting points classified under NCM 5503.20.10 – duty has declined from 10 percent to two percent.