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Brazil Modifies Duties on Various Products

Brazilian authorities recently announced the addition of 322 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. Of this total, 316 items are capital goods and the remaining six are IT and telecom goods. Classified in HS chapters 73, 84, 85, 86, 87, 90 and 94, the capital goods will benefit from duty-free treatment through 30 June 2019, except for four items that will benefit from such treatment through 31 December 2017.  The IT/telecom goods, which are classified in HS chapters 84, 85 and 90, will benefit from duty-free treatment through 30 June 2019.

Brazil’s Foreign Trade Chamber (CAMEX) also recently added a total of 23 items to, and removed four items from, the list of automotive parts that benefit from a reduced two percent duty, down from 12, 14, 16 or 18 percent. One of the added items will be subject to a tariff-rate quota of 18,371 units. Moreover, CAMEX has established the TRQs on the products listed below.

  • Curd Casein
    A maximum of 950 tonnes of curd casein (paracasein) classified under NCM 3501.10.00 will benefit from a reduced duty of two percent for a period of six months. Out-of-quota merchandise will be subject to a regular MFN rate of 14 percent.
  • Hazelnuts
    A maximum of 5,000 tonnes of shelled hazelnuts or filberts classified under NCM 0802.22.00  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 six percent.
  • Bonito Loins
    A maximum of 3,000 tonnes of frozen, pre-cooked striped bonito loins classified under NCM 1604.14.20 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 16 percent.
  • Monoisopropylamine
    A maximum of 26,282 tonnes of monoisopropylamine and its salts classified under NCM 2921.19.23 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.
  • Acrylic Fibres
    A maximum of 9,000 tonnes of acrylic or modacrylic staple fibres, not carded, combed or otherwise processed for spinning, classified under NCM 5503.30.00 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 16 percent.

Moreover, Brazil has amended its list of exceptions to the Mercosur common external tariff to continue to provide duty-free treatment for a period of 24 months to (i) undenatured ethyl alcohol of an alcoholic strength by volume of 80 percent vol. or higher with a water content equal to or less than one percent vol. classified under NCM 2207.10.10, and (ii) ethyl alcohol and other spirits, denatured, of any strength, with a water content equal to or less than one percent vol. classified under NCM 2207.20.11. However, such imports will now be subject to a combined TRQ of 1.2 billion litres as well as sub-limits of 150 million litres per tariff line per quarter. Out-of-quota merchandise will face the regular 20 percent duty, which according to press reports effectively ends an agreement between Brazil and the United States to provide duty-free treatment to ethanol trade.

Content provided by Picture: HKTDC Research
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