Brazil Lowers Imports Duties Temporarily

Market News

Brazil Lowers Imports Duties Temporarily

Brazilian authorities announced on April 1, the addition of 281 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.

Classified in HS Chapters 82, 84, 85, 86, 87 and 90, the capital goods will benefit from a reduced duty of 2% through June 30, 2016 (down from 14%), with the exception of one item that will enjoy such treatment through December 31, 2015. The IT/telecom goods, which are classified in HS Chapters 85 and 90, will benefit from a reduced duty of 2% through December 31, 2015 (down from 14-16%).

Separately, CAMEX has established tariff-rate quotas on some products listed below to correct a lack of supply in the Brazilian market.

1. Viscose Rayon Yarn. A maximum of 624 tonnes of certain viscose rayon yarn classified under NCM 5403.31.00 will benefit from a 2% duty for a period of six months from June 20, 2015. Out-of-quota merchandise will be subject to a regular MFN rate of 18%.

2. Caprolactam. A maximum of 18,000 tonnes of 6-Hexanelactam (epsilon-caprolactam) classified under NCM 2933.71.00 will benefit from a reduced 2% duty through June 25, 2016. Out-of-quota merchandise will be subject to a regular MFN duty rate of 12%.

3. Partially Oriented Yarn. The current TRQ on partially oriented yarn classified under NCM 5402.46.00 has been extended from April 14, through October 8, 2015. In-quota imports will therefore continue to benefit from a reduced 2% duty up to a 120,600 tonne limit.