Brazil’s foreign trade chamber waives tariffs on 6 products in attempt to balance domestic supply

On March 10, Brazil’s Foreign Trade Chamber (Camex) brought to zero the import taxes levied on six products: two types of steel sheets; two types of aluminum sheets; wrist devices for measuring blood pressure and pulse rate; in addition to radar antennas. The chamber also established specific quotas for each of the items. The decision, taken by Camex’s Executive Management Committee, is already in effect as set out in Resolution No. 453/2023 to counter internal shortages of these products.

The measure was announced by the vice president and head of the Ministry of Development, Industry, Commerce, and Services (MDIC), Geraldo Alckmin. “By zeroing the import tax, which goes from 12% and 16%, MDIC will help industries to save in the purchase of these items — especially industries that produce items with high added value, in addition to medical products — and directly benefits the final consumer”, mentioned Alckmin in a social media post.

The tariff waiver for these six products will be valid until March 9, 2024. The measure may be renewed if requests are submitted to Camex at an opportune moment by the economic sectors/agents involved.

The measure was adopted under Mercosur’s Resolution nº 49/19, which deals specifically with “supply cases.” Therefore, the decision involves products with no national production or insufficient domestic production.

As for the steel sheets (two items under NCM code 7210.70.20), the tariff waiver will benefit the food packaging industry. In the case of aluminum sheets (NCM 7606.12.90), the items will go to the production of road tanks and parts (caps). The satellite dishes (NCM 8529.10.20) will be used in air traffic control, in tariff reduction requested by the Ministry of Defense. The other Mercosur partners were previously consulted.

The six items now become part of the list of tariff reductions justified by shortages, with the application of special Import Tax rates, as per Annex IV of Gecex Resolution No. 272/2021.

The estimated economic impact (which considers the import values expected in a year, considering the quotas foreseen for each one) is US$ 332,492.00 for the two “steel sheet” items (NCM 7210.70.20); BRL 525,453.00 for the “square-shaped aluminum sheet, alloy 5083” (7606.12.90); BRL 602,104.00 for “aluminum sheet, alloy type 3003-H16” (NCM 7606.12.90); $2.505 million for “rotating satellite dish” (8529.10.20); and BRL 632,400.00 for the “portable digital wrist device.”

Source: Informativo dos Portos

To read the original report, please follow: https://www.informativodosportos.com.br/camex-zera-imposto-de-importacao-de-6-produtos-para-equilibrar-abastecimento-interno/

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