8 Jan 2019
Brazil Could Gradually Cut Duties on All Capital Goods and IT Products
In its last meeting of 2018, Brazil’s Foreign Trade Chamber (CAMEX) adopted a decision to gradually lower from 14 percent to four percent the import duties on capital goods and information technology products. However, this regulation will not enter into force unless the Bolsonaro administration greenlights its publication in Brazil’s official journal. Duties on these products would reportedly be reduced over a four-year period, thereby avoiding an abrupt opening of the market that could negatively affect domestic producers.
Separately, Brazil issued a regulation on 28 December setting forth new tariff-rate quotas on imports of the following products to correct a lack of supply in the Brazilian market.
- Sodium Hydroxide. Up to 88,000 tonnes of sodium hydroxide (caustic soda) in aqueous solution used exclusively in the production of alumina or aluminium oxide, classified under NCM 2815.12.00 (reduced two percent duty for a period of 12 months).
- Disodium Sulphate. Up to 910,000 tonnes of anhydrous disodium sulphate for the manufacture of powder detergents classified under NCM 2833.11.10 (reduced two percent duty for a period of 12 months from 31 January).
- Textile Printing Inks. Up to 455 tonnes of black printing ink for digital textile printing classified under NCM 3215.11.00 (reduced two percent duty for a period of 12 months from 23 January), as well as up to 720 tonnes of printing ink other than black for digital textile printing classified under NCM 3215.19.00 (reduced two percent duty for a period of 12 months from 30 December 2018).
- Polycarbonate. Up to 35,040 tonnes of polycarbonate in powder or flakes classified under NCM 3907.40.90 (reduced two percent duty for a period of 12 months from 1 January).
- Jute Fibres. Up to 7,000 tonnes of jute fibre classified under NCM 5303.10.10 (reduced two percent duty for a period of 12 months).