As commented upon in Customs Newsletter # 3.2021 (November 2021), Brazil was authorised by Mercosur to reduce Import Duty rates to up to 0% by means of the tariff exception (“Ex-Tarifário” or “Ex-Tariff”) until 31 December 2021.
The Ex-Tariff is an Import Duty benefit for those capital goods and computer and telecommunications goods that do not have a national equivalent in Brazil. The intention is to develop the Brazilian market by reducing the costs of incorporating new technology not produced in Brazil, and so making Brazil’s industries more competitive in international markets.
Nevertheless, it should be noted that Brazil is a Mercosur member, and its members agreed that goods originating in Mercosur are subject to a 0% Import Duty (or a similar tax rate to other countries), but goods from outside Mercosur are subject to a certain rate by all Mercosur members. Thus, as the Ex-Tariff is an exception to such an agreement, it was temporarily authorised by Mercosur until 31 December 2021.
However, on 13 December 2021, Mercosur issued CMC Decision 08/2021 that allows the granting of the Ex-Tariff to continue until 31 December 2028, which is a significant success for Brazilian industrial and technological development.
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