São Paulo – Brazil will slash its bicycle import tariff from 35% to 30% starting March. The rate will then drop to 25% in July and finally 20% in December. The move was made public this Thursday (18) on the Federal Gazette and announced by president Jair Bolsonaro on social media last Wednesday (17).
The decision of the Foreign Trade Chamber (Camex)’s Executive Managerial Committee will bring the rate back to the level provided for under the Mercosur’s Common External Tariff (CET). Brazil had added bicycles to the CET exceptions list in 2011, raising the rate to 35% to encourage domestic manufacturing.
Although significant amounts of bicycles are made in the Manaus Industrial Hub area, Brazil’s imports of the product far exceed domestic output. January saw 56,981 bicycles made in the Hub, up 44.6% from December 2020 and 1% year-on-year in January, the Brazilian Motorcycle, Moped and Bicycle Manufacturers Association (Abraciclo) reported.
Translated by Gabriel Pomerancblum
