Brasília – Today (14th), the Foreign Trade Board (Camex) passed the reduction of the import tax on 116 different auto parts to 2%. Previously, the tariffs ranged from 14% to 18%. "These are parts that are not being manufactured in Brazil," said the deputy executive secretary of the Camex, André Alvim, informing that an automobile has up to 5,000 different parts.
The Camex’s resolution informs that the items have been deemed "ex-tariff," imported for production, a stimulus mechanism for this type of investment. According to Alvim, the measure is in keeping with private sector proposals and with the agreement signed with Argentina on the Common Automotive Policy, and should remain in effect for as long as the agreement lasts.
Presently, there is a discount regime for import tariffs on auto parts. The discount rate, which used to be 40%, is now 30%, and by May 2011 it shall no longer exist. The gradual reduction was announced by the federal government last year, under claims that it would encourage domestic production by reducing imports.
Even though the measure announced today brings down the tariff on imports, the secretary underscored that it will not affect the domestic auto parts industry, because these are items for which there are no domestic counterparts. "The list is very short. If they start being made here, then the reduction will make no sense," said Alvim. The parts include certain types of gearboxes.
*Translated by Gabriel Pomerancblum
