São Paulo – The Foreign Trade Chamber (Camex), Brazilian federal government’s policymaking organization, has decided to lower the import tax on a series of capital goods which are not manufactured domestically. Two resolutions on the matter have been published this Monday
(4th) in the Federal Official Gazette.
The resolutions are numbered 91 and 92 and will remain in effect until December 31, 2014. Resolution 91 lowers from 16% to 2% the tax on audio, video and computer equipment for metro trains described under number 8543.7099 of the Mercosur Common Nomenclature (NCM, in the Portuguese acronym).
Resolution 92 lowers from 14% to 2% the tax on 123 machinery and equipment pieces, of which 119 are new tax breaks and four are renewals of existing ones. The product list is available at http://migre.me/gxd2c.
The incentives have been granted under the ex-tariff regime, which allows for the temporary lowering of import tax on capital goods, computer items and telecommunications items in order to foster industry investment and prevent an undersupply on the domestic market.
According to information from the Brazilian Ministry of Development, Industry and Foreign Trade, the most benefited industries will the naval, capital goods and auto parts industries. A combined US$ 136.6 million worth of the items covered are expected to be imported, mostly from Germany, Italy, the United States, China and Spain. The enterprises which have requested the benefits, according to the Ministry, have informed that the imports are part of global investment projects amounting to US$ 1.3 billion.
*Translated by Gabriel Pomerancblum
