Brasília – The reduction of the import quota allowed to enter Brazil by land tax-free from US$ 300 to US$ 150 per person did not even enter into force and the government is reversing its decision. The information was released this Tuesday (22nd) by the Federal Revenue secretary Carlos Alberto Barreto. A new ruling should be published this Wednesday (23rd) on the Federal Official Gazette, and for the time being, the quota will remain unchanged. The directive containing the new decision was published last Monday (21st).
According to the secretary, there was a minor miscalculation regarding the deadline for the directive to become effective. Barreto explains that the deadline must be increased so that free shops in border cities have more time to adapt to the modifications. He believes the new deadline could be up to a year. Until then, the tax-free quota for land imports will remain at US$ 300.
The measure will affect border cities that engage in “strong trade” with Brazil: “cities which have strong trade with Brazil, i.e. those where there are free shops on the other side of the border. In other, regular retail [establishments] there should be no problem, because they are governed by a different set of rules,” Barreto said.
Based on the measure, a 50% import tax will be levied on land imports worth over US$ 150. The new quota will also apply to importation via lakes and rivers. The air transport quota has remained unchanged, at US$ 500 per passenger.
*Translated by Gabriel Pomerancblum
