Brazil Will Lessen the Burden of Import Taxes

The Brazilian government will further reduce the burden of import taxes and fees to expand the openness of the Brazilian economy. The new tax reduction decree, which is in the final stages of preparation, will remove the cost of the terminal tax, which is a charge on the loading and unloading of goods at ports, from the import tax levy.

The measure will effectively represent a 10 percent reduction in import duties, a reduction in the cost of this tax burden equivalent to a third round of trade liberalization. This corresponds to a reduction of about 1.5 percentage points in import tariffs, which currently average 11.6% in Brazil. Unlike other Mercosur countries, Brazil levies all import taxes and duties, including the calculation of dock taxes. As a result, the government will now reduce this very high cost in Brazil.

Recently, the Brazilian government announced a 10% reduction in import duties on products such as beans, meat, pasta, cookies, rice, and construction materials, effective until December 31, 2023. Last November, the Ministry of Economy and the Ministry of Foreign Affairs already announced a 10% reduction in 87% of commercial tariff rates, excluding goods such as automobiles, sugar, and alcohol.

In addition, the Executive Committee of the Management of Foreign Trade Commission of the Brazilian Ministry of Economy issued Resolution No. 351 of 2022, deciding to extend the suspension of duties on disposable syringes of Chinese origin with a capacity of 1 ml, 3 ml, 5 ml, 10 ml or 20 ml, with or without needles, for a maximum period of one year and terminate upon expiration, starting June 22. The MERCOSUR tariff numbers for the products in question are 9018.31.11 and 9018.31.19.