BRAZIL Ex-Tariff Regime for Capital and ICT Goods

U.S. exporters to Brazil seeking continued use of the Ex-Tariff benefits of reduced or eliminated tariffs through 2025 should contact their local Brazilian partners as soon as possible, counseling them to send the Ministry of Economy a formal extension request before the February 28, 2022 deadline.  

Previously, all ex-tariff benefits for capital and ICT goods imported into Brazil were scheduled to expire at the end of 2021.  In response to an early December 2021 Mercosur decision allowing countries the right to extend the ex-tariff regime, the Brazilian Ministry of Economy adopted a two-phase approach to formalize the extension.  

In the first phase, current ex-tariff benefits covering approximately 18,000 items were automatically extended until April 30, 2022.  Within the second concurrent stage, interested Brazilian parties must formally request ex-tariff extensions for specific goods and items before the deadline.  

Where the Ministry of Economy receives a request of renewal for goods with existing ex-tariff status, that validity will be extended through December 31, 2025 provided the item meets the standard that there be no domestic equivalent produced in Brazil.  Where no request for renewal is received for an existing ex-tariff item before the February 28 deadline, the Ministry of Economy will automatically revoke the ex-tariff status and related benefits on May 1, 2022.

For ex-tariff status already granted as recently as February 19, 2020, the Ministry of Economy automatically extended that status through 2025. 

All applications for renewal received during the second half of 2021 are being evaluated under the interim simplified process, waiving the need of a new request. It is essential that U.S. exporters and their local partners enjoying special tariff duty treatment through the ex-tariff regime act soon to evaluate the need of a new request before the February deadline.

If you have additional questions on this time sensitive action-item, please contact Moacir.Rodovalho@trade.gov.

Source: Brazilian Ministry of Economy (Portuguese)