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Division
of Investment and Export
PO Box 7970
Madison, WI 53707-7970
USA
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Vol.
8 #4, March 2009
Brazil Relaxes Some Rules and Tariffs
 Fears
of Brazil’s government implementing protectionist trade policies
have recently been squashed. On January 29 the Government of
Brazil quickly reversed a plan to require electronic import licenses
for a broad range of products. Subsequently, the government
lowered tariffs on a range of products as well.
Under the import licensing program, Brazilian importers were required
to obtain an electronic import license prior to importing products
included in 24 chapters of the Harmonized Tariff Schedule. Import
licenses were supposed to be issued within 10 days from the application
date, but Brazil's Secretariat of Foreign Trade (SECEX) had up to 60
days to approve or disapprove an application. The stated purpose
of the program was to monitor Brazilian import statistics, but the
program was widely criticized as a protectionist non-tariff trade
barrier. The new rules had only been in place for one week before
President Lula da Silva ordered the reversal.
On February 3 the Brazilian government went further and temporarily
reduced import taxes on 306 product categories not currently produced
in Brazil. Most of the affected products are capital goods, such
as machinery and equipment used for production. This will reduce
the costs of new technology needed by Brazilian manufacturers to
maintain their competitive position. A number of the tariffs
affected are being reduced from 14 percent to 2 percent.
The 306 affected product categories fall within the following HS code groupings:
HS 7309
HS 8402 through 8481
HS 8502
HS 8514
HS 8515
HS 8517.62
HS 8541.40
HS 8543
HS 8603
HS 9013
HS 9018
HS 9022
HS 9024
HS 9027
HS 9030.40
HS 9030.89
HS 9031
Note, not all tariffs within those groupings have been reduced.
The reduced rates are scheduled to remain in effect until December 31,
2010.
--By Claudia Tomaselli, Director of the Brazil Trade Office.
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