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On July 24th, the Brazilian Ministry of Economy published a new regulation reducing the import taxes for some PVC and PP products. SECINT’s[1] Ordinance nº504 of July 19th grants temporary reduction of import taxes to 2%, respecting the respective quotas, during 1 year, for the following products:

NCM Description Ex Previous Import Tax Quotas
3904.10.20 POLYMERS OF VINYL CHLORIDE OR OF OTHER HALOGENATED OLEFINS, IN PRIMARY FORMS – Poly(vinyl chloride), not mixed with any other substances – Obtained in emulsion 14% 12.000 ton
3904.90.00 POLYMERS OF VINYL CHLORIDE OR OF OTHER HALOGENATED OLEFINS, IN PRIMARY FORMS – Others Chlorinated poly (vinyl chloride) powder 14% 3.794 ton
3920.20.19 OTHER PLATES, SHEETS, FILM, FOIL AND STRIP, OF PLASTICS, NON-CELLULAR AND NOT REINFORCED, LAMINATED, SUPPORTED OR SIMILARLY COMBINED WITH OTHER MATERIALS – Of polymers of propylene – Biaxially Orientated – Other Polypropylene film of a width of more than 50 cm and a maximum of 100 cm, of a thickness of not less than 15 micrometres (microns), with either or both rough faces of relative roughness (average to maximum ratio) greater than or equal to 6% dielectric strength greater than or equal to 500 V / micrometer (ASTM D 3755-97), in rolls 16%*[2] 600 ton

Source: Tecwin, MDIC – Made by Sidera

Although some items already had tax reduction for the aircraft industry, the new tariffs apply for a wider range of products for all industries.  The reduction was made based on the shortage mechanism for Mercosur, regulated by GMC Resolution 08/08 , thorugh which reductions in import tax rates, up to 2%, may be applied in cases of:

  1. Impossibility of normal and fluid supply in the region, resulting from supply and demand imbalances;
  2. Existence of regional production of the good, but the characteristics of the production process and / or the quantities requested do not economically justify the expansion of production;
  3. Existence of regional production of the good, but the producing country does not have sufficient exportable surpluses to meet the demanded needs;
  4. Existence of regional production of a similar good, but it does not have the characteristics required by the production process of the requesting country’s industry; and
  5. Regional production shortages of one raw material for a given input, even if there is regional production of another raw material for a similar input through an alternative production line.

The Foreign Trade Secretariat of the Ministry of Economy has yet to issue a complementary rule, to establish the allocation criteria of the quotas mentioned in the Ordinance.

If you want to know how your company can benefit from this or any other tariff reduction mechanisms existent, contact us for more information!

[1] Special Secretary for Foreign Trade and International Affairs

[2]  With exceptions


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