How to Reduce your Import Tax in Brazil

By Jacob Williams

Tue, 10 Jul 2018

An Ex-Tariff refers to a Tariff concession request for a product that is not manufactured in Brazil. Securing this concession allows you to acquire a product-specific Customs classification (NCM), reducing the Import Tax (II) to 2%.

However, it is important to note that the TEC (Common External Tariff) defines the products eligible for concession as:

  • BK (Capital Goods)
  • BIT (IT and telecommunication goods)

These products must not be produced in Brazil and/or would represent a reduction in the cost of investment. Furthermore, this is not applicable for used goods, retail products or integrated systems. The CAEx (Ex-Tariff Analysis Committee) only considers machines.

The aim of the Brazilian government is to modernize its national industrial park and improve its infrastructure. To do this, it looks to favor:

  • Investments in BK (capital goods) and BIT (computer goods and telecommunications).
  • Innovation by companies from different economic sectors (with the integration of technologies not yet present in Brazil and/or will have positive effects on productivity and competitiveness in the relevant sector).
  • Job creation and income.

 

Our Ex-Tariff Obtainment service

An exceedingly bureaucratic task, obtaining an Ex-Tariff can be massively time-consuming and chaotic for companies not experienced in Brazilian administrative logic. With our extensive knowledge of specialized tax and customs engineering, we have experience making these applications and in the legislation surrounding Ex-Tariffs.

Challenge Advisory’s support for obtaining Ex-Tariff includes:

  • The complete list of documents provided by the exporter needed to obtain an Ex-Tariff (information on the company making the order, information on the import volume, investment and purpose of the request)

 

  • In case you do not have a branch in Brazil, we will carry out the request for an Ex-Tariff with the MDIC. (We ensure that a confidentiality agreement is signed between the customer and Challenge Advisory regarding the technical details of the product).

 

  • The preparation of the Ex-Tariff application with the MDIC. We focus on what is unique about your product compared to competitors, ensuring that your company stands out. We aim to secure an Ex-Tariff that is valid only for the unique characteristics of your product, nothing else.

 

  • The presentation and defence of your Ex-Tariff request at the MDIC in Brasilia.

 

  • Personalized support and guidance throughout the whole process.

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Jacob Williams

info@challenge.org

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