Brazil Customs Tariff Exception

The Brazilian federal government has rolled out new protocols for the “ex-tarifário” program, also known as tariff exceptions. The “ex-tarifário” involves a temporary reduction or full exemption of existing import duties for capital and ICT goods lacking equivalent national production in Brazil. 

The procedure has become more complex, with key changes including a new requirement for the submission of the importer’s “investment project” detailing the usage of the good to be imported and and potential gains with its acquisition; more flexibility and tools for the Brazilian domestic industry to challenge the tariff exception request for imported goods; the withdraw of factors such as equipment productivity performance and manufacturer’s delivery timeframes for the assessment conducted by the Ministry of Development, Industry, Commerce and Services; among several other alterations. 

While the updated procedure represents additional challenges for U.S. exporters and should reduce the number of tariff exceptions granted, it is worth emphasizing that the program still offers significant benefits for several categories of capital and ICT goods lacking equivalent national production in Brazil. It may represent a valuable tool for U.S. exporters to better compete in the Brazilian market and could lead to significant cost savings for their Brazilian clients. Over 20 thousand tariff exceptions have been granted along the years since the program has been implemented.  

For more details on the changes with the new protocols and other topics related to the application for tariff exceptions, please reach out to CS Brazil at moacir.rodovalho@trade.gov.