BRAZIL CHANGES DRAWBACK RULES TO STREAMLINE VESSEL EXPORTS

The Federal Government of Brazil changed the rules regarding the import duty drawback for the production of vessels, reported the Ministry of Economy on Thursday, August 25. Drawback is a special customs regime in which the collection of taxes is suspended or eliminated when imported inputs are used to manufacture goods bound for export. Drawback is a form of export incentive that accounted for more than USD 61 billion last year in sales by Brazil, according to the ministry. One of the recently-approved modifications is the ability for a vessel, both for the naval and nautical segments, to be produced under the drawback system even if the maker does not have a specified buyer. The vessel’s sale must occur within a previously established period, and a responsible body must accompany the operation. The changes to rules guiding the import drawback system were included in Ordinance 208/2022, published in Brazil’s Official Gazette on August 25.

Sources: Valor Econômico/Datamar News