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