IMPORT TAX RATES TO BE REDUCED IN BRAZIL

Brazil’s government will cut the cost of the Brazilian Capatazia fee (charged on cargo’s movement). The measure represents a 10% reduction in the tax rate for import goods. For specialists, this cost reduction would be equivalent to the third round of trade opening and results in a cut of around 1.5% in the import tariff, from 11.6% on average. Unlike its Mercosur’s partners, Brazil charges all import taxes and fees including the Capatazia fee in their calculation. The fee is charged on the activities carried out during cargo movements. This process takes place after verification by the Federal Revenue Service, and includes unloading the ship, receiving, checking, transporting, opening, handling, organizing, delivering, and loading the means of transport. The government announced this week a 10% reduction in Import Tax rates on products such as beans, meat, pasta, cookies, rice and construction materials, in effect until December 31, 2023.

Source: Estadão Conteúdo/Canal Rural (*Translated by Ia Niani)