The Brazilian Senate approved, on May 12th, the Provisional Measure 1,079/2021, which extends for another year the special customs drawback regime, a tax incentive for exports given to companies that buy raw materials and goods used in the supply chain. The decision will now go to presidential sanction. The government had already extended the duration term of the tax regime once. This time, their justification is that the economic effects of the covid-19 pandemic on the production chain persist, exporting companies that are unable to sell their products due to the drop in demand. The text extends the concession acts that would otherwise end 2021 and 2022. It also determines that from January 1, 2023, cargoes with goods imported under the drawback regime will be exempt from paying the Additional Freight for the Renovation of the Merchant Marine (AFRMM).
Sources: Money Times/Datamar News