Brazil temporarily eliminates tariffs and other taxes on imports of products necessary to combat COVID-19

5/1/2020

Brazil is adopting a set of measures on the import and marketing of products intended to combat COVID-19, which consist mainly of the temporary elimination of tariffs and exemption from taxation by the Industrialized Products Tax (IPI). . It is worth highlighting the high tariff burden applicable to these products outside of this temporary exception which, in cases such as certain fabrics, reaches 35%, the maximum allowed by the WTO.

Until the end of April, the most important provisions are the following:

CAMEX Resolution No. 17 of March 18, 2020

This Resolution of the Chamber of Foreign Commerce (CAMEX) temporarily exempts, until September 30, the Import Tax (II), hereinafter tariff, to close of fifty final products and inputs necessary to manufacture products that help combat the pandemic, highlighting gloves (NCM 3926.20.00), acetaminophen (NCM 2924.29.13) and ethyl alcohol (NCM 2207.20.19). These products had a tariff of 18%, 14% and 20% respectively.

CAMEX Resolution No. 22 of March 25, 2020

This Resolution exempts from the tariff more than fifty chemical components and health products to combat the coronavirus (Covid-19). Among them, Chloroquine (NCM 2933.49.90), hydrogen peroxide or water oxygenated (NCM 3004.90.99) and digital thermometers (NCM 9025.19.90). The tariff applicable until this date was 2%, 8% and 18%, respectively.

CAMEX Resolution No. 28 of April 1, 2020

This Resolution, temporarily eliminates the tariff on certain products with the aim of facilitating the fight against the coronavirus pandemic - Covid-19. Among them: flat fabrics, with multiple warp or weft, felted or no, whether or not impregnated or coated, for the manufacture of protective masks (NCM 5911.90.00), flow sensor for air or oxygen (NCM 9026.10.19) and paramagnetic O2 sensor (NCM 9027.90.99). These products had a tariff of 26%, 18% and 14%, respectively.

CAMEX Resolution No. 31 of April 7, 2020

This Resolution temporarily grants an elimination of the tariff on certain products, modifying the CAMEX Resolutions 17/2020, and 28/2020 (both described above). It is specified that no tariff will be imposed if the products are used to combat COVID-19. Some of the affected products are the following: fructose (levulose) syrup (NCM 1702.60.20), Semitamol; (bromopride) (NCM 3003.90.55) and xanthan gum (NCM 3913.90.20). These products previously had a tariff of 16%, 14% and 2%, respectively.

Resolution No. 32 of April 16, 2020

This Resolution updates CAMEX Resolution No. 17 of March 17, 2020, eliminates 8 products considered ex-tarifários and adds almost a hundred products that serve to fight the coronavirus (Covid-19). These include products such as flow sensors for air or oxygen (NCM 9026.80.00), surgical vacuum pumps equipped with a bactericidal filter (NCM 8414.10.00) or monitors for continuous flow measurements minimally invasive cardiac surgery by blood pressure (NCM 9018.19.80). These products previously had a tariff of 18%, 14%, and 14%, respectively.

The set of products for which these CAMEX Resolutions have eliminated the tariff until September 30, 2020, can be consulted in a Single Annex consolidated ( SINGLE ANNEX to CAMEX Resolution 17/2020).

On the other hand, Brazil also temporarily eliminates the Tax on Industrialized Products, which affects imports, through the following Decrees:

Decree No. 10,285 of March 20, 2020

This Decree temporarily eliminates, until 1 October 2020, the IPI on the products belonging to the Table established in Decree No. 8,950 of December 29, 2016< a="">, among which are Ethyl alcohol with an alcoholic strength by volume of 70% or more, not suitable for human consumption (NCM 2207.20.19), Plastic protective clothing and accessories (NCM 3926.20.00) and Protective masks and face shields against materials potentially infectious (NCM 9020.00.90). The applicable IPI was previously 8%, 5%, and 8%, respectively.

Decree No. 10,302, of April 1, 2020

This Decree eliminates the Product Tax tariffs Industrialized (IPI) corresponding to the following products: Laboratory or pharmacy items (NCM 3926.90.40), Gloves, mittens and the like, except for surgery (NCM 4015.19.00) and Clinical thermometers (NCM 9025.11.10). These products were previously subject to an IPI rate of 10%, 15% and 15%, respectively.

The elimination of the IPI will take effect until October 1, 2020, when the original values ​​will be restored, in principle.