It is never too late for a new update, and seeking even greater improvements to the import and export procedures in the foreign trade market, new legislation was sanctioned.
Involving exemption, new services and a certain modification in Drawback it is time to be informed to be aware when it comes into effect.
This update in the ordinance will authorize the inclusion of services in the Drawback scheme, but to better understand what it is about continue reading this article we will explain to you in detail!
What does the new law say?
Entitled As Law No. 14,440 of September 2, 2022, it is determined that services are included in the Drawback scheme suspension, this measure makes it possible for Brazilian exporters to include imported or domestic services and exempt the payment of the contribution to PIS (Social Integration Program), Pasep (Program for The Formation of the Public Servant’s Assets) and Cofins (Contribution on the Financing of Social Security).
However, these services must have, directly and exclusively, the link with the export or its delivery abroad, and their products resulting from the use of this drawback mechanism.
In fact, this law arose from a modification of law no. 11,945/2009, which is necessary for the authorization of this suspension of contributions.
Until then the drawback was granted only for the purchase of both national and international products intended for the industrialization of the products that would be exported. Also in 2021, according to the Department of Foreign Trade, more than US$61 billion was exported. And with the update to this new legislation, the services may have the same process and treatment of physical inums.
What drawback changes are made with this new law?
In its sum, 16 services were listed and will have treatment similar to those that are already applied in goods used in the manufacture of items sold abroad. Among them are customs clearance, cargo storage, installation and assembly of goods that have been exported, not forgetting their transport, and may be road, rail, air, waterway or multimodal.
These services related to the export of goods, such as transportation, insurance, handling and cargo storage will generate a reduction of charges in addition to greater competitiveness for local exporters.
It will also depend on the regulation of the criteria for granting, fruition, monitoring and supervision of the regime, which is the responsibility of SECINT (Special Secretariat for Foreign Trade and International Affairs), in addition to also relying on the Special Secretariat of the RFB (Federal Revenue of Brazil), but there may be the list of services expanded by the Executive Branch.
From January 1, 2023, the provisions of Law 14,440/2022 will enter into force and Brazilian exporters will be entitled to tax exemption, falling under the regime for the purchase of services.
What are the advantages of services in the economy?
The sector most highlighted because of this change involving the economy is the industrial one, but this initiative moves increasingly other economic sectors as well. The industrial is more relevant because of its global and regional value chains, according to data from the OECD (Organization for Economic Cooperation and Development) there is an indication that 35.7% of the value added to Brazilian exports of manufactured goods refers to these services.
In addition to the published legislation there is also an international benchmarking study that is based on verifying this practice of the insertion of services to special customs regimes during the export process.
According to Secex (Secretariat of Foreign Trade), which made this study available on its website, it was conducted under a Technical Cooperation Agreement signed between the Ministry of Economy with undp (United Nations Development Program), with the aim of analyzing the group of the 20 largest economies in the world, the so-called G20.
The results of this study showed that among all of the G20, ten of them allow the acquisition of tax-free services through drawback-like regimes used here in Brazil.
The ten members were: South Africa, Germany, Saudi Arabia, Argentina, France, Italy, Mexico, United Kingdom, Russia and the European Union. These G20 members have adopted inclusion strategies in their special customs regimes, just as it is to be applied in Brazil, where the focus is on exporting with internal tax policies for industrialization of goods.
This proves how the measure sanctioned by the Executive Branch of Brazil has its application and operation approved and having good results, because in several countries increase tax neutrality and improve the conditions of competition in external sales.
About adjustments and regulation
For the organization and operationalization of this new legislation it will also be necessary to adjust the control system of the federal government. This will be computerized and an ordinance will be edited updating the criteria of granting, fruition, monitoring and supervision of this new format within the Suspension Drawback regime.
It is planned for next year that there will be an estimated tax cost of approximately R $ 1.1 billion, due to the normative act sanctioned by the Executive Branch, this was informed through the PLOA (Budget Bill) that was sent to the National Congress.
As long as this new law does not come into force, it is up to the companies to prepare, to obtain means of full reach of this new benefit, as this will make their exports appropriate for the Drawback Suspension regime and more competitive within the world foreign trade market.
To learn more about it, contact Open Market and talk to an expert directly. Make your import without fears and doubts, our team is ready to develop the best planning for your company!