On March 17, 2021, the Government, under the Ministry of Economy, announced a change that may represent a good opportunity for many companies. This is a 10% reduction in the import tax on IT equipment, telecommunications, and capital goods (machinery and equipment). The measure was formalized through Gecex Resolution no. 173, of March 18, 2021, published in the Federal Official Gazette on that same day, and went into effect on March 26.
The decision, which was taken in a meeting of the Executive Management Committee of Camex (Chamber of Foreign Trade of the Ministry of Economy), reaches 1,495 products that do not depend on negotiations with other Mercosur members. Thus, according to the Ministry of Economy, the change will make all sectors of the economy have a lower production cost, resulting from cheaper machinery and equipment imports. In addition, commerce in general can also benefit, since the costs for importing cell phones and computers will be lower.
Currently, the fees charged for products entering Brazil range from 0 to 16%, according to the Common External Tariff (TEC). With Gecex Resolution No. 173, machines that pay 10% tax will now pay 9%. Electronics, which pay 16%, will now pay 14.4%. In addition, all 2% fees will be reset to zero.
The impact of this reduction, according to estimates by the Ministry of Economy, may generate a loss of revenue of up to about R$1.4 billion per year. On the other hand, cumulatively, an increase of up to R$ 150 billion to the GDP (Gross Domestic Product) is expected.
The measure comes at a good time
Brazil is a large importer of capital goods, such as machinery and equipment that are essential to the country’s production chain. However, the high dollar had indeed been affecting the purchase of such items from abroad. During the month of March 2021, the commercial dollar reached the R$ 4.67 mark.
These successive records in the value of the US currency in relation to the Real impact the importation of essential inputs for the expansion of Brazilian production, according to the Association of Importers of Industrial Machinery and Equipment (Abimei). Therefore, the measure announced on the 17th comes at a good time.
Suspension of ICMS on the import of machinery and equipment without a similar national product
Another relevant aspect related to the import of equipment – and that many people don’t know about – is the suspension of the Tax on Operations Related to the Circulation of Merchandise and the Rendering of Interstate and Intercity Transport and Communication Services (ICMS) for the condition of BK (capital goods) or BIT (computer and telecommunication goods), when there is no national production equivalent to the merchandise that you wish to import.
The Ex-tariff Regime is nothing more than the reduction of the Import Tax (II) rate for goods written in the Mercosur Common External Tariff (TEC) with the condition of “no similar national product”. This concession occurs on the basis of CAMEX Resolution 66/2014 and provides a reduction in the cost of the investment.
The requirements for ICMS suspension, in this case, are:
– the imported good must have no similar in Brazil;
– the customs clearance must be in the São Paulo territory;
– The importing taxpayer must be in good standing with the Tax Authorities;
– the importing establishment must be part of the sectors described in the third paragraph of art. 29 of the Transitory Provisions.
As we have seen, the moment is favorable to invest in the import of machinery and equipment, either due to the reduction of the import tax, or with the suspension of ICMS in case of absence of similar domestic products. In our “Import Series“, in recent posts here on the blog, we have shown the step-by-step process for importing various types of machinery and equipment. Be sure to check it out by clicking here.
We know that importing is a very complex matter, involving knowledge of a myriad of bureaucratic procedures and legal details. Therefore, if you want to take advantage of the favorable moment to import equipment, know that you and your company can count on the expertise of
. We have more than 21 years of experience in the import market, helping companies in various fields to close the best deals.
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Until the next post!