The Resolution of the Executive Management Committee of CAMEX N. 291, published on December 22, 2021 (“GECEX Resolution N. 291/21”), set forth rules for the renewal process for items benefitting from Brazil’s Ex-tariff regime (“Ex-tarifário”). The regime grants a temporary reduction of the Import Tax Rate for Capital Goods and Information Technology and Telecommunications Goods that are not produced in Brazil (or insufficiently produced in Brazil).
According to the rules of the Common Market of the South (“MERCOSUR”), Brazil could maintain the Ex-tariff regime until 2021, but this was extended until 2028 by Common Market Council Decision N. 08, which was signed on December 13, 2021 ("CMC Decision N. 08/21"). Based on CMC Decision N. 08/21, GECEX Resolution N. 291/21 automatically extended to April 2022 several Ex-tariffs and, moreover, authorized the creation of a simplified process for an additional extension until December 31, 2025, according to rules to be defined by the Secretariat for Development of Industry, Trade, Services and Innovation (“SDIC”) and the Special Secretariat for Productivity and Competitiveness (“SEPEC”), both part of the Ministry of Economy.
Taxpayers interested in requesting an extension of the Ex-tariff period until December 31, 2025, must apply for extension by up until February 28, 2022, otherwise the Ex-tariff will be revoked. However, there are exceptions in which the request is not necessary. Within the same period, the representatives of the national industry can also position themselves contrary to the extension of the regime.