Brazil - Reduction of the Common External Tariff

Dear industrialists,

Last Friday, November 5, Brazil published Resolution No. 269 of the Executive Management Committee of the Chamber of Foreign Trade (Camex), which reduces by 10% the Common External Tariff of approximately 87% of the tariff universe, without covering the exceptions, which already exist in Mercosur.

The Brazilian government has been working intensely in recent years, within Mercosur, to promote the review of the Common External Tariff. Although this reduction is based on what was negotiated with Argentina, this unilateral decision was generated from conflicts that exist specifically with Uruguay.

Mercosur has a common external tariff that ranges from 0 to 35% depending on the product. Now this Brazilian reduction will be gradual. A product that paid 4% payá to enter Brazil 3.6%. If you paid 20%, you will pay 18% and so on.

Rates will be temporarily and exceptionally reduced until December 31, 2022.

At ADIMRA we are in constant contact with the Mercosur Directorates of the Ministry of Productive Development and the Ministry of Foreign Affairs in order to be able to monitor how this measure could affect metalworking goods. In addition, we are present in other areas, such as the Department of Foreign Trade of the UIA, where updated information on intra-Mercosur negotiations in relation to the modification of the CET is provided.

Finally, it remains to be seen whether, once the reduction is accepted by Paraguay and Uruguay, it will then be applied uniformly in Mercosur.

In the following link you can access the resolution and consult the list of NCM alcanzadas: https://www.in.gov.br/en/web/dou/-/resolucao -gecex-n-269-de-november-4-2021-357327000