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Economy reduces import tariffs on 17 Mercosur Exception List products

Foreign trade

Tax rates fell from 18% to zero or 2%; government and private sector can reduce spending by $ 150 million per year

The Special Secretariat of Foreign Trade and International Affairs of the Ministry of Economy (Secint / ME) reduced, from this Wednesday (7/8), 17 import tariffs of products that were in the List of Exceptions to the Common External Tariff (Letec ) from Mercosur. The changes take effect today, regulated by Ordinance No. 523 , published in the Official Gazette.

The 17 items are industrial inputs, data center construction and data center products, drugs for treating cancer and HIV / AIDS patients, consumer goods, and hygiene products (diapers and pads). The original rates applied to purchase these products abroad were up to 18%. The new rates are now in most cases zero or 2%.

Check out the product list

Cost reduction

According to the Undersecretary of Commercial Strategy of the Executive Secretariat of the Foreign Trade Chamber (SE / Camex) of the Ministry of Economy, the objective is to reduce the cost of production of companies installed in Brazil and the price of products for consumers.

The reduction in expenses with import tariffs for these items is estimated at R $ 150 million per year for private companies and even for the federal government, which purchases from the Unified Health System (SUS) the medicines that had tariff reduction. 

What is Letec?

The List of Exceptions to the Common External Tariff (Letec) is a Mercosur instrument to allow the member countries of the bloc (Brazil, Argentina, Paraguay and Uruguay) to apply import tax rates different from those provided for by the Common External Tariff. (TEC).

Currently, Brazil is authorized to maintain, until December 31, 2021, a list of 100 NCM codes as exceptions to TEC. These temporary exceptions may include tax rates lower or higher than the TEC, provided that they do not exceed the tariff levels consolidated in the World Trade Organization (WTO).

States Parties may unilaterally modify every six months up to 20% of the NCM codes included in their respective lists of exceptions.