CAMEX grants temporary reduction of import duties for several products
On July 23rd, 2014, the Chamber of Foreign Trade (“CAMEX”) granted temporary reductions in the import duty rates applied to several products based on Resolution No. 08/08 of the Common Market Group of Mercosur (“GMC”).
The following products were granted with import tax duty reductions: monoisopropylamine salts (NCM 2921.19.23); 3,4-Dichlorophenylisocyanate (NCM 2929.10.30.); copolymers of vinyl chloride and vinyl acetate (NCM 3904.30.00); polycarbonate in the form of powder or flakes (NCM 3907.40.90); aluminum plates and strip (NCM 7606.12.90); aluminum sheet and strip (NCM 7607.11.90); metal plate for contact between fuses and relays, of refined copper with tin based surface (NCM 8538.90.90); human serum albumin (NCM 3002.10.37); and 6-Hexanolactam (NCM 2933.71.00).
Resolution No. 08/08 allows for a temporary reduction in import duty rates in order to ensure the continuous supply of certain products and raw materials in the Mercosur region if one of the following cases is verified:
• Impossibility of a normal and fluid supply in the region due to imbalances in the supply and demand;
• Existence of regional production of the good, but the characteristics of the production process and/or required quantities do not economically justify an increase in the production;
• Existence of regional production of the good, but the producer does not have enough exportable surplus to meet the regional demand;
• Existence of regional production of a similar good, but it does not have the characteristics that are required for the production process;
• Shortage of regional production of a raw material for a given input, even if there is regional production of a similar raw material.
Because it concerns temporary situations, the tariff reduction will be valid for 12 months in case of impossibility of normal and fluid supply in the region, and for 24 months in the other four cases. Nevertheless, these deadlines can be extended. Along with the tariff reduction, an import quota will be established.
To request the temporary reduction in the import duty rate applicable to a certain product under Resolution No. 08/08, the interested companies and associations must fill the form attached to CAMEX Resolution No. 42/11, which requires the following information: national and regional production, national and regional consumption, production capacity, import and export data, product prices, among others. It will also be necessary to justify the request as provided for in Resolution No. 08/08.
The International Trade team of Felsberg Advogados is available to provide additional information on this subject, as well as to assist companies and associations in requesting a temporary reduction in the import duty rate under Resolution No. 08/08.
International Trade Team
Fernanda Manzano Sayeg (firstname.lastname@example.org)
Stephanie Scandiuzzi (email@example.com)
This publication is merely informative and does not contain any opinion, recommendation or legal advice on the part of Felsberg Advogados with respect to the matters here discussed.