Brazil – CAMEX reduces import duties for hybrid cars

On 18 September 2014, the Council of Ministers of the Foreign Trade Chamber (CAMEX), chaired by the Ministry of Development, Industry and Foreign Trade (MDIC), decided to approve the inclusion of four new products in the Brazilian List of Exceptions to Common External rate (Letec), with reduction of import duty. Two of these products are hybrid vehicles without external recharging (combustion engine that works with the aid of electric or pneumatic drive system) technology, according to the descriptions below.

• Passenger vehicles hybrid cars without external recharging of a cylinder capacity exceeding 1,000 cm3 technology, but not exceeding 1500 cm3, capable of transporting people sitting less than or equal to six, including the driver, under CN code 8703.22.10 of Mercosur Common Nomenclature (NCM), a reduction of import duty from 35% to 0%, 2%, 4%, 5% and 7% (depending on the ex-tariff) until 31/12/2015;
• Passenger vehicles hybrid cars without external recharging of a cylinder capacity exceeding 1,500 cm3 technology, but not exceeding 3000 cm3, capable of transporting people sitting less than or equal to six, including the driver, under CN code 8703.23.10 of NCM, with reduction of import duty from 35% to 0%, 2%, 4%, 5% and 7% (depending on the ex-tariff) until 31/12/2015;

From the energy efficiency of the vehicle, the importer may frame the corresponding product in the former tariff. The full list of ex-tariff integrate CAMEX Resolution which will be published in the Official Gazette (DOU). CAMEX informs that the reduction of import duty for hybrid vehicles is part of a set of measures needed to create a market and attract investments to domestic production of vehicles using new propulsion technologies. The introduction of these new technologies will provide consumer vehicles with greater energy efficiency and reduced emissions. The decision of the CAMEX also contributes to the qualification of the workforce, and encourage the development of engineering and local suppliers.

The other two products are certain diesel propelled road tractors used to pull semi-trailers, and diammonium hydrogen orthophosphate, a fertilizer.