What is the Scheme?
The reduction in the import duty rate - II for not produced auto parts is expected in the Automotive Agreement Brazil-Argentina, and regulated by CAMEX Resolution No. 102, of 17 december 2018.
In art. 6 of the Agreement is expected to reduce the import tax to 2% for auto parts not produced when they are imported into production, from proposals submitted by organizations representing the private sector, it should be noted the lack of production.
As Automotive Agreement Brazil-Argentina, it is considered auto parts all parts, including tires, subassemblies and assemblies necessary for the production of automotive products, as well as necessary to the production of other car parts, and will be added at the end as well, including those intended for aftermarket.
It is considered:
a) Auto part: elaborated product and finished, technically characterized by its functional individuality, not composed of other parts or components that can have separate application and that are intended to physically integrate a subassembly or assembly, with mechanical specific function or structure, which is not subject to characterization as raw material;
b) Subset: group of auto parts united to be incorporated into a larger group to form a set; and
c) Set: functional unit formed by parts and / or subassemblies, with specific function in the vehicle.
• It is worth noting that there is the possibility to change the rate of import duty of auto parts framed in the ex-tariff understood in NCM codes spelled as Capital Goods and Informatics and Telecommunications goods in the Mercosur's Common Nomenclature (NCM).
• The List of Auto Parts Not Produced in Brazil is CAMEX Resolution No. 116, which amends 2% (two percent) of the auto parts import tariff framed in the ex-tariff related Attachments of Resolution and is divided into TWO EXHIBITS.
Attachment 1 ? Change to 2% (two percent) the import duty of auto parts framed in Ex-tariff;
Attachment 2 ? Change to 2% (two percent) the import duty of auto parts framed in Ex-tariff understood in spelled NCM codes as CG and IITG;
Reducing the rates of import duty shall be granted by means of Resolution CAMEX 61 states:
* The rate of import duty will be set at 2%.
* The reduction of import duty rate applies to the import of new auto parts only.
I - The Camex61 resolution considers automotive products:
a) cars and light commercial vehicles (up to 1,500 kg load capacity);
b) buses;
c) trucks;
d) trailers and semi-trailers;
e) chassis with engines, including those with cab;
f) bodies and cabs;
g) road tractors for semi-trailers;
h) agricultural tractors, harvesters and self-propelled agricultural machinery;
i) self-propelled road machinery;
j) auto parts.
II - Auto parts: parts, including tires, subassemblies and assemblies necessary for the production of vehicles listed in paragraphs "a" to "i" (see above) as well as those required for the production of other auto parts, including those intended for the replacement market ;
III - Parts: elaborated product and finished, technically characterized by its functional individuality not composed of other parts or components that can have separate application and intended to physically integrate a subassembly or assembly, with mechanical specific function or structure, which is not subject to characterization as a starting material;
IV - subsets: group of parts united to being incorporated into a larger group to form a joint;
V - sets: functional units formed by parts and / or subassemblies, with specific function in the vehicle;
VI - automotive companies: producers of automotive products;
VII - auto parts with no national production or auto parts not produced: parts, sub-assemblies and assemblies without national equivalent production capacity;
VIII - domestic production capacity: availability of technology means of production and labor for regular supply in series;
IX - national equivalent: interchangeable same technology or product that fulfills the same function; and
X - auto parts not produced list: list consists of the Automotive Parts List is intended for the production and the Autoparts list Inscribed as Capital Goods and Informatics and Telecommunications.
CAMEX Resolution 116, which consolidates the review of the list of auto parts NOT produced in Brazil.
The auto parts that make up the published list are classified into 111 codes of the Mercosul Nomenclature (NCM) with original tax rates of 20%, 18%, 16%, 14% and 10% and had the import tax reduced to 2%. A review of the list was made from proposals from organizations representing the private sector.
Highlights of Resolution 61 of June 23, 2015
Regulates the reduction in the rate of import duty on Ex-tariff condition to auto parts without equivalent national production for AUTOMOTIVE products.
We may request temporary and exceptional benefit of the rates of import duty (EX) if auto parts members of Capital Goods - BK, Information Technology and Telecommunications - BIT, not Produced in BRAZIL, whose relation of auto parts contained in Resolution 116.
AUTOMOTIVE parts Ex-Tariff may be considered for AUTOMOTIVE products listed as CAPITAL GOODS such as agricultural tractors, harvesters and self-propelled agricultural machinery; self-propelled road machines without equivalent national production.
1) Auto Parts destined to Automotive Production
Auto parts with reduction of import duty will be applied to the 2% rate, which make up the Auto Parts List is intended for the production, in Attachment I of CAMEX Resolution No. 116, of December 18, 2014.
a) Reduction
The reduction of the rate of import duty shall be granted through Camera Resolution Foreign Trade - CAMEX, which set out the products covered, the duration, if any, and other applicable conditions.
• The rate of import duty will be set at 2%.
• The reduction of import duty rate applies to the import of new auto parts only.
b) Qualification
The benefit of reduction of import duty rate to not produced auto parts depends on qualification Specific to SISCOMEX as art. 5 of Resolution 61;
The enabling of the process should be conducted by the Foreign Trade Secretariat - SECEX, as a request of interested automotive companies, to ensure that these comply with the minimum formal requisites;
c) Establishes
E - Automotive products:
a) cars and light commercial vehicles (up to 1,500 kg load capacity);
b) bus;
c) trucks;
d) trailers and semi-trailers;
e) chassis with engines, including those with cab;
f) bodies and cabs;
g) road tractors for semi-trailers;
h) agricultural tractors, harvesters and self-propelled agricultural machinery;
i) self-propelled road machinery; and
j) auto parts.
II - auto parts: parts, including tires, subassemblies and assemblies necessary for the production of vehicles;
III - Parts: elaborated and finished product, technically characterized by its functional individuality;
IV - subsets: groups of united pieces to be incorporated into a larger group to form a set;
V - sets: functional units formed by parts and / or subassemblies, with specific function in the vehicle;
VI - automotive companies: producers of automotive products;
VII - auto parts without national production or not produced parts: parts, sub-assemblies and assemblies without national equivalent production capacity;
VIII - domestic production capacity: availability of technology means of production and labor for regular supply in series;
IX - national equivalent: interchangeable same technology or product that fulfills the same function; and
X - list of not produced auto parts: list consists of the List of Auto parts destined to Production and the List of Auto parts Inscribed as Capital Goods and Informatics and Telecommunications.
d) Changes
The lists of auto parts in Attachments I and II may be amended at the request of the representative bodies of the private sector or government´s own initiative, in the terms and conditions established for reduction of the rate of Import Duty on condition of ex-tariff for auto parts with no equivalent domestic production, in the frame work Regime of Auto parts Not Produced.
2) Auto Parts Capital Goods and Informatics and Telecommunications
Auto parts with reduction of import duty with the amount equivalent to the application of the rate 2% are part of the Auto Parts List destined to Capital Goods and Informatics and Telecommunications presented in Attachment II of CAMEX Resolution No. 116, of December 18, 2014.
a) Application - ex-tariff
May be granted a reduction of import duty rate to auto parts not produced, such as Capital Goods - BK or Informatics and Telecommunications Goods to:
* Agricultural tractors, harvesters and self-propelled agricultural machinery;
* Self-propelled road machines;
b) Reduction
Reducing the rates of import duty shall be granted through Camera Resolution of Foreign Trade - CAMEX, which set out the products covered, the duration, if any, and other applicable conditions.
• The rate of import duty will be set at 2%.
• The reduction of import duty rate applies to the import of new auto parts only.
c) Qualification
The benefit of reduction of import duty rate to auto parts not produced depends on Specific qualification to SISCOMEX as art. 6 of Resolution 61;
Enabling process should be conducted by the Foreign Trade Secretariat - SECEX, from the request Interested automotive companies, to ensure that these comply with the minimum formal requirements;
3) Inclusion, Exclusion and Change the List of Auto Parts Are Produced
a) Inclusion
The inclusion Inclusions lists shall be submitted by organizations representing the private sector as follows:
• Standard form printed (2 copies) and electronically (PDF) filed by the SDP / DF;
• Each claim must include:
a) NCM code;
b) Detailed description of the car part;
c) Proposal for a specific language for the ex-tariff;
d) original catalog (with technical translation);
e) Layout, sketch, schematic drawings, representative photos;
f) Represents the introduction of new technology;
g) Annual import review, values in US $ FOB;
h) Technical Literature;
b) Exclusion
Items in the Auto Parts List Not Produced may be excluded by:
I – law suits of representative bodies of the private sector;
II - disuse or import downtime;
III - realignment to industrial policies for the sector;
IV - own initiative of the Government.
c) Alteration
The lists of auto parts in Attachments I and II may be amended at the request of the representative bodies of the private sector or government´s own initiative, in the terms and conditions established for reduction of the rate of Import Duty on condition of ex-tariff for auto parts with no equivalent domestic production, in the frame work Regime of Auto parts Not Produced.
I - The modifications in the writings may be requested at any time unless it does not mischaracterize the car parts;
II - The claims for substantial drafting changes that modify parameters or car parts specifications will be considered pleading for the inclusion of new items;
4) National Production Capacity
Domestic production capacity should be proven by means of:
I - original catalogs of car parts produced domestically;
II - detailed description about the characteristics of the car parts;
III - specifications that make the equivalent national car parts;
IV - proof of previous supply or domestic production capacity.
5) Document Analysis
It is for the Secretary of Production Development do - SDP, the MDIC:
I - Hold prior documentary analysis of the set of claims that this Resolution treats;
II - instructing and keep the process organized; and
III - mediate, when necessary, communications with the representative sector entities.
6) Public Consultation
After met, the minimum requirements will be made for public consultation in the MDIC's website for a period of thirty (30) calendar days, so that domestic manufacturers of equivalent products or associations can present challenge to the law suits.
7) Analysis of Technical Committee
The Analysis of Technical Committee of Not Produced Auto Parts list, formed by the SDP, ABDI, and BNDES, has responsibilities as:
I - analyze the law suits for inclusion, exclusion and change items of Not Produced Auto Parts List;
II - provide technical opinions on the submitted claims;
8) Resolution
• Analysis is incumbent upon the Technical Committee to provide to the Executive Secretariat of CAMEX cases dealing the claims for inclusion, changing, or deleting items in the Not Produced Auto parts list;
• It is up to the Executive Secretariat of CAMEX to forward to the members of GECEX resolution of proposal copies and the opinions of the Technical Analysis Committee;
• Incumbent upon DECEX to reject the law suits of concession, whenever it deems proven the existence of National production of the equivalent good, where it considers that there is no convenience and opportunity for approval;
• Its responsibility of the Council of Ministers of CAMEX regarding the approval or not of the reduction of import duty of the law suits;
