Commercial Information Circulars
24-hour hotline : 23 922 922
e-mail address : enquiry@tid.gov.hk
Ref : EIC 413/2
27 November 2014
Dear Sirs,
Commercial Information Circular No. 1015/2014
Brazil : Modification to Integrated Drawback Special Regime
The Brazilian government issued Joint Decree No. 1618/2014 on 2 September 2014 to amend the Integrated Drawback Special Regime (“Regime Especial de Drawback Integrado” in Portuguese). This regime provides for the suspension of various taxes for raw materials imported or acquired in the domestic market, as long as they are used in the manufacture of a product that is subsequently exported. Once the exportation of the product takes place, the tax suspension becomes an exemption. The Joint Decree entered into force on 2 September 2014.
2.Among other amendments, the Joint Decree modifies the inventory control of goods under the Integrated Drawback Special Regime. It also clarifies that for goods to be considered as "equivalent in kind and quality", the goods must (i) be classified under the same Southern Common Market (Mercosur1) Common Classification (NCM) code; (ii) perform the same functions; (iii) be obtained from the same materials; (iv) be sold at equivalent prices; and (v) have the same specifications (dimensions, characteristics, physical properties, etc.) that render them suitable to be employed or used in the manufacture of the product to be exported.
3.For details, traders are advised to consult their importers in Brazil and/or the above Brazilian Joint Decree (in Portuguese) at: http://pesquisa.in.gov.br/imprensa/jsp/visualiza/index.jsp?jornal=1&pagina=21&data=03/09/2014.
ENQUIRIES
4. For enquiries about the content of this circular, please contact Mr Lewis LAU at telephone number 2398 5405.
Yours faithfully,
(Ms Cindy CHENG)
for Director-General of Trade and Industry
1. The Southern Common Market (Mercosur) includes Argentina, Brazil, Paraguay, Uruguay and Venezuela.
Note: | While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same. |