I. Tariff system

(1) Customs administration system



Brazil is a member of MERCOSUL. The group, which includes Argentina, Brazil, Uruguay and Paraguay, has implemented the common external Tariff (CET) for all products since 2006. The common external tariff fluctuates between zero tariff and an AD valorem tax of 35 per cent, except for a limited number of products in a particular country. Within SADC, except for sugar, cars and their parts, they can be circulated duty-free.



The determination of the value of imported products is mainly divided into the following five types: transaction price, the transaction price of the same product, the transaction price of similar products, the price obtained by subtracting method (the price after subtracting duty and commission from retail price, etc., and the calculated price), and the price calculated by production cost, profit and other expenses.



In Brazil, tariffs are levied mainly on the basis of CIF prices. When the customs challenges the value of the goods declared by the exporter, the exporter can make a new offer within eight days. The importer has 30 days to respond to the exporter's new offer.



In order to protect the domestic industry, the Brazilian government mainly adopts the following two measures in the collection of import tariff: set the minimum price or reference price, and levy taxes accordingly. If the import price is lower than the minimum price or reference price, the customs will levy price difference tax; A surtax is imposed on goods that are underquoted or dumped.



(2) Tariff level and its adjustment



According to WTO tariff data, in 2007, Brazil's simple average MFN applicable tariff is 12.2%, agricultural products and non-agricultural products simple average MFN applicable tariff is 10.3%, 12.5%.



According to SADC Commission resolution CMC38/05, which is valid until 31 December 2008, SADC member states are entitled to exempt 100 tax codes (8th digit) annually from SADC external tariffs and to adjust the tax codes every six months, up to 20 per cent of the exceptional tax codes.



In February 2008, Brazil reduced the import duty on wheat from outside SADC to zero (an import quota of 2 million tons), and after a seven-month exemption, Brazil's Foreign Trade Commission decided to reinstate an import duty of 10% on wheat from outside SADC. Brazil also decided to reduce import duties from 4 per cent to zero on phosphate and sulphuric acid for fertilizer production from outside SADC, and from 10 per cent to zero on dicalcium phosphate, an animal feed additive from outside SADC, valid until February 2009.



In 2008, Brazil adjusted the value-added tax on imports of some communications and information products and capital goods to 2%, valid until December 31, 2008.



Certificate of origin



There are three types of certificates of origin for Brazil: certificates of origin for exports to MERCOSUR member states, certificates of origin for exports to Latin American Integration Organization member States, and certificates of origin for exports under GSP. Certificates of origin are generally issued by the Federation of Brazilian Business Associations, and certificates of origin for processed products can be issued by the Confederation of Brazilian Industry, both valid for 120 days.



(1) Exports to merCOSUR member States. For trade between MERCOSUR member states, certificates of origin are required for the following commodities: commodities included in the non-common tariff transition list; Commodities themselves are not included in the transitional list, but raw materials and spare parts needed for the production of commodities are included in the transitional list; Goods subject to safeguard measures, anti-dumping and countervailing duties; Other commodities as determined by the Mercosur Trade Commission. In fact, the above regulation covers almost all goods.



The following products can obtain the certificate of origin: the whole process of commodity production is carried out in The Market, and the raw materials used are all from the market; Use products processed with raw materials imported from non-Mercosur, or products processed and assembled with bulk parts imported from non-Mercosur, if the cif value of the imported part does not exceed 40% of the FOB value of the products exported; Metallurgy, communications, integrated circuits and other products, to meet the special more stringent standards of origin.



(ii) Exports to THE South American Integration Organization: basically consistent with the mercosur requirements, except that the CIF value of the import part shall not exceed 50% of the FOB value of the export.



(3) For the export of Brazilian products enjoying GSP, the United States and the European Union have respectively formulated the standards of origin and made extremely detailed provisions on commodities with different tariff codes. For example, for non-knitted or non-crocheted garments exported from Brazil to the European Union, the process from the production of yarn (including the production of yarn) must be carried out in Brazil if a Certificate of Brazilian origin is to be obtained.