[Tariff System]

(1) Tariff management system



Brazil is a member of the MERCOSUL market. 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 and calculation 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 the Brazilian Customs Tariff, the simple average tariff for Brazil's 9,857 8-digit tax codes in 2010 was 11.45%.



In 2009, Brazil made a partial adjustment to the MERCOSUR common external Tariff exception list, covering 114 tax Numbers covering most capital goods under Chapters 84, 85 and 90. The tax rate was reduced from the previous 12-14% to 2%, effective until December 31, 2010. In 2010, the Brazilian government added parts and raw materials needed for toy production to the list of the merCOSUR external tariff exceptions. Meanwhile, from August 2010, import tax reduction policies were implemented for the above two categories of products, with the tariff reduced from 20% to 2%.



On 4 February 2010, the Government of Brazil announced a reduction in AD valore duties on imports of certain capital goods, effective until 31 December 2010, The relevant tariff codes are 7309, 8408, 8412, 8413, 8414, 8417, 8419, 8422, 8424, 8426, 8427, 8428, 8428, 8429, 8436, 8438, 8441, 8442, 8443, 8451, 8453, 8456, 8458, 8460, 8461, 8462, 8463, 8464, 8475, 8477, 8479 8481, 8483, 8486, 8514, 8515, 8537, 8704, 9018, 9022, 9027, 9031, 9032.



On 4 February 2010, the Government of Brazil announced the adjustment of AD valved duty to 2% on the import of communications equipment covered by CAMEX Order no. 3. The products covered include electric traffic control equipment and transmitters, etc., covering products under The Mercosur tariff codes 8502, 8517, 8518, 8530 and 8543.



On 4 February 2010, the Brazilian Government announced the exemption of special video equipment, spectrum analyzers, digital encoders, etc. under categories 8543 and 9030 of the South African Municipal Tax Code, valid until 31 December 2010.



On 25 March 2010, the Government of Brazil announced that it had reduced the price duty on capital goods under 168 8-digit tax codes in sections 5, 86, 87, 89, 90 and 94 and on imports of computer and communication equipment under four 8-digit tax codes to 2 per cent. On 30 April 2010, Brazil announced that it had reduced the import of computer and communications equipment and their components under 17 8-digit tax codes of CAMEX Order 18 from valence duty to 0%. These adjustments cover tax Numbers 7304, 8405, 8406, 8407, 8408, 8413, 8416, 8417, 8418, 8419, 8421, 8422, 8423, 8423, 8424, 8426, 8427, 8428, 8429, 8430, 8431, 8437, 8438, 8439, 8440, 8441, 8443, 8445, 8447, 8451, 8454, 8455, 8459, 8460, 8461, 8462, 8463, 8464, 8465, 8471, 8474, 8475, 8477, 8479, 8480, 8481, 8483, 8501, 8514, 8515, 8541, 8543, 8607, 8709, 9007, 9015, 9018, 9019, 9024, 9026, 9027, 9031, 9403, 9406.



On April 23, 2010, the Brazilian Foreign Trade Commission issued resolution no. 21, which decided to include the following products in the list of special exceptions to mercoSUR's common external tariff and implement zero tariff. The specific products include: non-denatured ethanol with tax number 22071000, with an alcohol content not less than 80%; Ethanol with tax number 22072010. The resolution will take effect on April 26 and be valid until December 31, 2011.



On 29 April 2010, the Brazilian Government announced that it would raise the AD valved duty on imports of castor oil and its extracts from the plant from 10% to 30%, and the AD valved duty on imports of equipment for the reception, conversion, transmission and regeneration of sound, images and other data from 14% to 25%, including products under the MERcosur tariff codes 15153000 and 85176259. The potential impact of the policy



China, the United States, Mexico, Germany and Malaysia were among the top five countries exporting 85176259 products to Brazil, accounting for 87.5 percent of total exports to Brazil.



On 26 May 2010, the Brazilian Government announced that the import of transmission equipment and data processing equipment under the three 10-digit TAX codes of the Municipality of South Africa (SMT) 8471 and 8517 will be reduced from valence duty to 2%, valid until 31 December 2011.



On 26 May 2010, the Brazilian Government announced that it would temporarily lower the AD valved duty on imports of pumps, furnaces, centrifuges, dish washers and other products under 70 10-digit tax codes to 2%, valid until 31 December 2011. The tax Numbers involved are 8413, 8414, 8416, 8417, 8419, 8422, 8424, 8425, 8428, 8431, 8433, 8438, 8439, 8441, 8443, 8451, 8455, 8457, 8460, 8461, 8462, 8471, 8473, 8478, 8479, 8514, 8537, 8543, 9001, 9019, 9027, 9031.



On 24 June 2010, the Government of Brazil announced that it would reduce the import of boilers, refrigerators and laboratory equipment under 73 10-digit tariff codes from the value-added tax to 2%, effective until 31 December 2011, The tax Numbers involved are 8407, 8408, 8412, 8417, 8418, 8419, 8422, 8424, 8426, 8428, 8429, 8430, 8431, 8433, 8438, 8439, 8449, 8453, 8455, 8456, 8459, 8460, 8462, 8463, 8464, 8477, 8479, 8481, 8515, 8537, 8604 8905, 9027, 9031, 9406.



On 24 June 2010, the Government of Brazil temporarily reduced from valence duty to 2 per cent the import of communications equipment under the four 8-digit tax codes of THE South African Municipal Tax Code 8517, effective until 31 December 2011.



On June 24, 2010, the Brazilian government announced that it would reduce the AD valorem tax on the import of cellulose and its chemical derivatives under items 39123910, 39123920, 39123930 and 39123990 from 12% to 4%. Reduce the number of copper foil products under item 74102110 from 12% to 4%.



On 5 August 2010, the Government of Brazil announced a reduction in the AD valore duty on imports of computer and communications equipment and accessories from 12% to 2% under 10 8-digit tax codes of the South African Municipal Tax Code 8541, 8543 and 9030, valid until 30 June 2012.



On August 5, 2010, the Brazilian Government announced that it would reduce the total value tax on 400 capital goods from 14% to 2%, covering products under 177 10-digit tax codes in mercosur, valid until June 30, 2012. The tax Numbers covered are 8408, 8410, 8412, 8413, 8414, 8417, 8418, 8419, 8420, 8421, 8422, 8424, 8425, 8425, 8428, 8430, 8433, 8438, 8428, 8440, 8441, 8438, 8439, 8440, 8441, 8442, 8443, 8447, 8451, 8455, 8457, 8459, 8460, 8463, 8464, 8465, 8466 8472, 8474, 8475, 8477, 8479, 8481, 8483, 8501, 8502, 8504, 8514, 8515, 8516, 8531, 8537, 8543, 8609, 8704, 8907, 9007, 9015, 9019, 9022, 9024, 9025, 9030, 9031, 9032.



On August 6, 2010, the Brazilian Foreign Trade Commission issued resolution No. 55, which decided to amend the tax rules of common external tariffs on aviation products, exempting all imported aircraft, flight training equipment and spare parts used in aircraft production, repair, maintenance, transformation or processing.



On 14 September 2010, the Government of Brazil announced that it would reduce the AD valore duties on imports of certain 8-digit TAX codes under Chapters 39, 40, 73, 76, 84, 85, 87, 90 and 94, respectively, from 18%, 16% and 14% to 2%.



On 2 September 2010, the Government of Brazil announced that it would reduce the VAT on imports of capital goods under sections 73, 84, 85, 86 and 90 to 2%, effective until 30 June 2012.



On September 2, 2010, the Brazilian government announced that it would reduce the AD valved tax on imports of 11 8-digit tax codes, including computers and communications equipment, from 12 percent to 2 percent, covering 8504, 8535, 8541, 8543 and 9030.



In 2010, Brazil announced that it would reduce the import tariff on some auto parts for domestic production to 2%, but those parts are made in non-MERCOSUR member countries, with the adjusted tariff rate taking effect on September 14, 2010.



On December 15, 2009, the Brazilian Government announced that IT import AD valved tax of its IT products will be adjusted from 12% to 2%. The tax codes involved are 8473, 8517, 8528, 9030 and 9032, valid until December 31, 2010.



[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.



(2) Exports to THE Latin American Integration Organization: basically consistent with the requirements of Mercosur, 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 origin standards and made extremely detailed provisions for 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.



Foreign-funded enterprises can obtain certificates of origin and enjoy preferential trade treatment between Brazil and other countries when they export their products with a certain value added. For example, if a product assembled in Brazil is exported to ALADI member countries and enjoys tariff preferences, the CIF value of the imported parts cannot exceed 50% of the FOB value of the exported parts after assembly. In the case of exports to merCOSUR member countries, 60 per cent of the components used in the assembled product (at price) must come from merCOSUR member countries. Brazil has enacted stricter value-added regulations for foreign-invested enterprises to obtain certificates of origin for telecommunications products, chemical products, metallurgical products and information industrial products.



[Customs Inspection] The Brazilian customs carries out spot check on the goods declared at the import declaration, that is, they are classified according to green, yellow and red three different colors. Green means goods declared at the customs can be exempted from inspection, and automatic clearance; Yellow is only to check the declaration documents, after verification, the goods automatic clearance; Red means that the declaration documents and goods must be inspected before customs clearance. According to the regulations, the customs shall submit the inspection results within 5 working days, and the parties shall be present when the inspection is conducted. If the goods need sample inspection, the expenses incurred shall be borne by the parties.