Trade Brazil


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Trade Brazil

  1. 1. Vanessa De Lima C. Mariantonia Mejia C.
  2. 2. RULES OF ORIGIN  Brazil does not apply non-preferential rules of origin  MERCOSUR origin is determined using general or specific rules (foodstuffs, pharmaceuticals, textiles, steel, telecommunications, and informatics products)  There are general and specific LAIA rules of origin.  Non-originating materials are used in the production of a good  The c.i.f. value of inputs from third countries does not exceed 50% of the f.o.b.  Less developed countries this percentage is 60%.
  3. 3. TARIFFS  All tariffs are ad valorem, levied on the c.i.f. value of the imports.  Average applied MFN is 11.5%.  Brazil increased its applied tariffs for chemical products, footwear, and textiles and clothing.
  4. 4. STRUCTURE OF TARIFF SCHEDULE 1. Total number of tariff lines 9,765 2. Non-ad valorem tariffs (% of all tariff lines) 0.0 3. Non-ad valorem with no AVEs (% of all tariff lines) 0.0 4. Tariff quotas (% of all tariff lines) 0.1 5. Duty-free tariff lines (% of all tariff lines) 8.3 6. Dutiable lines average tariff rate (%) 12.5 7. Domestic tariff "peaks" (% of all tariff lines)a 4.3 8. International tariff "peaks" (% of all tariff lines)b 26.3 9. Bound tariff lines (% of all tariff lines) 100.0 BINDINGS tariff is 30.2%, which comprises an average of 35.2% for agricultural goods and 29.6% for non-agricultural goods. CONCESSIONS obtained through the "Ex Tarifário" mechanism. EXEMPTIONS Goods imported under the temporary admission regime Goods and services imported into a free-trade zone or export zone
  5. 5.  Tariff Quota: up to 20 products at a time. Preferences:  Andean Community(Colombia, Ecuador, and Venezuela)  Cuba, Peru via preferential agreements.  Suriname via a partial scope agreement.  Extends tariff preferences to imports from Bolivia, Chile, and Mexico (FTA).  Guyana via the partial scope agreement under the framework of LAIA.
  6. 6. OTHER CHARGES AFFECTING IMPORTS Internal taxes are levied on imports:  The industrial products tax (IPI)  The tax on the circulation of merchandise and on the supply of interstate transportation and communication services (ICMS)  Contributions to the social integration programme (PIS)  Finance social security (COFINS).
  7. 7. CONTINGENCY MEASURES Antidumping Products affected belong to basic industries such as plastics, base metals, chemicals, and machinery. Countervailing duties Products exported from India: stainless steel bars and PET film. Safeguard On all WTO Members, with the exception of MERCOSUR members
  8. 8. PROHIBITIONS, RESTRICTIONS, AND LICENSING  Wines  Grapes and grape juice  Toys that replicate firearms  Weapons and ammunitions  Endangered animals and plants
  9. 9. TECHNICAL REGULATIONS AND STANDARDS  The Ministry of Agriculture, Livestock and Supply (MAPA) animal and plant health.  SPS: livestock, fruits, vegetables, grains, plants, veterinary drugs, pesticides.  The Brazilian Health Surveillance Agency (ANVISA) protect human health  Products imported and locally produced foodstuffs, tobacco, cosmetics, pesticides, and pharmaceutical products.  Brazil prohibits (imports, exports, and domestic commercialization):  Meat and other products from bovines fed with hormones.  Substances, natural or artificial, with anabolic characteristics.
  10. 10.  The IPI, PIS, COFINS and IC MS are not levied on exports.  Export Taxes NCM Heading Products Destination Rate Legislation Situation as at August 2008 0801.31.00 Cashew nuts, with shells Any country 30% CAMEX Resolution No. 31, 20/10/03 Expired on 21/10/2005 2401, 2403 Tobacco and its substitutes Paraguay and Uruguay 150% Decree No. 3,646, 30/10/00 Revoked by Decree No. 5,492, 18/07/05 2402.20.00 Cigars South and Central America and the Caribbean 150% Decree No. 2,876, 14/12/98 In place
  11. 11. Brazil restricts:  Weapons and military equipment to Iraq, Ivory Coast, Liberia, Sierra Leone, and Somalia  Material and technology Bovine meat/poultry  Accredited by Ministry of Agriculture  accepted by the EU safe exporters.  Exports of certain wood (pine, imbuia, and virola) is subject to specific rules IBAMA PROHIBITIONS, RESTRICTIONS, AND LICENSING
  12. 12. EXPORT SUBSIDIES  NO export subsides to agricultural products. finance, insurance, and guarantees The Export Financing Programme (PROEX) PROEX Financing PROEX Equalization BNDES-EXIM programme Provides preferential export credits linked to domestic content.
  13. 13. PROMOTION AND MARKETING ASSISTANCE  Brazilian Trade and Investment Promotion Agency (APEX-Brasil).  Charge of attracting foreign investment to Brazil.
  14. 14. INCENTIVES AND OTHER GOVERNMENT ASSISTANCE  Provide subsidies for the development of particular regions, and for research and development.  Brazil provides incentives and government assistance both at the federal and at the state level.  Incentives programmes represented some 0.39%.
  15. 15. FREE-TRADE ZONES Eight free-trade zones  Production operations Manaus in Amazonas  Commerce operations Tabatinga, in Amazonas Macapa/Santana in Amapá Brasiléia and Cruzeiro do Sul, in Acre Boa Vista and Bonfim, in Roraima Guajará-Mirim, in Rondônia
  16. 16. GOVERNMENT PROCUREMENT  Brazil procurement is decentralized at three levels (federal, state and municipal).  Government procurement totalled R$22.2 billion.  The Ministries of Defence and of Transport expenditure (17% and 16.4%)  The Ministry of Education (14.5%)  The Ministry of Health (11.7%)  The Ministry of Finance (10.1%).
  17. 17.  Brazil is NOT a party to the WTO Plurilateral Agreement on Government Procurement (GPA).  The Brazilian government may not make a distinction between domestic and foreign-owned companies during the tendering process
  18. 18. INTELLECTUAL PROPERTY RIGHTS  Brazil is a member of the World Intellectual Property Organization (WIPO) and a signatory to a number of intellectual property rights (IPRs) agreements. Coverage  Patents  Industrial designs  Utility models  Trade marks  Geographic indications  Copyright and related rights  Computer software  New plant varieties  Layout designs of integrated circuits  Undisclosed Information
  19. 19. SERVICES  Brazil scheduled horizontal market access limitations on the movement of natural persons, investment, commercial presence, and subsidies.  MERCOSUR Protocol of Montevideo on Trade in Services  establishes a programme for the liberalization of intra-trade in services