On May 9, 2023, the Executive Board of the Brazilian Foreign Trade Commission issued an important decision to exempt import duties from 628 machinery and equipment products, and the duty-free policy will last until December 31, 2025.

According to the Commission’s announcement, the duty-free policy concerns companies in manufacturing and information technology communications industries, which can import machinery and equipment from countries such as the United States, China, Germany, Italy. It is that these machinery and equipment are not produced in Brazil, so these companies need to import from abroad, of which about 80% of duty-free equipment needs to be imported from the four countries mentioned above.

Of these 628 machinery and equipment products, 564 are for manufacturing classes and 64 for information technology and communications classes. Before the implementation of the duty-free policy, Brazil imposed import tariffs on these products at 11%. The implementation of this duty-free policy will greatly reduce the purchase costs of Brazilian enterprises while improving their competitiveness in the international market.

It is worth noting that this duty-free policy does not apply to all machinery and equipment products. Only products that meet the prescribed standards and requirements can enjoy the duty-free policy. In addition, to ensure the safety and quality of products, imported products also need to undergo strict quality inspection and certification procedures.

In short, this tax-free policy is an important initiative of the Brazilian government to promote economic development and increase the competitiveness of enterprises. For companies in industries such as Brazilian manufacturing and information technology communications, it will be an important policy that is expected to help them reduce purchasing costs, improve production efficiency and seize more market share.