Brazil is a market known for its highly protectionist policy, with various barriers and high import taxes. Although this strategy has been adopted to stimulate domestic production, many Brazilian companies end up not having access to advanced and modern technologies, limiting the improvement of product quality and productivity expansion.
However, this situation is about to change. The Brazilian government has been seeking ways to encourage the modernization of the national industry, without giving up the protection of local producers. In this sense, on April 27th, 2023, the Chamber of Foreign Trade (Camex) announced the elimination of import taxes for 628 industrial machines and equipment that do not have domestic production, aiming to improve the competitiveness of the Brazilian industry.
This Camex measure is essential for the industrial sector because the reduction of import taxes on these equipment will allow companies to modernize and expand their factories, improving product quality and increasing productivity.
Among the types of equipment that had their import taxes eliminated, we can highlight:
• Machinery for textile and knitwear production;
• Equipment for food production, such as food packaging machines, ovens, extruders, and mixers;
• Machines for plastic production, such as injectors and extruders;
• Machines for the pharmaceutical industry, such as compressors, encapsulators, and equipment for cosmetic production;
• Equipment for the construction industry, such as concrete mixers, cranes, excavators, and backhoes.
In addition to these equipment, the Camex list also includes other types of machinery and equipment that are essential for modernizing and improving the productivity of the Brazilian industry.
It is important to highlight that the measure taken by Camex does not mean that imported equipment will be exempt from other taxes, such as ICMS (Tax on Circulation of Goods and Services) and IPI (Tax on Industrialized Products). However, the reduction of import taxes will allow companies to invest more in modern and efficient equipment, improving the competitiveness of the Brazilian industry in the global market.
If you want to know if your equipment is on the list of industrial machinery and equipment benefited by the measure, send your HS Code to our team and find out right now!