Brazil gov’t facilitates import of vehicles from Mercosur partners

Starting today (Sep. 2), automobiles and auto cars assembled in Argentina, Paraguay, and Uruguay will no longer be required import licensing to enter Brazil, the Ministry of Economy announced. Control procedures will be carried out subsequently, which, the ministry argued, will make importing more expeditious and cheaper.

The change will not harm the Brazilian auto sector because, as it stands today, vehicles and auto products from other Mercosur member countries are subject to tariffs set in trade deals. The amount of automobiles entering the country, therefore, will remain unchanged. Only the process will be quicker and paperwork reduced.

In a note, the Foreign Trade Secretariat of the Economy Ministry said that the change is in line with the commitments agreed upon by Brazil in the Agreement on Trade Facilitation of the World Trade Organization (WTO) and will be part of the government’s agenda on red tape slashing. The new rules were published in the country’s Federal Gazette on August 26.

Aviation

In another resolution, the Chamber of Foreign Trade (Camex) abolished the common external tariff of Mercosur for 19 products linked to aviation. The measure comes as part of the special import regimen exempting the air sector from the Import Tax on aircraft and flight training devices as well as their components.

The decision brings the number of air products exempted from the external tariff to 887. Camex, the measure, Camex declared, should help boost competitiveness in the air sector, affected as it is by the COVID-19 pandemic.

The exemption from the special import regimen also affects air services. Thus, firms and air companies may gain access to machines and products used in the sector, like passenger boarding bridges and goods used on board.