Two big South American countries, one to raise, one to reduce a number of products import tariffs!
In recent years, many foreign trade people began to enter the central and South American market, Mexico, Chile, Brazil and other countries have become the focus of market development
Recently, two big South American countries, Brazil and Argentina, have made adjustments in import tariffs. The following latest adjustments please attract the attention of relevant export enterprises!
Brazil
On October 17, the Brazilian government announced tariffs on Chinese exports of steel, fiber-optic cables and other chemicals.
Specific adjustments are as follows:
Import tariffs reduced or exempted
Products that are not produced in Brazil or are not produced in sufficient quantities to meet the needs of the domestic market.
① Motors for mixers and food processors: reduced from 18% to 0%;
Acrylonitrile (mainly used as a raw material for the production of other chemical components) : reduced from 10.8% to 0%; No domestic production in Brazil;
Polyester yarns for technical fabrics, tires, grilles, tarpaulins, PVC laminates and sewing threads: reduced from 18% to 0%;
Glyphosate (a herbicide used in rice, corn, soybeans, beans, sugar cane, grapes, coffee, etc.) : reduced from 10.8% to 3.8%.
Import tariff increase
According to the announcement, the reason for the increase in tariffs is that the significant increase in imports of these products has led to the damage of products in the Brazilian domestic industry. The specific tariff changes are as follows.
① Sodium chlorite: increased from 9% to 10.8%;
② Steel products: increase to 25%;
Fiber optic cable and fiber optic (cabos e fibras oticas) : from 11.2% and 9.6%, respectively, to 35%; For 6 months.
Anti-dumping duty
The Brazilian Government has decided to impose provisional anti-dumping duties on four additional products at the following rates.
① For foils from Chinese companies, import surcharges range from US $257.97 to US $341.28 per ton;
② For atomizers from Chinese companies, the surcharge for each imported device is between $0.83 and $2.62;
(3) rutile type titanium dioxide pigments (white pigments used in paints, cosmetics, food, etc.) from Chinese companies, the import surcharge of US $577.33 to US $1,772.69 per ton;
For polyester fiber from companies in China, India, Vietnam, Malaysia and Thailand, import surcharges range from US $68.32 to US $397.04 per ton.
The tariffs on steel products will be in place until May 31, 2025. The tariffs on other products such as optical fiber and cable will be implemented for six months.
In addition, for the direction of cross-border e-commerce, on August 1 this year, the Brazilian federal government's new tax reform regulations took effect, imposing a 20% tariff on imported goods of 50 US dollars and less. Previously, Brazil exempted packages for cross-border e-commerce imports worth less than $50. After the tax reform, imported goods over $50 will still be levied 60% tariff and 17% state standard turnover tax rate unchanged.
At the same time, the new policy also stipulates that the value of imported goods between 50 and 3,000 US dollars will be levied 60 percent import tax, but can be reduced by 20 US dollars per package in the overall import tax; E-commerce platforms that have joined the Tax Compliance Scheme (PRC Scheme) will be provided with the convenience of early pre-filing and quick customs clearance.
Interpreting the new policy, federal tax officials said the measure is aimed at cracking down on tax evasion and regulating the use of batch purchases by many companies to avoid taxes.
Brazil import analyst Gabriela Prado said that the new tax reform has a greater impact on cross-border e-commerce sellers, Brazil from less than 50 US dollars of imported goods from duty-free to restore import duties, but also superimpose the standard turnover tax in the states, making the actual tax burden may climb to about 44.5%, no doubt no pressure on sellers, for some Brazilian consumers, In the short term, it will also dampen the willingness to buy on cross-border e-commerce platforms.
Argentina
On October 16, the Argentine government passed Decree No. 908/2024, imposing significant tariff reductions on 89 imported goods, covering a wide range of sectors from consumer goods to industrial raw materials. The policy is expected to reduce consumer costs and further open international trade channels by boosting economic growth and attracting foreign investment.
Specifically, the most high-profile goods involved in the tariff adjustment are automobile tires and motorcycles, and the tariffs on automobile tires and motorcycles are reduced from the original 35% to 16% and 20%, respectively.
In addition, tariffs on 30 daily necessities, including small household appliances, coffee, sunscreen and gas canisters, will also be adjusted to between 9% and 30% from the previous 25% to 35%.
In terms of industrial raw materials, such as PET plastics, copper pipes and textile raw materials, tariffs have been reduced from a maximum of 35% to between 2% and 20%. This series of tariff cuts will greatly reduce the production cost of relevant industries and improve production efficiency.
In addition, the tariff reduction of 38 types of key machinery and equipment, covering industrial furnaces, boilers and specific engines that cannot be produced domestically, heralds a new stage of technological upgrading and innovation in Argentina's manufacturing industry. The government adopted a phased tax reduction strategy, such as the gradual tax reduction of automobile tires in four stages, to ensure the orderly adaptation of the market, thus stabilizing the expected effect of the policy.
Tariffs on small appliances, such as fans, coffee makers, LED installations, heaters, kettles and electric ovens, will be reduced from 35% to 20%.
② Automobile tires, down from 35% to 16%;
③ Motorcycle tires, down from 35% to 20%;
PET and ABS plastic raw materials, including bottle containers and white goods, decreased from 12.6% to 6%;
For textile raw materials, the import duty on Lycra will be reduced from 18% to 2%, and polyester fiber from 18% to 6%;
Other products, such as ground coffee, energy drinks or sunglasses, have their tariffs reduced from 35% to 20%;
Tariffs on sunscreens and deodorants will be reduced from 25% to 18%.
Lavini, secretary of State for industry and trade of the Ministry of Economy of Argentina, said that this round of tariff reduction is part of the government's package of measures to promote foreign trade, and the reduction of tariffs on refrigerators, washing machines, tires, plastic supplies, fertilizers and herbicides in May this year, will further benefit industrial production and consumers.
Those who do trade in these two markets must pay attention to tariff changes!
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