CNI projects R$ 1.2 bi loss to exporters if export regime deadline not extended

Despite the impacts of the Covid-19 pandemic on exports, there is no measure by the Brazilian government to extend the deadline of the drawback regime. Brazilian exporters that use the drawback estimate losses of more than R$ 1.2 billion in 2021. The survey by CNI (national confederation of industry) refers to 406 concessional acts – of which 121 have already expired in the first semester. The amount is related to the tax recomposition for the inputs that are incorporated into the goods for export. For the productive sector, there is a risk that the losses will be even greater since more than 2,000 small, medium-sized, and large companies benefit from the regime.

The ‘drawback’ is a special customs regime that allows the exemption of taxes on inputs imported or purchased in the domestic market that will be used by the Brazilian industry to compose a product intended for export. The act is valid for one year, with an extension for another year, counted from the issuance by the Foreign Trade Secretariat (Secex) of the Ministry of Economy. For capital goods, the total term for export reaches five years.

Source: Valor Econômico

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https://valor.globo.com/brasil/noticia/2021/08/30/cni-v-impacto-de-us-45-bi-em-6-disputas-do-brasil-atrasadas-na-omc.ghtml

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