Brazil changes drawback rules to streamline vessel exports

The Federal Government of Brazil changed the rules regarding the import duty drawback for the production of vessels, reported the Ministry of Economy on Thursday, August 25.

Drawback is a special customs regime in which the collection of taxes is suspended or eliminated when imported inputs are used to manufacture goods bound for export. Drawback is a form of export incentive that accounted for more than USD 61 billion last year in sales by Brazil, according to the ministry.

According to the Ministry of Economy, one of the recently-approved modifications is the ability for a vessel, both for the naval and nautical segments, to be produced under the drawback system even if the maker does not have a specified buyer.

The vessel’s sale must occur within a previously established period, and a responsible body must accompany the operation.

The changes to rules guiding the import drawback system were included in Ordinance 208/2022, published in Brazil’s Official Gazette on August 25.

Shipping companies that utilize the import duty drawback system have also had their requirements modified. They will be treated similarly to trading companies.

“To benefit from this special customs regime, companies will only have to attach fiscal proof submitted by the shipping company regarding the cargo load to the drawback-granting authority,” informed the Ministry of Economy.

The Brazilian government also adapted the drawback rules to the Business Environment Law (14.195/2021), which dismissed the need to use Brazilian-flagged vessels to transport goods produced with import duty benefits.

Source: Valor Econômico

To read the full original article, please go to: https://valor.globo.com/brasil/noticia/2022/08/25/governo-facilita-produo-de-embarcaes-para-exportao.ghtml

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