BYD faces a customs hurdle as 10,000 auto kits are held at Salvador Port, risking output at the Brazil plant

Ten thousand kits of parts from Chinese automaker Build Your Dreams (BYD) are being held at the Port of Salvador, which could affect operations at the factory in Camaçari, in the Metropolitan Region of Salvador, since the company plans to operate under the Semi Knocked-Down (SKD) regime, finishing vehicles in Brazil.

According to Augusto Vasconcelos, Bahia’s Secretary of Labor, Employment, Income, and Sports (Setre-BA), the retention is due to a change in the company’s tax registration (CNPJ) from Campinas, São Paulo, to Camaçari, allowing the Bahia plant to utilize its import quota. He said the process is underway.

“There are no pending issues with the state of Bahia, but rather a customs matter. We have been making efforts, and our governor, Jerônimo Rodrigues, has been in talks with the Minister of Industry and Commerce, Vice President Geraldo Alckmin, to find a solution to this impasse. We expect that the issue will be resolved as soon as possible so the plant can begin vehicle production,” the secretary said.

According to the Chinese automaker’s press office, each kit is used to assemble a single vehicle, meaning the retention of the parts at Salvador Port would impact the assembly of 10,000 cars.

First cars assembled in Camaçari

On July 1 of this year, BYD presented the first cars assembled at its manufacturing complex in Camaçari.

According to Alexandre Baldy, BYD Brazil’s senior vice president, the Dolphin Mini currently costs R$122,000. When all models are assembled at the Camaçari plant, they will be sold for R$119,000.

In addition to the Dolphin Mini, BYD also presented its first locally produced hybrid car, the Song Pro. According to the automaker, production of the first three national models will commence in the coming weeks: the BYD Dolphin Mini, Song Pro (GL/GS), and King (GL/GS). Specific dates were not disclosed.

The new unit is located in Camaçari’s Petrochemical Complex and was built from scratch on land previously occupied by automaker Ford, which shut down operations in Brazil in 2021. The space was sold to the state government in 2023.

At a press conference, Baldy addressed the case of Chinese workers rescued from conditions analogous to slavery during the construction of the BYD facility. He called it “a sad episode” and stated that the automaker “is committed to Brazilian legislation, labor laws and human dignity.”

“We followed the entire process and even terminated suppliers over these issues,” said BYD Brazil’s senior vice president.

In addition to Governor Jerônimo Rodrigues, the inauguration ceremony also included other political figures, such as Culture Minister Margareth Menezes, Camaçari mayor Luiz Caetano (PT), state and federal deputies, and BYD’s global executive vice president, Stella Li.

Source: G1

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