Camex approves 15% reduction in import tariff on toys

On Thursday, November 5th, GECEX (the executive management committee of CAMEX, the Ministry of Economy’s Chamber of Foreign Trade), approved a 15%  reduction in the tariff applied to toy imports, from 35% to 20%. The measure will be valid as of December 1 but should start to have a more significant effect on prices at the beginning of 2021, considering the time necessary for new imports already supported by the tariff reduction.

The reduction includes toys such as scooters, tricycles, dolls, puzzles, and electric trains, among others. The 35% tariff in force for these items was the third highest in the world, second only to those practiced by Afghanistan and Zimbabwe. The reduction to 20% brings the Brazilian tariff to the level of the Mercosul Common External Tariff (TEC) and eliminates the exceptional tariff increase that applied to imports since 2011.

Falling prices

According to a study carried out by the Institute of Applied Economic Research (IPEA), it is estimated that the tariff reduction will generate a 5.1% to 5.7% drop in consumer prices and increase the number of toys sold in the Brazilian market by 6.9% to 7.7%.

Another positive effect resulting from the tariff reduction is that it will discourage piracy and the practice of bringing products to the country without paying taxes, besides also favoring the growth of formal retail in Brazil.

The GECEX decision was preceded by a public consultation conducted by the Commercial Strategy Undersecretary of the Executive Secretariat of Camex and technical studies carried out by various organizations. It was attended by thousands of stakeholders, including individuals, legal entities, and government agencies.

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