Foreign trade chamber approves expansion of Mercosur’s aviation sector taxation rule

GECEX, (the Ministry of Finance’s executive management committee of the foreign trade chamber) approved the internalization of the Common Market Group (GMC) Resolution that updates the “Common External Tariff Taxation Rule for Aeronautical Sector Products,” established in 1994. The measure was approved at a GECEX virtual meeting on August 18. GECEX Resolution No. 244 was published this Wednesday, Sept. 1, 2021, in the Official Federal Gazette.

This is a special import regime common to Mercosur state parties, implemented to exempt the aeronautical sector from charging import taxes on aircraft and flight training equipment, as well as their parts and inputs used in manufacturing, repair, maintenance, transformation, modification, or industrialization of these goods, provided they are “manufactured per technical specifications and aeronautical approval standards.”

It is worth noting that the benefits of the Taxation Rule for the aeronautical sector are not limited to the goods production sector but also reach the services sector: companies and airlines can have access to machinery and products used in the sector, such as boarding bridges for passengers and products used onboard.

The measure will allow a 0% tariff for 19 new six-digit codes of the Mercosur Common Nomenclature, totaling 887 codes, which make up the rule. According to the executive secretary of CAMEX (the foreign trade chamber), Ana Repezza, the initiative will allow for improvements in the competitiveness of the airline industry, which has been extremely affected by the Covid-19 pandemic.

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