Ministry of Economy studies extending drawback licenses to exporters

The inputs transportation congestion caused by the Covid-19 pandemic caused the Ministry of Finance to consider extending drawback licenses of exporting companies for one year. This benefit provides for the exemption or suspension of taxes for raw materials or inputs used to manufacture products that will be sold abroad.

In a statement, the Ministry informed that the restriction of trade flows resulting from the pandemic – which has caused a global shortage of items such as semiconductors and certain types of metals – has harmed drawback operations. The problem mainly affects companies whose benefit ends in 2021. If it materializes, it will be the second postponement. In 2020, authorizations had been extended to the end of this year.

“Due to the continuity of the Covid-19 pandemic and the consequent setbacks imposed by it for the performance of operations linked to the drawback, suspension and exemption regimes, the ongoing evaluation at the Ministry of Economy also involves the extension of deadlines concerning the concessionary acts whose validity has been extended based on Provisional Measure No. 960, of April 30, 2020, later converted into Law No. 14.060, of September 23 of the same year,” the Ministry stated.

According to the folder, the proposal is still at the stage of internal discussions. When the study is completed, the request for an extension will be analyzed by the other levels of the federal government.

Source: Canal Rural

To read the full original article, visit the link:

https://www.canalrural.com.br/noticias/ministerio-da-economia-estuda-prorrogar-licncas-de-drawback-a-exportadores/

Sharing is caring!