Wind turbine importers lobby for quota amidst newly imposed tariffs

The reinstatement of the Common External Tariff for wind turbines and photovoltaic modules was recently approved by Brazil’s Foreign Trade Chamber with the rationale of stimulating the domestic promotion of these products.

The charge came into effect on January 1st. Now, imported solar modules and turbines up to 7.5 megawatts incur a 10.8% tariff. Starting in 2025, the rate will increase to 11.2% and apply to all equipment, regardless of capacity.

In their petition to the Ministry of Industry, Foreign Trade and Services (MDIC), members of the Abeeólica industry association requested the adoption of a tax-exempt import quota of approximately $1.1 billion.

The import taxation policy allowed quotas for solar panels, as it is a highly subsidized sector with low domestic production. Approximatelly 90% come from abroad, mainly from China. In the case of wind turbines, there is a more heated emerging industry. The government expects the Common External Tariff for wind turbines will attract new investments and potentially bring back industries that previously operated in this market but ceased production.

In addition to incentivizing domestic production, a quota exempting imports up to  $1.1 billion means the government will forego approximately R$ 580 million.

Source: O Globo

Click here to read the original news article: https://oglobo.globo.com/blogs/capital/post/2024/02/importadores-de-turbinas-eolicas-pleiteiam-cota-para-driblar-nova-tarifa-de-importacao.ghtml

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