IMPORT TAX REDUCTION AND OTHER SPECIAL REGIMES

Import Tax Reduction - "Ex-Tarifário":
 

The “Ex-Tarifário” is an initiative of the Brazilian government created to reduce the import tax, applicable to products that do not have a national similar and that meet certain criteria.

In this way, it encourages imports by facilitating access to innovative foreign solutions in the local market and protecting local suppliers of similar solutions in Brazil.

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An ex-tariff consists of a temporary reduction of the import tax rate for an imported product in case specific requirements are met. With the reduction of the import tax rate the government levels down the cost of the imported good and could damage the domestic industry. Therefore, the first and most important requirement is that the object of the regime (product or merchandise being imported) is not produced in Brazil and has no national equivalent.

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Currently, granted ex-tariffs are valid for two years from the date of concession and can be renewed once this period is over, if the conditions at the time of concession have not changed (if there are still no local competitors supplying a similar solution). In the past, the reduction could range from 2% to 0%, and currently it is 0%.

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REIDI:

Special Incentive Regime for the Development of Infrastructure through the suspension of the requirement of Pis and Cofins levied on services, materials, machines and equipment destined to fixed assets;

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Qualification  may be required by a legal entity that owns a project for the implementation of infrastructure works in the sectors of:

I - transport, covering exclusively:

      _cc781905- 5cde-3194-bb3b-136bad5cf58d_  a) highways and waterways;

      _cc781905- 5cde-3194-bb3b-136bad5cf58d_ b) organized ports and port facilities for private use;

      _cc781905- 5cde-3194-bb3b-136bad5cf58d_ c) urban trains and railways, including locomotives and wagons; It is

      _cc781905- 5cde-3194-bb3b-136bad5cf58d_ d) airport systems and flight protection systems installed at public airfields;

 II - energy, reaching exclusively:

 a) generation, co-generation, transmission and distribution of electricity;

b) production and processing of natural gas in any physical state;

 III - basic sanitation, covering exclusively the supply of drinking water and sanitary sewage;

IV - irrigation; or

V - pipelines

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Recap:

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Special regime for the acquisition of capital goods for exporting companies provides for the suspension of the PIS/Cofins requirement on the import of new machinery, devices, instruments and equipment, listed in the regulation, for incorporation into the fixed assets of the predominantly exporting company;

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Mainly exporteris the company, for the purpose of qualifying for Recap, whose gross revenue from exports in the calendar year prior to the application for adherence to the regime was => 50% of its total gross revenue from the sale of goods and services in the period.