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Two major South American countries, one raised and the other lowered import tariffs on many products!

Sam IRA Sam IRA 2024-10-30 11:08:23

Sunny Worldwide LogisticsIt is a logistics company with more than 20 years of transportation experience, specializing in markets such as Europe, the United States, Canada, Australia, and Southeast Asia. It is more of a cargo owner than a cargo owner~

Recently, two major South American countries, Brazil and Argentina, have made adjustments to import tariffs. Relevant export companies should pay attention to the following latest adjustments!

 

Brazil

 

On October 17, the Brazilian government announced tariffs on steel, fiber optic cables and other chemicals exported from China.

 
The specific adjustments are as follows:
 
 

Import tariff reduction or exemption

 

It involves products that are not produced in Brazil or whose output is insufficient to meet domestic market demand.

① Motors used in blenders and food processors: reduced from 18% to 0%;

② Acrylonitrile (mainly used as raw material for the production of other chemical components): reduced from 10.8% to 0%; no domestic production in Brazil;

③ Polyester yarns used in technical fabrics, tires, grilles, tarpaulins, PVC laminates and sewing threads: reduced from 18% to 0%;

④ Glyphosate (a herbicide used in rice, corn, soybeans, beans, sugar cane, grapes, coffee, etc.): reduced from 10.8% to 3.8%.

 
 

Import tariff increase

 

According to the announcement, the reason for the increase in tariffs is that the significant increase in imports of these products has caused damage to Brazilian domestic industry products. Specific tariff changes are as follows.


① Sodium chlorite: increased from 9% to 10.8%;


② Steel products: increased to 25%;


③ Optical cables and optical fibers (cabos e fibras óticas): increased from 11.2% and 9.6% respectively to 35%; for a period of 6 months.

 
 

anti-dumping duties

 

The Brazilian government decided to impose temporary anti-dumping duties on four other products. The applicable tax rates are as follows.


① For metal foils from Chinese companies, import surcharges range from US7.97 to US1.28 per ton;


② For atomizers from Chinese companies, the surcharge for each imported device is between US② 来自中国公司的雾化器,每台进口设备的附加费在0.83美元到2.62美元之间;.83 and US.62;


③ For rutile titanium dioxide pigments (white pigments used in paints, cosmetics, food, etc.) from Chinese companies, the import surcharge is US7.33 to US,772.69 per ton;


④ For polyester fibers from companies in China, India, Vietnam, Malaysia and Thailand, import surcharges range from US.32 to US7.04 per ton.

 

Tariffs on steel products will be implemented until May 31, 2025. Tariffs on optical fiber, cables and other products will be implemented for 6 months.

 
In addition, for cross-border e-commerce,On August 1 this year, the Brazilian federal government’s new tax reform regulations came into effect, imposing a 20% tariff on imported goods worth and below.Previously, Brazil provided tax exemption for cross-border e-commerce imported goods packages worth less than US. After the tax reform, imported goods exceeding US will still be subject to a 60% tariff and a 17% state standard turnover tax.
 
At the same time, the new policy also stipulates that 60% import tax will be levied on imported goods packages worth between 50 and 3,000 US dollars, but each package can be reduced by 20 US dollars from the overall import tax; for those who have joined the compliance payment E-commerce platforms that adopt the tax plan (PRC plan) will have the convenience of advance declaration and quick customs clearance.
 
Brazilian federal tax officials interpreted the new policy and said that the measure aims to combat tax evasion and regulate the use of batch purchases by many companies to avoid taxes.
 
Gabriela Prado, a Brazilian import analyst, said in an interview that the new tax reform policy will have a greater impact on cross-border e-commerce sellers. Brazil has changed from tax exemption to resuming import tariffs on imported goods below 50 US dollars, and will also superimpose state standard turnover taxes. ,The actual tax burden may rise to about 44.5%, there is undoubtedly a lot of pressure on sellers, and for some Brazilian consumers, it will also dampen the willingness to buy on cross-border e-commerce platforms in the short term.
 
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Argentina

 

On October 16, the Argentine government passed Decree No. 908/2024, implementing significant tariff reductions on 89 types of imported goods. This move covers many fields from consumer goods to industrial raw materials. The policy is expected to reduce consumer costs and further open up international trade channels by promoting economic growth and attracting foreign investment.

 
Specifically,Among the products affected by the tariff adjustment, the most eye-catching products are automobile tires and motorcycles., the tariffs on car tires and motorcycles were reduced from the original 35% to 16% and 20% respectively.

 

In addition, tariffs on 30 daily necessities, including small appliances, coffee, sunscreen and gas cans, will also be adjusted to between 9% and 30% from the previous 25% to 35%.
 
In terms of industrial raw materials, tariffs on PET plastics, copper pipes and textile raw materials have been reduced from a maximum of 35% to between 2% and 20%. This series of tariff reductions will greatly reduce the production costs of related industries and improve production efficiency.
 
In addition, the tariff reduction on 38 types of key machinery and equipment covers industrial furnaces, boilers, and specific engines that cannot be produced domestically, indicating that Argentina's manufacturing industry may usher in a new stage of technological upgrading and innovation. The government adopts a phased tax reduction strategy, such as gradually reducing taxes on automobile tires in four stages, to ensure orderly adaptation of the market and thereby stabilize expectations for policy effects.
 
 

The details are as follows:


① The tariff for small household appliances, such as fans, coffee machines, LED devices, heaters, kettles and electric ovens, will be reduced from 35% to 20%;


② Car tires, reduced from 35% to 16%;


③ Motorcycle tires, reduced from 35% to 20%;


④ PET and ABS plastic raw materials, including bottles, containers and white goods, dropped from 12.6% to 6%;


⑤ For textile raw materials, the import tariff of Lycra is reduced from 18% to 2%, and that of polyester fiber is reduced from 18% to 6%;


⑥ For other products, such as ground coffee, energy drinks or sunglasses, tariffs are reduced from 35% to 20%;


⑦ Tariffs on sunscreen and deodorant are reduced from 25% to 18%.

 

Lavini, Secretary of State for Industry and Trade at the Ministry of Economy of Argentina, said that this round of tariff reductions is part of the government’s package of measures to promote foreign trade.In parallel with the measures to reduce tariffs on refrigerators, washing machines, tires, plastic products, fertilizers and herbicides in May this year, it will further benefit industrial production and consumers.

 

Foreign traders working in these two markets must pay attention to tariff changes!