Import duty for sport and leisure inboard engine boats raised.
By Fernanda Teixeira Velloso. Brazilian government has approved a new import duty for goods that are affecting local companies. Leisure boats were included in a list of seven products issued by the country’s Chamber of Foreign Trade CAMEX.
Sports and leisure inboard engines boats import duty raised from 20 to 35 per cent, effective from September 15.
Dilma Rousseff’s government has made it clear that new measure does not put up with unfair competition. Alessandro Teixeira, executive secretary of Development, Industry and Foreign Trade, said during his visit to Geneva last week it is not about protectionism, “this is trade protection”.
Brazilian boatbuilders association ACOBAR welcomed the new regulation. “This action brings relief to the boat industry as it is based on an extensive use of workers and consequently create lots of jobs,” said ACOBAR president Eduardo Colunna. He also added: „We are always open to receive foreign companies that wants to settle here in Brazil thinking in a long term strategy.“
In 2010, Brazil led the expansion of imports in the world. With a growing economy and facing a looming recession in the rich countries, Brazil and other emerging economies has become a priority for companies willing to broaden market share around the world. Besides, the Brazilian high currency value Real has helped increase the competitiveness of foreign products in Brazil.
The new duty scheme comes as CAMEX approved the second annual review of the List of the Exception Common External Tax (Letec) from Mercosul.