Brazil Gradually Reduces Import Duties On Bicycles

According to foreign media reports, the Brazilian government announced in the official gazette on February 18, 2021 that RESOLU 0 GECEX N 159 will gradually reduce the current 35% import tariff on bicycles, which will be reduced to 30% from March 1, 2021. It will be reduced to 25% from July 1, 2021, and to 20% from December 1, 2021.

In 2011, Brazil included bicycles on the exception list of Mercosur's common external tariff, and raised the product tariff to 35%. After the implementation of this new tax reduction measure, Brazil will return to the Mercosur's common external tariff on bicycles of 20%. level. The Brazilian Bicycle Association (Alian a Bike) wrote to the Brazilian Ministry of Economy and Trade Commission (Camex) in November 2019 that the 35% tariff is simply incomprehensible for a global economy of the size of Brazil, and requested a reduction in tariffs.

Representatives of the Amazon state of the Brazilian Congress criticized the government’s decision to reduce import tariffs on bicycles, because the state’s Manaus Free Trade Zone (ZFM) is the concentration of bicycle production in Brazil. Therefore, the lawmakers said that the local industry factory and nearly 14,000 employees will be affected. , and is trying to persuade Economy Minister Paulo Guedes to reverse the measure.

In the first half of 2020, the import value of Brazilian bicycles and parts reached 88 million US dollars, while the export value did not exceed 1.7 million US dollars, and foreign parts and components accounted for 90%. AlianaBike also stated that the total amount of imported bicycles has never exceeded the national output of 8%, so there is no reason to implement such a high tariff; the 35% tariff greatly increases the price of bicycles in the Brazilian market, making it difficult for the public to obtain this product. In addition, the 20% tariff is still higher than the global average, citing World Trade Organization (WTO) data, listing such as: South Africa (7.5%), the United States (8%), China (14.4%), the European Union (14.5%) and Mexico (15%) bicycle import tariff; India tariff is the same as Mercosur's 20%.