Originally published in the March 10 edition of World Tax Daily (Copyrights Tax Analysts)
Brazil’s official gazette of March 8 published the Foreign Trade Chamber’s (Câmara de Comércio Exterior, or CAMEX) Ordinance (Portaria) No. 15/2010, which lists all U.S. products that will be subject to increased import tax rates as retaliation for U.S. cotton subsidies.
The list includes dozens of products of various categories, including herrings, audio amplifiers, lipstick, and vehicles. The new import rates vary from 14 percent (for medications containing multiple antibiotics) to 100 percent (for certain cotton products). The rates are valid for 365 days and will become effective 30 days after the ordinance’s publication.
CAMEX officials said that increased import tax rates would account for only part of the retaliatory measures granted by the World Trade Organization, yielding only $591 million of the $829 million total. CAMEX officials said the remaining $238 million would be applied against services or intellectual property; an official announcement will be made by March 23.
David Roberto R. Soares da Silva