Chamber approves MP that extends customs incentive

The Chamber of Deputies approved, this Thursday (5), the Provisional Measure that extends for another year the deadlines of special drawback regimes, used by exporting companies.

The benefit covers exemptions, reduction to zero of rates or suspension of taxes. The text still needs to be analyzed by the senators.

The government’s intention with the proposal is to make Brazilian companies more competitive.

The Executive also said that, with the crisis triggered by the pandemic, many taxpayers are unable to meet the regime’s deadlines due to factors such as health restrictions imposed by different countries, which make exporting difficult.

Without the extension, companies would have to pay taxes on inputs used in production.

According to the preliminary opinion of the rapporteur, deputy Carlos Chiodini (MDB/SC), as of January 1, 2023, cargoes with imported goods under the of drawback.

The drawback allows the suspension of taxes on the acquisition, in Brazil or abroad, of raw materials used in the industrialization of products to be exported. The measure makes Brazilian companies more competitive, as they can buy components of equivalent quality to those of their competitors abroad.

The proposal also facilitates international trade, as it revokes a provision of Law 12,546/11 to allow the release of the import license of products before the conclusion of the investigation process of the informed origin.

The investigation is carried out by the Federal Revenue Service and aims to investigate cases of false declaration of origin of products from countries without a preferential trade agreement with Brazil (non-preferential origin).

The MP expires on May 24 and still needs to be voted on by the Senate.