Decisions from the 217th Ordinary Meeting of the Executive Committee of the International Trade Chamber (GECEX) published in the Official Gazette

On August 8, 2024, the 217^th Ordinary Meeting of the Executive Committee of the Foreign Trade Chamber (GECEX) was held. The decisions made by the body were published in the Brazilian Official Gazette of Aug. 10^th, along with a notice from the Secretariat of Foreign Trade of the Ministry of Development, Industry, Trade, and Services (SECEX) concluding the special procedure for non-preferential origin verification.

See below further details regarding these publications.

Extension of anti-dumping duty – nitrile rubber

Resolution GECEX No. 626 has been published, extending for a period of up to 5 (five) years the definitive anti-dumping duty applied to Brazilian imports of nitrile rubber, commonly classified under subitem 4002.59.00 of the Common Nomenclature of Mercosur (NCM), originating from South Korea and France. The measure does not apply to liquid nitrile rubbers and nitrile rubbers in powder form produced by the despray drying process with a particle size equal to or less than 0.16 mm.

Nitrile rubber is used in applications where, in addition to good mechanical properties and/or good resistance to dynamic fatigue, good resistance to oils and/or gasoline, and good resistance to heat aging and to abrasion are also required. Thus, it is used in the general industry, automotive sector, and in the mineral oil sector.

The Petition was submitted by Nitriflex Indústria e Comércio S.A.

The definitive duties to be applied, for all origins subject to this review, are detailed in the following table:

Extension of anti-dumping duty – gloves for non-surgical procedures

Resolution GECEX No. 627 has been published, extending for a period of up to 3 (three) months, the provisional anti-dumping duty applied to Brazilian imports of gloves for non-surgical procedures, when originating from China, Malaysia, and Thailand.

Thai company Sri Trang Gloves (Thailand) Public Company Limited made the request, within the scope of the investigation of the dumping practice in exports to Brazil of gloves for non-surgical procedures for healthcare assistance, originating from the Republic of China, Malaysia, and the Kingdom of Thailand, commonly classified under the subitems of the Common Nomenclature of Mercosur (NCM) 4015.12.00, 4015.19.00, and 3926.20.00.

Amendments to Letec and the list of tariff reductions due to supply under the support of Mercosur Common Market Group Resolution No. 49/2019

Resolution GECEX No. 625 and Resolution GECEX No. 628 have been published, providing modifications to Resolution GECEX No. 272/2021, which had previously addressed changes to the Common Nomenclature of Mercosur (NCM) and the Common External Tariff (TEC) to adapt to the modifications of the Harmonized System (HS-2022).

The changes proposed by the newly published resolutions comprise inclusions and exclusions in the list of products referred to in Annex IV (Tariff reductions due to supply under the support of Mercosur Common Market Group Resolution No. 49/2019) and in Annex V (Letec – Acronym in Portuguese for List of Exceptions to the Common External Tariff) of Resolution GECEX No. 272/2021. More specifically, it comprises:

1. The exclusion of products encompassed in Sodium Heparin (NCM 3001.90.10), ampicillin (NCM 3004.10.11), polymyxin B (NCM 3004.20.79) – as described in the List of Exceptions to the Common External Tariff (LETEC) (Annex V of Resolution GECEX No. 272/2021) – with their subsequent inclusion in the list of tariff reductions due to supply under the support of Mercosur Common Market Group Resolution No. 49/2019 (Annex IV of Resolution GECEX No. 272/2021), with  maintenance of a zero rate (Annex IV of GECEX Resolution No. 272/2021).

2. The inclusion of the products (i) P-Xylene (NCM 2902.43.00), (ii) Sulfuric acid (2807.00.10), (iii) Crystalline chromium sulfate, obtained by inorganic reduction (2833.29.60), (iv) Glyphosate and its mono-isopropylamine salt (2931.49.14), (v) Containing ivacaftor (3004.90.69) and (vi) Colorless glass shards (7001.00.00) to the List of Exceptions to the Common External Tariff (LETEC) (Annex V of Resolution GECEX No. 272/2021), with application of zero rate for NCMs 2902.43.00, 2807.00.10, 3004.90.69; 3.8% for NCM 2931.49.14 and 3.6% for NCM 2833.29.60.

The Secretariat of Foreign Trade of the Ministry of Development, Industry, Trade, and Services (SECEX) will issue a complementary rule aiming to establish the criteria for the allocation of quotas established for the involved products.

Modifications in GECEX resolutions on tariff changes

Resolution GECEX No. 629 has been published, amending Annex I of Resolution No. 322/2022, responsible for the revocation and consolidation of regulatory acts that temporarily reduce to zero percent the Import Tax rates applicable to the so-called capital goods mentioned therein, under the Ex-tariff regime.

More specifically, Annexes I and II of the mentioned resolution provide the list of capital goods categorized by NCMs, to which ad valorem Import Tax rates have been changed to zero percent, until December 31^st, 2025.

The amendment set forth by the newly published Resolution determines the exclusion of 15 (fifteen) and the inclusion of more than 160 (one hundred and sixty) NCMs to this list of the so-called capital goods, concerning different categories of products.

Modifications in GECEX resolutions on tariff changes (Information Technology and Telecommunications Goods)

Resolution GECEX No. 630 has been published, amending Annexes I and II of Resolution No. 323/2022, responsible for the revocation and consolidation of regulatory acts that temporarily reduce to zero percent the Import Tax rates applicable to the Information Technology and Telecommunications Goods mentioned, under the Ex-tariff regime.

More specifically, Annexes I and II of the mentioned resolution provide the list of information technology and telecommunications goods categorized by NCMs, to which ad valorem Import Tax rates have been changed to zero percent, until December 31^st, 2025.

The amendment established by the newly published Resolution determines the exclusion of 6 (six) and the inclusion of 11 (eleven) NCMs to the annexes that contain this list of information technology and telecommunications goods.

Changes in the scope of GECEX Resolutions No. 322 e 323

Resolution GECEX No. 631 has been published, introducing changes to Annexes I of Resolutions GECEX No. 322 and No. 323, which reduce to zero the ad valorem Import Tax rates for Capital Goods or IT and Telecommunications Goods under the Ex-Tariff regime, without an equivalent national production. The products fitting these conditions are listed in the Annexes I of each Resolution. The new regulation determined the exclusion of Ex-Tariffs on capital goods and IT and telecommunications goods from more than 200 NCM categories in these lists.

Changes in the scope of GECEX Resolution No. 284

Resolution GECEX No. 632 has been published altering Annex I of the GECEX Resolution No. 284/2021, which regulates the reduction of the Import Tax rate for auto parts under the Ex-tariff regime, without equivalent national production. The new Resolution ordered:

1. The removal of products under NCM 8708.99.90, Ex 379 from Annex I of GECEX Resolution No. 284/2021, which contains the list of products with a reduced Import Tax rate. The removed category includes: “other parts and accessories for tractors and motor vehicles.”

2. The inclusion of products under NCM 8708.99.90, Ex 382 in Annex I, which contains the list of products with a reduced Import Tax rate under the Ex-tariff regime. This category encompasses: “Transmission and structural rear axle assembly for agricultural tractors with up to 74.6 kW of maximum power, 3650 kg of maximum mass, maximum speed of up to 40 km/h and maximum engine speed of up to 2800 rpm, with a maximum weight greater than or equal to 687 kg, but less than or equal to 735 kg, with a maximum length of 1659 mm from the engine coupling flange to the PTO output shaft, with a maximum width between rear axle flanges of 1540 mm or 1242 mm, with partially synchronized gearbox transmission with 24 forward and 24 reverse gears, with synchronized reverser and 2 lateral gear levers, with mechanically locking differential rear axle, with central power take-off shaft for front auxiliary traction (4WD), with 3-speed mechanically driven rear power take-off shaft (PTO), 540 rpm @ 2400 engine rpm (Normal), 540 E rpm @2200 rpm on the engine (Economic) and with direction of rotation synchronized with the machine's movement (Proportional), with maximum power equal to 67.1 kW, with epicyclic wheel reducers, with rear hydraulic lifter with capacity equal to 26 kN and preparation for the installation of auxiliary cylinders that increase the capacity to up to 32 kN.”

Approval of Risk Subscription Policy for Export Credit Insurance under the Support of the Export Guarantee Fund (FGE)

Resolution GECEX no. 633 has been published, approving the Export Credit Insurance (SCE) Risk Subscription Policy, under the support of the Export Guarantee Fund (FGE). The new policy will be a parameter for monitoring and following up on operations covered by the Fund, considering the responsibilities of the Export Financing and Guarantee Committee (COFIG) and the CAMEX Executive Secretariat (SEC).

The Resolution also establishes the terms required for contracts granting guarantees for operations under the SCE by a contracted company, such as the standards, procedures, parameters and conditions established by the boards linked to CAMEX for the set of activities associated with the SCE granting cycle, and the Risk Subscription Policy.

Additionally, the regulation authorizes SEC to adopt the administrative measures required to carry out activities related to the Policy and determines that proposals for changes to the models of pre-contractual and contractual instruments that formalize the granting of the SCE must be submitted for approval by SEC. Also, based on the information received from the CAMEX Executive Secretariat, COFIG will present a management report on the Policy to GECEX every six months, with information such as the loss ratio and the leverage of the Export Guarantee Fund.

GECEX partially grants reconsideration request regarding the extension of antidumping duty applicable to Brazilian imports of types of flat-rolled stainless steel

Resolution GECEX No. 634 was published today, partially granting the reconsideration request submitted by the National Association of Processors and Distributors of Stainless Steel (Aprodinox) against the GECEX Resolution No. 594/2024.

The resolution extended the term of the antidumping duty applied to Brazilian imports of flat-rolled austenitic stainless steels of the 200 series and martensitic stainless steels type 410, cold-rolled, with a thickness equal to or greater than 0.35 mm, but lower than 4.75 mm, commonly classified in subitems 7219.32.00, 7219.33.00, 7219.34.00, 7219.35.00 and 7220.20.90 of the Common Nomenclature of Mercosur (NCM), originating from China.

After the request for reconsideration has been partially granted, the Chinese producers and exporters listed below will have the anti-dumping duties specified below applied to them:

Conclusion of special procedure concerning the origin of offset printing plates

Resolution SECEX No. 344 has been published, announcing the conclusion of a special procedure for non-preferential origin verification concerning offset printing plates, commonly classified under NCM codes 3701.30.21 and 3701.30.31. The product was declared as manufactured by the company Graphic International Printing Material Co., Ltd.

Offset printing plates, the subject of the special procedure for non-preferential origin verification, are pre-sensitized aluminum plates, either analog or digital, for offset printing.

Company IBF Indústria Brasileira de Filmes S.A. requested the initiation of the special verification procedure.

After the evidentiary stage, it was determined that the imports of the product manufactured by GRAPHIC INTERNATIONAL PRINTING MATERIAL CO., LTD had not originated from Taiwan, but rather from People's Republic of China, which is subject to an anti-dumping duty.