Brazil: Extension of excise tax (IPI), products imported under new Mercosur common nomenclature
New IPI rates are effective in Brazil beginning 1 May 2022.
Products imported under new Mercosur common nomenclature
Brazil’s federal government issued guidance (Decree 11.021/2022 (31 March 2022)) regarding an excise tax (imposto sobre produtos industrializados—IPI) and reflecting a new common external tariff structure of the Mercosur* common nomenclature (nomenclatura comum do Mercosul—NCM).
*Mercosur is a regional trade association with five member countries: Argentina, Brazil, Paraguay, Uruguay, and Venezuela. Seven countries have associate status: Suriname, Guyana, Colombia, Ecuador, Peru, Chile, and Bolivia.
The NCM provides a 2022 harmonized tariff system, effective 1 January 2022. Practically speaking, with the NCM, there was a new harmonized system, but there was no corresponding action regarding the IPI rates—thus, resulting in uncertainty.
To resolve the issue, the federal government issued guidance to clarify that new IPI rates are effective in Brazil beginning 1 May 2022.
Read an April 2022 report (Portuguese) prepared by the KPMG member firm in Brazil
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.