I 20 I
Resolution 490 of November 16, 2018, determines the new emission limits for heavy duty trucks (Proconve P-8) for January 2022 and 2023. In addition, imported cars are required to obtain the “Certificate of Compliance with the Brazilian Transit Legislation” from the National Transit Department (DENATRAN).
Certain types of automotive vehicles need previous import authorizations from specific Government agencies, as follows: Bulletproof cars need authorization from the Brazilian Army; Imports of ambulances must be previously authorized by the National Agency of Sanitary Vigilance (ANVISA); whereas imports of agricultural machinery need authorization from the Agricultural Ministry.
There are also regulations aimed at safety issues such as the mandatory ABS equipment, airbags and performance of crash-tests. Such tests must take place in internationally accredited laboratories or labs monitored by Brazil’s Transit Department (DENATRAN) / National Metrology Institute (INMETRO). INMETRO also imposes mandatory certification on a wide range of aftermarket parts, including safety glasses, tires, horns, tires, bumpers, engine components and lamps.
In an effort to reach equivalent safety levels of the vehicles abroad, Brazil’s Transit Council, Contran listed a number of safety equipment that will be required in Brazil’s vehicles by 2022, such as stability controls (electronic brake controls); day lights; ISOFIX car seats, among others.
Barriers
Although there are no Brazilian automakers and the automobile industry consists of foreign-owned companies, the industry’s objectives are to make Brazil an automobile technology development country. In order to achieve this goal, the Brazilian Government has implemented a number of programs to stimulate automobile investments in the country. Examples of such programs include the “Inovar Auto”, which phased out in December 2017 and the recent “Rota 2030”. Both programs provide tax incentives for the automobile companies that develop technologies in Brazil.
The import tax rates applicable on automobiles in Brazil are as follows: Import Tax (II): 35% ; The Tax Over Industrial Products (IPI): ranges from 7 to 18%; State Tax: (18%); Social Taxes (PIS/PASEP + Cofins): 11.6%. The taxes in Brazil cascade, that means that additional taxes are added to the imported value plus tax, and form the basis for the incidence of the following tax. This method substantially increases the price of the imported product.
Imports of used vehicles, are only permitted for those above 30 years old, for exhibition or collection purposes. Imports of refurbished or used automotive parts are also not allowed into Brazil.
Barriers