Vanessa De Lima C.

Mariantonia Mejia C.

RULES OF ORIGIN Brazil does not apply non-preferential rules of origin

MERCOSUR origin is determined using general or specific rules (foodstuffs, pharmaceuticals, textiles, steel, telecommunications, and informatics products)

There are general and specific LAIA rules of origin.

Non-originating materials are used in the production of a good The c.i.f. value of inputs from third countries does not exceed 50% of the f.o.b.

Less developed countries this percentage is 60%.

TARIFFSAll tariffs are ad valorem, levied on the c.i.f. value of the

imports.

Average applied MFN is 11.5%.

Brazil increased its applied tariffs for chemical products, footwear, and textiles and clothing.

STRUCTURE OF TARIFF SCHEDULE1. Total number of tariff lines 9,765

2. Non-ad valorem tariffs (% of all tariff lines) 0.0

3. Non-ad valorem with no AVEs (% of all tariff lines) 0.0

4. Tariff quotas (% of all tariff lines) 0.1

5. Duty-free tariff lines (% of all tariff lines) 8.3

6. Dutiable lines average tariff rate (%) 12.5

7. Domestic tariff "peaks" (% of all tariff lines)a 4.3

8. International tariff "peaks" (% of all tariff lines)b 26.3

9. Bound tariff lines (% of all tariff lines) 100.0

BINDINGS tariff is 30.2%, which comprises an average of 35.2% for agricultural goods and 29.6% for non-agricultural goods.

CONCESSIONS obtained through the "Ex Tarifário" mechanism.

EXEMPTIONSGoods imported under the temporary admission regime Goods and services imported into a free-trade zone or export zone

Tariff Quota: up to 20 products at a time.

Preferences:

Andean Community(Colombia, Ecuador, and Venezuela)

Cuba, Peru via preferential agreements.

Suriname via a partial scope agreement.

Extends tariff preferences to imports from Bolivia, Chile, and Mexico (FTA).

Guyana via the partial scope agreement under the framework of LAIA.

OTHER CHARGESAFFECTING IMPORTS

Internal taxes are levied on imports:

The industrial products tax (IPI)

The tax on the circulation of merchandise and on the supply of interstate transportation and communication services (ICMS)

Contributions to the social integration programme (PIS)

Finance social security (COFINS).

CONTINGENCY MEASURES

Antidumping

Products affected belong to basic industries such as plastics, base metals, chemicals, and machinery.

Countervailing duties

Products exported from India: stainless steel bars and PET film.

Safeguard

On all WTO Members, with the exception of MERCOSUR members

PROHIBITIONS, RESTRICTIONS, AND LICENSING

Wines

Grapes and grape juice

Toys that replicate firearms

Weapons and ammunitions

Endangered animals and plants

TECHNICAL REGULATIONS ANDSTANDARDS

The Ministry of Agriculture, Livestock and Supply (MAPA) animal and plant health.

SPS: livestock, fruits, vegetables, grains, plants, veterinary drugs, pesticides.

The Brazilian Health Surveillance Agency (ANVISA) protect human health Products imported and locally produced foodstuffs, tobacco, cosmetics, pesticides, and pharmaceutical products.

Brazil prohibits (imports, exports, and domestic commercialization):

Meat and other products from bovines fed with hormones.

Substances, natural or artificial, with anabolic characteristics.

The IPI, PIS, COFINS and IC MS are not levied on exports.

Export Taxes

NCM

HeadingProducts Destination Rate Legislation

Situation as at

August 2008

0801.31.00 Cashew nuts,

with shells

Any country 30% CAMEX Resolution No.

31, 20/10/03

Expired on 21/10/2005

2401, 2403 Tobacco and

its substitutes

Paraguay and Uruguay 150% Decree No. 3,646,

30/10/00

Revoked by Decree No.

5,492, 18/07/05

2402.20.00 Cigars South and Central

America and the

Caribbean

150% Decree No. 2,876,

14/12/98

In place

Brazil restricts:

Weapons and military equipment to Iraq, Ivory Coast, Liberia, Sierra Leone, and Somalia

Material and technology

Bovine meat/poultry

Accredited by Ministry of Agriculture accepted by the EUsafe exporters.

Exports of certain wood (pine, imbuia, and virola) is subject to specific rules IBAMA

PROHIBITIONS, RESTRICTIONS, AND LICENSING

EXPORT SUBSIDIESNO export subsides to agricultural products.

finance, insurance, and guarantees

The Export Financing Programme (PROEX)PROEX FinancingPROEX Equalization

BNDES-EXIM programmeProvides preferential export credits linked to domestic content.

PROMOTION ANDMARKETING ASSISTANCE

Brazilian Trade and Investment Promotion Agency (APEX-Brasil).

Charge of attracting foreign investment to Brazil.

INCENTIVES AND OTHERGOVERNMENT ASSISTANCE

Provide subsidies for the development of particular regions, and for research and development.

Brazil provides incentives and government assistance both at the federal and at the state level.

Incentives programmes represented some 0.39%.

FREE-TRADE ZONESEight free-trade zones

Production operations

Manaus in Amazonas

Commerce operations

Tabatinga, in Amazonas

Macapa/Santana in Amapá

Brasiléia and Cruzeiro do Sul, in Acre

Boa Vista and Bonfim, in Roraima

Guajará-Mirim, in Rondônia

GOVERNMENT PROCUREMENT

Brazil procurement is decentralized at three levels (federal, state and municipal).

Government procurement totalled R$22.2 billion.

The Ministries of Defence and of Transport expenditure (17% and 16.4%)

The Ministry of Education (14.5%)

The Ministry of Health (11.7%)

The Ministry of Finance (10.1%).

Brazil is NOT a party to the WTO Plurilateral

Agreement on Government Procurement (GPA).

The Brazilian government may not make a distinction between domestic and foreign-owned companies during the tendering process

INTELLECTUALPROPERTY RIGHTS

Brazil is a member of the World Intellectual Property Organization (WIPO) and a signatory to a number of intellectual property rights (IPRs) agreements.

Coverage Patents

Industrial designs

Utility models

Trade marks

Geographic indications

Copyright and related rights

Computer software

New plant varieties

Layout designs of integrated circuits

Undisclosed Information

SERVICESBrazil scheduled horizontal market access limitations on

the movement of natural persons, investment, commercial presence, and subsidies.

MERCOSUR Protocol of Montevideo on Trade in Services establishes a programme for the liberalization of intra-trade in services