Brazil increases tax on imported boats

Brazil increases tax on imported boats

Import duty for sport and leisure inboard engine boats raised from 20 to 35 per cent

The Brazilian government has approved a new import duty for goods deemed to be having an adverse impact on domestic businesses. Leisure boats were included in a list drawn up by the country’s Chamber of Foreign Trade CAMEX, of seven product sectors deemed to be most problematic. Effective from September 15, sports and leisure inboard engines boats will have their import duty raised from 20 to 35 per cent.

Alessandro Teixeira, executive secretary of Development, Industry and Foreign Trade, said that the measure was not protectionism, but rather “trade protection”.

Brazilian boatbuilders association ACOBAR welcomed the new regulation. “This action brings relief to the boat industry as it is based on an extensive use of workers and consequently create lots of jobs,” said ACOBAR president Eduardo Colunna. He also added: "We are always open to receive foreign companies that wants to settle here in Brazil thinking in a long term strategy."

In 2010, Brazil was one of the world's biggest importers. With its growing economy and recession looming once more in the traditional Western markets, Brazil has become a priority export destination for companies wishing to broaden market share around the world. The rising value of the Brazilian Real has also helped increase the competitiveness of foreign products in Brazil.


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