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According to recent information from the Ex Tarifário to NCM 8462.10.90 – Ex 18, valid until December 31, 2013, should be repealed in the coming weeks of September
The Ex-tarifário is a temporary regime to reduction in the tax rate of import, used in Brazil when there is no domestic production. Many essential machines to production in fastener industries, had Ex-tarifário; however, a company, "just a company", asked to Brazilian government its elimination because it claims to be able to produce any forming machines and thread rolling machines. In this case, who will buy machines will pay, on average, until 14% in substitution on previous tax of 2%.
According to J. B. Graef, CEO of SouthWind International, one of the most important company importing this kind of machines to Brazil, "this action, also unjust, is a 'reverse lever' in modernization on companies, and despite many customers pay more expensively, they will not buy internally, because it's a question of technology, mainly.
A simple example of the size of Brazilian market, used as the base of automaker manufacture: Brazil is placed forth in the world market on automobile sales (3.8 million units sold in 2012), and placed fifth in production (3.3 million in 2012). If we consider the model Golf from Volkswagen, with 293 thousand units produced in last year using 1.2 thousand fasteners, which means 1.5 billion fasteners are consumed, just to model. Obviously, everybody knows that fasteners are not used just in cars.
Actions like this made bad effects to our market. The closed market to protect Brazil does bad to Brazil, which was placed sixth in the world in number of protectionist measures in 2012.
