Former Tariff

Former tariff is a tariff concession that reduces the rate of Import Tax of capital goods (BK) and computer goods (BIT) to 2% (compared to an average rate close to 14% for this type of product). This is an excellent benefit, especially considering that this reduction has an impact on the various subsequent taxes: IPI, PIS, COFINS and ICMS.

Unfortunately, from the importer’s point of view, this is often not an automatic benefit. Although the goods to be imported are marked with the “BIT” and “BK” recordings in the Mercosul Common External Tariff (TEC), a petition is usually required to qualify for the tax reduction benefit.

Unlike the Tariff Agreements, the benefit of the former tariff reaches loads produced in any country, but there is a restriction to its use: there can be no domestic production of the good.