Decree regulates extension of benefit to stimulate export amid tariff hike

On the evening of this Tuesday, 2, the Ministry of Development, Industry, Trade and Services (MDIC) published the ordinance that regulates the extension of the tax exemption period of the drawback suspension, for cases of export commitments affected by the tariff measures imposed by the United States on Brazilian products. The drawback is a mechanism created to stimulate exports, which offers the suspension or exemption of taxes on the importation of inputs that will be used in the production of items that will be exported. The measure is part of the contingency plan launched on the 13th by the federal government to aid Brazilian companies, the so-called Sovereign Brazil Plan. With the ordinance, companies that use the drawback suspension regime and that were affected by the tariff increase will have an additional year to complete the exports that had been contracted between July 9 and December 31, 2025 for the United States. The extra period avoids the collection of taxes, ...