Information

This barrier is unrelated to the end of the transition period, following the United Kingdom's departure from the EU.

Public ID: PID-JGY5EG

Tariffs levied on whisky in Brazil, affecting UK alcoholic drinks exporters/investors

in Brazil

Trade barrier summary

Decree 8.950 of December 2016, establishes the IPI rates for every product based on its NCM - the Harmonised System (HS) code equivalent in the MERCOSUR trading bloc in the region. MERCOSUR is the Southern Common Market - a regional integration process, initially established by Argentina, Brazil, Paraguay and Uruguay, and subsequently joined by Venezuela and Bolivia - the latter market currently complying with the accession procedure. The IPI rate (imposto sobre produtos industrializados) is a federal excise tax on industrialised goods. Decree 8.950 stipulates that whisky (HS code 2208.30), as well as other alcoholic beverages that are mainly exported to Brazil - namely gin (HS code: 2208.50), vodka (HS code: 2208.60) and liqueurs (HS code:2208.70), need to have a 30% IPI rate.

In contrast, some Brazilian alcoholic drinks have a lower tax burden, for example: beer at 6%; wines from 10-20% and cachaça at 25%. Both cachaça and whisky have similar alcoholic percentages.

Sectors affected

  • Food and drink

Resolved

No

Date reported

31 January 2019

Last updated

1 June 2022

Public ID

PID-JGY5EG

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