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It is an incentive to export that enables the suspension, exemption or refund of several taxes falling over imports which are directed to make the productive process, package for packing or to improve the presentation of goods addressed to export.

It reduces production costs providing the end product export at highly competitive prices. As a consequence, quality standards required by foreign buyers are kept.

The taxes suspended or exempted are as follows: I.I., IPI, ICMS, AFRMM, PIS /COFINS.

For further information and doubts, please contact our department specialized in that customs regime that will be at your disposal.

Green and Yellow Drawback

It consists in the suspension of Industrialized Product Tax (IPI), Social Integration Program (PIS) and Contribution to Social Security Financing (Cofins), in the acquisition of inputs or intermediate material in internal market by an industrial or trading establishment, for the industrialization of products addressed to export.

The green and yellow drawback was created by the Policy of Productive Development (PDP), launched in May of this year and will be one of the mechanisms used to reach the goal set by PDP of ranking Brazil among the top 20 biggest exporters in the world. Today the country is responsible for 1.17% of world exports and intends to reach 1.25% of total exported by 2010.

The new regime contributes for the cost reduction and for the growth of competitiveness of Brazilian products in foreign markets, as it will enable inputs acquired in internal market and employed in the production of exportable assets have the same tax treatment already granted for inputs imported, today benefited with the import drawback regime.

The government forecasts the tax treatment equality shall motivate the acquisition of national inputs and shall directly contribute for the production cost reduction and, consequently, the increase of Brazilian exports.

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Tel: 55 11 5586-4300 / 5586-4350
Fax: 55 11 5586-4343
E-Mail: marilice@vsantos.com.br
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