Recently, in the face of the continued devaluation of the domestic currency, the Real, and the prevention of imports, Brazil will increase the import tariffs on various commodities to meet the current economic development crisis. Among them, the tariffs for split-type air conditioners with large export volumes in Zhongshan will increase from 18% to 35%, and the tax rate will almost double. For Zhongshan Air Conditioning Export Co., Ltd., which originally suffered a market downturn in Pakistan, if the trade protection measures were introduced, air-conditioning exports would be subject to a "cold flow."
Increased tariffs on seven Brazilian products It is understood that the Brazilian Foreign Trade Commission recently announced a series of measures to limit imports to protect its domestic industry. The products with higher tariffs mainly include 7 kinds of goods such as bicycles and air conditioners. Among them, the main importers of 5 kinds of goods are China, including ceramic tiles (from 15% to 35%), bicycles (from 20% to 35%), split-type Air conditioning (from 18% to 35%) and so on.
Among the 7 products for which tariffs were raised this time, Zhongshan Air Conditioner is one of them. From January to August, Zhongshan exported approximately US$17.77 million to Brazil’s air conditioners, accounting for more than one-tenth of the total exports to Brazil, and Brazil’s export of split-type air-conditioners to increase tariffs amounted to US$15.390 million. 86.5% of air conditioner exports to Pakistan.
Some companies have exited the Brazilian market. Customs officials believe that once Brazil’s foreign trade restrictions are implemented, customs duties on split air conditioners will increase by 17%. Zhongshan’s air conditioner manufacturers will be affected even more. I’m afraid that some companies have withdrawn from the Brazilian market. This may, in turn, affect the confidence of Zhongshan companies in vigorously exploring the South American market. In view of this, Zhongshan enterprises, especially air-conditioning manufacturing enterprises, should take precautions when signing export orders, keep abreast of the country’s trade protection situation and reduce trade risks.
Increased tariffs on seven Brazilian products It is understood that the Brazilian Foreign Trade Commission recently announced a series of measures to limit imports to protect its domestic industry. The products with higher tariffs mainly include 7 kinds of goods such as bicycles and air conditioners. Among them, the main importers of 5 kinds of goods are China, including ceramic tiles (from 15% to 35%), bicycles (from 20% to 35%), split-type Air conditioning (from 18% to 35%) and so on.
Among the 7 products for which tariffs were raised this time, Zhongshan Air Conditioner is one of them. From January to August, Zhongshan exported approximately US$17.77 million to Brazil’s air conditioners, accounting for more than one-tenth of the total exports to Brazil, and Brazil’s export of split-type air-conditioners to increase tariffs amounted to US$15.390 million. 86.5% of air conditioner exports to Pakistan.
Some companies have exited the Brazilian market. Customs officials believe that once Brazil’s foreign trade restrictions are implemented, customs duties on split air conditioners will increase by 17%. Zhongshan’s air conditioner manufacturers will be affected even more. I’m afraid that some companies have withdrawn from the Brazilian market. This may, in turn, affect the confidence of Zhongshan companies in vigorously exploring the South American market. In view of this, Zhongshan enterprises, especially air-conditioning manufacturing enterprises, should take precautions when signing export orders, keep abreast of the country’s trade protection situation and reduce trade risks.