Imported machine to have new rules
O Estado de S. Paulo - 03/31/2008
The expansion of investments in Brazil caused a growth of 68% in the imports of used machinery and equipment in 2007. The need to meet this increasingly specific demand led the Ministry of Development, Industry and Foreign Trade to open a public consultation to review the rules and make the importation of used and refurbished products become more agile. The Foreign Trade Secretary, Welber Barral, guaranteed that the permission to import will continue being granted only for capital goods not produced in the country or for equipments whose offer in the country is saturated. Until April 8th, the government will receive suggestions from the productive sector that will serve as a base for the elaboration of the new Administrative Rule. According to Barral, as the import orders are increasingly specific, the administrative procedures are taking longer and, in some cases, they become legal disputes. "We need to give transparency and rule predictability to the market". According to the data of the Secretariat of Foreign Trade, 18.7 thousand import licenses were released in 2006, corresponding to US$ 1.4 billion. In 2007, the number of licenses went to 23.2 thousand, resulting in purchases of US$ 2.3 billion. The increase is 23% in the amount of orders and 68% in their value. Barral said that the import orders go from spare parts to the transference of the entire line of production. Last year, according to the secretary, there was the move of an acrylonitrile plant (a substance used by the plastic industry) from South Africa to Brazil. It means foreign investments coming to the Country. Barral points out that only one other industry in the whole world - in Germany - produces the same type of material. The textile, aeronautical and naval sectors, besides the contractors lead the import orders for used machinery and equipment. According to the secretary, due to the great number of works in the Country, the queue to purchase new derricks, for example, takes from one to two and a half years, depending on the model. Therefore, some contractors are appealing to used products, found in auctions around the world, to meet their needs.