{"id":89938,"date":"2024-07-08T12:59:53","date_gmt":"2024-07-08T15:59:53","guid":{"rendered":"https:\/\/murray.adv.br\/?p=89938"},"modified":"2024-07-08T12:59:55","modified_gmt":"2024-07-08T15:59:55","slug":"auto-parts-industry-calls-for-stricter-regulation-on-imported-items","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/auto-parts-industry-calls-for-stricter-regulation-on-imported-items\/","title":{"rendered":"Auto parts industry calls for stricter regulation on imported items"},"content":{"rendered":"\n<h6 class=\"wp-block-heading has-text-align-center\"><em><strong>Union says some imported assemblies with tariff benefits include parts available in Brazil<\/strong><\/em><\/h6>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>07\/08\/2024 <\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/s2-valorinternational.glbimg.com\/x2TKncDLJqn7wCHdsb_pjKq8vsI=\/0x0:3592x2386\/984x0\/smart\/filters:strip_icc()\/i.s3.glbimg.com\/v1\/AUTH_37554604729d4b2f9f3eb9ad8a691345\/internal_photos\/bs\/2024\/6\/z\/rvKA7MTwGFW8uvweCQbg\/040107claudio4.jpg\" alt=\"Claudio Sahad \u2014 Foto: Silvia Zamboni\/Valor\" style=\"width:496px;height:auto\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center\"><em>Claudio Sahad \u2014 Foto: Silvia Zamboni\/Valo<\/em>r<\/p>\n\n\n\n<p>The automakers\u2019 attempts to bring forward the imposition of the maximum import tax rate on&nbsp;<strong>electric and hybrid cars<\/strong>&nbsp;gained support this week. Representatives of the auto parts industry raised their concerns with Vice President&nbsp;<strong>Geraldo Alckmin<\/strong>. The auto parts sector is advocating for the creation of mechanisms to prevent items from entering the country under the so-called \u201cEx-tarif\u00e1rio\u201d regime\u2014a temporary reduction of the&nbsp;<strong>import tax<\/strong>&nbsp;on certain goods when there is no equivalent domestic production.<\/p>\n\n\n\n<p>However, according to the president of the National Union of the Components Industry (<strong>Sindipe\u00e7as<\/strong>), Claudio Sahad, when an import involves an assembly of parts, there is currently no way to verify if all the items in that assembly could not be sourced domestically. Sindipe\u00e7as has offered the government support for this type of action.<\/p>\n\n\n\n<p>According to Mr. Sahad, the number of items in the sector on the list of benefited products increased to 3,000 in 2021 from 100 in 2010 and is now at 8,500. The sector also advocates for deadlines for products to be included in the regime. \u201cOnly by setting deadlines will we be able to stimulate development and production in the country,\u201d he said.<\/p>\n\n\n\n<p>Mr. Sahad also mentioned that the sector hopes that, over time, Chinese brands that have announced plans to produce in Brazil, such as&nbsp;<strong>BYD<\/strong>&nbsp;and&nbsp;<strong>GWM<\/strong>, will adopt local sourcing. Initially, the vehicles will be assembled with kits of parts brought from China. \u201cWe can attract battery manufacturers, especially for the hybrids that will be produced in Brazil.\u201d<\/p>\n\n\n\n<p>On Wednesday afternoon, Mr. Alckmin included the ministry\u2019s team in the meeting with Sindipe\u00e7as. In addition to complaints about parts, the organization, which represents over 500 companies, requested not only the advancement of the import tax increase on hybrid and electric cars but also the consideration of further increasing the rate for these vehicles. \u201cWe are in a new global context; Europe has increased the import tax on electric cars by 48%,\u201d he said.<\/p>\n\n\n\n<p>A gradual increase in the import tax for these vehicles has been in effect since January. This month, the rate for fully electric cars rose to 18% and for hybrids to 20%.<\/p>\n\n\n\n<p>The escalation continues until July 2026, when the tax will reach 35% for all vehicles coming from countries with which Brazil does not have a free trade agreement, regardless of the type of energy used.<\/p>\n\n\n\n<p>On Thursday, it was the automakers\u2019 representatives\u2019 turn to revisit the issue. The defense of mechanisms to curb the influx of Chinese vehicles was the main topic of the traditional monthly press conference held by the National Association of Vehicle Manufacturers (<strong>ANFAVEA<\/strong>).<\/p>\n\n\n\n<p>In an attempt to show internal unity, the association invited Ciro Possobom, CEO of&nbsp;<strong>Volkswagen<\/strong>&nbsp;do Brasil, to also share his opinion.<\/p>\n\n\n\n<p>\u201cIf you want to sell cars here, come play here,\u201d said Mr. Possobom, positioned in front of a soccer field image projected on the meeting room screen at ANFAVEA. According to him, the sector estimates that 450,000 vehicles will be imported in 2024. \u201cThat\u2019s a lot,\u201d he said.<\/p>\n\n\n\n<p>The executive argued that the domestic industry should receive incentives to produce locally what is currently imported. He also said that imports increase as exports decline. In the first half of the year, external vehicle sales totaled 165,300 units, a 28.3% drop compared to the first half of 2023.<\/p>\n\n\n\n<p>\u201cWe must be very careful with what\u2019s happening,\u201d Mr. Possobom said. \u201cThe market is growing, but production remains the same.\u201d From January to June, 1.14 million vehicles were licensed, a 14.6% increase compared to the same period in 2023. In June alone, sales growth reached 13.1% compared to the same period, with 214,300 units sold. The daily sales average of 10,700 units returned to pre-pandemic levels.<\/p>\n\n\n\n<p>On the other hand, accumulated production in the first half\u20141.12 million vehicles\u2014showed a small increase of 0.5% compared to the same period in 2023. However, in June, the pace of assembly lines accelerated, with an 11.6% increase and 211,000 vehicles produced.<\/p>\n\n\n\n<p>ANFAVEA President M\u00e1rcio de Lima Leite described the import result as \u201cunrestrained,\u201d with 197,600 units imported in the first half. According to Mr. Leite, 78% of these imports came from China. In one year, the market share of Chinese brands in Brazil increased to 26% from 7%.<\/p>\n\n\n\n<p>The executives also pointed out the loss of competitiveness in Latin America, where, according to them, Asian vehicles enter without paying taxes in several countries. According to Mr. Possobom, half of the vehicles imported by Brazil\u2019s Latin American neighbors come from Asia.<\/p>\n\n\n\n<p>Mr. Leite then showed a map illustrating the decline in Brazil\u2019s share of vehicle sales in neighboring countries. In one year, Brazil\u2019s share fell to 5.3% from 8.9% in Mexico and to 17% from 22.6% in Colombia.<\/p>\n\n\n\n<p>\u201cWe risk this impact causing factory closures in the second half,\u201d said ANFAVEA\u2019s president.<\/p>\n\n\n\n<p>On the commercial vehicle side, support came from&nbsp;<strong>Iveco<\/strong>&nbsp;CEO Marcio Querichelli. According to him, two-thirds of the trucks sold in markets like Chile, Peru, Colombia, and Ecuador are of Asian origin.<\/p>\n\n\n\n<p>ANFAVEA used the meeting to revise projections. The association predicts higher-than-expected internal market expansion. In January, it forecasted 6.1% growth in 2024, totaling 2.45 million units. The new projection indicates 2.56 million, a 10.9% increase. Executives attributed the increased demand to lower interest rates.<\/p>\n\n\n\n<p>On the other hand, the decline in exports will reduce production. In January, ANFAVEA expected a 6.2% production increase this year, totaling 2.47 million. The new projection indicates 2.44 million, a 4.9% increase.<\/p>\n\n\n\n<p>The most drastic revision was in exports. The association initially expected a slight growth of 0.7%. Now, it forecasts a 20.8% drop in shipped volumes, totaling 320,000 units.<\/p>\n\n\n\n<p>*Por Marli Olmos\u00a0\u2014 S\u00e3o Paulo<\/p>\n\n\n\n<p>Source: Valor International<\/p>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/valorinternational.globo.com\/\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Union says some imported assemblies with tariff benefits include parts available in Brazil 07\/08\/2024 Claudio Sahad \u2014 Foto: Silvia Zamboni\/Valor The automakers\u2019 attempts to bring forward the imposition of the maximum import tax rate on&nbsp;electric and hybrid cars&nbsp;gained support this week. Representatives of the auto parts industry raised their concerns with Vice President&nbsp;Geraldo Alckmin. The [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[25255,25256],"class_list":["post-89938","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-auto-parts-industry","tag-stricter-regulation-on-imported-items"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Auto parts industry calls for stricter regulation on imported items - Murray Advogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murray.adv.br\/en\/auto-parts-industry-calls-for-stricter-regulation-on-imported-items\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Auto parts industry calls for stricter regulation on imported items - Murray Advogados\" \/>\n<meta property=\"og:description\" content=\"Union says some imported assemblies with tariff benefits include parts available in Brazil 07\/08\/2024 Claudio Sahad \u2014 Foto: Silvia Zamboni\/Valor The automakers\u2019 attempts to bring forward the imposition of the maximum import tax rate on&nbsp;electric and hybrid cars&nbsp;gained support this week. Representatives of the auto parts industry raised their concerns with Vice President&nbsp;Geraldo Alckmin. 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Representatives of the auto parts industry raised their concerns with Vice President&nbsp;Geraldo Alckmin. 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