The Ex-Tariff regime is a tax benefit applied in Brazil, which consists of the temporary reduction of the Import Tax (II) rate for capital goods (BK) and IT and telecommunications goods (BIT) that do not have a similar national product. This incentive is granted with the objective of stimulating investments in sectors that require technology and equipment not available in the local market.

Here are some of the main benefits of the Ex-Tariff regime for imports:

• Cost reduction: The import tax rate can be reduced to 2% (or even eliminated), which significantly reduces the final cost of the imported product. This favors the company's competitiveness in the domestic and foreign markets.

• Incentivo à modernização: O Ex-Tarifário facilita a aquisição de máquinas, equipamentos e tecnologias de última geração, permitindo que as empresas modernizem seus processos produtivos e aumentem a eficiência.

• Fomentar el desarrollo económico: Las empresas que tienen acceso a bienes importados con exenciones o reducciones de impuestos tienden a crecer y generar más empleos, contribuyendo al desarrollo económico del país.

• Stimulates foreign investment: The regime facilitates access to advanced technology, which can attract investment from international companies interested in expanding their operations in Brazil.

• Improved production capacity: With the easy import of modern, high-performance equipment, companies can expand their production lines and increase their capacity to meet market demands.

• Bureaucratic simplification: Although it is necessary to request the application of the Ex-Tariff, the process is relatively agile and simple, providing an efficient way to reduce tax burdens on imports.

The Ex-Tariff regime is, therefore, an important tool for increasing the competitiveness of companies operating in sectors that require advanced technologies and that do not have domestic production alternatives.