Workers’ unions joined the country’s automakers to defend the maintenance of import taxes on so-called CKDs (imported vehicle parts) of Chinese electrified or electric cars assembled in Brazil. The tax benefit was terminated on January 31, after six months.
The National Association of Motor Vehicle Manufacturers (Anfavea), which represents automakers installed in the country, has been defending the return of the tax since last year, as the use of CDK brings the risk of low-quality industrialization (without all assembly processes (such as painting and stamping) being carried out in Brazil. This system is also limiting in the generation of jobs, says Anfavea.
The topic may be discussed again at the next meetings of the Chamber of Foreign Trade (Camex)
The Central Única dos Trabalhadores (CUT), Força Sindical, the Central dos Trabalhadores do Brasil (CTB), the National Confederation of Metalworkers (CNTM), the Interstate Federation of Metalworkers of Brazil (Fit Metal) and 14 other unions from the main regions of the country with automobile factories, including the Union of Metalworkers of ABC. On the side of business representatives, there are industrial federations such as Fiesp, Fiemg and Firjan.
Exemption lasted six months
Chinese electric cars assembled in Brazil through the CKD system, in which vehicles are imported completely disassembled (in parts) to be assembled in the country of destination, once again paid tax. The six-month exemption period given by the federal government ended on January 31st and there was no extension. Thus, the exempt quota regime (or reduced tariffs) for vehicle imports was terminated.
The government responded to a request from Chinese manufacturer BYD, which began local assembly of its vehicles at the Camaçari factory, in Bahia, last year — and benefited from the exemption. With this, these vehicles are once again part of the tariff increase schedule for imported electric and hybrid cars, which should reach a rate of 35% from January 2027.
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An Anfavea survey indicates that the automotive sector pays, on average, twice as much as the rest of the manufacturing industry, has more than twice the length of time in employment and demands a much higher level of education than other industrial sectors, in addition to having a character that induces research and development, and strategic knowledge.
“All these characteristics would be lost in a manufacturing model that only involved the assembly of kits on a large scale”, warned president Igor Calvet, in a note, which assesses that the adhesion of unions and trade unions to the Anfavea campaign signals unity in maintaining jobs.
