Fiesp (Federation of Industries of the State of São Paulo) criticized the decision by Gecex (Executive Management Committee of the Chamber of Foreign Commerce) to create new import quotas with a zero rate for electrified CKD and SKD vehicles (disassembled and semi-disassembled), a measure approved this Tuesday (23).
The agency maintained the schedule for increasing import tariffs for electric and hybrid vehicles.
From July this year, the rate for assembled electrified and SKD vehicles will increase to 35%, while the rate for CKD vehicles will rise from the current 14% to 35% in January 2027.
However, proposals were also made for electrified vehicles for a period of six months from July next year. They will be US$463 million – the same level that was in force until January this year, according to Gecex.
In a statement, Fiesp stated that it received the decision with concern and argued that the measure harms the industry installed in Brazil.
The entity maintains that the creation of new quotas contradicts previous decisions by Gecex itself, which had ended this mechanism.
For the federation, the change compromises legal security and regulatory predictability for companies that have invested in the local production of electrified vehicles.
“By unexpectedly changing the rules of the game, the federal government violates legal security, sabotages regulatory predictability and penalizes the entire Brazilian automotive chain,” stated the president of Fiesp, Paulo Skaf.
The discussion takes place amid efforts by automakers to expand national production of electrified vehicles.
While the government defends maintaining the tariff recovery schedule, the industry argues that the opening of new import quotas could reduce the competitiveness of investments made in the country and affect job creation and the development of the local automotive chain.