On April 1st, 2013, Decree n. 7.971 was published, and changed the Table of IPI Rates (Tabela de Incidência do Imposto sobre Produtos Industrializados - “TIPI”), so as to modify the wording of the Complementary Notes of Chapter 87 (Automotive Vehicles, tractors and other road vehicles, their parts and accessories).
The IPI rates relative to ambulances, cellular cars and funeral cars (position 87.03) have been reduced to zero.
Moreover, the rates concerning passenger cars and mixed-use vehicles (8703.22.90 and 8703.23.90 Ex 01), have been set at 34% from 04.01.2013 until 12.31.2013, 38% from 01.01.2014 until 12.31.2017 and 8% after such date.
With respect to the passenger cars and mixed-use vehicles, running with alcohol or using alternatively or simultaneously gasoline and alcohol (flexible fuel engine), their rates have been set at percentages varying from 32% to 48% from 04.01.2013 to 12.31.2013, 37 to 48% from 01.01.2014 to 12.31.2017 and 7% to 18% after that, according to each product’s code.
The rates for vehicles with manual transmission designed for military utilization or agricultural work produced in Brazil (8703.32.10 and 8703.33.10) have also been changed to 39% from 04.01.2013 to 12.31.2013, 45% from 01.01.2014 to 12.31.2017 and 15% after that.
Finally, the Decree established rates varying from 0% to 55% in connection with tractors, automotive vehicles for transportation, passenger and race cars, cars used in the transportation of goods, chassis and trailers and semi-trailers (8701/8702/8703/8704/8706/8716), except the products classified as Exceptions and marked as “ Ex”.
(Decree n. 7.971, Mar. 2, 2013. DOU-I, Apr. 01, 2013. Available at: <http://www.planalto.gov.br/ccivil_03/_Ato2011-2014/2013/Decree/D7971.htm>. Access in: April, 2013).