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Paraguay Import Regs.: Tariffs/Taxes

Paraguay copyright and trademark law on foreign registrations, import regulations such as labeling and marking requirement, prohibitions information, etc.

Paraguay Import Regs.: Tariffs/Taxes

Postby bridgat » Tue Nov 18, 2008 6:36 am

On July 10, 2001, subsequently maintained and expanded coverage, the GOP temporarily raised tariffs (CET rates) by 10% on selected HS categories of goods, mostly agriculture and textiles, but also some other goods including large electric generator sets. On September 4, the GOP modified the July 10 Decree 13.835, through the issuance of Decree 14.527, which in effect limited the impact of the tariff increase to those items (contained in the annex) that had tariffs of less than 10% prior to July 10, 2001. This surtax is extended to December 31, 2004 and is still in effect as of July 2007. The VAT on most goods going into Paraguay is 10% except for changes enumerated in next paragraph.

Law No. 2.421/04 (administrative reorganization and fiscal adjustment), and following its entry into force with respect to VAT (on 1 January 2006), a reduced rate of 5 per cent will be applied to the sale of certain household products such as rice, noodles, maté, edible oils, milk, eggs, raw meat and flour, iodized salt, agricultural products, firewood, round logs, pharmaceuticals, books, magazines, newspapers and other printed matter, loans and financing, and contracts for the assignment of assets or the disposal of real estate. Article 78 of Law No. 2.421/04 defines enajenación(disposal) as: any operation for value or without consideration which involves the handing over of goods with transfer of ownership, or which gives the recipients the right to dispose of them as if they were the owners. In all other cases, the rate will be 10 per cent. Two years after the entry into force of Law No. 2.421/04, the Executive can increase by one per cent per year, up to a level of 10 per cent (but not earlier than seven years after its entry into force).

Under Decree 2545 of May 12, 2004, the GOP established a revised tariff rate schedule for informatics and telecommunications products in HS Chapters 84, 85, and 90. This schedule is effective until 2010.

Additional Costs

Also, in 2001, the Government of Paraguay introduced a 10% duty surcharge on 332 tariff classifications, both industrial and agro-industrial products. This duty surcharge is still in effect as of June 2007 as there has been no change. The products cigarettes, cement, apparel and textiles, shoes, furniture, milk based products, fruits, cereals, vegetables, cooking oils, drinks, etc. All imports, including intra-Mercosur, are apparently affected by this decision.

A customs fee of 0.5% on the CIF is levied on all imported goods. In addition, a consular fee is applied for the compulsory endorsement of requisite import documents such as: commercial invoice; certificate of origin; or bills of lading for maritime, river, land, air or rail transport consignments. The consular fee varies between US$0.10 and 30 with the exception of imported cattle on the hoof, where the rate is 0.15 per cent. Law No. 1.844/01, as amended by Law No. 2.533/04. The consular fee is collected by Paraguayan consulates abroad.

A service fee of 1 percent to the Directorate of Civil Aeronautics, and of between 0.75 percent and 3 percent to the National Shipping and Ports Administration are paid on imports handled by these two agencies.

* Paraguay is a member of Mercosur (the Common Market of the South), a customs union comprised of Argentina, Brazil, Paraguay and Uruguay.

* Since 1995 Paraguay has applied the Mercosur Common External Tariff of 0-20% to all but 399 items on its list of exceptions. Subsequently, modified by later policy changes.

* The duties on these items are to converge to the Mercosur CET level by 2007.

Additional Internal Taxes

A selective consumption tax (Impuesto Selectivo al Consumo) applies only to certain products, whether imported or produced locally. The rates for this tax are set by Executive Decree, taking into account the maximum rates for each product under Law No. 2.421/04. Decree No. 4.344/05 lays down the rates currently applicable: 10 per cent in the case of tobacco products, 12 per cent for cigarettes; 5 per cent for non-alcoholic aerated beverages; 8 per cent for beer; 10 per cent for wine and liqueurs, with the exception of champagne or equivalent, to which a rate of 12 per cent applies. In the case of petroleum fuels, the applicable rate varies between 1 and 38 per cent depending on the product. A 38 per cent rate is applied to unleaded nafta (petrol) of 97 octanes or more; a 34 per cent rate is applied to leaded or unleaded motonafta (regular grade petrol) and alconafta (petrol and alcohol mixture) of 85 octanes or more, as well as to leaded or unleaded supernafta (premium grade petrol) of 95 octanes or more; a 20 per cent rate is applied to aviation fuel; 14.3 per cent for gas oil (diesel); 10 per cent for kerosene, fuel oil and liquid gas; 1 per cent for turbo fuel. The exceptions include a rate of 0.25 per cent for fuel oil imported by the National Cement Industry, until a quota of 55 thousand cubic metres has been filled (under Decree No. 282/03), and a 1 per cent rate for the deodorized propellant gas isopropyl butane (tariff heading 2711.19.90).

* Starting 2005, some new products are subject to the selective consumption tax, at rates of 1 or 5 percent.
Products

Selective Consumption tax rate
Perfumes, toilet waters and beauty and make-up products; precious or semi-precious stones and pearls; watches; and arms, ammunition and parts thereof
5%
Certain air-conditioning machines and appliances; electrical (household and other) appliances; data processing machines; magnetic or optical readers; photocopying machines; recorders, televisions, video monitors and projectors, cellular telephony devices and portable terminals
1%
Musical instruments and parts thereof; toys and games
0%
bridgat
 
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