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Database

Browse Database
Fiscal Restrictions

CHINA

Since 2013

Chapter Taxation & Subsidies  |  Sub-chapter Discriminatory tax regime on online services
VAT on online services
Taxes payable for online businesses are the same as those applicable to other Foreign Invested Enterprises in China. Thus, e-commerce businesses are required to pay value added tax at the same rates that regular businesses (17%).
Coverage Online and e-commerce businesses
Fiscal Restrictions

CHINA

Reported in 2013

Chapter Taxation & Subsidies  |  Sub-chapter Discriminatory tax regime on digital goods and products
ICT tax rebate
Chinese companies deemed to be “hi-tech‟ pay a preferential corporation tax rate of 15%.

For a company to benefit from the preferential rate, the following conditions should apply:
- it is registered in China,
- it falls within one of the priority hi-tech fields outlined by the government,
- it has over 10% of staff carrying out R&D activities,
- it has a certain proportion of R&D expenditure against sales,
- hi-tech products/services account for 60% of annual gross revenue, and
- it has independent IP rights or exclusive licenses.

Additionally, software products that are produced by the company themselves also attract tax rebates. These rebates reduce the effective VAT payments to about 3-6%.

Companies and trade organizations have reported these schemes as burdensome for the foreign ICT firms.
Coverage High-tech companies
Fiscal Restrictions

CHINA

Japan: initiation: 01.01.2005, extension: 31.12.2010; Korea: initiation: 01.01.2005, extension: 05.03.2013; EU & US: initiation: 21.04.2011; India: initiation: 13.08.2014

Chapter Tariffs and Trade Defence  |  Sub-chapter Antidumping, CVD & Safeguards
Antidumping measure
The duties of the specified products range from 7.9% to 9.1%, depending on the company. For India they range from 7.4% to 30.6%, depending on the company.
Coverage Product: Dispersion unshifted single-mode optical fibres (used e.g. for long-distance telephony and multichannel television broadcast systems) (HS code: 9001.1000); Countries: Japan, South Korea, European Union, USA, India
Fiscal Restrictions

CHINA

Initiation: 18.04.2007, extension: 18.04.2013

Chapter Tariffs and Trade Defence  |  Sub-chapter Antidumping, CVD & Safeguards
Antidumping measure
The duties of the specified products range from 15% to 40.83%.
Coverage Product: Paper for electrolytic capacitor (HS 480511, 480591); Country: Japan
Fiscal Restrictions

CHINA

ITA signatory? I II

Chapter Tariffs and Trade Defence  |  Sub-chapter Applied tariffs on digital goods
Average MFN rate
5.29%
Weighted average MFN rate
0.79%
Maximum tariff rate
35.00%
Coverage rate of zero-tariffs
53.33%

Coverage: Digital goods
Sources

Trading restrictions

BRAZIL

Since 1941

Chapter Online sales and transactions  |  Sub-chapter Online sales
Criminal Contravention Act
Internet and mobile gambling is prohibited under Criminal Contravention Act. Games of chance are also prohibited. Other games such as lotteries can only be run by the state.
Coverage Gambling sites
Trading restrictions

BRAZIL

Reported in 2015

Chapter Online sales and transactions  |  Sub-chapter Domain name (DNS) registration requirements
Domain rules (Regras do domínio)
Foreign companies can register a domain after a special registration, which requires a local legal representative, is finalized.
Coverage Horizontal
Trading restrictions

BRAZIL

Since 2009

Chapter Online sales and transactions  |  Sub-chapter Domain name (DNS) registration requirements
Brazilian law RDC 44/2009
Online pharmacies need to have a com.br domain.
Coverage Online pharmacies
Trading restrictions

BRAZIL

Reported in April 2016

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
De minimis rule
According to Brazil's de minimis rule goods with a value of up to 50 USD/36 SDR are exempted from taxes and duties collected by customs. The rule only applies for postal shipments.
Coverage Horizontal
Trading restrictions

BRAZIL


Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
UNCITRAL Model Law
Brazil has an e-commerce legislation, but it has not adopted UNCITRAL Model Law on Electronic Commerce nor on e-Signatures.
Coverage Horizontal
Trading restrictions

BRAZIL

Reported in 2014

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
Simplified Customs Clearance Rules
There is a duty fee of 60% for all goods imported through the Simplified Customs Clearance process used for express delivery shipments. There are also value limits for imported and exported goods sent through express services: 5,000 USD for exports and 3,000 USD for imports.
Coverage Express delivery
Trading restrictions

BRAZIL


Chapter Standards  |  Sub-chapter Product screening and testing requirements
Testing requirement
Brazil is a member of the System of Conformity Assessment Schemes for Electrotechnical Equipment and Components (IECEE), which is based on the principle of mutual recognition (reciprocal acceptance) by its members of test results for obtaining certification or approval at national level. However, it does not accept test data generated outside of Brazil, except in those cases where the equipment is physically too large and/or costly to transport. Therefore, virtually all testing for IT/Telecom equipment must be physically done in Brazil.
Coverage Vitually all IT/Telecom equipment (including everything from cell phones to optic cables)
Trading restrictions

BRAZIL

Since July 2011

Chapter Standards  |  Sub-chapter Product safety certification (EMC/EMI, radio transmission)
The National Institute of Metrology, Standardization and Industrial Quality (INMETRO) Decree No. 371 from December 29th 2009
Decree No. 371 introduced a new mandatory certification for IT Equipment (Voltage stabilizers) as of July 2011. Generally, testing must be performed in-country, unless the necessary capability does not exist in Brazil. Moreover, entities engaged in product testing and mandatory certification must be accredited by the National Institute of Metrology, Standardization and Industrial Quality (INMETRO).
Coverage IT Equipment (Voltage stabilizers)
Trading restrictions

BRAZIL

Since 2013

Chapter Quantitative Trade Restrictions  |  Sub-chapter Local Content Requeriments for commercial market
Local content requirement (Decree no. 7291)
On February 2013, Brazilian President Dilma Rousseff issued Decree No. 7291 that provides for tax breaks for telecommunication companies to build new networks if they acquire domestic machines, appliances, instruments and other equipment, as well as construction materials and labor. In such cases, VAT, PIS/PASEP (the contribution to the social integration plan), and COFINS (the contribution for social security financing) are not levied. In order to benefit from the tax incentives, companies had to submit their projects to the Ministry of Communications by June 30, 2013.
Coverage Products used in the construction of telecommunications infrastructure
Trading restrictions

BRAZIL

Reported in 2013

Chapter Quantitative Trade Restrictions  |  Sub-chapter Import restrictions
Import licensing (RADAR)
Brazil's import authorization system RADAR requires importers to possess, prior to importation, a RADAR licence in order to import goods into Brazil. The system comprises two types of RADAR licences: one which refers to imports up to a maximum amount of 150,000 USD within 6 months and one which does not refer to a defined maximum amount of imports within a specific time period, but to an estimated value which could not be exceeded substantially. Concerns have been raised at the WTO by Switzerland that the application procedures of the second type of licenses were lengthy and burdensome. Furthermore, reports from the Swiss industry indicated that companies could apply for an increase of the estimated import value, except for the region of Sao Paulo, where companies were required to apply for a new RADAR licence again, including the submission of all the necessary documentation. The US echoed these concerns.
Coverage Horizontal
Source
  • WTO Committee on Import Licensing, Minutes of the Meeting held on 22 April 2013, Document G/LIC/M/37, 2 September 2013