Industrial inputs face a tariff that Brazil adjusts to protect its own chemical and steel producers; fuels pay no duty but need an ANP licence and carry per-litre taxes that changed several times in 2026, with the latest rates shown as of October 2026. Here is how each works and where Paraguayan inputs fit.
For industrial inputs, Brazil is mostly a tariff story. Many chemicals, resins and metals pay moderate duties, but Brazil protects its petrochemical and steel industries with raised rates, quotas and anti-dumping duties, and those lists change every few months. Most of the other taxes — IPI, PIS, COFINS and ICMS — are creditable for a manufacturer, so the import duty and any trade-remedy duty are the costs that stick.
Fuels are a different world. Diesel and gasoline pay no import duty and no IPI, but only a company authorised by the oil regulator (ANP) may import them, every import needs ANP’s prior approval, and the federal and state taxes are charged once, at fixed amounts per litre, at the start of the chain. In 2026 the federal amounts have been cut several times, for weeks or months at a time, to cushion oil prices. The general tax mechanics are in our Brazil customs guide; this article covers what is specific to inputs and fuels.
| Group | Typical duty picture | What to watch |
|---|---|---|
| Chemicals and polymers (ch. 28–29, 39) | Mostly moderate, but a long list raised to between 9% and 20% | Gecex Resolution 963/2026 keeps the higher rates until 16 October 2027; anti-dumping on some resins and chemicals |
| Steel (ch. 72–73) | Quota-tariff system: 25% above the quota on many products | Anti-dumping on Chinese and Indian steel products |
| Fertilisers (ch. 31) | Most mineral fertilisers at or near zero | Registration of the importer and product with MAPA |
| Diesel and gasoline (ch. 27) | 0% | ANP authorisation, monophasic taxes, IPI not levied |
| Capital goods used to process inputs | 7.2% for many BK lines since 2026 | Ex-tarifário can bring the duty to 0% |
Chemicals and plastics are the clearest example. In 2024 Brazil raised duties on a long list of chemicals and polymers, many from 12.6% to 20%, and in October 2026 Gecex kept rates of between 9% and 20% on that list until 16 October 2027, with reduced rates for some specific uses identified as “Ex” lines. Steel has run on a quota-tariff system with 25% above the quota since 2024. Before you quote a Brazilian buyer, check the NCM against the latest Gecex resolutions and the anti-dumping list, not only the tariff schedule.
Two mechanisms can cut the duty. The Ex-tarifário gives a 0% (or reduced) duty to capital and IT goods with no equivalent Brazilian production, which matters for the machinery that processes inputs. And Mercosur allows temporary reductions where a product is in short supply in the bloc; these are granted by quota and period, on application by Brazilian users.
Law and practice: Gecex Resolution 963/2026 (chemicals and polymers, in force 17 October 2026 to 16 October 2027); Mercosur common external tariff; Ex-tarifário regime as described in our Brazil customs guide.
A Brazilian manufacturer importing inputs pays II, IPI, PIS, COFINS and ICMS at clearance and, in the non-cumulative regime, credits IPI, PIS, COFINS and ICMS against its own sales. The cash cost at the border is high; the final cost is the duty. Drawback suspends even the duty and the federal taxes on inputs used in exports, and bonded-warehouse regimes defer payment until the goods are used.
The traps are in the edges: a company in the Simples Nacional regime cannot recover most of these taxes; ICMS credits can accumulate in an exporter’s books and be slow to use; and from 2027 the CBS replaces PIS and COFINS with a broader credit, so contracts running past 2026 should say how tax changes are shared.
Importing oil products, natural-gas derivatives and biofuels into Brazil is a regulated activity. Under ANP Resolution 777/2019, which consolidated 25 earlier acts, a company needs two things:
Authorisation for the activity
A Brazilian company with an active CNPJ and state registration applies to the ANP with its registration form and articles. Authorised distributors and producers have a simpler route for their own products.
Prior approval of each import
Every import request is approved by the ANP before shipment and linked to the customs declaration as an LPCO, with origin, customs post, NCM, quantity and value.
Quality
The product must meet ANP specifications for its grade; non-conforming fuel can be refused or must be reprocessed.
Loss of authorisation
Inactivity for more than 180 days without justification, an inactive CNPJ or state registration, or breaches can lead to revocation.
Lubricants, LPG, asphalt and solvents each have their own ANP rules and product registrations; ethanol and biodiesel follow the biofuel rules and the biodiesel blending mandate applies to diesel sold at the pump. In practice, foreign suppliers sell to an ANP-authorised importer or distributor rather than import themselves.
Law and practice: ANP Resolution 777/2019 (foreign trade in petroleum derivatives, natural-gas derivatives and biofuels); ANP Resolution 680/2017 (quality control of imported products).
| Charge on fuels | How it works in 2026 | Status in October 2026 |
|---|---|---|
| Import duty | 0% on diesel and gasoline | — |
| IPI | Not levied on fuels | — |
| PIS/COFINS-Importação | Monophasic: charged once, at import or refinery, at fixed reais per cubic metre | As of October 2026: gasoline and hydrated ethanol at zero from 10 October to 9 November 2026 (Decree 13.134/2026). Diesel was at zero from 12 March to 31 May 2026 and has been charged again since 1 June. Check the current decree |
| CIDE-Combustíveis | Fixed reais per cubic metre; R$100/m³ is the standing rate on gasoline | As of October 2026: gasoline at zero from 10 October to 9 November 2026 (Decree 13.134/2026). Check the current decree |
| ICMS | Monophasic, one ad rem rate per litre or kilo for the whole country, collected once | Since 1 January 2026 (Confaz agreements 112 and 113/2025): gasoline R$1.57/l, diesel R$1.17/l, LPG R$1.47/kg |
Three features set fuels apart. First, PIS/COFINS and ICMS are monophasic: they are charged once, at the refinery or at import, and the rest of the chain does not pay them again. Second, they are ad rem — fixed amounts per litre or cubic metre, not a percentage of price. Third, ICMS on fuels is uniform nationwide since Complementary Law 192/2022: the states set one rate per litre for each fuel through Confaz, replacing 27 different percentages and tax-substitution chains.
CIDE-Combustíveis is a federal contribution on the import and sale of fuels, set per cubic metre by decree; the government uses it, with PIS/COFINS, as a lever on pump prices. In March 2026 the government zeroed PIS/COFINS on diesel (Decree 12.875/2026); that cut ran until 31 May 2026, and PIS/COFINS on diesel has been charged again since 1 June. The same package created a subsidy of R$0.32 per litre of road diesel for producers, importers and distributors, set to run until 31 December 2026 and paid through the ANP to those who sign an agreement with it. As of October 2026, Decree 13.134 of 9 October 2026 reduces PIS/COFINS on gasoline and hydrated ethanol, and CIDE on gasoline, to zero from 10 October to 9 November 2026. These measures are short and renewable, so check the current decree before each shipment, price fuel contracts on the rates in force on the date of import, and include a tax-change clause.
Law and practice: Complementary Law 192/2022 (single-phase ICMS on fuels); Law 10.336/2001 and Decree 5.060/2004 (CIDE); Decree 5.059/2004 as amended by Decree 12.875/2026 (diesel, to 31 May 2026) and Decree 13.134 of 9 October 2026 (gasoline and ethanol, 10 October to 9 November 2026); Provisional Measure 1.340/2026 and Decree 12.878/2026 (diesel subsidy); Confaz ICMS Agreements 112/2025 and 113/2025 (ad rem ICMS for 2026).
Many industrial chemicals are also drug precursors or dual-use products. The Federal Police controls listed chemical products under Law 10.357/2001: a company that imports, stores or uses them must be registered and licensed by the Federal Police, and each import needs prior authorisation, filed as an LPCO before shipment. Common solvents and acids are on the lists, and quantities above the exemption thresholds trigger the controls.
Federal Police
Registration and operating licence for listed chemicals; prior authorisation for each import; monthly reporting of movements.
Army
Explosives, some precursors of explosives and other controlled products need registration with the Army’s product-control system.
Other agencies
Pesticides and fertilisers (MAPA), and chemicals with health uses (Anvisa) have their own registrations.
Environment
Certain hazardous substances and waste need environmental agency (Ibama) clearance.
Law and practice: Law 10.357/2001 and its regulations by the Ministry of Justice and Public Security.
Paraguay imports all its fuel and has no refinery output to sell to Brazil, so the Paraguayan angle in this group is inputs. Goods with Mercosur origin enter Brazil at 0% duty — including the raised rates on chemicals and polymers — while IPI, PIS, COFINS and ICMS apply as usual. Paraguay may use up to 60% non-Mercosur materials and still certify origin until 2038, provided the product-specific rule is met.
In practice the flows are agricultural raw materials and industrial goods from the maquila regime: soybeans, maize and wheat, and wires and cables for the automotive industry, which reached Brazil under the maquila regime in large volumes in 2024. Anti-dumping duties are product- and origin-specific: a Paraguayan product with genuine origin is not caught by a duty on the Chinese product, but simple repackaging of Chinese goods does not confer origin and invites an anti-circumvention case.
Law and practice: Decrees 12.058 and 12.059/2024 (Mercosur origin regime); Ministry of Industry and Commerce of Paraguay, maquila reports.
Stale tariff
Quoting on last year’s rate when Gecex has raised the line or added an anti-dumping duty.
Ex lines
Claiming a reduced Ex rate without meeting its exact technical description.
Fuel tax timing
Pricing on a monthly cut that has lapsed by the time the cargo clears.
No ANP approval
Shipping fuel before the ANP has approved the specific import.
Controlled chemicals
Arriving without the Federal Police prior authorisation; the cargo is held.
Exact NCM; Gecex changes, anti-dumping and quotas.
ANP for fuels; Federal Police, Army, MAPA or Anvisa for listed chemicals.
Your own company or an authorised importer or distributor.
Ad rem fuel taxes at the month’s rate; credits for inputs.
Ex-tarifário, drawback, bonded warehouses.
Mercosur certificate for Paraguayan goods.
Decree 13.134/2026 (gasoline taxes) · Decree 12.875/2026 (diesel PIS/COFINS) · Decree 5.059/2004, consolidated (PIS/COFINS on fuels) · Mayer Brown: 2026 diesel measures · Movimento Econômico: ad rem ICMS on fuels for 2026 · NovaCana: ANP Resolution 777/2019 · NCM 2710.19.21 (diesel) rates · Folha PE: chemicals and polymers tariffs to 2027 · Law 10.357/2001 (controlled chemicals) · La Nación: Paraguayan maquila exports
0%. Fuels pay no IPI either; the burden is in monophasic PIS/COFINS, CIDE and ICMS, charged at fixed amounts per litre.
Only a company authorised by the ANP under Resolution 777/2019, and each import needs the ANP’s prior approval.
Since Complementary Law 192/2022, ICMS on fuels is charged once, at a single rate per litre or kilo set nationally: in 2026, R$1.57 per litre of gasoline, R$1.17 for diesel and R$1.47 per kilo of LPG, set by Confaz agreements.
A federal contribution on fuel imports and sales, set per cubic metre by decree. The standing rate on gasoline is R$100 per cubic metre; as of October 2026 it is zero from 10 October to 9 November 2026 under Decree 13.134/2026, so check the current decree.
Partly. PIS/COFINS on diesel was zero from 12 March to 31 May 2026 and has been charged again since 1 June. A subsidy of R$0.32 per litre of road diesel for producers, importers and distributors is set to run until 31 December 2026; check the current decree before pricing.
Brazil raised duties on a long list of chemicals and polymers to protect domestic producers; in October 2026 rates of 9% to 20% were kept until October 2027.
Yes. Listed precursors need Federal Police registration and prior authorisation for each import; some products also need Army, MAPA or Anvisa registration.
The full tax stack, RADAR, DUIMP and Paraguayan origin.
Brazil, Argentina, Chile, Peru, Colombia and Ecuador compared.
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