Extension of drawback suspension deadlines in Brazil
Date of publication: September 14, 2026.
Overview
The Brazilian government has enacted two regulatory measures to address the impact of additional tariffs imposed by the United States on Brazilian products. These measures, Provisional Measure 1.386 and Secex Ordinance 536, allow for an extension of up to 12 months for the suspension of taxes related to drawback suspension concession acts affected by these tariffs. The Provisional Measure has been effective since August 25, 2026, and the Ordinance since August 26, 2026.
Objective
These regulations aim to mitigate the financial impact on Brazilian exporters who have been affected by the U.S. tariffs announced in July 2026 under Section 301 of the Trade Act of 1974. The additional tariffs have made exporting to the U.S. more costly and, in some cases, unfeasible, threatening the commitments made under the drawback suspension regime.
Drawback suspension regime
The drawback suspension regime, as defined by Article 12 of Law No. 11.945 of June 4, 2009, allows companies to suspend taxes on the purchase of inputs in exchange for a commitment to export the final product within a specified period. Failure to meet this commitment due to market barriers can result in the reactivation of suspended taxes, along with interest and penalties.
Eligibility criteria for extension
To qualify for the extension, companies must meet the following conditions:
- Proven Impact: The export commitment must have been demonstrably affected by the U.S. tariffs.
- Previous Extension Granted: Companies that are within their first concession period without any prior extension granted by Decex are not eligible.
- Specific Expiry Window: The final term of the tax suspensions linked to the concession act must fall between July 22 and December 31, 2026.
- Open Process: The concession act must still be under review and not yet concluded.
Eligible products
The extension applies only to products subject to the additional tariffs. Companies must demonstrate that their concession act, as of August 25, 2026, included export commitments for items not exempt from these tariffs, according to the U.S. presidential memorandums dated July 15 and 23, 2026.
Documentation requirements
To prove the intention to export to the U.S., companies must provide contracts, offers, proposals, or any commercial negotiation records dated before August 25, 2026. These documents must clearly identify the product, the U.S. buyer, and the Brazilian exporter.
Indirect exporters
The regulations also apply to indirect exporters, such as intermediate manufacturers and trading companies. Intermediate manufacturers must prove their relationship with the final exporter through contracts or invoices dated before August 25, 2026. Trading companies can demonstrate their commercial intent following the conditions set by Secex Ordinance 536/2026.
Application process
Requests for extension must be submitted to Decex via the Siscomex Electronic Document Attachment Module. The process involves:
- Identifying concession acts with expiry dates between July 22 and December 31, 2026.
- Confirming previous extensions and pending closure reviews.
- Cross-referencing exported items with U.S. tariff exemption lists.
- Gathering relevant commercial documentation.
- Drafting and submitting the request to Decex, including concession act numbers and affected export items.
Important considerations
Companies must be mindful of two concurrent deadlines:
- The concession act's expiry date, as the request must be submitted before the act is closed.
- The validity of the Provisional Measure, which lasts for 60 days, extendable by another 60 days, and requires conversion into law to remain effective.
Failure to act may result in the reinstatement of suspended taxes, impacting cash flow and regulatory compliance.
Conclusion
These regulatory measures provide affected companies with an opportunity to reorganize their export strategies without the immediate financial burden of reinstated taxes. By extending the suspension period, companies can explore alternative markets or adjust their operations to mitigate the impact of U.S. tariffs. It is crucial for eligible companies to act promptly, ensuring all documentation is in order and submitted within the specified deadlines. This strategic use of the extension can safeguard against potential cash flow disruptions and maintain compliance with export commitments.
This article is for general informational purposes and does not constitute legal advice. Companies should consult trade counsel regarding the specific implications for their operations.
For more information on how ONESOURCE Global Trade solutions can assist you in managing supply chain risk, tariff challenges, and regulatory compliance, please contact your Account Manager or Customer Success Manager.