The Drawback regime is one of the main mechanisms for encouraging exports in Brazil, providing tax relief on inputs used in the manufacture of goods destined for the foreign market.
By allowing the suspension, exemption or refund of taxes on inputs imported or acquired in the domestic market, the regime reduces costs, improves the competitiveness of Brazilian companies and encourages participation in international trade.
We highlight below the 5 main benefits of the Drawback Regime:
1. Suspension or exemption of federal taxes: Companies that adhere to the Drawback can obtain the suspension or exemption of taxes such as Import Tax (II), IPI, PIS and COFINS, significantly reducing tax costs.
2. Possibility of acquiring national inputs with reduced tax burden: The Drawback can also be applied to inputs acquired in the domestic market, encouraging the national industry and optimizing the production chain.
3. Improved cash flow: By suspending the payment of taxes on imports or purchases of inputs, companies can direct their resources to other strategic areas, increasing their liquidity.
4. Reduced logistics and operational costs: Exemption from taxes on the acquisition of inputs allows for greater investment in logistics, making exports more efficient and competitive.
5. Increased profit margin on exports: The tax savings provided by Drawback increase profit margins or enable price reductions, strengthening competitiveness in the international market.
Drawback is a strategic tool for exporters who wish to increase their global competitiveness. By reducing tax and operational costs, the regime favors market expansion and company profitability. However, to maximize its benefits, adequate tax planning and strict compliance with legal requirements are essential. With efficient management, Drawback can be a decisive differentiator for success in foreign trade.
