Posted On 06 Mar 2017
Balance-of-payments safeguards meet today (March 5, 2017) two years in the midst of importers’ expectations for the final process of tax breaks. The mechanism was supposed to end in June 2016. However, following the earthquake occurred on April 16, 2016, the government extended these restrictions for another year.
Last year, three partial rebates of the surcharges were made until October, but there are still 1 392 items with a 35% tariff and 844 with a 15% tariff. Among the taxed products are liqueurs, food, textiles, clothing, shoes, houseware, appliances, etc.
Since the implementation of the measure, imports have decreased. According to the Customs office, during its application in 2015, 2016 and 2017, some USD 1,586 million were raised, although the agency clarified that it had “no tax collection purposes.”
Between April and June 2017, the safeguards will be exempted, which implies that at the end of the first semester the measure will be fully lifted. That is why some importers preferred to wait until then to buy their products or clear customs. Juan Javier Sánchez, the owner of the Estuardo Sánchez stores, expects to make imports between April and May for houseware, school, beach, and other products.