Customs Codes for applying 0% VAT rate and Excise Tax exemption on imports

The Customs Authority (SENAE) issued Bulletin 71-2024 on April 12, informing foreign trade operators of the codes to be applied in the import of the following goods to avoid the payment of VAT and Excise Tax:

1.    Unmanned aerial vehicle (Drone)

Drones or unnamed aerial vehicles do not meet the definition of airplanes, light aircrafts, and helicopters; therefore, the import of this goods is not subject to Excise Tax.

When importing this type of goods, the release code 5779 must be included in the customs declaration.

2.    Animals for human consumption

The import of purebred breeding stock is taxed at 0% VAT rate when destined for human consumption at the end of their productive cycle, being slaughtered and commercialized as meat.

When importing this type of merchandise, the release code 0613 must be included in the customs declaration.

3.    Electric vehicles

The import of electric vehicles for private use, public transportation, and cargo is taxed at 0% VAT rate and is not subject to Excise Tax, provided they are duly homologated and registered by the National Transit Authority.

Electric vehicles are defined as those powered solely by electric energy sources and which battery charge uses exclusively this type of energy, producing zero direct polluting emissions. Those with self-generation systems with an internal combustion source, are not considered electric vehicles regardless of their configuration.

To apply the 0% VAT rate, the release code 0753 must be included in the customs declaration. And, to avoid the payment of Excise Tax, the code 5774 must be included.

If the releasing codes have not been registered during the import, the importer is entitled to request a refund of the amounts paid for these taxes.

In the following link you can review the complete text of the Bulletin: LINK