On Wednesday, August 13, the Federal Government announced the “Brazil Sovereign” Plan, a set of emergency measures aimed at mitigating the economic and trade effects of the recently imposed U.S. surtaxes of up to 50% on various Brazilian products. Combining tax, credit, and export incentive instruments, the plan seeks to preserve the competitiveness of domestic companies—particularly micro, small, and medium-sized enterprises—while maintaining jobs and promoting market diversification.
Key measures designed to benefit the export sector include:
1.Extension of the Drawback Regime
• Twelve-month extension of the deadline for proving exports under the regime, without the imposition of fines or interest.
• Applies to companies with export commitments due through December 31, 2025.
• A significant benefit for companies with operations affected by the new tariff environment, avoiding tax assessments and preserving cash flow.
2. Deferral of Federal Taxes
• Temporary suspension of the enforceability of federal taxes for the next two months for the most affected companies.
• Intended to reduce immediate cash flow impacts, allowing for financial readjustment.
3. Expansion of the Reintegra Program
• Increase in the reimbursement rate of federal taxes to up to 3.1% (medium and large companies) and up to 6% (micro and small companies under the Acredita Exportação program).
• Effective until December 2026, with an estimated fiscal impact of up to BRL 5 billion.
• Aimed at partially offsetting the additional costs resulting from the surtaxes.
4. Credit Lines and Guarantee Funds
• Allocation of BRL 30 billion from the Export Credit Guarantee Fund (FGE).
• Capital injections of BRL 1.5 billion into the FGCE, BRL 2 billion into the FGI (BNDES), and BRL 1 billion into the FGO (Banco do Brasil).
• Priority given to SMEs that maintain employment levels.
5. Emergency Public Procurement
• Authorization for the Federal Government, States, and Municipalities to acquire products from affected companies at market prices through a simplified process, generating immediate domestic demand.
The implementation of these measures will require beneficiary companies to pay close attention to compliance with the formal requirements for maintaining the incentives, adherence to regulatory deadlines, and adjustment of their tax and customs controls. Furthermore, it will be essential to monitor the publication of secondary regulations detailing the eligibility criteria, operational aspects of the tax deferral, and simplified procedures for government procurement.