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Uruguay applies tax benefits on its border with Brazil

Montevideo, Dec 1 (Prensa Latina) Uruguay begins implementing new tax benefits for businesses on the border with Brazil today, aiming to reduce the unfavorable exchange rate difference.

This follows the implementation of a law passed in August that granted the government the power to define how and where to apply measures designed to mitigate the price difference with neighboring countries.

In mid-November, the Executive Branch issued regulations for its application.

Merchants will be able to permanently import certain types of merchandise, tax-free, through a simplified system and without the need for a customs broker, explained Alejandro Gómez, Chief Coordinator of the Northern Zone Operational Division of Customs.

He specified that the imported merchandise will only be allowed through land border crossings and noted that the program covers a radius of up to 60 kilometers from the border point.

The authorized border crossings are Artigas, Bella Unión, Rivera, Aceguá, Río Branco, and Chuy.

He added that companies must be properly registered and will have to comply with the relevant legislation; all merchandise will be inspected by Customs.

For his part, the Undersecretary of the Ministry of Economy and Finance, Martín Vallcorba, announced that the government is considering extending the tax benefits to the western coast, on the border with Argentina, after observing the results of their implementation on the border with Brazil.

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