Brazil: Importing Used Cars can be Legalized

The bill, PL 237/2020, provides for the legalization of used car imports in Brazil. This Monday (13), the measure went through its first public hearing in the Chamber of Deputies.

With the approval of the project, any natural or legal person would be able to import a used car with less than 30 years of use or zero km.

Despite enabling the free market and even contributing to a reduction in the value of national vehicles, the measure was treated with concern at the hearing of the Commission on Road and Transport of the Chamber of Deputies.

Among the restrictions pointed out for not allowing the import of used vehicles, there are environmental issues, vehicle safety conditions and that the country ends up receiving vehicles considered as scrap in the countries of origin.

The import of used cars has been prohibited in Brazil since 1991, according to Ordinance No. 18 of the Department of Foreign Trade. The only exception provided for is for diplomatic cars and antique cars, for collector’s items or cultural purposes, as long as they are over 30 years old.

Bills 6468/2016 and 237/20, in progress, want to modify this limitation. The proposals aim to release imports to individuals and companies, almost without restrictions, with the justification of reducing the sale prices of new and used vehicles in the country.

The vice president of the Union of Automotive Vehicle Dealers of the State of Ceara, Jos Everton Fernandes, listed the positive and negative points of the new bill. Among the benefits, he bets on free competition and how this can impact the prices of national vehicles.