1. Overview

As the largest country in South America, Brazil has a developed economy and a relatively mature automobile industry. It is the largest automobile market in South America. With the continuous development of the economy and the increase in residents' income, the Brazilian automobile market is also expanding. China has ranked second in the Brazilian automobile import market since 2021, second only to Argentina, showing the competitiveness of Chinese automobiles in the Brazilian market.

In recent years, the Brazilian federal government has introduced a number of policies and regulations aimed at promoting the development of the country's automotive industry, while also regulating and supervising the import of automobiles. These policies include the "green" Rota 2030 plan, import tariff adjustments, and strict environmental protection and safety certification systems. The following will detail the relevant policies, regulatory agencies, and technical regulations for the import and export of automobiles in Brazil.

II. Related Policies

1. Green Rota 2030

In order to stimulate the sustainable development of Brazil's automotive industry, the Brazilian federal government launched the "green" Rota 2030 plan. The plan aims to encourage automakers and suppliers to reduce carbon emissions by 50% by 2030 through tax incentives. Specific measures include:

(1) Tax incentives:Tax exemptions and reductions are granted to enterprises that meet environmental protection standards.
(2) Carbon emission targets:It stipulates that all companies in the automotive industry chain must reduce carbon emissions by 50% by 2030.
(3) Technical R&D support:Provide financial support to enterprises that develop new energy and energy-saving technologies.

2. Adjustment of import tariffs on electric vehicles

The Brazilian government plans to gradually increase import tariffs on electric vehicles (including pure electric and hybrid) and establish zero-tax quotas. The specific measures are as follows:

(1) Tax rate adjustment:It is planned to gradually increase import tariffs on electric vehicles to 35% by 2026.
(2) Zero-rated quotas:A zero-tariff import quota will be established during the transition period, but will be reduced year by year until it is completely abolished in 2026.

This policy aims to protect the country's automobile industry while encouraging domestic companies to increase investment and research and development in electric vehicle technology.

III. Regulatory Agencies

Brazil's automotive regulatory agencies mainly include the following departments:

(1) Brazilian Institute of Environment and Renewable Resources (IBAMA):Responsible for monitoring the environmental performance of vehicles and issuing the vehicle environmental protection certificate LCVM.
(2) Brazilian National Environmental Council (CONAMA):Formulate regulations and amendments on automobile air pollution control.
(3) Center for Environmental and Health Technology of S?o Paulo State (CETESB), Brazil:The only authorized testing agency for automotive environmental standards.
(4) Brazilian Federal Ministry of Transportation (DENATRAN):Responsible for vehicle safety and identification, issuing CAT certificates, and managing vehicle registration and licensing.
(5) Brazilian Federal Transport Commission (CONTRAN):Issue relevant technical regulations on the manufacture and use of automotive products.
(6) Brazilian Federal Institute of Metrology, Standardization and Industrial Quality (INMETRO):Responsible for formulating technical standards for parts and components and issuing certifications.

Process of obtaining LCVM and CAT certificates

1. LCVM certificate (Vehicle Environmental Protection Certificate)

(1) Baseline test:Including emissions, noise, and OBD (on-board diagnostic system) tests.
(2) Product Document Analysis:Submit product documentation to CETESB and prepare test reports in Portuguese.
(3) Witness test:It is carried out in a local accredited laboratory in Brazil with the participation of engineers from IBAMA and CETESB.
(4) Certificate issuance:LCVM certificate issued by IBAMA.

2. CAT certificate (vehicle safety certificate)

(1) Safety testing:It must be carried out in an accredited laboratory.
(2) Test report:Submit product documentation to DENATRAN.
(3) Product Document Review:Audited by DENATRAN.
(4) Certificate issuance:A CAT certificate is issued by DENATRAN for each type/variant.

IV. Technical Regulations

Brazil's vehicle access system draws on the vehicle access systems of the United States and Europe, and has a strict access process for imported vehicles. Brazil's automobile regulations mainly include two parts: environmental regulations and safety regulations.

1. Environmental certification

Environmental certification is divided into emission certification and noise certification. Vehicles must pass relevant tests of IBAMA and CETESB to obtain LCVM certificates.

2. Security certification

Safety certification includes three parts: general safety, active safety and passive safety. The vehicle needs to undergo safety testing in a laboratory approved by DENATRAN and obtain a CAT certificate.

3. Component certification

Brazilian motor vehicle certification includes vehicle certification and parts certification. Vehicle certification is divided into environmental certification and safety certification. Any vehicle entering the Brazilian market must undergo safety and environmental tests, and finally issue a test report or corresponding standard certificate to the government review and approval agency.

4. INMETRO certification

INMETRO is mainly responsible for the certification of components. Products that require mandatory certification must be accompanied by the INMETRO logo and the logo of an approved third-party organization before they can enter the Brazilian market.

5. Brazil’s Automobile Certification System

Brazil's motor vehicle certification system is relatively unique and complex, and is divided into vehicle certification and component certification. Vehicle certification includes environmental certification and safety certification. The specific process is as follows:

1. Vehicle environmental certification

Imported vehicles must be certified by IBAMA and issued an LCVM certificate before they can obtain Brazilian import qualifications and complete customs clearance. The LCVM certificate is valid for one calendar year, and the vehicle manufacturer or importer must report relevant sales to IBAMA and its technical partner (CETESB) every six months.

2. Vehicle safety certification

Brazilian safety certification accepts the corresponding American and European standards, which can be in the form of certificates or reports issued by third-party certification bodies, such as European standard certificates or reports issued by EU certification bodies (TUV, VCA). Brazilian safety certification gradually follows the example of US NHTSA certification and transforms into self-declaration certification.

3. INMETRO certification of parts

INMETRO certification is divided into product certification, service certification, procedure certification, etc. Products that require mandatory certification must be accompanied by the INMETRO logo and the logo of a third-party organization approved by INMETRO before they can enter the Brazilian market.

4. ANATEL certification of parts

ANATEL certification is an electromagnetic compatibility certification for electronic telecommunications products, which is mainly recognized by ANATEL (Brazilian Telecommunications Agency) and implemented by NCC (a certification body authorized by ANATEL).

VI. Brazil Certification Consistency Regulations

In order to ensure that the vehicles exported to Brazil are consistent with the product status at the time of certification, the Brazilian government will conduct random inspections on the production consistency of the products. The necessary conditions are as follows:

If the sales volume of a vehicle importer/manufacturer exceeds 1,000 units/half year, or the sales volume of a heavy-duty vehicle exceeds 100 units/half year, it must undergo a production consistency review as required by the Brazilian government.

The Brazilian government has adopted a strict supervision and review system to ensure that imported vehicles meet environmental and safety standards and protect the rights and interests of consumers. At the same time, these regulations and policies have also promoted the sustainable development and technological progress of the Brazilian automotive industry. When entering the Brazilian market, Chinese companies need to fully understand and comply with these regulations to ensure product compliance and enhance market competitiveness.