Why this is important to Wisconsin businesses: Opportunities not only for suppliers of sporting goods, but also of prostheses, wheelchairs and parts
There are many laws that incentivize sports in Brazil, either by establishing standards related to how sports are conducted in the country (such as the Pelé Bill) or by allocating money for projects aimed at sports for leisure, sports as an educational instrument and high performance (Sports Incentive Law). There are also laws that grant tax incentives to imports of sporting equipment, and these laws in particular may be of interest to Wisconsin exporters.
Since Brazil will be hosting the Olympic Games this year, Law No. 10,451 will be particularly relevant. This law, which took effect May 10, 2002, allows for exemption from import duty (II) and industrialized product tax (IPI) for imports of sporting equipment and materials when there is no equivalent product produced in Brazil.
These two tax incentives are granted exclusively for imports of equipment and materials used in the training of athletes or in sports competitions related to the preparation of Brazilian teams for the Olympic, Paralympic and Pan-American Games. Specifically, those who can benefit from the exemptions granted under this law are:
- the organs of the Union, States, Federal District and municipalities and their respective municipalities and foundations;
- Olympic and Paralympic athletes;
- the Brazilian Olympic Committee (COB);
- the Brazilian Paralympic Committee (CPB); and
- the national sport governing bodies affiliated or linked with them.
The goods imported under Law No. 10,451 may be transferred to anyone without payment of relevant taxes four years after the date of registration of the Import Declaration.