Brazil Grants BYD Zero Import Tariff on CKD Vehicles Amid Industry Criticism

The Brazilian inter‑ministerial committee GECEx approved a temporary zero tariff on imported completely knocked‑down (CKD) and semi‑knocked‑down (SKD) vehicle kits for BYD from 1 July to 31 December, using a US$463 million quota. The decision, taken after BYD lobbied due to delays at its Camaçari plant, was described by industry groups as a surprise change that undermines legal certainty. The Federation of Industries of São Paulo (FIESP) said the move “violates legal certainty, sabotages regulatory predictability and penalises the whole Brazilian automotive chain,” a sentiment echoed by the Central Única dos Trabalhadores (CUT). BYD’s senior vice‑president Alexandre Baldy defended the advantage, while critics warned it could distort competition. The policy shift occurs amid broader challenges for Chinese electric‑vehicle manufacturers, including reduced domestic incentives and higher taxes in China.