Drawback Customs Regime as an Instrument to Stimulate Exports in the Brazilian Timber Sector

Abstract

This paper aims to address the export incentive mechanisms through a case study exploring the advantages of the Integrated Drawback system, in a wood flooring company. A study was conducted indicating the inputs entered into the Integrated Drawback system in Suspension mode for the laminate flooring production process. The procedures required to acquire inputs using Drawback were described and the taxes that will be suspended were described. This is an efficient public policy instrument to export incentive. The Drawback regime can be applied by any exporting company, provided that the acquired inputs are used in the manufacturing process. In addition, it shows that tax reform is important measure to increase Brazilian competitiveness in different sectors, including the wood sector.