Brazil Raises Import Duty for Bikes to 35 Percent
On September 6 Brazil has announced to raise its import duty on assembled bicycles from 20 to 35 percent. At Eurobike Eduardo Musa (photo), President of the countrys biggest bike maker Caloi, told Bike Europe that
SAO PAOLO, Brazil – On September 6 Brazil has announced to raise its import duty on assembled bicycles from 20 to 35 percent. At Eurobike Eduardo Musa (photo), President of the country’s biggest bike maker Caloi, told Bike Europe that the import duty increase is caused by the huge influx of bicycles into the country which economy is booming.
According to the Caloi President, Brazil imports of complete bikes stood at about 50,000 units five years ago. For this year the total import will grow to 500,000 units.
Brazil is the world’s fifth largest country, both by geographical area and population (250 million), and also ranks number five in the bicycle market, according to the national industry organization Abraciclo of which Eduardo Musa is Chairman. The Brazilians are buying an estimated 5.7 million bicycles this year.
In terms of production, Brazil is the third biggest bicycle producer in the world after China and India, with an annual output of close to six million units. Caloi is the country’s biggest producer with an annual production of about one million units.
With its economy booming at an annual growth rate of over 7 percent , the bike market is shifting to mid and higher end models. Sports bikes are gaining popularity as the country’s is looking forward to organizing the Olympic Games in 2016. Specialized and Trek recently opened sales offices in the country.
On September 6, the Brazilian government signed the bill on the higher import duty. Today the to 35% raised import duty is going into effect.