Those who import through Espírito Santo have advantages with the ICMS rate, which is 4% and not 17% like in other states. The advantage has a cascading effect as taxes such as PIS/COFINS and IPI imports use ICMS as a basis for calculation, making the deal even more advantageous.
Arnaldinho Borgo, mayor of Vila Velha, the city where the ports are located that represent the main gateway for vehicles in the country, explains that although Espírito Santo represents only 2% of the passenger car fleet in Brazil, the ports of Vila Velha However, it already accounts for 27% of the total financial volume of car import transactions. This means that most imported cars arrive through the state but are distributed throughout the country.
“This leadership position is based on our city’s efficient port infrastructure and its strategic location on the Brazilian logistics map. It is clear that the possibility of reducing ICMS rates to just 4% in import operations helps to make Espírito Santo an even more competitive destination for national importers,” he explains.
The majority of vehicles arriving in Brazil come from Argentina (43%), followed by China (14%), Mexico (11%), Germany (8.8%) and Slovakia (5.7%). However, in Espírito Santo the scenario is different. In the first three quarters of 2023, the arrival of Chinese automakers in the country boosted the state’s import sector. Compared to the same period in 2022 when imports totaled $444 million import volumes increased by 225%.
Both BYD and GWM use Espírito Santo ports to transport vehicles to Brazil. “In 2012, South Korea led car imports through Espírito Santo, followed by the United Kingdom, China and Germany. However, in 2023, China took the absolute lead in this segment with 41% of imports in the JanuarySeptember period. followed by Germany and the United States,” says Borgo.
According to the President of the BrazilChina Chamber of Commerce, Carlos Eiras, in the first half of this year alone, more than eight thousand vehicles from China have already entered the national market through the port of Vila Velha, which is served by an important intermodal transport network.