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20 August 2018 | AutoData INDUSTRIAL POLICY » THE ABC OF ROTA 2030 The federal government met specific request from the low volume automakers, specially the luxury brands such as Audi, BMW, Jaguar Land Rover and Mercedes-Benz, by putting into force the new Brazilian automotive policy. What happened was that by Inovar-Auto rules these companies had an additional benefit to start local production, in Brazil, linked to a minimum investment per produced unit: they could import half of their future productive capacity without an IPI increased in 30 points and for the other half they would collect this tax, which after this, would be reduced in the vehicles produced in Brazil. During that time the market declined and, as a consequence, the number of vehicles produced in Brazil by them was much lower than the number of cars imported with the increased IPI collected. What the government will do is to send a law project to the Congress authorizing these companies to use these accumulated credits now. In addition to that, these companies will have a differential treatment in the regime of auto parts that are not produced in Brazil. As an encouragement to produce new models here, they will be able to import more components inside the ex-tariff policy than larger volume factories, as long as this is part of a project for a model that has not been nationalized yet. Anyway, just like the others, they will have to collect the 2% which would be referring to the reduced import tax attached to the fund that will finance automotive research and development projects. The relief to the premiums And then the Inovar-Auto was over and they got a huge credit in their hands that became useless.