Brazil Allows One-Year Extensions for Drawback Export Deadlines

Overview

• The government published Medida Provisória 1.386 on Tuesday, August 25, 2026, authorizing up to 12-month extensions for drawback-suspension commitments disrupted by additional U.S. tariffs.
• Eligible firms must show that their contract deadlines fell between July 22 and December 31, 2026 and prove that U.S. tariffs prevented them from meeting their export commitments.
• Drawback suspensão lets companies suspend certain taxes on imported or purchased inputs used to make goods for export and covers direct exporters and manufacturer-intermediaries that supply export chains.
• The MDIC says the MP creates no new budgetary cost because the original concession acts were already issued, but practical relief depends on an imminent Secex portaria that will detail how to apply and what evidence is required.
• The rule responds to a large exposure: drawback users recorded about US$72.8 billion in exports in 2025 across nearly 1,800 firms, and the extension aims to preserve export capacity and give companies time to seek new markets or adapt production.