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South America Tax and Import duty

This reflects the situation in October 2026 – researched to be best of our abilities. Rates and regulations are indicative only. Errors and omissions excepted (E&OE). Final landed duties and taxes remain the responsibility of the importer.

When importing motorcycle spare parts from India into South America, duties and local taxes (VAT/IVA) vary significantly by country. Most motorcycle components fall under Harmonized System (HS) Chapters 84 and 87 (e.g., engines, gearboxes, brakes, transmission assemblies, and accessories).

Because India does not maintain broad free trade agreements with major South American trade blocs (such as Mercosur or the Andean Community), standard Most-Favored-Nation (MFN) tariff rates apply.

Because rates are high contact us before ordering – there may be options to reduce the value of the shipment to get those tariffs down.


Summary: Import Duties & VAT by Country

Country Customs Duty (Ad Valorem on CIF) Local VAT / IVA Rate Additional Fees / Statistical Taxes
Brazil 14% – 18% 17% – 20% (ICMS varies by state) + ~9.25% (PIS/COFINS) AFRMM (ocean freight), Statistical Tax
Argentina 14% – 18% 21% (Standard IVA) + 20% to 35% advance retentions Statistical Tax (3.0%)
Colombia 5% – 15% 19% (IVA) Customs Handling Fees (~1.2%)
Chile 6% (Flat) 19% (IVA) Standard port/handling charges
Peru 0% – 6% 18% (IGV: 16% + 2% municipal) Terminal handling fees

Country-Specific Breakdown

1. Brazil

  • Customs Duty (Imposto de Importação – II): Typically 14% to 18%, depending on the exact sub-heading (engine parts vs. structural or electrical components).
  • Federal Taxes (PIS / COFINS): Combined social contribution rate of approximately 9.25%.
  • State VAT (ICMS): Ranges between 17% and 19% depending on the destination state.
  • Note: Brazil utilizes a cumulative “tax on tax” cascade model, which increases the effective landed tax burden well above the nominal rates.

2. Argentina

  • Customs Duty (Derechos de Importación): 14% to 18% for standard automotive replacement components.
  • VAT (IVA): Base rate of 21%.
  • Additional Import Taxes: Customs collects advance income tax and VAT retentions (often totaling an extra 20% to 35%), plus a standard 3% statistical tax on the CIF value.

3. Colombia

  • Customs Duty (Arancel): Ranges from 5% to 15% (aftermarket retail components typically settle between 10% and 15%).
  • VAT (IVA): Flat 19%, calculated on the CIF value plus customs duty.

4. Chile

  • Customs Duty: Flat 6% ad valorem tariff applied directly to the CIF value.
  • VAT (IVA): 19%. Chile maintains one of the most transparent, fast-clearing customs systems in South America.

5. Peru

  • Customs Duty: 0% to 6%, with several core mechanical replacement lines entering tariff-free.
  • VAT (IGV): 18% (16% Impuesto General a las Ventas + 2% Municipal Promotion Tax).

Key Compliance Requirements for Exporters

  • CIF Valuation Standard: Customs assessments across all five nations calculate duties strictly on the CIF value (Cost of Goods + Freight + Marine/Air Cargo Insurance).
  • Export Documentation: Invoices must clearly declare the accurate 6-to-8 digit HS Code, detailed part descriptions, currency, and country of origin. Misclassification or vague descriptions (“bike parts”) trigger administrative holds and inspection surcharges in South American customs clearance.
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