Brazil increases optical fiber tariffs to 35%

Brazil continues to expand its digital infrastructure, creating opportunities for companies involved in optical fiber, cables, telecommunications equipment and network technology.

However, foreign manufacturers and investors need to understand an important change in the market.

The temporary 35% import tariff that attracted attention in 2024 and 2025 is no longer the main issue. Brazil has since changed the import tariff structure and introduced definitive antidumping measures on certain optical fiber and cable products originating in China.

At the same time, fiber remains the dominant technology in Brazilian fixed broadband, while 5G adoption continues to increase.

For international companies, this combination creates an attractive market, but one that requires careful tax, customs and corporate planning before entering Brazil.

How large is Brazil’s optical fiber market?

Brazil already has one of the largest telecommunications markets in Latin America.

According to Brazil’s National Telecommunications Agency, Anatel, the country reached 55.4 million fixed broadband connections in the second quarter of 2026.

Fiber optic connections represented more than 80% of the fixed broadband market, corresponding to approximately 44.7 million connections.

The mobile market is also supporting infrastructure demand. Brazil recorded approximately 66.1 million 5G connections in the same period, representing 23.9% of the country’s mobile access base. citeturn176180view0

These figures show why optical infrastructure continues to be strategically important in Brazil.

Expansion is no longer limited to major cities. Internet providers, telecom operators, data infrastructure companies and regional providers continue investing in network capacity across the country.

For manufacturers of optical fiber, cables, connectors and related equipment, Brazil therefore remains an important market to monitor.

What happened to Brazil’s 35% optical fiber tariff?

In October 2024, Brazil temporarily increased import tariffs on certain optical fiber products.

Optical fiber cables classified under NCM 8544.70.10 moved from 11.2% to 35%, while certain optical fibers classified under NCM 9001.10.11 moved from 9.6% to 35%.

The measure was introduced as Brazil responded to concerns about increasing imports and pressure on domestic manufacturers. citeturn217676search6

But that is no longer the current tariff scenario.

The Brazilian Foreign Trade Chamber, Camex, subsequently approved the reduction of the import tariff from 35% to 12.6% for optical fiber cables under NCM 8544.70.10 and from 35% to 10.8% for optical fibers under NCM 9001.10.11. citeturn217676search0

This means companies should no longer build their Brazilian business plans around a general 35% import tariff for these products.

But there is another factor that can have an even greater impact on imports: antidumping duties.

Brazil introduced antidumping duties on Chinese optical fiber

Brazil currently applies definitive antidumping measures to certain optical fiber products originating in China.

For optical fiber cables generally classified under NCM 8544.70.10, Brazil established an antidumping duty of US$2.42 per kilogram for covered imports originating in China.

The measure came into effect on December 22, 2025 and is scheduled to remain in force until December 22, 2030, unless it is modified, suspended or reviewed before then.

For certain single-mode optical fibers generally classified under NCM 9001.10.11, the definitive antidumping duty is significantly higher: US$47.46 per kilogram for covered imports originating in China.

This measure is also scheduled to remain in force until December 22, 2030.

For Chinese manufacturers and Brazilian importers, this distinction is extremely important.

The cost of entering the Brazilian market can no longer be calculated by looking only at the standard import tariff. Companies must determine whether the product falls within the scope of an antidumping measure and calculate the potential impact on the final landed cost.

Correct product classification is therefore a critical step before signing supply agreements or defining pricing strategies.

Brazil is reviewing the antidumping measure on optical fiber

The regulatory environment is still evolving.

On August 18, 2026, Brazil’s Secretariat of Foreign Trade initiated a public interest assessment regarding the antidumping measure applied to certain single-mode optical fibers originating in China, generally classified under NCM 9001.10.11.

The opening of an assessment does not automatically eliminate or suspend the current antidumping duty.

However, it means the Brazilian government is evaluating the broader economic effects of the measure, including its potential impact on the market and downstream industries.

Companies importing optical fiber into Brazil should therefore continue monitoring regulatory developments.

How much does it cost to import optical fiber into Brazil?

Import duties are only one part of the cost.

A company importing telecommunications equipment or optical products into Brazil may need to analyze several taxes, duties and operational costs depending on the product, transaction and corporate structure.

The calculation can involve the Import Duty, taxes applicable to industrialized products, state taxation, import-related federal taxes, customs costs and, when applicable, antidumping duties.

This is why classification under the correct NCM code is so important.

A classification error can affect not only the import tariff but also tax treatment, customs documentation and the applicability of trade defense measures.

Companies operating internationally should therefore evaluate the complete landed cost before deciding whether direct imports, local distribution or a Brazilian subsidiary is the most efficient structure.

CLM Controller provides specialized tax consultancy in Brazil to help foreign companies understand the tax impact of establishing and operating a business in the country.

Brazil’s Tax Reform also changes the planning equation

Foreign companies entering Brazil also need to consider the Brazilian Tax Reform.

The transition to the new consumption tax system has already started.

Beginning in 2026, Brazilian taxpayers must adapt electronic tax documents to identify the new CBS and IBS taxes according to the rules and technical standards established for each type of transaction.

The transition will take place gradually, which means companies investing in Brazil today need systems, accounting processes and tax planning capable of operating during the migration from the current tax structure to the new model.

For telecommunications, technology, manufacturing and import businesses, this can affect pricing models, contracts, ERP configurations, tax credits and cash flow projections.

Foreign investors should therefore include tax reform in their market-entry strategy rather than treating it as a future accounting issue.

Is importing still attractive?

It can be, but the answer depends on the product and business model.

Brazil’s demand for connectivity remains strong. With more than 44 million fixed broadband connections already using fiber, the market continues to require infrastructure, maintenance, expansion and technological upgrades. citeturn176180view0

For some companies, direct imports may remain commercially attractive.

For others, antidumping duties, logistics costs, exchange rates and Brazilian taxation may make local distribution, partnerships, assembly or a Brazilian corporate structure more efficient.

There is no universal model.

A company selling high-value specialized equipment will face a very different tax and cost structure from a manufacturer importing large volumes of fiber or cable.

The important step is to model the operation before entering the market.

Should a foreign optical fiber company establish a business in Brazil?

For companies planning a long-term presence, establishing a Brazilian entity can provide greater operational flexibility.

A local company can facilitate contracts with Brazilian customers, local hiring, invoicing, inventory management, tax compliance and relationships with suppliers and business partners.

It can also make it easier to create a permanent commercial structure instead of operating exclusively through international sales.

However, the corporate structure must be planned carefully.

Before opening the company, investors should evaluate ownership structure, capital requirements, tax regime, import strategy, expected revenue, location and the relationship between the Brazilian entity and its foreign parent company.

Companies considering a local operation can learn more about how to open a company in Brazil with CLM Controller.

Accounting and tax compliance are critical for importers

Import businesses usually generate large volumes of fiscal information.

Invoices, import declarations, inventory records, tax credits, exchange rate variations and payments to international suppliers must all be correctly reflected in the company’s accounting and tax records.

Weak controls can create problems with tax authorities, financial reporting and cash flow management.

This becomes even more important for multinational companies that need Brazilian financial information consolidated with reports from headquarters.

CLM Controller offers accounting outsourcing in Brazil and tax outsourcing for foreign companies, helping international businesses manage local accounting, fiscal records, reporting and tax obligations.

Importers can also learn more about the accounting risks faced by companies importing into Brazil.

Opportunities for international technology companies in Brazil

Despite regulatory complexity, Brazil continues to offer significant opportunities for telecommunications and infrastructure companies.

The scale of the broadband market creates demand not only for fiber itself but also for cables, connectors, network equipment, installation technologies, monitoring solutions and infrastructure services.

The continued adoption of 5G can also increase demand for high-capacity connections between network infrastructure, antennas, data centers and telecommunications operators.

For international manufacturers, Brazil should therefore be evaluated as more than an export destination.

Depending on the scale of the operation, companies may consider local distribution, commercial partnerships, subsidiaries or manufacturing structures.

The best option depends on expected sales volume, product classification, country of origin, tax exposure and the company’s long-term strategy.

How CLM Controller supports foreign companies entering Brazil

Entering the Brazilian market requires coordination between tax, accounting, corporate and financial decisions.

CLM Controller supports foreign companies that want to establish or expand operations in Brazil with accounting, tax, payroll, financial management, corporate services and compliance.

Before beginning operations, our specialists can help evaluate the expected corporate structure, tax regime, accounting requirements and operational model.

For businesses importing optical fiber, telecommunications equipment or industrial products, this planning can help identify risks before they affect prices, margins and cash flow.

Brazil’s telecommunications market offers substantial opportunities, but successful expansion requires more than identifying demand.

Companies need to understand how their products will be taxed, whether trade defense measures apply, how the Brazilian entity should be structured and how compliance will be managed after the operation begins.

Planning to enter Brazil’s telecommunications or optical fiber market? Talk to CLM Controller and structure your Brazilian operation with local accounting and tax specialists.

Frequently Asked Questions

What is the import tariff on optical fiber in Brazil?

For the products addressed in the current Camex measures, the import tariff was reduced from 35% to 10.8% for certain optical fibers under NCM 9001.10.11 and to 12.6% for optical fiber cables under NCM 8544.70.10. The exact treatment should always be confirmed according to the product classification and current legislation. citeturn217676search0

Does Brazil apply antidumping duties to Chinese optical fiber?

Yes. Brazil currently applies definitive antidumping duties to covered optical fiber and cable products originating in China. The measures include US$47.46/kg for covered optical fibers and US$2.42/kg for covered optical fiber cables. citeturn217676search1turn217676search2

Are the antidumping duties permanent?

No. The current definitive measures are scheduled to remain in force until December 22, 2030, although trade defense measures can be reviewed or changed according to Brazilian regulations. citeturn217676search1turn217676search2

Is Brazil reviewing the antidumping measure?

Yes. In August 2026, the Brazilian government initiated a public interest assessment concerning the antidumping measure applied to certain single-mode optical fibers originating in China. The assessment does not automatically suspend the existing measure. citeturn709388search1

Is Brazil a good market for optical fiber companies?

Brazil has a large telecommunications market. In the second quarter of 2026, the country had 55.4 million fixed broadband connections, with fiber representing more than 80% of the market, or approximately 44.7 million connections. citeturn176180view0

Can a foreign company open a subsidiary in Brazil?

Yes. Foreign investors can establish companies in Brazil, but the corporate, tax and accounting structure should be defined according to the planned operation, ownership model and business activities.

CLM Controller can support international companies from the company formation stage through ongoing accounting, tax and financial management.