Brazilian Parliament approves fee for evaluating and registering pesticides

The Brazilian Parliament has authorized the collection of the new Evaluation and Registration Fee for pesticides, additives, and other products related to agrochemicals. In a vote held this week, deputies and senators overturned the presidential veto on this measure, which was included in the new Pesticide Law (Law 14,785), approved at the end of 2023.

With the veto overturned, a fee will be charged for technical and equivalent products, new products, formulated products, generic products, agrochemicals, environmental control products, temporary special registration (RET), atypical or identical products, and products for organic agriculture. The taxable event is the actual provision of evaluation and registration services.

The revenue collected from this fee will be deposited in the Federal Agricultural Fund (FFAP). These resources will be used exclusively for the inspection and promotion of the development of phytosanitary activities, as well as the promotion of technological innovations in the agricultural sector, specifically in the area of plant health.

To justify the veto, the government argued that the tax was established without the necessary parameters to set a value proportionate to the costs of state action, a situation that, according to the Executive branch, would itself violate the principle of tax legality. In the message sent to Congress, the government also pointed out an alleged unconstitutionality in the rule.

Brazilian senators and deputies also  authorized the collection of fees by Ibama (Brazilian Institute of the Environment and Renewable Natural Resources) and Anvisa (National Health Surveillance Agency).

Packaging

In another vote, the Brazilian Parliament maintained the requirement that the company responsible for the pesticide must indelibly mark on the product packaging its name and a warning that the container may not be reused.

The government had argued that there was a risk of the container being reused if the engraved warning faded over time. The Executive also pointed to additional risks to human health and the environment. With the maintenance of the veto, the permanent engraving of the company's name and the warning against reusing the container remains mandatory.