THE
TEN MOST IMPORTANT
REGULATIONS GOVERNING
IMPORTS TO BRAZIL
ELIO ZEBINATO
General Manager
SANTOS BAY LOGISTICA LTDA
1 – TO OPERATE IN FOREIGN TRADE – Imp/Exp.
All the importers and Exporters have to be
registered with The Federal Revenue
Department to operate on the Integrated
Foreign Trade System called “SISCOMEX”.
The importer or Exporter can operate on the
“SISCOMEX” on his own account or through a
license customs broker.
2 - IMPORT LICENSE
• As a general rule, licenses are waived for the
Brazilian importers, however; some goods are
subject to licenses based on NCM (HTC).
• The NCM classification codes are made up of
eight numbers and are compatible with the
Harmonized System (HS) the standard
international classification.
• Based on the NCM through the SISCOMEX, we
will know if the Import License is required.
• Once the importer applies for the import
license it can take up to 60 days to be
approved and has the validity for 90 days for
the shipment to occur.
• The Import License has to be filed and
approved prior to the shipment of the goods.
• Any import license approved or filed after the
shipment of the goods are subject to a fine.
• The fine can be from R$500.00
(USD.250.00) to R$5.000,00 (USD.2,500.00).
3 – THE SHIPMENT – (BILL OF LADING)
• Carriers must declare via Electronic Data
Transmission (EDI) called SISCARGA (Manifest
System for Brazilian Customs) 48 hours prior to
the vessel arriving at the first Brazilian port of
call.
• Any change made on the B/L after the 48
hours mandatory transmission time are
subject to a fine of R$5,000.00 (USD 2,500.00),
or other operational sanctions.
The Bill of Lading must have:
• Tax ID number of the importer “CNPJ” or CPF
(in case of an individual), of the consignee
must be a registered and active user in the
Customs system.
• NCM (Harmonized Tariff Code) is mandatory in
B/L’s for each container. In case where the
cargo involves more then one NCM number, all
of them must be specified.
4 – TO FILE AN ENTRY
• To file an entry of ocean shipment, the cargo has
to have all the data input by the Carrier and also
by the bond warehouse (Terminal).
• The bond warehouse is going to appoint on the
“SISCARGA” if any of the situation occur:
- Any damaged on the cargo;
- If the Gross Weight less the tare of the
container does not match with the B/L;
- Seal number; and
- Tax ID of importer does not match with B/L.
• Any discrepancy with the data on the System, the
cargo will be on hold and the entry can not be filed
until correction is made.
• The documents required to file an entry:
- Commercial invoice, original signed
by the exporter;
- Bill of Lading and Cargo Manifest;
- Packing list; and
- Origin certificate (if applicable).
5 - CLEARANCE PROCEDURES
• After the entry is filed, the applicable customs
clearance procedures are initiated.
• There are four verification and inspection channels:
green, yellow, red and gray;
• GREEN CHANNEL: No Customs verification or
inspection procedures are conducted and the goods are
forwarded for clearance and subsequent
nationalization;
• YELLOW CHANNEL: All supporting documentation and
the information furnished by the importer in the entry
(D.I.) is reviewed.
• RED CHANNEL: In addition to reviewing the
pertinent documentation, a physical
inspection is conducted on the imported
goods.
• GRAY CHANNEL: Document reviews and
physical inspections are performed for
purposes of verifying the amount declared in
the commercial invoice and identifying
potential evidence of fraud, including with
regard to the declared price of the imported
goods.
• Customs clearance is the final stage of the
import process. It consists of the release of the
imported goods to the importer and issuance
of the proof certifying formal nationalization
of the respective products.
6 – IMPORT DUTY AND TAXES
• All the duty, Federal taxes and State tax (ICMS)
are paid on the same day the entry is filed.
• All entries are required to make the payment of:
- Duty; (rate based on the NCM);
- Tax on Industrialized goods (IPI);
(rate based on the NCM);
- Social Integration Program – (PIS); (1.65%);
- Social Security Financing Contribution –
(COFINS) (7.60%);
- State tax – (ICMS); (most the State 17% - 18%);
- Additional Freight for the Renovation
of the Merchant Marine – AFRMM; ( 25% on
freight + other expenses stated on the B/L).
7 – SPECIAL CUSTOMS REGIMES
DRAWBACK
• Applies to goods used as inputs in the manufacture of
products intended to export.
SUSPENSION:
• All the duty and taxes are deferred
• Permanent waiver is granted after the proof of the goods
were used for products exported.
Waiver:
• The importer has to pay only the State tax (ICMS)
• The importer has to prove goods were imported or bought on
domestic market and was used or applied on the goods
exported.
TEMPORARY ADMISSION
• A Customs regime intended to enable the entry of
certain goods into the country, for pre-determined
objectives and time periods, through the total or
partial suspension of the applicable import duties.
• Importers undertake to re-export the imported
products following termination of the established
period.
• The regime is designed to facilitate the temporary
entry into Brazil of:
• Goods intended for the organization of or participation
in cultural, artistic, scientific, commercial and sporting
events, for assistance and rescue operations, for
packaging and transportation of other goods, and for
trials and testing. In these cases, importers are granted
full waiver of the applicable duties.
• Machinery and equipment imported under operational
lease agreements for the execution of economic
activities (the delivery of services or manufacture of
other products). In these cases, importers are granted
partial waiver of the applicable duties and authorized
to pay proportional assessments based on the time the
respective goods remain in the country.
• Goods intended for enhancement and
maintenance activities (assembly, renovation,
work-over, repairs, restoration, among others,
applied to the respective products. In these
cases, the full suspension of import duty
payments is granted.
CUSTOMS BOND WAREHOUSE
• This regime provides for warehousing of
foreign goods in a public customs house
through suspension of the applicable import
duties and taxes.
• The key advantage of the regime is that it
offers the opportunity for partial
nationalization of the goods as they are sold.
8 - INCOTERMS:
– Incoterms DDP is not allowed in Brazil.
9 - THE OBLIGATION TO KEEP THE DOCUMENTS IN
GOOD ORDER AND GUARD
• The importer or importer of records has the
obligation to keep in good order and guard the
documents relating to the transaction, for 5
years.
• In the event of fire, theft, robbery, loss or any
other case that would cause loss or deterioration
of the documents; communication must be made
in writing to the unit of customs supervision of
the importer or importer of record within fortyeight hours (48) of the accident supported by the
documents certifying the registration of the
occurrence by the competent authority to
determine the fact.
• The violation by the importer or importer of
record for not submitting to the customs
supervision when required, implies:
o Fines of 5% (per cent) of the customs value of the
imported goods.
10 – VIOLATION AND PENALTIES
• It constitutes violation all action or omission, voluntary
or involuntary, that import failure by the individuals or
companies to comply with the rules and regulations
established by Brazilian authorities.
• It will be liable jointly or separately, whoever, in any
case, apply to your practice or her benefit.
• Violation or omission are subject of:
– Confiscation of the goods
– Fine and
– Administrative sanction.