Importing and Exporting
Customs Valuation
On January 1, 1995, Brazil implemented the MERCOSUL Common Nomenclature,
known as the NCM (Nomenclatura Comum do MERCOSUL), consistent
with the Harmonized System (HS) for tariff classification, as
authorized by Decree Number 1,343 of December 23, 1994.
Since January 1, 1989, the HS has been the basis for tariff schedule
classification and the compilation of statistical data in Brazil.
Duties are levied on the c.i.f. value of the import.
Brazil has implemented the Customs Valuation Agreement of the
General Agreement on Tariffs and Trade (GATT), with minor reservations.
The Agreement distinguishes five methods for determining customs
valuation -- a primary basis and four additional methods that
must be applied in hierarchical order. The primary basis is based
on "transaction value", the price that is actually paid
or payable for goods by importers, plus certain costs and expenses,
or minus allowed deductions.
Tariffs, in general, are the primary instrument in Brazil for
regulating imports. As of November 1994, the average tariff was
11.3 percent. The average tariff in 1990, by contrast, was 32
percent. The maximum tariff level in Brazil was 70 percent at
the end of 1995, down from 105 percent in 1990. In response to
an import surge and resulting large monthly trade deficits in
late 1994 and early 1995, the government significantly raised
import tariffs on a range of consumer durable goods, including
automobiles and consumer electronics, and on shoes and textiles
in mid-1995. The new tariff levels, as high as 70 percent on some
products, were supposed to be temporary, with the tariffs returning
to the Mercosul common external tariff levels in April 1996. However,
tariffs on automobiles remain at 70 percent, and tariffs on many
consumer durable products were reduced to levels between 35 and
60 percent in April 1996. The tariff increases did not affect
capital goods, which constitute approximately 40 percent of U.S.
exports to Brazil. The United States continues to encourage tariff
reductions on products of interest to U.S. firms.
Brazil and its Southern Common Market (MERCOSUL) partners, Argentina,
Paraguay and Uruguay, implemented the MERCOSUL common external
tariff (CET) on January 1, 1995. The CET currently covers approximately
85 percent of 9,000 tariff items; most of the remaining 15 percent
will be covered by 2001, and all will be covered by 2006. The
CET levels range between zero and 20 percent, with the exception
of tariffs on telecommunications equipment, computers, some capital
goods, and products included on Brazil's national list of exceptions
to the CET, such as shoes, automobiles and consumer electronics.
For products covered by the CET, the maximum Brazilian tariff
is now 20 percent; the most commonly applied tariff is 14 percent.
The United States signed a trade and investment framework agreement
with this emerging common market in 1991. At the request of the
United States and other WTO member countries, the members of MERCOSUL
also agreed to the formation of a WTO working party to examine
the emerging MERCOSUL. The first meeting of the working party
took place in October 1995 and a second meeting is scheduled for
May 1996. The United States will continue to encourage the reduction
of barriers to trade and investment, including tariffs and the
creation of a customs union that is open and consistent with the
WTO, specifically GATT Article XXIV.
Advance Rulings on Classification
Based on a complete product description, a logical HS tariff classification
can often be determined by the company agent in Brazil or the
U.S. exporter's nearest U.S. Department of Commerce district office,
located in most major cities throughout the United States. Brazilian
customs brokers are another valuable source for classification
information. However, the ultimate authority is Brazilian customs.
If there is doubt about the classification, a request for advance
ruling may be presented to the Internal Revenue Department (SRF/COSIT)
of the Ministry of Finance, preferably through a Brazilian representative
(see Appendix E for a contact). Samples and specifications should
be included with the application. A ruling in response to such
requests may take months. An inquiry presented to SECEX is probably
faster, but this does not ensure that COSIT, through customs,
will necessarily accept the SECEX classification.
Import Licenses
The import permit ("Guia de Importa‡ o") is the
single most important document required for importing goods into
Brazil. An import permit must be obtained from SECEX by the importer
for all but a very limited list of products. (See Appendix E for
contact information).
Most of the information required for the permit must be provided
by the foreign supplier.
SECEX Portaria No. 8 of May 1991 established the degree of import
regulation applied to specific products by categorizing them:
1. - Imports exempted from the import permit requirement are listed
in Annex A of SECEX Portaria No. 8;
2. - Imports under legislative or regulatory prohibition;
3. - Imports under special control.
Import permit requests must be accompanied by the foreign manufacturer's
catalogs or price lists covering the goods to be imported, unless
such material has already been filed with SECEX. A local agent
of a foreign firm should update the information on file with SECEX
regardless of whether a shipment is pending. If there are no published
catalogs or price lists, SECEX will accept a notarized statement
by the exporter on the pro forma invoice of the wholesale price.
An import permit specifies the period during which it is valid.
It establishes the maximum time for embarkation of merchandise,
or in certain cases, for registering the Import Declaration. The
validity period of an import permit can not exceed 60 days, except
for imports of capital goods made to order.
Under no circumstances should an exporter ship goods to Brazil
without an import permit. The shipment could be impounded by Brazilian
customs authorities and may not be returned to the United States
without payment of fines equaling 20 to 100 percent of the c.i.f.
value of the goods. In addition, to avoid clearance problems,
any discrepancy between the actual composition of a shipment and
the terms of the corresponding import permit should be immediately
transmitted to the importer so that the importer can request amendment
of the permit prior to arrival of the goods in Brazil.
Pro Forma Invoice
In order to apply for an import permit, the Brazilian importer
will require a pro forma invoice ("fatura proforma")
and a published list of prices or sales catalog from the supplier
(if such exists). The original copy should be notarized, but need
not be accompanied by a Chamber of Commerce certification or consular
visa.
The document must contain the following:
1. The name and address of the manufacturer or exporter;
2. A signed statement by the exporter or manufacturer verifying
that the prices are current export market prices for destination
to any country;
3. If applicable, the name and address of the agent, distributor,
representative, or concessionaire in Brazil, and a statement of
commission due. This is not necessary when the agent has filed
a general statement with SECEX of fees collected from a particular
foreign firm. If no representative exists, this must be so stated;
4. Total f.o.b. price, unit price, gross and net weight, itemized
freight and all other expenses, and total c.i.f. or c.i.f. value;
5. If applicable, a statement declaring that published catalogs
or price lists do not exist for the invoiced products.
Pro forma invoices issued by commercial enterprises, such as an
export trading company, can be used in lieu of a manufacturer's
invoice for the importation of parts, accessories, and other small
articles.
Export Controls
Exporters must be registered with SECEX. Normally, there are no
restrictions on exports, but export licenses are required. Some
commodities, such as coffee and timber may be subjected to export
quotas or other controls.
Import/Export Documentation
Documents required by Brazilian laws and regulations for cargo
shipments to Brazil are the commercial invoice and bill of lading
(or air waybill). Inspection or sanitary certificates are also
required for shipments of certain goods.
These documents must carry the number of the SECEX-issued import
permit. Generally, the document itself does not accompany the
shipment.
Commercial Invoice -- This document should give full details about
the merchandise shipment. It should be prepared by the manufacturer
or the seller in the country of origin, not by a seller who is
not established in the country of shipment, or a buying agent
of the Brazilian importer. Good business practice dictates that
a commercial invoice include the full address of the shipper,
seller, and consignee, if other than seller; the import permit
number; other reference numbers; date of the order; shipping date;
delivery and payment terms; a complete description of the merchandise;
and export markings.
A declaration of origin that is combined with a declaration of
correct prices should be made on the commercial invoice, which
in turn should be certified by the foreign exporter or local chamber
of commerce. For a letter of credit or other contractual agreement,
chamber of commerce certification is not required, but may be
requested. When in doubt, exporters should consult with Brazilian
importers.
A notarized declaration, as follows, should be made on the extra
copy of the commercial invoice, which the exporter or the chamber
of commerce retains.
I (name, title, company name), hereby, swear that the prices stated
in this invoice are the correct market prices for any country
for the merchandise described herein, and the origin of these
goods is the United States of America, and I accept full responsibility
for any inaccuracies or errors herein.
Legalized commercial invoices are not required. To correct errors
in commercial invoices, the exporter should make out new invoices.
A detailed letter of explanation stating corrections should be
attached to the new invoices, which should be sent at once to
the exporter's principal in Brazil. Commercial invoice forms are
available from commercial stationers.
Bill of Lading -- Attached to each copy of the commercial invoice
is a nonnegotiable copy of a numbered and dated bill of lading.
This may be an ocean bill of landing or air waybill, depending
on the mode of transportation and/or terms of sale. There are
two basic types of bills of lading: nonnegotiable and negotiable,
or "shipper's order" bills of lading. The latter is
used for sight draft or letter of credit shipments.
When shipments originate abroad and are cleared through the United
States in transit to Brazil, an authentic copy of the "through"
bill of lading issued by the foreign carrier for the voyage from
port of origin to the United States must be attached to one copy
of the invoice, prior to shipment from the United States. Bills
of lading and air waybills no longer require the carrier's signature.
Consular registration and chamber of commerce certification are
not required.
The import license number and its expiration date must be shown
on the bill of lading or air waybill. In rare cases, when no import
permit is required, the exemption should be clearly stated. Freight
charges must also be clearly indicated in words and numbers. Noncompliance
with this regulation will prevent the importer from closing or
liquidating foreign exchange contracts, and failure to detail
information on import licensing will result in considerable delays.
According to International Chamber of Commerce rules governing
foreign trade terms and documents, the only bill of lading that
is acceptable on draft or letter of credit shipments is one marked
"Clean on Board". This means that the carrier has not
taken any exception to the condition of the cargo or packing and
that the merchandise has actually been loaded aboard the carrying
vessel.
Special Documentation -- Various special documents are required
on shipments of certain commodities. These special documents include
sanitary certificates from the Ministry of Agriculture for shipments
of live plants or parts thereof; health certificates for shipments
of live animals and animal products capable of transmitting disease;
inspection certificates for shipment of used merchandise, machinery,
and equipment; and Ministry of the Army authorization for armament
shipments. Industry-specific import and documentation requirements
are detailed in a separate section of this report entitled "Imports
Subject to Special Control".
In order to clear goods through customs, Brazilian importers must
have all necessary documents with them. Documents are often delivered
to importers against their acceptance of the exporters' bank collection
draft, as in open account shipments, unless otherwise contracted.
When documents are sent by means other than the carrier on which
goods are shipped, they should be forwarded soon enough to ensure
timely arrival.
To clear merchandise through customs, importers or their agents
must present copies of the commercial invoice ("fatura comercial"),
which includes a declaration of origin of the merchandise (a separate
certificate of origin is acceptable but not required), the bill
of lading, and the import permit ("Guia de Importa‡
o").
It cannot be overemphasized that the documentation must be complete
and correct in all requirements in order to avoid heavy fines
and penalties. Exact weight and quantity of goods, including parts
and accessories for machines and apparatus in general, must be
accurately and completely supplied by the exporter to the importer
on either the pro forma invoice, the commercial invoice, or the
price list. The import license must contain the accurate weight
and quantity specifications.
While the importer may clear merchandise through Brazilian customs
following the steps outlined above, this job is often turned over
to a "despachante," or freight forwarder.
"Despachantes" are often quite large organizations that
provide a wide range of services to anyone wanting to expedite
their dealings with the government. The customs clearance fees
charged by such an organization are controlled by their union.
"Despachantes" are employed not only because they can
clear goods through customs faster, but also because they eliminate
the need for permanent staff in the importing firm to handle such
matters.
Temporary Entry
The tariff law provides that goods in transit through Brazilian
national territory, enroute to another country via customary channels
of international trade, are exempt from the payment of import
duties. Goods in transit are granted maximum storage periods of
three months in the case of perishables and one year for other
merchandise, extendable for an additional six months. The following
Brazilian ports have been designated as transit zones for the
specified neighboring country. Bel‚m, for Peru and Bolivia;
Corumb , for Bolivia; Manaus, for Ecuador; Paranagu ,
for Paraguay; Porto Velho, for Bolivia; and Santos for Bolivia
and Paraguay.
Other seaports or airports where federal customs officials are
stationed may also be used as transit zones for countries contiguous
to Brazil even though no special facilities have been created
for transit shipments.
Abandoned and Reexported Goods
Goods imported into Brazil may be expressly or tacitly abandoned.
They may be expressly abandoned in writing at any time prior to
customs clearance. Tacit abandonment occurs when the merchandise
is not withdrawn within the permissible warehousing period. Although
customs laws permit the reexportation of merchandise that has
entered the country legally, foreign trade controls make it difficult.
Imported goods not cleared through customs require authorization
for reexport.
On goods already cleared through customs, for which foreign currency
payments were made, reexportation will not be authorized without
reimbursement of the foreign currency paid. Once goods have been
cleared through customs, they are considered nationalized, and
import duties are not refunded if goods are reexported.
Goods shall be considered to be abandoned if they remain on customs
premises 90 days after discharge; 60 days after the date on which
clearance procedures were halted because of an action or failure
to act on the part of the importer; or 45 days after the date
of notification from customs.
Labeling, Marking Requirements
Labeling -- The Brazilian Customer Protection Code, in effect
since September 12, 1990, requires that product labeling provide
the consumer with correct, clear, precise, and easily readable
information about the product's quality, quantity, composition,
price, guarantee, shelf life, origin, and risks to the consumer's
health and safety. Imported products should bear a Portuguese
translation of this information. Since metric units are the official
measuring system, products should be labeled in metric units or
show a metric equivalent.
The United States Senate Concurrent Resolution No. 40, adopted
July 30, 1953, invited U.S. exporters to inscribe, on external
shipping containers in indelible print of a suitable size: "United
States of America". Although such marking is not compulsory
under law, U.S. shippers are urged to follow this procedure in
publicizing American-made goods.
Marking -- The essential identifying marks -- shipping marks,
port of destination, and package number (when required) -- must
be prominently shown on the shipping case and situated so that
they will not be covered by any later strapping.
Any other markings should be placed in a less prominent place
and should be limited to essential data. Identifying marks used
in the bill of lading should be shown on the shipping case. A
number may be used as an identifying mark, provided that it is
placed within a geometric figure, i.e., triangle, square, etc.
Prohibited Imports
The Brazilian Government has eliminated most import prohibitions.
However, it places special controls on certain imports and prohibits
the importation of, for instance, pleasure boats valued above
USD$3,500. Importation of used machinery, automobiles, clothing,
and many consumer goods continue to be severely restricted. Imports
of some used machinery, however, have been authorized under special
exemptions. Recent court decisions have challenged the regulation
which bans used car imports. Imports of used machinery and equipment
to the Manaus free trade zone are subject to more liberal treatment.
Please refer to item "Imports Subject to Special Control"
in this Chapter.
Standards
Brazil uses the metric system of measurements and weights. Pharmaceutical
and cosmetics products are regulated by the Ministry of Health,
which requires registration of laboratories and laboratory products
before relevant products can be sold in Brazil. Brazil generally
accepts U.S. product standards, and accepts U.S. testing laboratory
certifications, such as those of Underwriters Laboratory.
Free Trade Zones/Warehouses
As of May 1994, there are four free trade zones in Brazil -- Manaus,
in the State of Amazonas; Macap /Santana, in the State of
Amap ; Tabatinga, in the state of Amazonas, border with Peru;
and Guajaramirim, in the state of Rond"nia, border with Bolivia.
Four other free trade zones are authorized but not yet functioning
-- Bonfim and Paraca¡ma in the state of Roraima, Brasil‚ia
in the state of Acre and Epitaciolƒndia in the state of Rond"nia.
The Manaus Free Trade Zone is the most extensively developed.
Decree No. 288 of February 1967 established special incentives
for a period of 30 years with the aim of creating an industrial,
commercial and agricultural center in the heart of the Brazilian
Amazon. The Manaus Free Trade Zone is a 10,000 square kilometer
area which includes the city of Manaus, the capital of the State
of Amazonas in the north of Brazil. Unlike Manaus, which has special
incentives for the establishment of industries, the other zones
are only free ports for imports and exports.
The Brazilian Constitution of 1988 endorsed the fiscal benefits
of the Manaus Free Trade Zone and extended their applicability
to the year 2013. Free Trade Zone status implies that goods of
foreign origin may enter into the Manaus free port without payment
of customs duties or other federal, state or local import taxes.
In addition, the Industrial Products Tax (IPI) on certain commodities
and the ICMS sales tax on most items are not applied. With very
few exceptions imported products used for processing, reexport
or transshipment which are subsequently shipped to other parts
of Brazil also qualify for these tax exemptions. The ICMS sales
tax is imposed on items produced in the free port when they are
shipped out of the free zone into other areas of Brazil.
Law No. 8387 of December 30, 1991, modified the regulations for
the Manaus Free Trade Zone by eliminating the previously existing
import quota and requiring only that prior notification is made
to the Superintendent of the Manaus Free Zone (SUFRAMA). However,
in May, 1995 the Brazilian Government returned to the import quota
system and presently only imports of wheat and petroleum are not
subject to quotas.
Manaus Free Trade Zone importers are allowed to supply foreign
goods from their stock in Manaus to other parts of the country
regardless of quantity. These goods, however, are subject to all
duties assessed under normal importation. There is, however, the
advantage that the ICMS (Merchandise Circulation Tax) is reduced
to only 4 percent.
The Manaus free trade zone was hit hard by the general lowering
of tariff and non-tariff barriers. In July 1992, the government
announced a series of measures to help the Manaus Free Trade Zone.
Each industry must perform certain basic assembly steps in the
zone in order to qualify for fiscal incentives. To protect Manaus
industries, such as consumer electronics, which are heavily concentrated
in the zone, the Tax on Industrialized Products (IPI) was raised
by ten percentage points on competing products which are either
imported from abroad or produced in Brazil outside the zone. The
initial list included stereos, televisions, and VCRs, none of
which are produced in Brazil outside the zone. Computers and peripherals
were not on the list.
Fiscal incentives for Manaus include exemption from the IPI tax
and from tariffs on imported components, and reduced tariffs on
products shipped from Manaus to the rest of Brazil; reduced state
tax (ICMS) on products imported from or exported to the rest of
Brazil; up to ten years' exemption from federal income tax; and
exemption from import license fees.
The 1992 regulations allowed computer firms to benefit from both
the fiscal benefits and the change in local content requirements.
With special government permission, computer firms, although required
to perform much basic assembly in the zone, may be permitted to
import circuit boards which use only surface mounted devices.
SECEX import licenses must be issued prior to shipment of goods
destined for the Brazilian marketplace. These licenses are additionally
subject to authorization by the Superintendent of the Manaus Free
Trade Zone (SUFRAMA), the Manaus free zone authority. Commercial
invoices and bills of lading must have "Free Zone of Manaus"
typed on them, and one of the following statements: "Zona
Franca de Manaus para Consumo" (Manaus Free Zone for Consumption)
or "Zona Franca de Manaus para Reexporta‡ o" (Manaus
Free Zone for Reexport).
Brazilian restrictions on the informatics sector no longer apply
to the Manaus Trade Zone. License and authorization requirements
for health/sanitary controls, national security interests, and
environmental protection remain in effect.
Each passenger leaving Manaus is allowed a quota of $2,000 (FOB
value) of goods of foreign origin. Products manufactured in Manaus
are not subject to the quota.
In addition to the free trade zones, 14 export processing zones
have been authorized. They are administered by the Ministry of
Industry, Commerce and Tourism. To date, only four have begun
initial infrastructure construction; the remainder are still in
the planning stages.
Legislation regarding ZPEs requires that firms operating in the
zone export at least 90 percent of production. Up to 10 percent
of production can be sold in the domestic market, and is subject
to a duty of 75 percent ad valorem on the final price, minus the
cost of imported inputs. Normal corporate income taxes apply to
profits generated in the zones. Firms operating in the zones will
be exempt from foreign exchange regulations and will maintain
dollar and local currency accounts; the official Brazilian exchange
rate must be used to convert dollar accounts for local purchases.
Foreign firms established in the zones may use their own hard-currency
resources for tax-free imports of machinery and raw materials
from abroad. Firms in the ZPE may not produce goods subject to
export quotas.
License and authorization requirements remain in effect in ZPEs
for health/sanitary controls, national security interests, and
environmental protection.
Special Import Provisions
Brazil imposes fines and penalties for violation of customs, exchange,
and consular regulations. These fines and penalties are severe,
especially in cases of fraud, and where the complicity of the
exporting firm is proven. Fines may also be incurred for violations
or errors in preparation of documents.
When goods that require import permits are imported without this
documentation, there is a fine of up to 100 percent of the c.i.f.
value of the merchandise. When a commercial invoice is absent,
the fine is equal to the customs duty. If the original commercial
invoice is not available for presentation at customs, the importer
can sign a guaranty of responsibility that it will be presented
within 120 days. Failure to present the invoice before expiration
of the guaranty of responsibility could result in a fine equal
to the customs duty.
For under-invoicing, over-invoicing, or otherwise misrepresenting
the value of an import, there is a fine of up to 100 percent of
the excess or deficiency. If the value declared by the importer
is judged to be false, there will be a fine of at least 50 percent
of the difference between the duty declared by the importer and
that verified. If the appraised value exceeds the invoice value
by more than 10 percent, there is a fine of 100 percent of the
value of misrepresentation; the fine is 50 percent if the value
of misrepresentation is between 5 and 10 percent. There is no
fine in cases of error in weight or quantity, but rules are strict.
It is essential that shippers prepare documents completely and
carefully. Failure to make a separate declaration on the invoice
of the net weight and value of drums or other containers that
have been used in shipping the merchandise may subject Brazilian
importers to heavy fines.
When customs officials challenge the declared value of imported
goods, they have eight days to establish a new valuation. The
importer then has 30 days during which to protest the new value,
and a decision must be rendered within another 30 days.
While the value is in dispute, the importer's declared value is
provisionally accepted for the purpose of clearing the goods,
but the importer must post bond or make a deposit covering the
claimed differences, pending a final determination of the dutiable
value.
Appeals concerning the valuation of imported merchandise are heard
by SECEX. If the final decision is against the importer, a fine
amounting to between 50 and 100 percent of the difference between
the declared value and the verified value must be paid by the
importer.
Imports Subject to Special Control
Import of Used Material
In accordance with provisions of SECEX Portaria no. 370 of November
28, 1994, the Brazilian government authorizes imports of used
machines, equipment, instruments, tools, dies and containers provided
they are not produced in Brazil nor can be replaced by locally-made
equipment that performs the imported machine's functions. The
Foreign Trade Secretariat will be responsible for announcing the
import requests to the public. Brazilian manufacturers must prove
local production within thirty days from the import request announcement
date, otherwise the import authorization will be granted.
The imported equipment's age at the date of the request for importation
must be less than its life expectancy. Proof of this should be
provided in a technical evaluation and appraisal report presented
with the import license to the Foreign Trade Secretariat. All
import requests must be accompanied by a technical evaluation
report prepared by a specialized and qualified company of known
technical capacity.
The Brazilian government also authorizes imports of refurbished
parts, pieces and accessories as follows:
a) Importers of refurbished parts for aircraft and other space
equipment must present an inspection and appraisal certificate
issued by a company authorized by the exporting country's aerospace
authority and recognized by the Civil Aviation Department of the
Brazilian Air Ministry.
b) Imports of refurbished parts and pieces for machine and equipment
maintenance will only be authorized when the refurbishing is performed
by the original manufacturer. The imported refurbished parts and
pieces must have the same guarantee as new pieces, and there must
not be production of these in Brazil. The importer must present
a document prepared by the appropriate Brazilian Industry Association
proving that these parts are not produced in the domestic market.
The import license, commercial invoice and the packaging must
contain information stating that the importation refers to refurbished
products. The manufacturer must also inform the prices of new
products identical to the ones that are being imported.
Importation of used goods will be analyzed by the Foreign Trade
Secretariat in connection with the Industrial Policy Secretariat.
International donations to all levels of the Brazilian Government,
government-owned, educational, scientific and technological organizations,
and non-profit public institutions are exempt from import controls
provided that the imported equipment will be used by public institutions.
The requirements listed above do not apply to imports under international
treaties; imports under the Befiex Program (a Brazilian export-incentive
program); imports under temporary admission; inherited goods;
non-commercial postal shipments; cultural goods; vehicles over
the age of 30 years for cultural and collection purposes; imports
of ships and boats, approved by the Council of the Merchant Marine
of the Transportation Ministry; airplanes and spatial devices,
turbo propeller engines and turbojets approved by the Coordinating
Committee for Civil Air Transportation (COTAC), a Department of
the Brazilian Air Ministry; transfer of production lines related
to specific projects of interest to the Brazilian economy, once
it is proven that the transfer will result in cost reduction,
increased employment an higher productivity/quality levels.
Importation of used cars and consumer goods will not be authorized.
Sector Specific Controls
Informatics -- Under the 1991 Informatics Law, prohibitions or
requirements for government prior review for informatics imports,
investment, or manufacturing by foreign firms in Brazil were eliminated.
However, import duties remain high on informatics products, and
Brazilian firms receive preferential treatment in government procurement
and have access to certain fiscal benefits, including tax reductions.
The Software Law, Law No. 7646 of 1987, requires that all software
be "catalogued" by the informatics secretariat of Brazil's
Ministry of Science & Technology (SEPIN) prior to its commercialization
in Brazil. The law contains provisions to deny cataloging of foreign
software if SEPIN determines there is a similar program of Brazilian
origin.
A draft law has been introduced into Brazil's Congress to eliminate
the requirement for cataloging and the test of similarities.
Petroleum Products - Even though the Brazilian petroleum monopoly
was revoked in November 1995 no regulatory framework is in place
as of June 1996. For this reason nothing has changed in the import
control procedures. Bulk shipments of petroleum products to Brazil
are controlled by the DNC -- Departamento Nacional de Combust¡veis
(the National Fuel Department), an agency of the Ministry of Mines
and Energy. An assessment of national requirements is made biannually
by Petrobras, the oil and gas parastatal, and corresponding import
permits are thereafter issued.
Packaged Lubricating Oil and Petroleum - A request to import packaged
lubricating oil and petroleum must be submitted by the importer
to the DNC (National Fuel Department). In turn, the DNC routes
the request to Petrobr s for confirmation that locally produced
alternatives at competitive prices are not available before the
request is approved.
Arms and Ammunition - All imports of firearms, ammunition, and
implements of war, whether for personal, commercial, or government
use, require a permit issued by the Ministry of the Army. Regulatory
book R-105 of 1965 and public notice 103 of 1993 specify that
firearms may only be imported by foreign firearms manufacturer
representatives who have registered with and obtained import authorization
from the Department of the Army.
Other Products Requiring Special Approval/Documentation - Imports
of soft drinks, flammables, airplanes, dangerous substances, chlorinated
pesticides, insecticides, other agricultural chemicals, and animal
foodstuffs are also controlled.
Imports of ships and boats must be approved by the National Department
of Water Transportation of the Ministry of Transportation and
by the Council of the Merchant Marine.
Typical Import Steps
There are numerous procedural requirements associated with importing
into Brazil. They warrant careful consideration, as failure to
comply with regulations may result in fines and delays.
Typically a Brazilian importer must follow the steps outlined
below.
1. The importer files an application for an import permit (Guia
de Importa‡ o) for a specific transaction, accompanied by
a foreign supplier's pro forma invoice for the product(s) to be
imported and back-up information.
2. Once the application is approved by SECEX, the importer notifies
the supplier to ship the product(s) and to send all shipment documents
and commercial invoices along with the exporter's statement, certified
by any chamber of commerce or Brazilian consulate located in the
U.S., that the prices quoted are those prevailing for goods for
export. (Goods should not be shipped until SECEX has granted an
import permit.)
3. Importers arrange for a licensed customs broker to clear the
goods and pay customs duties and other taxes (typically, Industrial
Products Tax (IPI) and Merchandise Circulation Tax (ICM) and customs
charges.
4. A copy of the import license (Guia de importa‡ o) and
the paid customs declaration are sent to the importer's exchange
broker, typically a bank, for closing the foreign exchange transaction.
It is customary for an importer to retain an expediter (despachante)
to assist in moving the import request through the approval process
with SECEX and the customs authority.
Imports of merchandise by mail, including mail order catalog shipments,
up to a value of USD$500.00 are allowed, without the requirement
of an import license, provided the item is not for resale. The
weight limit on imports by mail is 30 kilograms (approximately
66 lbs). Mail order imports are subject to 60 percent import duties.
The only exemptions are pharmaceuticals for individual use and
gifts under US$50.00, sent by individuals residing abroad, which
are exempt from import duties. Imports that are prohibited or
subject to special regulations must comply with applicable Brazilian
government provisions.
Identical shipments from the same source to the same person or
address in Brazil within a 90 day period are considered part of
the same shipment and may be subject to confiscation. Pharmaceuticals
are exempt from this restriction. Payments can be made using international
credit cards, an international money order, or a bank transfer.
Other merchandise entering duty free are newspapers, maps, books,
and magazines. Passenger baggage, such as personal clothing, jewelry,
consumption goods and other objects for the passenger's professional
or domestic use, are exempt from import tax. Souvenirs with a
value not exceeding USD$500 are also duty free. Personal effects
of individuals transferring residence to Brazil are duty free
if accompanied by an authorization issued by the Brazilian Embassy
or Consulate in the country of origin.
TradePort's online tutorial on importing and exporting.
Reducing the Risk of
Trade Disputes for Exporters
U.S. Harmonized Tarrif Schedule
Marketing
International Trade Association (U.S. Dept. of Commerce dedicated to helping U.S. businesses compete in the global marketplace.
List of 1998 Brazilian Trade Fairs
