Everything you must know about Brazil shipping regulations
May 6, 2019
Understand Logistics & Freight
Shipping to Brazil requires specific knowledge of the country’s import laws and regulations. However, these can be very complex to handle, especially by international exporters without much experience in conducting operations in the Brazilian territory. Do you know anything about Brazil shipping regulations?
In this post, we will go through some important aspects of shipping to Brazil, such as customs processes, documentation and tax regulations. Check it out!
How to deal with Brazil shipping regulations
In order to exchange business with Brazil, the first thing you must worry about is registering with the country’s Foreign Trade Secretariat (SECEX).
Once you are registered in the SECEX, you will be given a password to operate the SISCOMEX, which is an online registry that creates electronic import documents and transmits information to a central Customs system. Besides reducing the amount of paperwork needed to plan an import operation in Brazil, this platform will concentrate all data related to the cargo’s customs clearance, making it easier to monitor the processes from a distance.
The clearance of imported products to Brazil is subject to permits issued by the respective Brazilian authorities that regulate the entry and commercialization of these items.
Said another way, in addition to the Siscomex registration, you may also need documents specific to the type of merchandise you are importing to Brazil. Health-related products like pharmaceuticals or vitamins, for instance, can only be imported and commercialized in Brazil if they are approved by ANVISA (Brazil’s Sanitary Agency).
So, make sure to check what kind of documents are specifically required for the cargo you aim to ship to Brazil.
Aiming to make your import process as cost-effective as possible, you should also be familiar with the tax benefits offered by the Brazilian Government, which can waive or reduce import costs. The ex tariff, for instance, consists of a temporary reduction on import duties of capital goods, as long as there are no similar goods being manufactured domestically in Brazil.
The ex-tariff program is coordinated by the Ministry of Industry, Foreign Trade and Services (MDIC) and can only be requested by companies with import/export registration with Customs. Generally, if this status is granted, the import tariff can be temporarily lowered to 2% for up to two years. To qualify, you or your legal representatives must submit a technical application to MDIC for review.
Other taxes charged over imports are the Industrialized Product Tax (IPI) and Merchandise and Service Circulation Tax (ICMS). The IPI is a federal tax levied on most imported manufactured products. As part of the federal government’s efforts to support local producers, IPI rates between imported and domestically produced goods within the same product category may differ.
The ICMS is a state government value-added tax applicable to both imports and domestic products. Although importers have to pay the ICMS to clear the imported product through Customs, it is not necessarily a cost item for the importer because the paid value represents a credit to the importer. When the product is sold to the end user, the importer debits the ICMS, which is included in the final price of the product and is paid by the end user.
FOX Brasil – Brazilian leaders in freight forwarding and logistics
Our team has a deep understanding of the Brazilian shipping culture and will guide you through the entire process in order to make it as cost-effective and agile as possible.