What is RADAR and why is it important for operations in Brazil?
Understand Logistics & Freight
Technology has been an ally of the supply chain segment for a while now, and its development has played a pivotal part in the optimization of processes, especially the ones involving legal documentation. Brazil is known for making extensive use of technological solutions and, with that in mind, on today’s post we will cover the basics of the RADAR habilitation and explain why it plays such a big role on international transactions.
What is RADAR?
“Registro e Rastreamento de Atuação dos Intervenientes Aduaneiros” also known as RADAR, is a system implemented by Brazil’s revenue service that makes it possible for companies to import and export products to and from Brazilian territory.
With their RADAR registration, companies are able to access and control all of the other Brazilian international commerce systems that may be necessary for their operation, so we can look at the RADAR as something that identifies a company as well as certifies it to make imports and exports.
However, it is important to know that, while all national companies are allowed to pledge for a RADAR habilitation, it has different modalities that offer distinct authorizations regarding import values, and the one that is granted to the company who requested will depend on their size and capacity. Let’s understand better each modality bellow:
This is a simpler modality that is usually given to smaller companies that wish get started with international transactions. The request can be made digitally, and requires minimum bureaucracy, as long as the company’s legal situation is regular. With Express Radar, a company can import up to USD 50.000,00 per semester, and has unlimited value set for exports.
This modality is ideal for medium-sized companies, or companies that already had the Express registration but requested a review of their import limit due to their need or interest to import more. In this case, the request can still be made digitally, but it may be necessary to present physical documentation, usually to certify that the company actually possesses the financial resources to conduct operations of this size. With Limited Radar, a company can import up to USD 150.000,00 per semester, and has unlimited value set for exports.
A modality for experienced and large-sized companies, that often already had the Limited Radar registration before pledging for a review of their import limit. Similar to the previous ones, the request for this habilitation can also be made digitally but may require physical documentation as well. With Unlimited Radar, a company can import beyond USD 150.000,00 per semester, and has unlimited value set for exports.
The role of the freight forwarder
As you can see, the most important aspect of requesting the Radar is the documentation, so a lot of inconveniences, or even a denial, can be avoided with the help of a freight forwarder or a customs broker, since they have experience handling bureaucracy and most likely have handled previous Radar requests on behalf of their clients. When hiring a professional, they will analyze your company’s size and operations to point you towards the most suitable modality, manage the documents as well as monitor all of the steps of the request status for you.
Which are the necessary documents?
The documents requested will depend on the modality that was pledged by the company. For Express Radar, one can expect more basic documents such as proof of a regularized financial situation and of the company’s address. For Limited and Unlimited Radar, it may be necessary to present more specific documents such as the ID of the owner or representative.
Can my Radar go inactive?
Your Radar can go inactive after six months without activity, and in case that happens it will be necessary to start the habilitation process all over again, so it is important to manage your volumes and demands in a way that avoids long periods of time with no imports or exports being made.
How do I get started?
You can file a request yourself through Brazil’s revenue service website or, if you’re looking for a hassle-free solution, you can ask your preferred freight forwarder or customs broker to take care of it for you.
It is important to note that a foreign company cannot have a RADAR in Brazil. This authorization is limited to Brazilian companies and entities with a legal presence in the country. It is possible, however, for a foreign company to utilize the RADAR of a Brazilian freight forwarder to participate in imports and exports in Brazil.
This collaboration can simplify the process for foreign companies entering the Brazilian market, as the local partner can handle customs clearance and other regulatory requirements on their behalf. However, it’s essential for foreign companies to establish clear agreements and partnerships with the chosen Brazilian service provider to ensure compliance with all relevant regulations and to manage the import and export process effectively.