Import & Product
Nationalization
Brazilian importers are required to register with the Foreign Trade Secretariat (SECEX), a division of the Ministry of Development, Industry, Trade and Services (MDIC) through its Integrated System for Foreign Trade (Siscomex). The need for extra paperwork varies according to the item being imported. For instance, the Ministry of Health oversees all products that could impact human health, such as drugs, dietary supplements, beauty products, and medical devices. These products must be registered with the National Health Regulatory Agency (ANVISA), the Brazilian counterpart to the FDA.
NCM
In 1995, Brazil implemented the Mercosur Common Nomenclature (NCM; “Nomenclatura Comum do Mercosul”, in Portuguese), for tariff classification. The NCM code is an eight-digit number based on the Harmonized System (HS) used to identify the nature of goods for import/export.
In order to import products into Brazil, businesses must comply with the customs system and inform the product’s NCM code on their legal documentation. Since the tariffs are charged according to the NCM, assigning the proper code to imported products is an essential part of doing business in Brazil, and it can directly impact the product’s final cost and marketability.
Remember that your business can face non-compliance penalties, shipment delays, and seizure of products by authorities if your products are classified incorrectly.
Import Tariffs
Imports are subject to several taxes and fees in Brazil, which are usually paid during the customs clearance process. There are three taxes that account for the bulk of import costs:
• Import Duty (II) II is a federally mandated product-specific tax charged on a Cost, Insurance, and Freight (CIF) basis for imported goods, and is assessed during the customs clearance process.
• Industrialized Product Tax (IPI) IPI is a federal tax charged on most manufactured products. It is assessed at the point of customs clearance in the case of imports. 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 IPI tax is a pass-along tax, assessed at each sale point, and thus not considered a cost for the importer, since the value is credited back to the importer, when sold to the end-user. The Government of Brazil levies the IPI rate by determining how essential the product may be for the Brazilian end-user. Generally, the IPI tax rate ranges from 0-15%. In the case of imports, the tax is charged on the product’s CIF value plus import duty. A product’s IPI rate is directly proportional to its import tariff rate.
• Merchandise and Service Circulation Tax (ICMS) ICMS is a state government value-added tax applicable to both imports and domestic products. The ICMS tax on imports is assessed ad valorem on the CIF value, plus II, plus IPI. Although importers must pay the ICMS tax 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 tax, which is included in the final price of the product and is paid by the end user. Effectively, the tax is paid only on the value-added; the tax is generally passed on to the buyer since it is included in the price charged for the merchandise. ICMS is charged on both intrastate and interstate transactions and is assessed on every transfer or movement of merchandise. The rate varies among states but in most cases is between 17-19 percent. On interstate movements, the tax will be assessed at the rate applicable to the destination state. Brazil’s customs regime allows for tariff-exempt imports of foreign manufactured goods under some circumstances. When there is no similar equipment being manufactured locally, an importer can seek an import duty waiver to reduce import costs. This tax reduction is called “ex-tariff” or “ex tarifário”. The ex-tariff regulation consists of a temporary reduction on import duties when there is no domestic equivalent production. To qualify, the manufacturers or their legal representatives must submit a technical application for review. It is advised to work with a local Brazilian company with experience in the program to determine if your product could be eligible.
In addition to these taxes, several smaller taxes and fees apply to imports. Note that most taxes are calculated on a cumulative basis.
Customs Regulations
It's crucial to ensure all necessary customs paperwork is accurately and thoroughly completed. It's also important to work with a reliable and successful customs broker for the Brazilian market. Products frequently experience delays due to small mistakes or missing details in their paperwork. Items that are held can face significant charges, and Brazilian Customs often confiscate shipments that seem to have incorrect documents. Customs has the authority to impose fines and penalties as it sees fit.
The Brazilian government has set up a digital system for tracking imports and streamlining customs clearance, called the Foreign Trade Integrated System (SISCOMEX), which has lessened the paperwork needed for bringing goods into Brazil. Importers in Brazil are required to be listed in the SECEX Export and Import Registry and are given a password by Customs to access the SISCOMEX system. This system generates digital import documents and sends data to a central database.
The system has been enhanced by the Foreign Trade Single Window (SW) Program, which is designed to centralize and enable the electronic submission of import and export documents. The Single Window program has cut down the time it takes to clear customs for maritime shipments to less than ten days, helping over 40,000 importers.
NCM Evaluation
We will determine the proper NCM tariff classification, keeping in mind the NCM code during the entire registration process, to get the most out of it.
Stay Compliant
We will check for updates to the NCM codes and legislation to avoid penalties, shipment delays, and seizure of products by authorities.
Market Research
We will provide feedback according to our market research to adapt and/or improve your product to fit the needs of the Brazilian users.
Evaluate Product’s Marketability
We have partnerships with hospitals to evaluate if the product’s characteristics are acceptable by the Brazilian market.
Economic Feasibility Studies
We can suggest selling price, comparing with other suppliers; run economic evaluation studies to check if the target price for the product is feasible and acceptable by the market
Import & Customs Clearance
We can provide support for import processes, from start to finish, in addition to defining strategies for tax and duty exemptions.
...and much more!
Get in touch
Send us a message, we will be glad to help you through the pathway into the Brazilian market.
+55 (51) 3937-8726