TRADE IN GOODS

 

Rodrigo P. Zulian

 

International Trade has grown dramatically in the last years. Trades in goods through boundaries are now the most important deals in the world. Therefore herein are some features of Brazilian International Trade.
 
 

IMPORT PROCEDURES
 
 

The governmental agencies of Brazil in charge of controlling over cross border trading are:

   SECEX - Brazilian International Trade Secretary (Ministry of Industry, Commerce and Tourism)

   SRF – Federal Secretary of Income (Federal Revenue Service -Ministry of Finance)

   BCB - Central Bank of Brazil

There is now a new software (SISCOMEX) that integrates all information about cross boarding trading, permitting the trade in and out. Through this software all goods are licensed and exchanged contracts are approved.

Goods not included on special requirements are automatically licensed and may be shipped without red tape. However, some goods may not be shipped until the regular license is done, such as warlike goods, human organs and blood, airplanes, some pharmaceutical products, nuclear products, oil, animals, automobile goods, etc.

Samples, donation to foundations, magazines, journals, raw materials, etc. may be import by the simple import form and sometimes are exempted from taxes.

Within all requirements, the goods can be shipped and the Seller must send the following documents: B/L or AWB, invoice, Certificated of Country of Origin and Health Certificates (when needed). Then, the Buyer, by the Import Declaration (DI) will do the clearance through customs (SRF). After all this, an Import Certificate will be issued.
 
 

PAYMENT IN CROSSOVER TRADE

International payments might be done by: a) prepaid; prompt or time payment; or b) letter of credits. Exchange must be done by a contract according to the rules of Brazil’s Central Bank. Not only at sight payments, but also future exchange is allowed. The deadline between the contract and its settlement is 360 days. It may change from time to time, according to Central Bank’s Rules.

Failing payments in cross over trade might be recovered by a strong "law-key". For more information, please see the Bankruptcy Section.

 

TAXATION ON IMPORT

 

Import rates formerly ranged from 0% to 35%, even thought sometimes the government may increase or decrease it depending on economical situation. The basis of import tax is CIF price (cost + insurance + freight). Nevertheless, IPI, ICMS (taxes) and other fees will also be levied. The rates of taxes will be defined by TEC (Common External Tariff) and TIPI (IPI Tariff).
 
 

FREE TRADE ZONE OF MANAUS (ZFM)
 
 

Manaus, located in Western Amazon State, is an import/export free trade zone with several advantages, such as:

   no Import duty

   no IPI tax

   no Income tax

   no ICMS tax

   no ISS tax

However, there are some requirements to use these exemptions, such as import/export permits, company establishment approval by SUFRAMA Administrative Council and Amazon Development Authority.
 

IMPORT BASIS CALCULATION
 
 

For instance, we will demonstrate how import price is here calculated:

 

   Good - FOB price:......................................................US$ 3,000.00

   Freight and Insurance ..................................................US$ 250.00

   CIF price ...................................................................US$ 3,250.00

   CIF price in Brazilian currency Real R$**....................R$ 6.356,67

   TEC Classification ---------------------

   II (import tax) rate 17% ..............................................R$ 1080,63

   IPI Tax Calculation Basis ............................................R$  7437,30

   TIPI Classification ...........................

   IPI tax rate 8% ...........................................................R$  594,98

   ICMS tax Calculation Basis ........................................R$ 8032,28

   ICMS tax rate 18% ...................................................R$ 1445,81

   Price ..........................................................................R$ 9478,09

   In US$ ……………………………………………US$ 4,836.50

Other fees:
 

   AFRMM - Additional Freight to Navy..........................25% over ship freight

   TAA - Warehousing Air Cargo ....................................1% (5 days)/1,5% (6-10 days)/ 3% (11-20) + 1,5% every each 10 days

c) Transport inside the Port.................................................varies

d) Transport inside the Airport (up to 100 kg)....................US$ 0.0015/kg

e) Airport Tariff ....................................................................50% over b + d

f) Port Employee Tariff .........................................................0,7 UFIR*/Solid Barn tons

1,0 UFIR*/ Liquid Barn tons

0,6 UFIR*/other tons

** US$ 1,00 = R$ 1,9597 (dez/2000 rate)

* UFIR is a Fiscal Reference Value approximately US$ 0.78
 

Our Attorneys will be pleased to help you in any import and export procedure to or from Brazil. Thank you for you attention!