BRAZIL CUSTOMS DUTY

The Brazil Customs Duty “Imposto de Importação” in Portuguese – abbreviated here as: (II) and taxes charged on imports to Brazil can be complicated, with a lot of duties applied directly or indirectly in the process, as listed below.

BRAZIL CUSTOMS DUTY FOR IMPORTS

The Brazil Customs Duty a federal tax, applied to regulate imports and to protect the national commerce, avoiding unfair competition. The tax rate for this duty is defined in the Common External Tariff (CET). This is used by Mercosul countries, based on the Common Mercosul Nomenclature (CMN). The CMN, in turn, is based on the International Harmonised System. The calculation basis to the Brazil Customs Duty is the custom value of the goods and the formula for this tax is:

BRAZIL CUSTOMS IMPORT DUTY = COMMON EXTERNAL TARIFF x CUSTOM VALUE

II = CET (%) X CUSTOM VALUE

EXAMPLE

You want to export from the UK a mobile phone with custom value of BRL 500 each.

The Brazil Customs Import Duty (II) will be 500 x 16% = BRL 80.

BRAZILIAN FEDERAL EXCISE TAX ON MANUFACTURED GOODS

“Imposto Sobre Produtos Industrializados” in Portuguese – abbreviated as: (FETMN).

This is a tax on manufactured products that are on the occurrence table (TIPI), based on the CMN. This duty is charged to protect the national products and adjust the value of the import products. The calculation basis is the custom value plus the Import Duty. The following is the formula for calculation of this tax:

FETMN = TIPI (%) X (CUSTOM VALUE + IMPORT DUTY)

EXAMPLE</h5

The value of the tax for the same exported from the UK mobile phone will be 15% x 500 +80 = BRL 87.

BRAZILIAN FEDERAL TAXES CHARGED FOR SOCIAL CONTRIBUTIONS

The Social Integration Program, “Programa de Integração Social” is abbreviated PIS in Portuguese, and the Contribution for the Financing of Social Security, “Contribuição para Financiamento Social” is abbreviated COFINS in Portuguese. These are federal taxes charged on imported goods and services used for financing social programs.

The calculation equals the customs value of the goods and in case of importing services, the value of the Tax on Services (ISSQN) is also increased.

The tax rate is, almost always, 2.1% for PIS and 9.65% for COFINS, which may change slightly according to the law.

EXAMPLE

The value of PIS and COFINS to import a refrigerator with a customs value of R$ 500 would be as follows:

PIS = 2.1% x 500
PIS = R$ 10.50
Cofins = 9.65% x 500
Cofins = R$ 48.25

BRAZILIAN TAX ON CIRCULATION OF GOODS AND TRANSPORTATION AND COMMUNICATION SERVICES

“Imposto Sobre Circulação de Mercadoria e Prestação de Serviços” in Portuguese – abbreviated as ICMS .

This is a state tax, imposed on products that are in circulation in Brazil or imported. This is to maintain equal rights for the products. There is a fixed tax and tax treatment on each one of the 27 Brazilian states.

It will be applied according to the state where the goods will be used. The calculation is based on the custom value, plus Brazil Customs Duty, Brazilian Federal Excise Tax on Manufactured Goods, their own tax and other taxes and expenses charged when importing the goods, besides the fixed tax.

Here is the formula for the calculation of this tax:

ICMS = Fixed tax (%) x (CV + II + FETMN + other taxes + custom expenses) / [1-Fixed tax (%) ]

EXAMPLE

In the case of the mobile phone imported from the UK to Brazil, with a custom value of BRL 500:

ID of BRL80
FETMN of BRL 87
PIS of BRL 10,50
Cofins of BRL 48,25

Foreign Trade Integrated System, in Portuguese: Sistema Integrado de Comércio Exterior – abbreviated as: SISCOMEX

SISCOMEX tax of BRL 214,50 supposing that the product will arrive at Santos/SP Port, with a fixed tax of 18% the calculation should be:

18(%) x (500 + 80 + 87 + 10,50 + 48,25 + 214,50) / (1 –18%) The final value of the tax will be BRL 206,39.

BRAZILIAN TAX ON GOODS IMPORTED BY SEA

“Adicional ao Frete para Renovação da Marinha Mercante” in Portuguese – abbreviated as: AFRMM

This is a social and federal contribution tax charged based on the value of the international freight designed to help developing the merchant navy and Brazilian naval industry. It is a fixed tax of:

25% to long navigation
10% to cabotage navigation.
40% to river and lake navigation

Cabotage navigation is the transport of goods or passengers between two places in the same country by a transport operator from another country.

EXAMPLE

To export from the UK a mobile phone worth BRL 500, the international freight cost in this case will be BRL 100. The formula for the calculation of this tax is:

100 x 25% = BRL 25

SISCOMEX uses rate charged to cover the cost to use the system by the importer. This tax has a fixed price by law of BRL 185 with an additional of BRL 29,50 for each additional product, with some limits.

For example:

To export a mobile phone to Brazil, the calculation of this tax will be:

BRL 185 + BRL 29,50 and that is BRL 214,50.

ADDITIONAL TAXES

In addition to the duties and taxes listed above, other taxes may be applied on imports depending on the border used as foreman, storage, expenses with organising the import license, expenses with custom agents, internal transportation of the goods, bank expenses, municipal service taxes such as the Tax on Services of Any Kind, in Portuguese: Imposto Sobre Serviço de Qualquer Natureza (ISSQN) when import services, financial operation tax, in Portuguese: Imposto sobre Operação Financeira (IOF) and other trade defense measures. For more information, you can check the Brazilian Federal Revenue website.

For more information about Brazil Customs Duty and other relevant for the British exporters information please visit the homepage of the Shipping Brazil website.

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