TO OFFER COMPREHENSIVE FREIGHT AND CUSTOMS CLEARANCE SERVICES FOR EUROPEAN AND BRAZILIAN BUSINESSES
First of all, the Brazilian Tax on Circulation of Goods and Transportation and Communication Service is a state tax, Imposto sobre Circulação de Mercadorias e Serviços in Portuguese and is abbreviated ICMS, which is levied on the circulation of goods in general. It includes a wide variety of products, such as home appliances, food, cosmetics, etc. and also on services. Therefore, this duty is applied on imports to maintain an equality between national and imported products.
Brazil has 26 states and 1 federal district, and each of the 27 states has its own law to regulate and administer this tax. In general, the fixed tax is about 17% of the custom value of the good. If the goods are transported between different states in Brazil, there will be further tax, which depends on the origin and destination state.
When you export a television set to Brazil with a custom value of R$ 3,000.00 to Santos port in Sao Paulo, where the fixed tax is 18%, the calculation should be:
ICMS = Fixed tax % x (Custom Value + Import Duty + IPI + other taxes + custom expenses) / [1 – Fixed tax %]
Considering the following calculation to the Brazilian Federal Excise Tax on Manufactured Goods (IPI):
IPI = Fixed tax x (Custom Value + Import Duty)
Considering the charge of the SISCOMEX use rate of R$ 214.50 (single fee to one use), the calculation of the Tax on Circulation of Goods and Transportation and Communication Service (ICMC) should be:
Furthermore, The taxable event is the customs clearance or the delivery of the goods, whichever comes first. Since clearance takes place after the registry of the Import Declaration, followed by tax analysis and eventual customs conference. In addition to that the payment of this duty occurs at the place of entry of the goods, the place where the importer is located.
This tax is charged to protect the state budget and equalise costs and prices of existing products in Brazil.
For more information about Shipping Brazil vising the homepage of this website.
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