Overcoming Import Challenges: Insights from a Brazilian Customs Expert

An interview with Ivy Marie Dante, Director of Customs Brokerage, Giant Cargo Brazil

Importing goods into Brazil can be challenging and overwhelming. Brazilian Customs is known for its complex regulations and strict rules that can lead to clearance delays, additional charges, or rejected cargo.

I recently had the privilege of interviewing Ms. Ivy Marie Dante, a seasoned Customs Broker at Giant Cargo in Brazil, renowned for her expertise in navigating the complexities of Brazilian customs.

Q&A

Q. Is it easy to import into Brazil?

The import process in Brazil is complex. Based on this, outstanding support from a customs broker is required to ensure all procedures comply.

Q. Can you provide reasons or examples of how Brazilian Customs can be complex?

• Bureaucracy: The Brazilian customs system is known for its extensive bureaucracy, which requires numerous documents and procedures. If not handled correctly, this can lead to delays and increased costs.
• Regulatory Changes: Regulations frequently change, and keeping up with the latest requirements can be challenging for exporters.
• Taxation System: Brazil has a complex taxation system with various federal, state, and municipal taxes that must be calculated and paid.
• Cultural Differences: Understanding local business etiquette and communication styles is crucial for smooth operations.

Examples:

• Documentation: Importers must provide a range of documents, including the Bill of Lading or House Air Waybill, Commercial Invoice, Packing List, and Certificate of Origin. Any errors or omissions can cause significant delays.
• Valuation: A lot of cascading taxes.

Q. What are some of the biggest challenges Importers face when importing into Brazil?

Logistical issues. A strategy with your freight forwarder is essential to ensure freight arrives on time while keeping costs low. A freight forwarder can help make decisions like where to clear goods:

• Release goods in a primary zone rather than a bonded warehouse. A primary zone allows for quicker customs processing since the goods are already at the port or airport, while a bonded warehouse provides flexibility in managing inventory and cash flow.

• The best airport or port to send the cargo [for clearance].

Q. What advice would you give to U.S. Exporters when shipping to Brazil?

1. Brazil is a complex market. So, ensure you have the best partners who can provide excellent support for the release of your goods.
2. Prepare commercial documents with the correct product description. Some best practices:
   • Accuracy: Ensure the product description is detailed and accurate, including H.S. codes, specifications (Part number, serial number, etc), and usage.
   • Compliance: Familiarize yourself with Brazilian customs regulations to ensure compliance. This may include specific labeling requirements, language requirements, and certifications.
   • Consistency: Maintain consistency across all documents (invoice, packing list, Hawb, BL, etc.) to avoid discrepancies that can lead to delays.
   • Professional Help: Consider hiring a customs broker or consultant well-versed in Brazilian import regulations.

Q. Are there any restricted commodities or products complex for customs to clear?

Restricted: Goods that were manufactured in countries with restrictions in Brazil.

Challenging to Clear:

• Pharmaceuticals: Extensive documentation and approvals from health authorities are required.
• Agricultural Products: Subject to stringent inspections and quarantine regulations.
• Chemical Products: Often require special permits and are closely monitored for environmental safety.

Q: Are there any products that face higher duties?

• Textiles and Apparel: Often face higher import duties to protect domestic industries.
• Automobiles: High tariffs and additional taxes can make importing vehicles expensive.
• Electronics: Certain electronic goods may attract higher duties due to anti-dumping measures.

Q: What are the typical duty and tax rates?

In Brazil we have:

• II: Imposto de Importação (Import Duty)
• IPI: Imposto sobre bens Industrializados (Tax on Industrialized Goods)
• PIS: Programa de Integração Social (Social Integration Program)
• COFINS: Contribuição para o Financiamento da Seguridade Social (Contribution to the Financing of Social Security)
• ICMS (the same as VAT): Imposto sobre Circulação de Mercadoria (Tax on Circulation of Goods)
• SISCOMEX FEE: Fee for using the foreign trade system.

II, IPI, PIS, COFINS and SISCOMEX FEE are paid automatically in the Import Declaration entry.

ICMS is paid when the Import Declaration is released.

Q. How long does it take to clear customs in Brazil?

It depends on the channel that the Import Declaration will be parameterized:

• Green: Automatically release
• Yellow: Take one or two days (documents analysis)
• Red: Three days (documents and physical inspection). Brazilian Customs may decide to inspect the shipment depending on the nature of the goods. This can include physical inspection or document review.
• Grey: It may take up to a few months to be released. Signifying a comprehensive scrutiny by Customs due to suspected irregularities such as fraud.

Q. What type of documents are typically required for customs clearance?

• Commercial Invoice: The transaction details, including value, quantity, and description of goods.
• Bill of Lading or House Air Waybill: Proof of shipment and ownership of goods.
• Packing List: Details of the shipped goods, including weight and dimensions.
• Certificate of Origin: Indicates the country of manufacture.
• Import or Export Declaration: Filed electronically through the SISCOMEX system in Brazil.
• Relevant Licenses and Permits: Additional permits (e.g., health certificates for food products) may be required depending on the type of goods.
• National Invoice Transportation.

Importing goods into Brazil is challenging, and while the process is similar to importing into the USA, it is more complex. As with importing into any other country, working with a knowledgeable freight forwarder and customs broker will make the process easier. Businesses that work with a strong partner can successfully manage the difficulties and tap into Brazil’s opportunities.

Giant Cargo is headquartered in Sao Paolo with offices in Guarulhos Airport (GRU), Viracopos Airport (VCP), Santos Port, Campinas, Galeao – Rio de Janeiro (GIG), and Resende. Also, they have additional partner locations in nine states including Manaus, Recife, Salvador, Brasilia, Vitoria, Curitiba, Itajai, Porto Alegre.

Giant Cargo is the long-time partner of NNR Global Logistics in Brazil.

Author

Tatiana Snigurski is a Licensed U.S. Customs Broker and the Business Development Manager of Customs & Trade Compliance at NNR Global Logistics USA Inc.