Import Taxes – Importing To Brazil
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Chinavasion sells wholesale electronics to more and more Brazilian customers and we would like to share a bit of background information we have built up on import taxes in Brazil.
When a Brazilian person imports something – i.e. buys anything from abroad regardless of place of origin (in almost all cases) – then the buyer / recipient will have to pay taxes to be able to receive the goods.
This is worth knowing if you are drop-shipping to Brazil or exporting to Brazil, as your Brazilian buyer may not be aware of the big tax bill coming their way and will need to be warned about this.
As the exporter sending goods to Brazil you also need to obtain a tax number for the recipient of the goods. If you send the goods without that, you are risking holding the goods up in customs or even having them impounded.
Brazil Import Tax Basics:
- If you want to send shipments to Brazil by door-to-door courier, Brazilian law only allows goods to enter if the goods have no commercial value, or are destined for private use only, and have a value of under USD 3,000.
- Within those limits a courier such as FedEx will be able to issue clearance.
- However, despite being within the allowed limits mentioned, the goods WILL be subject to duties and taxes if the value is over USD 50.00
- Duties and taxes could add another 100% (!) to the goods price, e.g. 60% import duty + 18% sales tax + around USD 10.00 for customs administrative charges.
- Books and documents are duty exempt, except for advertisement and printing materials.
- Goods entering Brazil destined for resale need to be cleared through customs with a broker and will attract duties according to standard Harmonised Tariff categories.
Brazilian Tax Number / Tax ID
- The tax ID required for shipments to Brazilian private individuals is called CPF – Cadastro Pessoa Fisica – and in fact will be well known to the person because it is like a Social Security Number. Format of the number would be like: 000.000.028-00
- For companies the tax needs to be charged differently and their company tax number must be delcared: CPNJ – Cadastro Nacional de Pessoa Juridica. Format of the number would be something like: 00.000.486/0001-00
Brazilian readers please feel free to add information or corrections by posting comments on this blog post!
More Information About Importing To Brazil, Provided By FedEx:
Commercial Invoices â€“ Invoices are required for all dutiable shipments relating to commercial transactions between companies and companies, companies and individuals, regardless of the value. Commercial invoices should show freight, insurance and similar charges as separate items when applicable, regardless of the INCOTERM used on the transaction.
Specific invoice details are required for a number of commodities including the following:
* Textiles - the fabric breakdown, whether knit or woven and, for clothing articles, the gender;
* Marked/mutilated samples - the words mutilated samples? or marked samples, not for resale? as applicable;
* Software on CDâ€™s and floppy disks - The value of software must be shown separately from software support.
Air Waybill: An air waybill or carriers certificate (naming the consignee for customs purposes) is required as evidence of the consignees right to make entry.
On January 1, 1995, Brazil implemented the MERCOSUL Common Nomenclature, known as the NCM (Nomenclatura Comum do MERCOSUL), consistent with the Harmonized System (HS) for tariff classification.
Brazil Import Duties
Shipments by air valued between 51 USD and 3,000 USD are subject to a flat 60% duty and tax on the FOB value of the shipment regardless of the commodity. Medicaments for personal use are exempt from this duty and tax. Tobacco products and alcoholic beverages cannot be shipped via air express service.
Brazil also assesses the following taxes and fees on imports over and above duty and tax:
Merchandise entering duty free includes newspapers, maps, books, and magazines. Passenger baggage, such as personal clothing, jewelry, consumption goods and other objects for the passenger's professional or domestic use, are exempt from duty and tax. Souvenirs with a value not exceeding 500 USD also enter duty free. Personal effects of individuals transferring residence to Brazil are duty free if accompanied by an authorization by the Brazilian Embassy or Consulate in the country of origin.