This export cheat sheet targeting South America's largest economy describes formal trade documents, certificates, labels, import duties, sales taxes and tariffs.

Foreign Affairs and International Trade Canada provides an illustrative case study for Brazilian import regulations and their costs for a sample export shipment to Brazil.

After adding import duties, fees, taxes and other charges, the sample Canadian import delivery to Brazil cost US$161,798. That’s 22.4% higher when compared with comparable Brazilian products locally manufactured with charges totalling $132,160.

Tariffs

As member countries of MERCOSUL (Common Market of the Southern Cone), the three nations exempted from Brazil’s import duties are Argentina, Paraguay and Uruguay. All other exporting nations must pay the Common External Tariff (CET), which averages 14% to a high of 20%, depending on the imported merchandise. Brazilian authorities maintain a list of imported products exempted from the CET including computers, telecommunications equipment and some capital goods.

Commercial Invoices

Shipments to Brazil must have commercial invoices that include an exact description of the imported goods in Portuguese. The invoices must also show country of origin, date and place of shipment, markings and numerical order of packages, prices plus charges including insurance and shipping, as well as weight.

Import Certificates

Certificates are required for specific goods, notably food and health products. Food products also require documents notarized by a Brazilian Consulate in Canada.

Import Duties and Sales Taxes

Products delivered to Brazil are subject to import duties. Brazil’s government sets product classifications that determine rates for specific imports. Where exceptions meet the best interests of the Brazilian economy, import duty rates may be negotiated.

Brazil imposes two major taxes on imports, namely the industrial products tax (IPI) and the tax on the distribution of goods and services (ICMS). Foreign exporters must also be aware of the federal Social Integration Program tax (PIS) levied on gross revenues from domestic sales of goods and services and the Contribution for the Financing of Social Security tax imposed on most gross revenues.

Like Brazilian import duties, ICMS and IPI taxes vary depending on product type and assessed importance to Brazil’s economy. ICMS is a state tax payable at all stages of sale from manufacture to consumer. ICMS tax rates range from 7% to 25%, and average 18% in Rio de Janeiro.

Strictly speaking, IPI is a tax imposed on manufactured product imports. Thus international traders receive tax credits from IPI payments for raw material shipments, certain semi-processed imports and packaging materials. IPI tax rates are higher on non-essential and luxury items such as cigarettes, cosmetics and liquor.

In addition, Brazilian importers typically pay a minimum of 1.65% for PIS and 7.6% for Cofins taxes. Exempt from PIS and Cofins are products such as fruits, vegetables, eggs and pharmaceutical inputs.

Product Labels

Consumer product imports must have a label in Portuguese that shows product contents as well as the importer’s name, address and telephone number. Production and good until dates are also required for food products, pharmaceuticals and cosmetics. Imported equipment and devices must come with instructions in Portuguese. Labels for animal-origin foods must be previously approved by the exporters’ governing ministry of agriculture. Pertinent forms are available from the appropriate foreign embassies in Brazil.

Product Licensing

Importers must register with the Brazilian International Trade Secretariat (SECEX), and secure import licences before any products are shipped. Brazil’s automated import system SISCOMEX allows importers or customs brokers to enter information from a pro-forma invoice directly into the system. SISCOMEX indicates if an automatic import licence may be issued, or if additional information is required for products such as weapons, radioactive materials, medical equipment and food.

Sources for this Article

This article presents independent calculations and insights based on Foreign Affairs and International Trade Canada’s Average Import Costs Breakdown and Import Costs & Regulations – Brazil.