Relevant policy instructions on general import and export tax rates.
Brazil's import tax policy consists of various taxes, with specific rates varying based on the type of imported goods, their country of origin, and specific domestic economic policy goals. Brazil's import tax system primarily includes the following taxes:
1. Import Tax (II - Imposto de Importação): This tax is levied on imported goods with the aim of protecting the domestic market. The rates vary by product and are established through the Brazilian Common External Tariff (TEC), a tariff system adhered to by members of the Southern Common Market (Mercosur).
2. Tax on Industrialized Products (IPI - Imposto sobre Produtos Industrializados): This federal tax is applied to industrialized products, whether domestically produced or imported. The tax is calculated based on the product's tax code and its degree of industrialization.
3. Tax on Circulation of Goods and Services (ICMS - Imposto sobre Circulação de Mercadorias e Serviços): Similar to value-added tax, this tax applies to the circulation of goods and services. It is a state tax, and therefore, the rates vary according to the regulations of different states in Brazil.
4. Social Contribution Taxes (PIS/PASEP) and Social Security Funding Tax (COFINS): These taxes are primarily aimed at taxing products and income to support social security programs. When taxing imported products, these two taxes are usually calculated together.
5. Service Tax (ISS): This tax is applied to services provided in Brazil but typically does not apply to imported goods.
The determination of import tax rates relies on several factors:
- NCM Code (Nomenclatura Comum do Mercosul): This classification method for goods is based on the Harmonized System (HS Code). Brazil uses this system to assign tax rates to different types of goods.
- Country of Origin: Brazil may have trade agreements with certain countries, and goods imported from these countries may enjoy tariff benefits.
- Trade Barriers and Protective Measures: Specific goods may face higher tax rates to protect the domestic market from foreign competition.
- Special Policies: In certain cases, the Brazilian government may adjust tax rates to promote or restrict the import of specific goods for macroeconomic control purposes.
Understanding specific import tax rates in Brazil typically requires consulting the latest tax regulations and related tax tables. Importers may need to consult local trade experts or customs brokers to ensure they understand the current tax rates and regulations applicable to their goods. Additionally, Brazilian tax laws and policies may change, necessitating regular attention to the latest information.
Import tax collection rules for items mailed to Brazil
The rules for importing goods via mail in Brazil are quite complex and generally depend on the CIF value (Cost, Insurance, and Freight) of the items. According to Brazilian customs regulations, the taxation rules for personal mailed items are typically as follows:
1. Mailed Items Below 50 USD:
- Items valued under 50 USD are generally tax-exempt when sent from an individual to another individual without commercial intent.
- It's important to note that both the sender and recipient should be natural persons and should not exhibit a pattern of frequent transactions that could be construed as commercial activity.
- Nonetheless, customs have the authority to tax any import, even if declared under 50 USD.
2. Mailed Items Between 50 and 3000 USD:
- For items valued between 50 to 3000 USD, an import tax is typically levied. Brazilian customs usually impose an import tax of 60% on these items, calculated on the CIF value (sum of the cost of goods, plus freight and insurance).
- In addition to the import tax, there might be a state VAT (ICMS) that depends on the state of the recipient. ICMS rates vary by state and can range from 7% to 18%.
- There may also be some administrative handling fees, such as the postal import processing fee.
3. Mailed Items Above 3000 USD:
- Imports exceeding 3000 USD are generally considered non-ordinary consumer goods and must go through formal import procedures. - This means they must be processed by a registered import broker.
- Taxes to be paid include Import Duty, ICMS, PIS (Social Integration Program Contribution), COFINS (Contribution for the Financing of Social Security), and IPI (Tax on Industrialized Products), with rates that may vary depending on the type and use of the item.
- Additional costs may include customs brokerage fees, storage fees, and other related charges.
4. Special Conditions:
- Occasionally, special items may be subject to different tax rates or exemptions based on Brazil's current tax policies and international agreements.
- Items in certain categories such as education, technology, medical, etc., may be eligible for tax reductions or exemptions.
The information provided above offers general guidance, but the regulations of Brazilian customs can change, and the specifics of each case may vary. Tax rates and regulations updates might not be immediately reflected in public information. Therefore, for the most accurate information on taxes and processing procedures, it is recommended to consult directly with Brazilian customs or a professional import/export agent. Staying informed about the latest laws and requirements is crucial when dealing with import matters.
This policy information was updated in January 2024.
