Discusses requirements for products entering the country/economy temporarily. including information on warranty and non-warranty items entering the country/economy for repair.
Last Published: 9/21/2018

The GoB became the third country in Latin America to officially accept ATA Carnets in 2017. The Carnet is an international customs document and temporary export-import document, which allows the holder to avoid import duties for goods that will be re-exported within one year. Prior to Brazil’s participation in the ATA Carnet program, U.S. exhibitors faced extreme difficulties and delays in clearing temporary imports and frequently wrote-off the imports as a complete loss. The ATA Carnet will significantly ease customs clearance procedures for U.S. exhibitors in Brazilian trade shows.

Since 2000, the GoB has made an allowance for temporary importation of products that are used for a predetermined time period and then re-exported. Brazil has already ratified the International Convention for the Temporary Admission of Goods. Under Brazil’s temporary import program, the II and IPI are used to determine the temporary import tax. Products must be used in the manufacture of other goods and involve payment of rental or lease fees from the local importer to the international exporter.

Under Brazil’s temporary import program, the Import Duty (II) and Industrialized Product tax (IPI) are used to determine the temporary import tax. Products must be used in the manufacture of other goods and involve payment of rental or lease fee from the local importer to the international exporter.

There are very strict rules regarding the entry of used merchandise into Brazil. An example of products falling under this program would be the temporary importation of machine tools. The example in the table below shows that taxes due are proportional to the period the imported product will remain in Brazil. This also applies to temporary entry of personal belongings.

 
Brazil - Temporary Entry
Permanent and Temporary Tax example - Brazil
CIF price of machine tool$200,000
II of 10% on CIF$20,000
IIPI of 5% X (CIF plus II)$11,000
Taxes that would be owed if importation were permanent$31,000
Total life span of machine tool60 months
Time machine tool with stay in Brazil12 months
Tax for temporary importation$6,200
Value =31000 X (I-(60-12)/60) 
(20% of tax is owed as tool will stay in Brazil 1/5 of it’s useful life) 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.



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