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: 7/10/2017

Since 2000, the Government of Brazil 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.
 
As of June 28th, 2016, Brazil is only accepting ATA Carnet from countries overseen by the Istanbul Convention. U.S. Carnets are overseen by the ATA Carnet Convention and U.S. Carnets are being rejected. The U.S. government is working with the Government of Brazil toward resolution of this issue.
 
The ATA Carnet is an international customs document that allows importers to temporarily import goods up to one year without payment of normally applicable duties and taxes, including value-added taxes.
 
A copy of the Brazilian Administrative Ruling 1639 (Instruçao Normativa) published in the Brazilian Official Gazette that codifies the adoption of the ATA Carnet, is available here.
 
Additional resources can be found at:

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. 
  

Permanent and Temporary Tax example - Brazil

Permanent and Temporary Tax example - Brazil

CIF price of machine tool

$200,000

II of 10 percent on CIF

$20,000

IIPI of 5 percent X (CIF plus II)

$11,000

Taxes that would be owed if importation were permanent

$31,000

Total life span of machine tool

60 months

Time machine tool with stay in Brazil

12 months

Tax for temporary importation

$6,200

Value =31000 X (I-(60-12)/60)

 

(20 percent of tax is owed as tool will stay in Brazil 1/5 of it’s useful life)

 

 
 

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