Special custom procedures

We know that taxes levied on import and export procedures can be a decisive factor for some businesspeople/entrepreneurs. In some areas, the tax charges can be unsustainable vis a vis foreign trade procedures. However, special customs procedures are an exception to the rule and can be the solution for your business to enter the realm of international transactions.

What are special customs procedures?

Basically, special customs procedures are foreign trade operations where companies enjoy tax benefits. These procedures were created by the government in order to facilitate import/export transactions and encourage local market progress. By taking advantage of special customs procedures you can gain exemption from taxes levied on transactions or have them waived. These benefits can be granted partially or in full.

Types of special customs procedures

In total, the Federal Revenue Office has established 17 special customs procedures. TCW provides you with an explanation about those which are most often used and under what circumstances they can be applied.

Customs transit

The Customs Transit procedure is the benefit granted to importers and exporters that allows the transfer of goods from one customs area to another, in order to clear the cargo. This procedure is widely used between the transit of loads between the primary and secondary zones.

Temporary admission

The Temporary Admission special customs procedure allows goods to remain in the country for a specific purpose and for a specified period of time. The Temporary Admission provides for the total or partial suspension of customs taxes levied on their importation. This procedure deals with specific situations and facilitates the temporary entry into the country of goods intended for holding events, machinery for providing services and goods intended for active improvement operations.

Temporary export

The Temporary Export procedure is similar to the Temporary Admission special customs procedure. It allows the departure of national goods from the country with the suspension of export taxes, as long as the goods return within the established deadline and in the same physical condition. The Temporary Export allows the export of goods for exhibitions, fairs, competitions, functioning tests, promotions, repairs, restorations, equipment and tools necessary for the activities of professionals abroad. The reimportation of goods is allowed without incurring taxes within the period of procedure validity.

ATA Payment Book

The ATA Payment Book is nothing more than a passport that allows you to travel with goods through more than 70 countries, tax-free for one year. Under the Temporary Admission or Export procedure, ATA Payment Book allows you to travel with your goods using only one document. For example, with ATA Payment Book, an artist’s tour can travel through several countries with all the necessary equipment through a simplified customs procedure.

Drawback

The Drawback special customs procedure consists of the suspension or exemption of taxes on inputs, imported or national, for the production of products to be exported. The drawback is an incentive for exports, as it reduces production costs, making products more competitive in the international market.

Customs warehouse

The Customs Warehouse is the procedure that allows the storage of imported products in a bonded warehouse with the suspension of taxes levied on imports. Under this procedure, goods are imported with or without exchange coverage, and are stored for a specified period. In addition, it is possible to partially withdraw the goods, paying the proportional fees until all the goods are nationalized or re-exported.

Guaranteed Deposit – DAF

The Guaranteed Deposit (DAF) is the special customs procedure that allows the storage of materials intended for the maintenance and repair of vessels or aircraft belonging to companies authorized to operate in international commercial transport. The procedure allows the suspension of federal taxes. The legislation also provides for the granting of DAF to road and maritime transport companies, but the procedure is mostly used by airlines.

Certified Bonded Warehouse – DAC

The Certified Bonded Warehouse (DAC) makes it possible to consider, for all purposes (tax, credit and exchange), an exported good. That is, the national merchandise, deposited in a customs warehouse, sold abroad is considered as exported, even without leaving the national territory. The procedure is operated with authorization from the Brazilian Federal Revenue Office and in a bonded warehouse for public use.

Special Deposit– DE

The Special Deposit (DE) customs procedure allows the storage of parts, pieces, components and spare or maintenance materials for vehicles, machines, appliances, instruments and equipment. These can be foreigners, nationalized or not, and nationals in which foreign parts, pieces and components have been used. The procedure only admits imported goods without exchange coverage and provides for the suspension of federal taxes.

RECOF

RECOF, or Special Customs Procedure for Industrial Warehouses under Computerized Customs Control, allows the beneficiary to buy goods in the domestic or foreign market with suspension of taxes. These goods must be submitted to industrialization operations for products intended for export or the domestic market.

REPETRO

REPETRO is the special customs procedure that allows the importation of specific equipment to be used directly in the research and mining activities of oil and natural gas deposits, without the incidence of federal taxes. The tax burdens remain suspended for the period of use of the regime, being extinguished in the case of re-export the admitted equipment.

REPORTO

The REPORTO special customs procedure is assigned to the importation of machinery, equipment, spare parts and other goods, when intended for the modernization and expansion of the Brazilian port structure. REPORTO also has the suspension of federal tax burdens.

Special customs procedures help to assist the development of many sectors in the economy, improving competitiveness among companies and can be a great solution for your business.