How to Calculate Duties and Taxes on Imports to Brazil involves a multi-layered system of federal and state taxes, all based on the product's classification and customs value. Import duties and taxes depend on the product's NCM (tariff) code, its Cost, Insurance, and Freight (CIF) value, and the country of origin. Formal imports are subject to duties and taxes from the first Real (R$0.00). The process is managed by the Brazilian Federal Revenue Service (Receita Federal do Brasil) through the SISCOMEX system. Special rules, such as the Programa Remessa Conforme (PRC), apply to low-value e-commerce shipments, which are subject to a reduced 20% Import Duty rate up to US$50 CIF.
Import duties in Brazil are primarily levied through the Import Duty (II) (Imposto de Importação), which is a federal tax. The rate is determined by the product's classification under the Nomenclatura Comum do Mercosul (NCM), an 8-digit code structure consistent with the Harmonized System (HS). Brazil, as a member of Mercosur, applies the Common External Tariff (CET), though exceptions exist. The calculation of the II is based on the Customs Valuation, which is the Cost, Insurance, and Freight (CIF) value of the goods, in line with the World Trade Organization’s (WTO) Customs Valuation Agreement.
To accurately calculate import tax in Brazil and determine the total landed cost, importers must account for four main taxes, which are generally calculated on a cumulative basis. This cumulative calculation is key to understanding how import duty is calculated in Brazil. The customs valuation basis is the CIF value, meaning the cost of the goods, plus international freight, plus insurance, forms the initial taxable base for the Import Duty (II).
Key Import Taxes in Brazil:
For formal B2B imports, the duty de minimis value and tax de minimis value are effectively R$0.00, meaning all shipments are subject to duties and taxes. The entire process, from import license application to filing the import declaration (Declaração de Importação – DI), is managed through the integrated foreign trade system, SISCOMEX. Importers must use the correct 8-digit NCM code to estimate the landed cost accurately, as the rates for II and IPI are product-specific.
Determine the Customs Valuation: Calculate the CIF Value (Cost of Goods + International Freight + Insurance).
Calculate Import Duty (II): Apply the NCM-specific II rate to the CIF Value. (II = CIF Value x II Rate).
Calculate Industrialized Product Tax (IPI): Apply the NCM-specific IPI rate to the sum of (CIF Value + II).
Calculate PIS/COFINS-Import: Apply the combined federal contribution rate (e.g., 11.75% general rate) to the customs value.
Calculate ICMS (State VAT): Determine the ICMS taxable base (CIF + II + IPI + PIS/COFINS + other charges). The ICMS is then calculated using a 'gross-up' formula, which effectively applies the state rate (e.g., 17%) to the total value, including the ICMS itself.
Formal B2B Import (Over US$50): All four major taxes (II, IPI, PIS/COFINS, ICMS) apply based on the product's NCM code and the cumulative calculation method. The II rate is typically between 10% and 35%.
E-commerce Shipment (Under US$50 CIF) via Remessa Conforme (PRC): The shipment is subject to a flat 20% Import Duty (II) and a standardized 17% ICMS, both collected by the e-commerce platform at the time of sale. Other federal taxes (IPI, PIS/COFINS) are generally exempt under this low-value regime.
Misclassifying the NCM Code: Using an incorrect 8-digit NCM code will lead to incorrect II and IPI rates, resulting in customs penalties or clearance delays.
Ignoring the Cumulative Tax Base: Failing to calculate the ICMS, IPI, and PIS/COFINS on the value that includes the Import Duty (II) and other taxes will drastically underestimate the total import cost.
Assuming a US$50 Duty De Minimis for B2C: For e-commerce, the Programa Remessa Conforme (PRC) has replaced the old US$50 duty-free rule with a mandatory 20% Import Duty and 17% ICMS from US$0, if the seller is registered.
The Programa Remessa Conforme (PRC) is the most significant special rule for cross-border e-commerce. This voluntary program, administered by the Brazilian Federal Revenue Service, streamlines customs clearance for registered platforms. For shipments up to US$50 (CIF), the Import Duty (II) is reduced to a flat 20%, and the ICMS is standardized at 17% across all states. For shipments over US$50 (CIF) under the PRC, the Import Duty is 60% (with a US$20 reduction on the duty payment), and the ICMS remains 17%. All duties and taxes must be collected by the platform at the point of sale. Formal imports are processed through the SISCOMEX system, while PRC shipments use the dedicated Siscomex Remessa electronic declaration system.
The NCM (Nomenclatura Comum do Mercosul) is the 8-digit import tariff classification code used in Brazil and other Mercosur member countries. It is based on the international Harmonized System (HS) and determines the applicable Import Duty (II) and IPI rates.
Brazil uses the CIF (Cost, Insurance, and Freight) method for customs valuation. This means the dutiable value includes the cost of the goods, the international freight charges, and the insurance costs.
Yes, the primary sales tax on imports is the ICMS (Merchandise and Service Circulation Tax), which is a state-level Value-Added Tax (VAT). It is calculated on a cumulative basis, including the Import Duty and other federal taxes, and rates vary by state, typically around 17% to 20%.
The Programa Remessa Conforme (PRC) is a voluntary compliance program for e-commerce companies that provides a simplified and expedited customs clearance process for low-value shipments (up to US$3,000). It mandates a 20% Import Duty and 17% ICMS on shipments up to US$50 (CIF).