EX-TARIFF - TAX INCENTIVE IMPORTATION

The Tax Exceptions system consists of an instrument through which it is permitted to single out a product or group of products from the customs tax table and give them a different tax percentage rate than that which is applicable in the tax category they originally belong to.

Historically, this mechanism has been used in order to reduce the costs of  investments for the foreign purchases of machines and equipment that are not nationally produced.

The current system contemplates the reduction on the percentage of the Import Tax to 4% for two years.

Once an Ex-Tariff is granted, any other Brazilian company importing the equipment specified on the Ex-Tariff resolution can use it. That means that you might find an Ex-Tariff that matches your product and the duties paid by a Brazilian buyer might be much lower.

How can I determine if my equipment is covered by an Ex-Tariff exemption?

A list of Ex-Tariff is available from the Brazilian government. Here you can download a list in English of the Ex-Tariffs for the most common NCM (HS) codes for packaging machinery, however please note the expiration date.

If you can’t find the HS code of your equipment on the list in English try the one in Portuguese, we will be glad to help you translate the descriptions of specific NCM codes.

How can I request for an Ex-Tariff?

Requests for an Ex-Tariff must be made by a Brazilian person or company. Normally, this procedure is handled by local associations (like ABIA, Brazilian Association of Food Processors).

The first six digits of the NCM codes are the same as the six digits of the HTS code.

What is an HTS code?

All of the import and export codes used by the United States are based on the Harmonized Tariff System (HTS). The HTS assigns 6-digit codes for general categories. Countries that use the HTS are allowed to define commodities at a more detailed level than 6-digits, but all definitions must be within that 6-digit
framework.

The U.S. defines products using 10-digit HTS codes. Export codes (which the U.S. calls Schedule B). Brazil defines their products using 8 digit NCM codes but the first six digits are always standardized.

How can I determine the HTS (also called HS) code for my equipment?

You can try to look it up yourself by using the search engine from the CENSUS BUREAU or by browsing through the Schedule B Book, but the best way to do it is by checking the export documents from a machine that you have already exported.

How can I determine the NCM code (Brazilian HTS code) of a product I’m exporting to Brazil?

By knowing the HTS code, you already know the first six digits of the NCM code. For the last two digits, if you have exported the same equipment to Brazil, you can check the import documents, otherwise you will need the help of a Brazilian customs agent .