Special Customs Regulations

Special Customs Regulations

Special Customs Regulations are foreign trade operations in which imports and exports enjoy tax benefits such as exemption, partial or total suspension of taxes, under the commitment of being re- exported or nationalized after the claimed period in the import act. Below are some of the provisions:

- Temporary Admission: The special customs regime of temporary admission allows the import of goods which are to remain in the country during the prescribed period, with total suspension of payment of taxes on import. For example: goods intended for scientific demonstration, fairs, events, shows, tests, among others.

- Temporary admission for economic use: In this regime, the entry of goods is temporarily allowed in the country for economic use, with the partial suspension of federal import taxes, in proportion to their length of stay in the customs territory.

Goods for economic use are those that will be used in providing services or in the production of other goods.

- Temporary Admission for Active Improvement: This regime allows the entry of foreign goods for temporary stay in the country with suspension of taxes, aimed at active and subsequent re- processing operations. The following active processing operations are considered:

1 - the industrialization operations related to the processing, installation, renewal, reconditioning, packaging or repackaging applied to the goods themselves;

2 - - the repair of foreign goods, which must return, modified, to the country of origin. By granting this regime, the customs authority shall specify the duration of stay of the goods in the country.

- Customs Warehouse: The special regime of customs warehouse in imports allows the storage of foreign goods in a customs warehouse for public use, with suspension of payment of IRS taxes, and of contribution to the PIS/PASEP-Import and COFINS-Import taxes related to imports. In addition to foreign goods, other goods listed in Art. 405 of the Customs Regulation may be destined for the warehouse.

The Customs Warehouse can be requested for a period of 01 year, and is renewable for another 02 years pursuant to the maximum limit of 03 years, and at the end of the period, the goods must be re-exported, nationalized or transferred to another special customs regime.

- Drawback: The special customs regime of drawback, established in 1966 by Decree Law No. 37 of 11/21/66, is the suspension or elimination of taxes on imported inputs for use in exported products. The mechanism works as an incentive to export, since it reduces the production costs of exportable products, making them more competitive in the international market.

In any event, in spite of the somewhat complex and bureaucratic relevant legislation related to foreign trade, there are some practices in the Foreign Trade segment that can facilitate your imports and exports project.

By these means we are prepared to assist you or your company in all matters pertaining related to the Special Customs Regimes, in order to facilitate your projects. We are right beside you with Goldmex!