Brazil Import Glossary

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1 Brazil Import Guide

2 Table of Contents. Introduction. DHL Global Forwarding Profile 3. Brazil Import Glossary 4. Brazil Import Regulation Overview 5. Commercial Invoice 6. Air Freight Import Information 7. Ocean Freight Import Information 8. Contacts

3 Introduction Importing into Brazil is a process with potential pitfalls and complexities which can be avoided by using correct import processes, correct documentation and process compliance. This guide will clarify and help reduce the number of import issues customers face when doing business in Brazil. It will provide an overview of the requirements needed in order to avoid any unnecessary delays due to non compliance or paperwork issues.

4 Brazil Import Glossary CNPJ NCM INFRAERO SISCOMEX SISCARGA It is required in the HAWB and HBL as part of Consignee information. CNPJ is the Brazilian National Registration Number of Legal Entities (Companies) and It stands for Cadastro Nacional de Pessoas Juridicas. It is required in the HBL, as part of the goods description for each one of the products imported to Brazil. It is the Harmonized tariff schedule related to international commerce within Mercosul, the South American common market (Argentina, Brazil, Paraguay and Uruguay), it stands for Nomenclatura Comum do MERCOSUL ). Brazil main airports are operated by government owned company Empresa Brasileira de Infraestrutura Aeroportuária, INFRAERO in short. All import procedures are performed through the Integrated Foreign Trade System (Sistema Integrado de Comercio Exterior SISCOMEX), which interconnects government agencies to all agents engaged in export and import activities. This system refers to control movement of all vessels, containers and cargoes at Brazilian ports. It is a module of Brazil Customs system (SISCOMEX).

5 Brazil Import Regulations Overview The Brazilian government controls its foreign trade transactions through an integrated computerized system known by its acronym, SISCOMEX. Introduced in 993 for exports and expanded to include imports in 997, SISCOMEX is managed by the Foreign Trade Secretariat (SECEX), Federal Revenue Secretariat, and the Central Bank of Brazil. Customs falls under the jurisdiction of the Federal Revenue Secretariat of the Ministry of Finance. SISCOMEX centralizes the flow of information between all government organs and banks involved in import/export operations. Online analyses of import operations registered within the System reduce the number of documents required and speed up the process. Only importers and their attorneys (brokers) formally registered in Brazil can access the system. Registration of st transaction only can occur after formal documentation set called RADAR is delivered to Customs which is analyzed and approved in approximately 30 calendar days. RADAR is valid per Legal Entity Registration (CNPJ) and has validity of year automatically updated and re-approved. No shipments shall occur before RADAR for the importer s first import operation is approved, otherwise goods will be blocked at customs paying storage and extra costs until RADAR is approved. DDP (Delivery Duty Paid) operations for imports in Brazil are not allowed by Brazilian authorities and can not be registered at SISCOMEX. DGF Brazil Legal Entity does not allow us act as Import of Record (Importer) in Brazil. We are exclusive Freight Forwarders and Customs Broker Agent (CDZ)

6 Brazil Import Air and Ocean Freight Commercial Invoice requirements What is required? Important to know Original issued and printed by Shipper / Seller, with Shipper / Seller Letterhead Photocopies, Faxed, Scanned, ed or Copies with word Original stamped or attached to boxes, are not accepted. Signed in blue ink by Shipper or Seller 3 3 As already indicated. 3 Complete Shipper and Consignee address. 3 As already indicated. 4 Sent to Brazil in the airline pouch (Air Freight) or Consolidation Courier (Ocean Freight). 4 Any exceptions needs to be coordinated with DGF Brazil Customer Service or Operations departments and requires their written approval.

7 Brazil Import Air Freight - General Information Air Freight Import Brazil s main airports are operated by government owned company Empresa Brasileira de Infraestrutura Aeroportuária INFRAERO in short. When the aircraft arrives, airline delivers goods to INFRAERO, who will keep the goods, until the consignee s broker clears it. Trucking company will pick goods up at INFRAERO and delivers straight to customers facility. Therefore DGF Brazil does not operate any import bonded warehouse, neither is in physical contact with the cargo at any time. For any cargo special handling requirements, we need to inform airlines before cargo arrival, for them to inform INFRAERO. Important to pay attention on pouch of original documents to be sent to Brazil in order to avoid crossing sending wrong pouch to Brazil. Arrival of cargo without support pouch of documents is under high risk cargo be arrested by Customs (non manifested) and chance to recover cargo from customs is almost nil.

8 Brazil Air Freight Import EASY Steps to an easier Import What to Do What is critical Why it is critical What if it is not done Ensure Shipper or Supplier Commercial Invoices are compliance with Brazilian Import Regulations. Original of Commercial Invoice, handwritten signed in blue ink. Information is required to proceed with the shipment preparation, and original is required to be sent to Brazil. Otherwise approved from Consignee, you should insist to get it from the Shipper cargo should not be shipped to Brazil). Accurately prepare HAWB and other shipping documents in compliance with Brazil AFR Import regulations. HAWB accurate prepared as indicated in previous instructions. Signed Original # (FOR CONSIGNEE) must be sent to Brazil in the airline pouch in same flight as cargo. Shipment process should not proceed forward (cargo should not be shipped to Brazil). Send prepared HAWB and other shipping documents as requested by Brazil AFR Import regulations. Commercial Invoice and HAWB Original # (FOR CONSIGNEE) must be sent to Brazil in the airline pouch in same flight as cargo. It is required by Brazil import regulations. Another set has to be immediately printed, signed and sent via courier to Brazil. Shipment will be on hold by Customs, subject to warehouse charges. You work with us to do it RIGHT, the first time. It is EASY and we want to help you with it. In case of any doubt, please contact with DGF BR Customer Service at Any of the above requirements could be missed. Upon arrival to Brazil, shipment could be on hold by Customs, subject to fines and warehouse charges based on CIF value.

9 Brazil Import Ocean Freight - General Information Ocean Freight Import Brazil s main ports are public entities operated by Brazilian companies exclusively with special allowance from Transports Ministry and Union. When the vessel arrives, containers or goods are unloaded to public area of port controlled by Union and Customs, who will keep the goods until consignee s broker clears it. The trucking company will pick containers or goods up at port and deliver it straight to customers facility. Therefore DGF Brazil does not operate any terminal or bonded warehouse at port facility, neither get in a physical contact with the cargo at any time. Since March 008, Brazil Customs implemented in Brazil SISCARGA (electronic manifest) which control all inbound ocean freight information. Information must be transferred at least 7 hours prior to the vessel arrival. Delays in transferring information or discrepancies in information provided in MBL and HBL incur in delays and severe penalties for consignee.

10 Brazil Ocean Freight Import EASY Steps to an easier Import What to Do What is critical in here Why it is Critical What if it is not done.. Ensure Shipper or Supplier Commercial Invoices are compliance with Brazilian import regulations. Original of Commercial Invoice, handwritten signed in blue ink. Information is required to proceed with the shipment preparation, and original is required to be sent to Brazil. Otherwise approved from Consignee, you should insist to get it from the Shipper (cargo should not be shipped to Brazil). Accurately prepare HBL and other shipping documents in compliance with Brazil OFR import regulations. HBL accurate prepared as indicated in previous instructions and delivered before vessel arrival By law we can not print HBL in BR. Without it there will be penalty SISCARGA of USD3K per delay plus more USD3K per item wrong in the HBL. Generate extra costs in port storage and penalties to consignee who will claim it against DGF (cargo should not be shipped to Brazil). Send prepared HBL and other shipping documents as requested by Brazil OFR import regulations. After green light, send Commercial Invoice original and MBL & HBL to Brazil by courier no later than 5 days after vessel departure. Original set of documents is required by Brazil import regulations. Cargo blocked at Customs and extra charges with penalties, storage and demurrage. You work with us to do it RIGHT, the first time. It is EASY and we want to help you with it. In case of any doubt, please contact DGF BR Customer Service at Any of the above requirements could be missed. Cargo blocked at Customs and extra charges with penalties, storage and demurrage.

11 BACKUP

12 Brazil Air Freight Import Process flow you need to know Aircraft arrival Infraero starts handling the phisicall freight. They count, check an weight all cargo Infraero puts the cargo in the designated area inside their warehouse depending on the treatment ( TC, TC4, TC6, etc) informed previously to airline before arrival A/L Insert information in mantra System In freight is TC6 (Regular clearance) This is the regular mode most of the customers use. Freight is storaed at Infraero for 3-5 days until cleared and delivered to CNEE. If freight is TC (RECOF) It is available for immediate clearance, customer can issue the paperwork and pick up good in average of hours from the arrival. If freight is TC4 (Remoção para EADI) Freight has to be transfered to a bounded to be cleared in 4 hours Ususally warehouse charges is 4 times cheaper but overall process takes -3 more days than regular process takes CNEE's Broker issue the Import Declaration Truck company issue a DTA and move the cargo to the bounded warehouse choosed by CNEE Freight is cleared under Green, Yellow or Red Channel Bounded warehouse rcv the cargo and CNEE's broker can issue the import declaration or freight can be storaged for a VMI. Infraero Deliver the goods to the truck company who will delivery it to CNEE s facility Freight is cleared under Green, Yellow or Red Channel and truck company can pick it up and deliver to CNEE's facility Back to Air Freight

13 Brazil Air Freight Import Do the Shipment - HAWB Requirements What is required? Shipper name and address as per commercial invoice Consignee name and address as per commercial invoice, including complete CNPJ() number (Brazilian Company Registration number) Invoice and Purchase Order numbers in reference field. Gross Weight in Kg must match cargo physical gross weight. Freight Rated as agreed with Customer. Issued date, same or before flight date Important to know 4 5 As already indicated. Consignee CNPJ number is a must. 3 As already indicated. To fix a weight discrepancy, there is a 50 USD process fee (approx.), release to customs delay averaging 3 days (), and additional INFRAERO warehouse charges could apply ( based on CIF Value ). Neither AS AGREED nor USD 0,0 Total, is accepted. 6 As already indicated. 8 Printed ( laser or matrix) ORIGINAL # (FOR CONSIGNEE), with contract in the back. 8 No permitted to print it at destination. 9 Signed in blue ink and included in Airline pouch to be sent in same flight as cargo. 5 9 It is required by Brazil import regulations () CNPJ stands for "Cadastro Nacional de Pessoa Jurídica" 8 () INFRAERO Process. Back to Air Freight

14 Brazil Ocean Freight Import Process flow you need to know SS-Line inputs MBL data in Siscarga DGF BR inputs HBL data in Siscarga BR Customs system checks if MBL / HBL match BR Customs system release electronic authorization for Import Declaration Vessel Arrival Date Terminal assigned by SS-Line re-weighs cargo If there's no weight discrepancy, broker can transfer cargo to bonded warehouse If there's no weight discrepancy, broker can start import clearance at port Customs officer at port will check documents and allow transfer (DTA) Broker register Import Declaration in BR Customs system Cargo is trucked to Bonded warehouse Cargo can be cleared under Green, Yellow or Red Channel Broker registers Import Declaration in BR Customs system BR Customs system allows broker to print 'Proof of Clearance' Cargo can be cleared under Green, Yellow or Red Channel Terminal assigned by SS-Line releases cargo to trucking company designated by consignee BR Customs system allows broker to print 'Proof of Clearance' Delivery to consignee's facilities Bonded warehouse releases cargo to trucking company designated by consignee Delivery to consignee's facilities Back to Ocean Freight

15 Brazil Ocean Freight Import Do the Shipment HBL Requirements What is required? Important to know Shipper name and address as per commercial invoice Consignee name and address as per commercial invoice, including complete CNPJ() number (Brazilian Company Registration number) Marks and Numbers in reference field. Gross Weight in Kg must match cargo physical gross weight. Freight Rated as agreed with Customer. HBL Date = MBL Date As already indicated. Consignee CNPJ number is a must. 3 As already indicated. Weight discrepancy detected by BR Customs usually generates Siscarga penalty (3000 USD approx) and delay to clear goods AS AGREED is not Allowed. HBL has to be rated and always with higher amount than the one mentioned on MBL. 6 As already indicated. 7 NCM # is mandatory for all imports into Brazilian ports 5 7 Wrong NCM usually generates SISCARGA penalty (3000 USD approx) and delay to clear goods 8 Signed in blue ink It is required by Brazil import regulations () CNPJ stands for "Cadastro Nacional de Pessoa Jurídica" Back to Ocean Freight

16 Fumigation Procedures Brazil: OFR Imports into Brazilian Ports (Fumigation Procedure) ISPM 5 is an international measure that directly addresses the need to treat wood materials. Its main purpose is to prevent the international transport and spread of disease and insects that could negatively affect plants or ecosystems. ISPM 5 affects all wood packaging material (pallets, crates etc.). Products exempt from ISPM 5 are made of alternative material, such as paper, plastic or wood panel products (hardboard and plywood). Effective immediately, all shipments (FCL or LCL) that contain wood material in its packaging will be inspected by the Brazilian Government. Cargo with an approved fumigation certificate and stamp on the wood confirming treatment was performed at origin will be released without any problem or delay. If there is no stamp on wood and/or no fumigation certificate, Brazilian Customs will require container fumigation (even if it is a LCL shipment). Fumigation at destination will occur in a separate Customs area and container doors can be opened only 4 hours after such the fumigation procedure. Depending on type of cargo, this could mean the cargo has to be destroyed after fumigation (e.g. food, medicine etc..). It is the supplier s responsibility to deliver cargo with necessary wood treatment along with the fumigation certificate(s) and stamp(s) on wood. Should not ship cargo to Brazilian ports if the fumigation procedure is not complete. If extra costs (fumigation, storage, demurrage, goods value (if destroyed), etc) are caused by mandatory fumigation at destination, costs will be billed at cost without rejection. In the fault of shipper not assuming eventual additional costs for not following ISPM 5 then consignee will be charged at destination, if this is the one with contractual terms with DHL.

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