The customs broker in Brazil is responsible to ensure that goods entering the country will comply with fiscal and commercial legislation. 

This procedure, known as customs brokerage, or customs clearance, guarantees a thorough verification of the information provided by the importer, confirming its accuracy, compliance with requirements, and other regulations set by the Revenue Service.

In this article, you will gain a comprehensive understanding of the role of a customs broker, the key steps involved in the process, and its significance for both your business and the broader economy. Special thanks to Cyprien Hoffet, the CEO from Novatrade, who has contributed valuable insight to this article.

Continue reading to understand about the customs broker’s responsibilities and clear up any questions you may have about this service.

Customs brokerage: what is it?

Also referred to as import clearance, this procedure is the standard process for verifying the information declared by both the importer and exporter regarding the goods being brought into Brazil.

Through the processing of these goods, customs authorities are able to confirm the accuracy of the details pertaining to shipments arriving from abroad, thereby ensuring the compliance of goods with Brazilian regulations.

It involves the administrative procedures for authorizing the entry or exit of goods into the country, ensuring compliance with tax, regulatory and trade laws. 

Beyond serving as a means of inspecting and validating the merchandise, customs clearance also facilitates the release of shipments when entering or departing from different territories, thus contributing to the more efficient transport of goods, meeting Brazilian legal requirements, avoiding delays, fines or seizures. It is indispensable for the regular flow of international trade.

Import customs clearance

Import customs clearance is a fundamental process in international trade.

In Brazil, the process includes registering the cargo with SISCOMEX, sending detailed documentation (commercial invoice, packing list), paying taxes and, when necessary, specific certifications from agencies such as ANVISA or MAPA.

Export customs clearance

Conversely, export customs clearance is the process by which goods intended for foreign markets are authorized by customs authorities to leave the country.

For exports, customs clearance involves the use of the DUE (Single Export Declaration) in SISCOMEX, accurate documentation and correct classification of goods. Exporters often benefit from tax exemptions, facilitating their international competitiveness.

Who is the customs broker in Brazil?

This professional, represented by specialized firms, plays a fundamental role in the customs clearance process.

The customs broker in Brazil is the professional who manages the entire process, ensuring compliance and acting as an intermediary between companies and the customs authorities. Their expertise is essential for working throughout the Brazilian system efficiently.

How does the customs broker work in Brazil?

The customs clearance process in Brazil is highly regulated and involves multiple steps to ensure compliance with national laws and international trade agreements. It is mainly managed by the Brazilian Federal Revenue Service (RFB), which oversees all import and export operations. Below is a summary of how it works:

1. Pre-shipment preparation: the process begins before the goods even arrive in Brazil. Importers and exporters must gather and check all the necessary documents, such as the commercial invoice, packing list and any required certifications.
2. Registration with SISCOMEX: once the goods are ready for shipment, the importer/exporter registers the import/export declarations with the SISCOMEX system, which is Brazil’s integrated foreign trade platform.
3. Tax assessment and payment: customs agents calculate the applicable taxes based on the information declared. The importer/exporter must pay these taxes before the shipment can proceed.
4. Customs Analysis: depending on the classification and risk assessment, the shipment may undergo documentary verification or physical inspection.
5. Final Release: once customs clearance has been completed, the goods are released for transportation to their final destination.

Read also: Understanding Brazilian accounting standards

What are the required documents?

To carry out customs clearance, certain documents are necessary to ensure the import process. The main ones are:

• Commercial Invoice: a detailed description of the goods, including value, origin and buyer/seller information.
• Packing List: a detailed list of the goods, including dimensions, weight and packaging details.
• Bill of Lading (B/L) or Air Waybill (AWB): a transportation document that serves as proof of shipment.
• Certificate of Origin: required for goods that benefit from preferential trade agreements or special tariffs.
• Import/Export Licenses: depending on the goods, specific licenses may be required (e.g. ANVISA for pharmaceutical products, MAPA for food).
• RADAR license: is a license issued by Receita Federal that authorizes companies to operate on SISCOMEX and engage in import/export activities in Brazil. The acronym stands for Registro e Rastreamento da Atuação dos Intervenientes Aduaneiros.
• NCM Code Classification: the correct classification of goods in Brazil’s harmonized system (NCM).

These documents not only simplify monitoring and enforcement by the Federal Revenue Service and other authorities, but are also essential to ensure the legality and compliance of imported or exported goods.

Read also: Brazil tax reform – The complete guide

How long does the customs clearance process take?

The duration of the customs clearance process varies depending on several factors, including the parameterization channel assigned to the goods.

However, the process can take up to eight business days to complete. This timeframe may vary based on the category of the goods, as follows:

• Green Channel (Low Risk): dispatch is usually completed in 1-2 working days, as no additional checks are required. This applies to goods with accurate and complete documentation, low declared value and low risk of non-compliance. Common examples include unregulated products such as clothing, books or certain types of electronics.
• Yellow Channel (Document Review): customs agents review submitted documentation, which can take up to 30 days. Products flagged for document review often include items with higher declared values or those that require additional certifications, such as industrial machinery or specialized equipment.
• Red Channel (Physical Inspection): parcels selected for inspection can take up to 30 days, depending on the complexity of the goods. This channel applies to goods subject to strict regulatory controls or with discrepancies in documentation. Examples include pharmaceutical products (regulated by ANVISA), food and agricultural products (regulated by MAPA) and hazardous materials.
• Gray Channel (Special Investigations): this channel is applied to goods that raise suspicions of irregularities, such as tax fraud, undervaluation or non-compliance with regulations. Shipments destined for the gray channel undergo a more detailed investigation, including extensive audits and possible consultation with external bodies. This process can take 60 days or more, depending on the severity of the situation.

It’s important to incorporate flexibility into your supply chain to deal with possible delays.

What is a customs warehouse?

A bonded warehouse is a warehouse authorized by the Brazilian customs authorities where imported goods can be stored without the immediate payment of taxes and duties. This allows companies to postpone customs costs until the goods are released for consumption or re-export.

Use:

• Taxes and duties are only paid when the goods leave the warehouse, improving cash flow management.
• Goods in warehouses can be nationalized by several different importers, meaning you can move stock forward for several customers. 
• Goods intended for re-export can remain duty-free while in the customs warehouse.
• Provides additional time to complete customs procedures and ensure compliance with regulations.

Benefits:

• Reduces initial costs by postponing tax payments.
• Acts as a strategic hub to manage imported goods prior to distribution.
• Facilitates international trade operations by offering a controlled environment for inspections and handling.

Customs warehouses are especially advantageous for companies with high import volumes, seasonal products or operations involving re-export.

What are the main stages of the customs clearance process?

The stages of customs clearance in Brazil vary according to the need for an Import License (LI). Here are the two main flows:

Customs Clearance without LI:

1. Arrival of cargo: Presence confirmed within 48 hours.
2. Import Declaration (DI): Issued via Siscomex, with cargo and tax data.
3. Payment of Taxes: Settlement of taxes such as II, IPI, PIS/COFINS and ICMS.
4. DI parameterization: Channel assignment (green, yellow, red or grey).
5. Incoming Invoice: Formalizes the entry of goods into stock.
6. Logistics and Transport: Organizing delivery to the final destination.
7. Cargo Receipt: Registration in the importer’s inventory.

Customs clearance with LI:

1. Arrival of cargo: Presence confirmed within 48 hours.
2. Import License (LI): Application to regulatory bodies (ANVISA, MAPA, etc.).
3. Approval of the LI: Analysis and approval by the regulatory body.
4. Import Declaration (DI): Registration in Siscomex after approval of the LI.
5. Payment of Taxes: Settlement of applicable taxes.
6. DI parameterization: Assignment of inspection channel (green, yellow, red or grey).
7. Incoming Invoice: Formalizing the entry into stock.
8. Logistics and Transport: Organizing delivery to the final destination.
9. Cargo Receipt: Registration in the importer’s inventory.

What are the types of customs clearance in Brazil?

In Brazil, customs clearance is classified into two main types:

Definitive Import (Definitive Title):

Applies to goods entering or leaving the country on a permanent basis. It is the most common type, covering products intended for consumption, resale or industrial use, with payment of applicable taxes and duties.

Temporary Admission (Non-Final Title):

Aimed at goods in temporary transit, such as goods for exhibitions or repairs. It requires the products to be re-exported or returned after use, and there may be tax exemption or suspension, depending on the purpose.

What is the role of trading companies in the customs clearance process?

In Brazil, trading companies are essential for optimizing import processes, especially for companies that wish to outsource this activity and focus on their core business. To operate with a trading company, both it and the client company must have Siscomex RADAR authorization, which is required to access the SISCOMEX system and carry out imports.

They can operate in two main ways: by Order, when the trading company buys the goods on your behalf, assumes legal and fiscal responsibility for the operation, and resells the products to the end customer in Brazil; or by Account and Order, where the trading company only manages the import process on behalf of the customer, who remains the legal owner of the goods from the outset. In both cases, the trading company offers expertise and efficiency, simplifying the process for companies.

Trading companies act as intermediaries and offer tax and operational benefits. They can operate by buying and reselling the goods or just managing the import process for the end customer. In both cases, the following advantages stand out:

• Tax optimization: tradings can reduce the impact of ICMS because they have tax benefits. In some cases, they allow the impact of ICMS-ST to be reduced, in others they allow retailers to resell without PIS and COFINS, taking advantage of tax benefits that result in lower taxation for the customer. This is strategic in Brazil, where the tax burden is significant.
• Reduced operating costs: in addition to the tax benefits, trading companies have better negotiations and experience with suppliers, transportation and forwarders, reducing total operating costs. Avoiding delays at the port or airport, which can generate high costs, is an additional advantage.
• Simplicity and Efficiency: using a trading company is a way of completely outsourcing the import process, from clearance to delivery of the goods, allowing the client company to focus on its core activities.
• Tax Strategy: large groups and industries use trading companies as part of their tax compliance and savings strategy, as this can bring significant financial advantages.

Whether for resale or internal consumption, Trading Companies become strategic partners by integrating customs expertise, operational efficiency and cost reduction.

If your company is looking for a consultancy specializing in Brazil’s import and export sector, Novatrade is an excellent partner. 

With over a decade of experience and more than 500 projects developed, they have become the experts of choice for importing and exporting businesses in Brazil.

It is definitely the recommendation of Europartner for your business.