How to import from China to Brazil?

We all know that being the largest manufacturer in the world, China is a place where you can find a great variety of products at competitive prices and good quality. With the advance of technology, the borders to import from China have been eliminated and it is possible to buy everything you want and receive it in Brazil without any difficulty. In this article, China-Latin Logistics will show you how to import from China to Brazil to clear your doubts and help you to start the project you are so interested in.

What are CPF, CNPJ and RADAR?

First of all, we would like to clarify some basic concepts so that you can understand what is needed to import.

CPF: Cadastro de Pessoas Físicas (Register of Individuals) is a unique 11-digit identification number that any individual can apply for at the Receita Federal do Brasil (Brazilian Federal Revenue Service) and is the main identification for registrants wishing to do any kind of business in the country.

CNPJ: Cadastro Nacional da Pessoa Jurídica (National Register of Legal Entities) is a unique 13-digit number that identifies businesses. For an individual to open or control a company, he/she must have a valid Brazilian CPF. 
 
RADAR: Registro e Rastreamento da Atuação dos Intervenientes Aduaneiros (Registration and Tracing of Customs Agents' Activities), is a registry that serves for international trade operations in Brazil. We will talk about it in more detail below.

What are the requirements to be able to import into Brazil?

Habilitation in RADAR Siscomex
To start imports, it is necessary to go to a Receita Federal Brasileira (Brazilian Federal Revenue Secretary) service and present all the required documentation to RADAR Siscomex. The businessmen themselves can send the documentation, but given the complexity of the paperwork, it is common for this type of task to be carried out by a customs broker who generally plays the role of legal representative of the importing company and takes care of the entire import process in company name.

The membership modalities in the Siscomex RADAR are aimed at specific profiles of each company and have their own regulatory requirements that can be summarized in the following 3 ranges of semi-annual limits for the amount of imports that one makes (the value indicated refers to the value CIF: FOB value of the merchandise + international freight + insurance premium):

1-Radar Express: USD 50,000
2-Limited Radar: USD 150,000
3-Unlimited Radar

The limits for operations are calculated by the Brazilian Federal Revenue based on the sum of the collections made by the company in the last five years prior to the protocol of the requirement.

Obtaining the RADAR Express is something very simple that is done automatically in the Receita Federal Brasileira system, if the financial limit is reached before the six-month term, RADAR Siscomex will perform an automatic block and require a new application for the next category.

After obtaining a RADAR, importers must register with SISCOMEX as importers in the registry called REI (Registro de Exportadores e Importadores).

Import License
Most Brazilian imports are exempt from licences. In general, importers only have to register a DI (Declaração de Importação: Declaration of Importation) with SISCOMEX in each operation. However, for the importation of some products such as food, medicine, etc. it is also necessary to present an LI (Licença de Importação: Import License) for customs clearance.

In the event that the imported products require an import license and the consignee cannot provide it, penalties will be charged, for this reason it is always recommended to obtain the license before the international shipment of the goods.

The products subject to this regime are compiled in a list that can be consulted on the MDIC website: http://www.mdic.gov.br/sitio/

We emphasize again that, although not all products require an import license, it is always necessary to obtain a RADAR certificate before importing any merchandise into Brazil.

Documentation required for customs clearance
In addition, we list here the original international documents that the Receita Federal do Brasil requires to carry out the nationalization of imported merchandise:
• BL (Bill of Lading) in case of entry by sea.
• AWB (Airway Bill) in case of entry by air
• Commercial invoice
• Packing list
• Certificate of Origin (optional)
• Insurance policy (optional)

What tariffs and other taxes are paid for imports in Brazil?

Whether individuals or legal entities, when importing merchandise into Brazil, they have to pay tariffs and other taxes that are calculated from their customs value, that is, CIF value (FOB value of the merchandise + international freight + international insurance premium)

Import Tax (II)
It is a federal tax that applies exclusively to products purchased from abroad so that there is no unfair competition with national products. In general, the rates vary between 10% and 35%.

The Import Tax varies according to the country of origin of the goods (due to trade agreements) and the characteristics of the product. Its rates are defined in the Common External Tariff (TEC), customs tariff used by the Mercosur countries (Southern Common Market: Argentina, Brazil, Paraguay, Uruguay). There is a specific tariff (TIPI) for each item of the Mercosur Common Nomenclature (NCM).

The rates provided for in the TEC are currently all ad valorem (according to the value) that must be applied to the Value Added Tax (VAT) of the product and the formula to extract said tax is as follows:
II = TEC (%) x Customs Value

Tax on Industrialized Product (IPI)
It is a federal responsibility tax levied on most national and imported manufactured products, it also varies according to the characteristics of the product, between 0% and 15%.

This tax is calculated by applying the rates set in the TIPI on the calculation basis and is equal to:
IPI = TIPI (%) x (Customs Value + II)

Social Integration Program (PIS) and Social Contribution for Financing Social Security (CONFIS)
The rates of this tax are applied directly to the customs value as follows:
PIS = 2.1%
Coins = 9.65%
However, there are some cases where there are different charges.

Tax on the Circulation of Goods and Services (ICMS)
As it is not a federal tax, this tax has different rates and treatments depending on the state where the company is located. Therefore, it is important to confirm with the Department of State Finance. In general, the rate ranges between 17% and 20%.

The ICMS is usually the heaviest tax burden at the time of releasing merchandise since it is calculated on the customs value plus all taxes previously paid, including expenses for customs clearance such as storage, etc. Only after the arrival of the merchandise will it be possible to determine the exact total of customs expenses. An estimate of this tax can be made using the following formula:

ICMS = State ICMS Rate (%) x (CIF + II + IPI + other taxes + customs expenses) / [1 – ICMS Rate (%)]

Other taxes
CIDE (Contribution of Intervention in the Economic Domain) -Fuels
AFRMM (Additional to Freight for Merchant Marine Renewal)
Siscomex Utilization Rate
Other additional expenses such as storage, handling, customs declaration, etc.

Example of application of taxes and fees on imports

Product dates
- Country of Origin: China
- State of Destination: Rio Janeiro
- Transport method: sea
- Product: Cotton textile
- Classification NCM: 6001.91.00
- Customs value (CIF): R$ 95,000
- Sea freight: R$ 43,000
- Quantity: 26 tons (one 20GP container)

Taxes
- II (26% CIF): R$ 24,700
- IPI (0%): R$ 0
- PIS (2.1% CIF): R$ 1,995
- CONFIS (10.65% CIF)): R$ 10,117.5
- AFRMM (25% Maritime freight): R$ 10,750
- Customs declaration: R$ 185
- Maritime handling (R$ 2.1/ton): R$ 54.6
- Storage (0.35% CIF): R$ 332.5
- ICMS [19% (CIF+IPI+PIS+COFINS+Customs Expenses)/ (10-18)]: R$ 30,918.98

TOTAL= R$79,053.58

Through this exercise we can conclude that by importing a 20-foot textile container, the sum of the taxes already occupies more than 80% of the CIF value of the merchandise, which is a fairly high amount. to take into account when evaluating the import cost.

We share the entry of the RFB tax authority so you can make tax numbers on your own:
http://www.receita.fazenda.gov.br/Aplicacoes/ATRJO/SimuladorImportacao/default.htm

What do I have to pay if I just send small quantities by courier?

It should be noted that no customs duty is applied to imports whose CIF value is less than 50USD and when the value of the products sent by parcel is between 50USD and 3,000USD, whether the importer is a natural person or a commercial entity, only a single Fixed tax of 60% on the customs value of the cargo and no other type of additional taxes will have to be paid.

The imported samples will be considered by the Brazilian customs at their commercial value, unless otherwise agreed, depending on the quantity and size of the samples.

If you want to import from China, a good logistics company and purchasing agent will help you save time, effort and money. We receive, inspect, store in secure warehouses and can even repack when necessary and expedite the movement of your cargo directly from our warehouse to your country.

If you have more questions on the subject or want to know more about how we can help you import from China to your country, contact us at China-Latin Logistics!