How to Import Aircrafts into Brazil
As the Brazilian currency are strengthening and import duties are waved importing aircraft seems to be a good call to supply Brazil's shortcomings in aviation. This article will tell you how to go about importing an aircraft to Brazil.
The growth experienced by the country in the last decade boosted internal aircraft market to the fourth place globally in terms of offer and demand.
A country as big as Brazil needs constant investment on transportation infrastructure to function. But reality disappoints when we think about the dreadful conditions of national roads and the high prices of this kind of transport.
Domestic Market in Brazil
Twenty years ago would be considered impossible for mortals to move in the skies. Currently it is pretty accessible and affordable. Although ground transportation is still cheaper, we are gradually seeing the flying costs go down.
A study made by the European manufacturer Airbus in 2011 said Brazil is supposed to order 701 new airplanes until 2030. Currently the domestic fleet counts with about 335 airplanes with more than a hundred seats. According to predictions we will see this number go up to 864 by 2030.
With dollar's devaluation, the prices of US (the biggest producer in world) aircraft became very attractive, especially if they are used. Importing a used airplane can be a good business, but it is not simple. It is necessary to know well the market and the procedures, or else the good business can turn into a very expensive headache.
To optimize the procedures and avoid problems, the best option is to hire good juridical and tributary consultancies, together with a customs broker and specialized insurers. Also, a well planning purchase involves the form of payment, bank, financing or trading.
Since 2010, the government reduced to zero the aliquots on Import Tax for the import of airplanes and aircraft components. So, the taxes left to pay are:
The importation of civil and commercial aircraft into Brazil passes through prior approval of COTAC ,a sub-department of ANAC, which is a National Agency in command of everything related to civil aviation in Brazil. The first step to import an aircraft into Brazil is to fill up a requirement addressed to COTAC, available in ANAC's website.
This requirement contains importer's identification, the model, series number and foreign register of the aircraft, the exporter's name and the negotiation details.
COTAC will analyze, among other things, the need to import the asset and the financial terms in relation to the proposed transaction. Upon obtaining COTAC’s authorization, the importer must follow the other general procedures relating to the importation of goods into Brazil.
Documents required in import process for entities
- Requirement addressed to COTAC authorized
- Company's articles of association (notarized copy)
- CNPJ/MF Card (notarized copy)
- Attach "Proforma Invoice" or equivalent document issued by the exporter. In case importation process was done in the leasing form, present a "Letter of Intent" issued by the lessor
- In the importation of engines, turbines and other components aircraft components, attach a copy of the correspondent page of the "Illustrated Parts Catalog ", proving its applicability
- Power of attorney (if needed)
- Payment receipt of the involved fees
For individual person the procedures are basically the same, only instead of the CNPJ, the Identity Card and CPF must be handed.
Brazil has the seventh largest helicopter fleet in the world, with approximately 1,255 units. About half of this total is concentrated in the State of São Paulo.
The helicopter market is expected to continue to grow, enhanced by the demand for air taxis. The offshore segment should also be a promising market due to major government investments in the pre-salt oil ocean fields.
The market for aircraft parts
The Brazilian aircraft manufacturer Embraer is a major buyer of equipment and parts for its own production line, as well as a major international supplier for the aviation market. Although the company has a solid performance, its industry supplies only around 20-25% of its needs. The non-produced parts are imported, what makes Embraer a huge buyer.
As Brazil’s aviation market continues to expand, imports of parts and components increases, representing good business opportunity for aircraft suppliers. Parts and components for defense and executive aircraft are expected to show good prospects, especially when Brazil prepares its infrastructure to the World Cup in 2014 and Olympic Games 2016.