Penalties for Errors When Importing to Brazil
Mistakes when bringing goods to Brazil can be expensive. In some cases, the fine may even surpass the Import Tax. This article will list the existing fines and their causes.
There is a wide variety of fines and penalties charged due to mistakes when importing to Brazil. Some might just result from lack of attention or any random problem. The most expensive ones, though, are those that are consequences of reprehensible behaviours.
Heavy Fines
These may be a real headache to importers. They, usually, have no maximum limit and are based on a percentage of the Import Tax or on the goods’ characteristics.
Fake Proofs to Get Importing Benefits
Some companies might benefit from importing specific goods. Examples are goods considered important to the Brazilian development and goods that are completely different from any other product made in Brazil.
If any fake proofs are presented in order to obtain import benefits, a fine of 100% over the Import Tax, known as II, is set. This has neither a minimum nor a maximum limit. This fine can be raised to 150% if the papers presented have lines or watermarks. It can also be reduced if, within 30 days after the notification, the violator pays for it or asks for an installment.
Prices Differing from the Arbitrated or Practiced
If the company sets a price for its goods that is different from what is really practiced, or from what was previously arbitrated by Receita Federal, a fine of 100% over this difference is charged. This has neither a minimum or maximum limit.
This penalty does not affect any other requirements or penalties. Furthermore, if a crime of laundering is confirmed, the convicted parts might also be fined and arrested.
Lack of Importing License
The fine for companies that do not present an Import License is at 30% over the Customs Value. This penalty has a minimum value of BRL 500 and has no maximum limit. This can be reduced if, within 30 days after the notification, the violator pays for it or asks for an installment.
Nonpayment of Anti-dumping or Compensatory Rights
Just like several other countries, Brazil charges a fee on imported goods as part of its attempt to protect its national industry. A fine of 75% over the value of the anti-dumping or compensatory rights fee is charged if it is not paid.
A reduction of the fine might be set, but every case will be analyzed individually by bodies of Receita Federal. This penalty has no maximum or minimum limit.
Nonpayment of Tributes
If a company fails to pay taxes like Import Tax and Cofins, a fine of 75% over the tribute amount is applied. This fine can be raised to 112.50% if the company does not attend to the fines set by Receita Federal.
This penalty does not have a minimum or maximum limit, but can be decreased if, within 30 days after the notification, the violator pays for it or asks for an installment.
Let Others Use the Company’s Name
If a legal entity allows its name to be used by another company, a fine of 10% over the whole operation’s value is charged. Receita Federal considers that the operation value equals the one used as a basis of calculation for the Import Tax.
This penalty has no maximum limit, but a minimum value of BRL 5,000 is set. This can also be reduced if, within 30 days after the notification, the violator pays for it or asks for an installment.
Lack of Proof of Non-Preferential Origin
Companies that do not take part in any international commercial treaties with Brazil (e.g. Mercosul) must present a proof of non-preferential origin. If it fails to do so, a fine of 30% over the customs’ value of the imported goods is charged. This cannot be reduced and has neither minimum nor maximum limits.
Contempt of Customs Officer's Authority
If any form of contempt for authority is practiced, the violator receives a fine of BRL 10,000. This value cannot be reduced. In cases of reincidence, this penalty might have further consequences, like the Import License suspension or even its cancellation.
Embarrass, Impede, or Obstruct Customs Fiscalization Work
If any action is classified as an attempt to make the Customs’ work harder, a fine of BRL 5,000 is charged. This might also result in other consequences, including administrative sanctions. This has no minimum or maximum limit, and cannot be reduced.
Lighter Fines
These are generally caused by lack of documentation, or wrongly filled papers. They usually have a maximum limit and may be reduced, if some procedures are adopted.
- Destroying Merchandise That are Unable to be Licensed - Government bodies might authorize the destruction of unlicensed goods inside Brazilian territory. A fine of BRL 10 is charged for every kilogram.
- Misleading Merchandise - Fine of 50% over the Import Tax. Can be reduced.
- Presentation of Commercial Invoice without the Consular Visa - Fine of 10% over the Import Tax. Can be reduced.
- License Granted After Shipping - Fine of 30% over the Customs Value. Can be reduced, has a minimum value of BRL 500 and a maximum limit of BRL 5,000.
- Merchandise Shipment With an Expired Import License - A fine of 20% over the Customs Value is charged if the shipment is made from 20 to 40 days after the expiration. If it is made before that, the fine drops to 10%. Has a minimum value of BRL 500 and a maximum limit of BRL 5,000. Can be reduced.
- Lack of Dispatch Documents, such as Commercial Invoice - Fine of 5% over the Customs Value. Cannot be reduced, does not have a minimum or maximum limit.
- Incorrect NCM Classification or Quantification - Goods must be in accordance with the Mercosul Common Nomenclature, or NCM. If this is done wrongly, a fine of 1% over the Customs Value is applied. This has a minimum value of BRL 500 and a maximum limit equal to 10% of the Import Declaration.
- Hide or Provide Inaccurate Information to Customs - Fine of 1% over the Customs Value is applied. This has a minimum value of BRL 500 and a maximum limit equal to 10% of the Import Declaration.
- Inaccuracy on the Commercial Invoice - Fine of BRL 200. This has neither minimum nor maximum limit and cannot be reduced.
- Lack of Packing List - Fine of BRL 500. Cannot be reduced, has no minimum or maximum limit.