In Brazil, there is a Special Regime that grants total or partial exemption of taxes due to the exit of some goods from the country. In this article, we will take a look at the Regime Especial de Exportação Temporária.
What is Special Temporary Export Regime
The Regime Especial de Exportação Temporária, which is Portuguese for Special Temporary Export Regime, is a special customs regime that allows the exit of goods from Brazil with total or partial exemption of taxes, provided that they return to the country within a set deadline and in the same condition in which they were exported.
Conditions to apply for the Special Regime
The Special Temporary Export Regime seeks to facilitate the temporary exit of goods from Brazil under the following circumstances:
- Execution/participation in cultural, artistic, technical, scientific, commercial or industrial events
- Sporting competitions or exhibitions
- Trade promotions, including samples without commercial value and showcases for sales representatives
- Execution of the following contracts: operational leasing, rental, loan or provision of services
- Provision of technical support on previously exported products, due to warranty terms
- Temporary activities related to agriculture, including animals for fairs and exhibitions, herding or care for veterinary medicine practice
- Military use and logistical support for Brazilian troops intended to integrate peacekeeping forces on foreign territories
- Humanitarian assistance
- Packaging and transportation of other goods
- Tests and trials
Besides these cases, there is also the Exportação Temporária para Aperfeiçoamento Passivo, which is Portuguese for Temporary Export for Passive Improvement, a special regime created for goods which have to undergo:
- Transformation, elaboration, processing or assembly operations abroad, and posterior re-import of the resulting product to Brazil, with payment of taxes on the value added to the goods
- Fixing, repairing or restoration process, with payment of taxes on materials eventually used in these processes
For all cases mentioned above in which the Export Duty would be levied, the beneficiary of the regime is required to sign a Term of Responsibility for the payment of the suspended tax. A guarantee is not demanded. If the exporter does not comply with the conditions, requirements or deadlines when they are granted the Special Temporary Export Regime, a fine of 5% on the FOB value of the goods will apply, in addition to the Export Duty.
Also, the temporary export of goods is not allowed for goods for which the definitive export is not allowed by the government. Although in these cases, an authorization by a consenting agency is sufficient to allow the export of these controlled goods.
The necessary procedures for applying for the Special Temporary Export Regime during the custom clearance process depends on the purpose of the goods and the beneficiary of the regime. The custom clearance of the goods exported under this Special Regime are required to follow these specifications:
- Declaração Aduaneira de Material Promocional, which is Portuguese for Customs Declaration of Promotional Material: Required on the exit of instruments or equipment accompanying promotional material in circulation in Mercosul member states that will be distributed at fairs, trade shows or any other tourist, cultural, educational, sporting, religious or commercial event in these countries
- Declaração Aduaneira de Bens de Caráter Cultural, which is Portuguese for Customs Declaration of Cultural Goods: Required for goods used in cultural events or projects exported by any state member of Mercosul
Also, the Declaração Simplificada de Exportação, which is Portuguese for Simplified Export Declaration, should be presented at the moment of customs clearance in the following cases:
- Goods destined for military use and logistical support for Brazilian troops intended to integrate peacekeeping forces on foreign territories
- Goods destined for medical assistance and rescue in situations of war, public peace or accident in which there is harm or threat to the community or to the environment
- Goods necessary for the realization of cultural events
- Goods exported for diplomatic missions, consular offices or international organisation to which Brazil is a member or special delegation accredited by the Brazilian government, as well as by their respective members, officers or technicians
The Simplified Export Declaration only needs to be completed online, at Siscomex, and be presented together with the bill of lading in the following cases:
- Goods that are not subject to any type of special authorization by other government agencies
- Vehicle to be used by the traveller on foreign territory, except when it leaves Brazil on its own
For goods subject to any kind of special authorization by other government agencies or in any other cases not mentioned above, a Declaração de Exportação, which is Portuguese for Export Declaration, is to be completed online at Siscomex prior to customs clearance.
It is important to mention that the temporary export of the following goods does not demand any kind of administrative procedure by Brazilian customs:
- Accompanied luggage
- Vehicles for use of the traveller abroad when it leaves Brazil on its own
- Brazilian transport vehicles, driving cargo or passengers