Bonded warehouses offer several useful services beyond the storage of goods without paying taxes. This article will cover the additional services available in these areas.
It is possible that companies importing and exporting from Brazil are already aware of the benefits of bonded warehouses. These areas allow not only the storage of goods, helping the planning and stock control of businesses, but do so without the payment of taxes.
Despite this service, some additional features are offered in bonded warehouse areas, and can be explored by companies that need solutions to certain issues related to cargo.
Migration to Other Regimes
The Brazilian law states that goods stored in bonded warehouses can be transferred to other special regimes by filling the Customs Regime Transfer Declaration or DTR, short for Declaração de Transferência de Regime Aduaneiro. For example, this might be used when the company seeks to transfer its products for regimes, such as Recof or Drawback.
For both regimes, a Commercial Invoice and the DTR are required. The main difference is:
- If the company is moving to a Drawback regime, it must present a DI or Import Declaration.
- If the company is moving to a Recof regime, it must present a DA or Admission Declaration.
Transport to Other Warehouses and/or Countries
Goods stored in bonded warehouses might be exported for other warehouses or even for other countries. If the company that imported the cargo is willing to transport it for another destination, all the freight costs of this relocation must be paid at this company’s expense.
It is a duty of the importer to deal with all the needed procedures to re-export this cargo. No import taxes need to be paid, though, due to the storage on a bonded warehouse area.
In addition, if the cargo is directed to another country, the exchange rate must be negotiated prior to the relocation by the receiver. Also, in some cases, a security bond must be realized if cargo is being moved from one bonded warehouse area to another of the same kind.
Modification of the Stored Goods
The Brazilian law says that modifications and adjustments can be made while goods are stored in bonded warehouses. It basically lists four possible actions:
- Labeling and marking of goods in order to meet the requirements of international buyers or importers.
- Exposition, demonstration and functionality tests during the stay of the cargo in the Brazilian bonded warehouse.
- Assemblage, packaging and processing of the goods. In some cases, the product might also be transformed. For example, while at bonded warehouses, grains and seeds can be crushed, or food might be processed to be served on airplanes or other vehicles destined to export cargo.
- Repair of airplane and vessel parts, or even the computer and electronic components that are destined to be exported.
In order to make the task of dealing directly with bonded warehouses less complicated and faster, some Brazilian companies present customs consulting, outsourcing services offered in these areas. The services range from simple verifications to even legal representing foreign companies before governmental bodies. The main services offered by customs consulting businesses are:
- Placement of specialized workforce for the management of customs regularity.
- Review of goods’ descriptions and the tax classification of products.
- Answering punctual questions about the cargo or the bonded warehouse.
- Implementation of procedures to assure the following of customs rules.
- Strategic planning of customs operations.
- Legal representation of clients before governmental bodies
- Presentation of technical requirements to fiscalization bodies