Capital Requirements for Brazilian Import License
Obtaining a RADAR license and subsequently access to SISCOMEX can be achieved a couple of different ways. The fastest and easiest ways of attaining a RADAR license is opting for the unlimited and limited versions. The requisites for obtaining these versions are outlined here.
Importing to Brazil requires the use of the SISCOMEX system which requires a RADAR license. RADAR is a Portuguese acronym for Sistema de Rastreamento das Operações dos Intervenientes no Comércio Exterior and stands for the tracking system of stakeholders´ international trade operations. It isn´t easy to get a RADAR license but taking the capital requirement route, aka proving you have a pile of cash, is easily the fastest and least time consuming method. It is the ideal path to take for those who want an unlimited license but don´t yet meet the requirements for the express version.
There are 3 different versions of the business RADAR license but only two of them can be attained without having to meet the more stringent requirements of the express version. The two versions are:
- Unlimited – Unlimited importation for legal entities with financial capacity equal to or greater than USD 150.000.
- Limited – Limited importation for legal entities with financial capacity less than USD 150.000.
Company's Financial Requirement Evaluation
A company getting a RADAR will be evaluated on their financial capacity to import or export. Essentially the customs and the government want to make sure that the entity that will engage in importation or exportation has the ability to do so. It is important to note that the requirements must also demonstrate the ability to cover international transactions costs ie, foreign currency exchange, transfer fees/taxes, international reserves, etc. The evaluation follows these guidelines.
- Unlimited – Company needs to prove that they have financial resources equal to or greater than USD 150.000. Proof of financial resources normally demonstrated by the past 5 years of tax collections of IRPJ, CSLL, PIS, COFINS e Previdência Social. Companies in simplified cases, Simples Nacional, only need to prove its financial resources via the social security collection, known as Previdência Social.
- Limited – Capital requirements do not need to be proven in the case for the limited version of the RADAR license.
License Limitations
Obtaining RADAR license does not permit free range on the international commerce market. There are specific regulations and restrictions applied to each license type. These are the regulations and restrictions for the unlimited and limited versions:
- Unlimited – There is no maximum value restrictions on imports for this RADAR license. Exports are also unlimited.
- Limited – The maximum value of importations is restricted at USD 150.000 per 6 month period. Exports are unlimited.
The application for a RADAR license must be performed meticulously and certainly with the proper professional assistance. Rules and regulations for RADAR can change with short notice making it important to monitor the situation before, during, and after the application process. For more details on the RADAR license, read our article Introduction to RADAR.