How to Classify Goods Imported to Brazil
Goods imported to any part of the world must be classified for customs and if they were imported to Brazil they must be as well. The Brazilian classification system named NCM is based in the harmonized system applicable worldwide.
The Harmonized Commodity Description and Coding System
The Harmonized Commodity Description and Coding System of tariff nomenclature – also known as HS – is an international standardized system used for classifying imported and exported products. The system was developed by the World Customs Organization and nowadays more than 200 countries or territories are employing the HS worldwide.
The contracting parties must base their taxation system on the HS nomenclature, but they are allowed to set their own duty rates. Most of of the parties used the system for:
- custom taxes
- collection of international trade statistics
- product origin rules
- internal tax collection
- trade negotiations
- transport taxes and statistics
- monitoring of controlled goods
Nomenclature Rules and Classification
The goods are classified in increasing order of human participation in their elaboration. The system first assigns goods to categories of natural and crude products and progresses to assign goods to categories with higher complexity. The HS is subdivided in 21 sections that contains 99 chapters. Among these chapters, three of them were purposely left blank:
- Chapter 77: future international use only.
- Chapter 98 and 99: special classification provisions used by each party, according to the country's party rules.
The HS used names and numbers to classify products, being the nomenclature composed by six digits, each one representing a specific function:
| Levels of Classification | Digits of Classification |
| Chapter | 000000 first two digits |
| Position | 000000 third and fourth digits |
| Simple Sub Position | 000000 fifth digit |
| Composed Sub Position | 000000 sixth digit |
Some countries already had extended their nomenclatures to ten or eight digits. In Brazil, the harmonized system comprises eight digits.
The Harmonized System also comprises general rules for the interpretation of the HS, that establishes general rules for the classification of goods in the Nomenclature. And explanatory notes to the HS – the NESH – that provides clarification and interpretation of the Harmonized System, setting out in detail the scope and content of the nomenclature.
NCM and the Harmonized System: Differences
NCM in the Mercosul Common Nomenclature that was created in 1995 and approved by a decree in 1997 in Brazil, substituting the Brazilian Nomenclature of Goods. With the system was also approved aliquots of importation taxes, that comprises the Tarifa Externa Comum – also known as TEC – which is a external common tariff established among Mercosul parties.
Argentina, Paraguay and Uruguay also adopted since January 1995, the Mercosul Common Nomenclature, which is based on the Harmonized System. Thus, the eight digits that composes the NCM, the first six are from the Harmonized System, while the seventh and eighth digits represent the specific unfolded within Mercosul.
The systematic classification of the codes in NCM correspond to the following structure:
| Levels of Classification | Digits of Classification |
| Chapter | 00000000 first two digits |
| Position | 00000000 first four digits |
| Simple Sub Position | 00000000 fifth digit |
| Composed Sub Position | 00000000 sixth digit |
| Item | 00000000 seventh digit |
| Sub Item | 00000000 eighth digit |
NCM and the Harmonized System: Similarities
- The 21 sections of the HS are the same sections of NCM.
- The NCM, such as HS, also presents interpretation rules and the explanatory notes (NESH).
- The NCM chapters are the same that the ones comprised in the HS, with the exemption of chapter 77, 98 and 99. Chapter 77 is turned to future international use by HS and the other two chapters are turned to specif country's or economic bloc's rules.
Sections of NCM and HS
| Section Number | Harmonized System and NCM |
| I. | Live animal and animals products |
| II. | Vegetable products |
| III. | Animal or vegetable fats and oil and their clevarage products, prepared edible fats, animal or vegetable waxes |
| IV. | Prepared foodstuffs, beverages, spirits and vinegar, tobacco and manufactured tobacco substitutes |
| V. | Mineral Products |
| VI. | Products of the chemical or allied industries |
| VII. | Plastics and articles thereof and rubber and articles thereof |
| VIII. | Raw rides, skins, leather, furkusins, articles thereof, saddlery, harness, travel goods, handbags, similar containers and articles of animal gut |
| IX. | Wood, articles of wood, wood charcoal, cork, articles of coark, manufactures of straw, of esparto and of other plaiting materials, basketware and wickerwork |
| X | Pulp of wood or of other Fibrous Cellulosic Material, recovered (waste and scrap), paper or paperboard, paper, paperboard and articles thereof |
| XI. | Textiles and textile articles |
| XII. | Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-sticks, seat-sticks, whips, Riding-crops, parts thereof, prepared feathers, articles made therewith, artificial flowers and articles of Human Hair |
| XIII. | Articles of stone, plaster, cement, asbestos, mica or similar materials, ceramic products, glass and glaware |
| XIV. | Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, articles of thereof, imitation jewellery and coin |
| XV. | Base metal and articles of base metal |
| XVI. | Machinery and mechanical appliances, electrical equipment, parts thereof, sound recorders and reproducers, television image and sound recorders and reproducers, parts and accessories of such articles |
| XVII. | Vehicles, aircraft, vessels and associated transport equipment |
| XVIII. | Optical, photographic, cinematographic, measuring, checking, precision, medical or sirurgical instruments, apparatus, clocks and watches, musical instruments, parts and accessories |
| XIX. | Arms and ammunition, parts and accessories thereof |
| XX. | Miscellaneous manufactured articles |
| XXI. | Works of art, collectors pieces and antiques |
Chapters of NCM and HS
| Chapter Number | Harmonized System and NCM |
| 0. | Services |
| 1. | Live animals |
| 2. | Meat and edible meat offal |
| 3. | Fish, crustaceans, molluscs or other aquatic invertebrates |
| 4. | Milk and dairy products, birds eggs, natural honey, edible products of animal origins |
| 5. | Other edible products of animal origins |
| 6. | Live plants and floricultural products |
| 7. | Edible vegetables and certain roots and tubers |
| 8. | Fruits, peel of citrus fruits or of melons |
| 9. | Coffee, tea, maté and spices |
| 10. | Cereals |
| 11. | Products of the milling industry, malt, starches, inulin and wheat gluten |
| 12. | Oilseeds andoleaginous fruits, miscellaneous grains,seeds andfruit,industrial or medicinal plants, straw and fodder |
| 13. | Gums, resins and other vegetable saps and extracts |
| 14. | Vegetable plaitingmaterials |
| 15. | Animal or vegetable fats and oils and their cleavage products, prepared edible fats, animal or vegetable waxes |
| 16. | Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates |
| 17. | Sugars and confectionery products |
| 18. | Cocoa and cocoapreparations |
| 19. | Preparations of cereals, flour, starch or milk and pastrycooks' products |
| 20. | Preparations of vegetables, fruit, nuts or other parts of plants |
| 21. | Miscellaneous edible preparations |
| 22. | Beverages, spirits and vinegar |
| 23. | Residues and waste from the food industries and prepared animal fodder |
| 24. | Tobacco or of tobacco substitutes |
| 25. | Salt, sulphur, earths and stone, plastering materials, lime and cement |
| 26. | Ores, slag and ash |
| 27. | Mineral fuels, mineral oils and products of their distillation, bituminous substances and mineral waxes |
| 28 | Inorganic chemicals, organic and inorganic compounds of precious metals, of rare-earth metals, of radioactive elements and of isotopes |
| 29 | Organic chemical products |
| 30 | Pharmaceutical products |
| 31. | Fertilizers |
| 32. | Tanning or dyeing extracts, tannins and their derivatives, dyes, pigments and other colouring matter, paints and varnishes, putty, other mastics and inks |
| 33. | Essential oils and resinoids; perfumery, cosmetic or toilet preparations |
| 34. | Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or souring preparations, candlesand similar articles, modelling pastes, dental waxes and dental preparations with a basis of plaster |
| 35. | Albuminoidal substances, modified starches, glues and enzymes |
| 36. | Explosives, pyrotechnic products, matches, pyrophoric alloys and certain combustible preparations |
| 37. | Photographic or cinematographic goods |
| 38. | Miscellaneous chemical products |
| 39. | Plastics and articles thereof |
| 40 | Rubber and articles thereof |
| 41. | Raw hides and skins (other than furskins) and leather |
| 42. | Articles of leather, saddlery and harness, travel goods, handbags and similar containers and articles of animal gut (other than silkworm gut) |
| 43. | Furskins and artificial fur and manufactures thereof |
| 44. | Wood, articles of wood and wood charcoal |
| 45. | Cork and articles of cork |
| 46. | Manufactures of straw, of esparto or of other plaiting materials, basketware and wickerwork |
| 47. | Pulp of wood or of other fibrous cellulosic material, waste and scrap of paper or paperboard |
| 48. | Paper and paperboard and articles of paper pulp, of paper or of paperboard |
| 49. | Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans |
| 50. | Silk |
| 51. | Wool, fine or coarse animal hair,; horsehair yarn and woven fabric |
| 52. | Cotton |
| 53. | Other vegetable textile fibers, paper yarn and woven fabric of paper yarn |
| 54. | Man-made filaments |
| 55. | Man-made staple fibers |
| 56. | Wadding, felt and nonwovens; special yarns, twine, cordage, ropes and cables and articles thereof |
| 57. | Carpets and other textile floor coverings |
| 58. | Special woven fabrics, tufted textile fabrics, lace, tapestries, trimmings and embroidery |
| 59. | Impregnated, coated, covered or laminated textile fabrics and textile articles of a kind suitable for industrial use |
| 60. | Knitted or crocheted fabrics |
| 61. | Articles of apparel and clothing accessories, knitted or crocheted |
| 62. | Articles of apparel and clothing accessories, not knitted or crocheted |
| 63. | Other made up textile articles, sets, worn clothing, worn textile articles and rags |
| 64. | Footwear, gaiters and the like and parts of such articles |
| 65. | Headgear and parts there of |
| 66. | Umbrellas, sun umbrellas, walking sticks, seatsticks, whips, riding-crops and parts thereof |
| 67. | Prepared feathers and down and articles made of feathers or of down, artificial flowers and articles of human hair |
| 68. | Articles of stone, plaster, cement, asbestos, mica or similar materials |
| 69. | Ceramic products |
| 70. | Glass and glassware |
| 71. | Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal and articles thereof, imitation jewelry and coin |
| 72. | Iron and steel |
| 73. | Articles of iron or steel |
| 74. | Copper and articles thereof |
| 75. | Nickel and articles thereof |
| 76. | Aluminum and articles thereof |
| 77. | - |
| 78. | Lead and articles thereof |
| 79. | Zinc and articles thereof |
| 80. | Tin and articles thereof |
| 81. | Other base metals, cermets and articles thereof |
| 82. | Tools, implements, cutlery, spoons and forks, of base metal and parts thereof of base metal |
| 83. | Miscellaneous articles of base metal |
| 84. | Nuclear reactors, boilers, machinery and mechanical appliances and parts thereof |
| 85. | Electrical machinery and equipment and parts thereof, sound recorders and reproducers, television image, reproducers and parts and accessories of such articles |
| 86. | Railway or tramway locomotives, rolling-stock and parts thereof, railway or tramway track fixtures, fittings, parts thereof and mechanical (including electro-mechanical) traffic signalling equipment of all kinds |
| 87. | Vehicles other than railway or tramway rolling stock, parts and accessories thereof |
| 88. | Aircraft, spacecraft and parts thereof |
| 89. | Ships, boats and floating structures |
| 90. | Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments, apparatus, parts and accessories thereof |
| 91. | Clocks and watches and parts thereof |
| 92. | Musical instruments, parts and accessories of such articles |
| 93. | Arms and ammunition, parts and accessories thereof |
| 94. | Furniture, bedding, mattresses, mattress supports, cushions, similar stuffed furnishings, lamps, lighting fittings, illuminated sign illuminated nameplates, the like and prefabricated buildings |
| 95. | Toys, games, sports requisites, parts and accessories thereof |
| 96. | Miscellaneous manufactured articles |
| 97. | Works of art, collectors pieces and antiques |
| 98. | - |
| 99. | - |