Import On Behalf in Brazil
More and more, companies have been opting to focus on the final activities of their business, granting the responsibility and realization of intermediate activities to other companies. The importation on behalf in Brazil is an example of this new tendency.
The outsourcing of the intermediate activities is also recurrent in foreign trade. For example, when the exercise of one or more activities related to the implementation and management of operational, logistical, bureaucratic, financial and taxation aspects linked to the importation of goods, are transferred to a specialist company or individual.
The Outsourcing of Foreign Trade Activities
In Brazil, two ways to outsource foreign trade operations are recognized and regulated by the Federal Revenue Secretariat (SRF):
- Import On Behalf, known in Brazil as Importação por Conta e Ordem, and
- Import Under Order, known in Brazil as Importação por Encomenda.
The company that decides to outsource some or all of their foreign trade operations must be attentive not only to the differences in cost between the import on behalf and under order, but also to the different effects and tax liabilities that are subject to these two situations, not only at the federal level, but also at the state level.
The provision of services performed by an importer company on behalf of another (the buyer), as the importation is promoted by an importer company for resale to another company (the ordering), and must follow specific conditions determined in the Brazilian Law to be considered regular.
Import On Behalf
Importing on behalf of third party is a service provided by a company (the importer), which promotes on its behalf the customs clearance of imported goods purchased by another company (the buyer). This activity is established through a previously signed contract, which may further concedes to the importer the provision of other services related to commercial transactions, such as making trade intermediation.
Even when being the importer company responsible for the development of many foreign trade operations, she is a mere agent of the company that hired its services (the buyer). The buyer is the one that actually purchases the goods and makes them come to Brazil.
Thus, even when the purchase is performed by the intermediary (the importer company), the purchase is still not designated to the importer, it will always be designated to the buyer because all financial resources are conceded by him.
How the Import On Behalf is Done?
The buyer must present to a SRF unit:
- Buyer and Importer Company registry in Siscomex
- Copy of the agreement between the two parties.
- The agreement must characterize the bond established with the importer company and the buyer, and grant to the first the right to perform import services. This should be done to link the importer company as an importer on behalf of the buyer in Siscomex.
In order to promote the customs clearance of the imported goods, the following conditions must be attended:
- In the import declaration (DI) elaboration, the importer company must indicate in the page “importer or importador” the CNPJ of the buyer.
- The load recognition must be designated to the importer company, because the document that will be granted to him gives the right to perform the customs clearance and to withdraw the imported goods from the bonded warehouse.
- The commercial invoice must identify the buyer, not the importer company.
The importer company must present to a SRF unit:
- Issue the receipt of the goods entering in the country, informing the value of each tax levied on the importation. The receipt must be issued when the customs clearance is finished.
- Inform the accounting and fiscal registries that the goods imported are properties of third parties, and the value of the goods imported.
- Issue in the data of goods departure from bonded warehouse:
- receipt of goods departure that comprises goods values, taxation levied on them and values of IPI and ICMS.
- receipt of services that comprises the value of the services provided to the buyer and the number of receipts of goods departure that corresponds to these services.
Change in the Establishment
If the buyer determines the delivery of the imported goods is in another establishment, which means that the delivery won’t happen in the importer company establishment, it is necessary for the:
- Importer company to issue a receipt of goods departure and give it to the buyer.
- The buyer to issue a receipt of sale to another recipient informing the IPI, the importer company CNPJ and address, and that the goods must leave the importer establishment.