Importing Wheat to Brazil

Rebeca Duran

Staff Writer
The Brazil Business

Updated

24 September 2013

Wheat is one of the most important aspects of the agribusiness trade balance in Brazil. This article gives an overview of this sector, providing the general information about wheat imports.

Brazil is one of the largest importers of wheat worldwide, with 95% of it's imports derived from Argentina. The country is also a leading importer of United States and from other countries of South America.

Wheat Importation

Wheat is an important product for the Brazilian economy, corresponding to the main highlights of the agribusiness import agenda. In December, 2012, the Brazilian agribusiness imports reached 1.31 billion USD.

Wheat corresponded to purchases of 136 million USD and to an increase of 6.6% in this same period. Despite the decline of 15.5% on wheat's trading volume, the average price in December, 2012, rose 26.1%.

Wheat Imports Per Country in 2013

Wheat can be imported to Brazil because it's included in the List of Authorized Importation Products – known as PVIA. The list is controlled and a responsibility of the Ministry of Agriculture, Livestock and Supplier (MAPA). The Ministry subdivided plants, part of plants and it's products in 6 different categories, being wheat comprised in the categories number 1, 3 and 4.

Category Number 1

Are considered in this category products of plant origin industrialized, which have been subjected to any process of technological denaturation. Only process that transformed this products into products unable to be directly affected by crop pests, but that can still carry storage pests, pests in the packaging material and in the means of transport are considered in this category.Those productsare intended for consumption, processing or direct use. Wheat flour is comprised among them.

Documentation:

• Request for Inspection of Agricultural Products.
• Import Authorization, when necessary.
• And the regular import documents, such as import declaration and others.

Category Number 3

Products considered in category 3 are plant products intended for fresh consumption, direct use or processing, such as the wheat grain.

Documentation:

• Request for Inspection of Agricultural Products.
• Import Authorization, when necessary.
• Original Phytosanitary Certificate.
• Customs Documentation of the good (import license or simplified import license).
• Invoice (copy).
• Bill of Landing (copy).
• And the regular import documents, such as import declaration and others.

Category Number 4

Considered in Category 4 are seeds, plants, or other plant materials intended for propagation or reproduction. If wheat is imported to Brazil for reproduction purposes – doesn't matter if it's in cereal or grain shape – it will be classified in this category.

First Step: Application

The import process of propagating material passes through three stages. The first is to apply for prior authorization in the federal agriculture unit in which the importer is established. For the application it is necessary to submit:

• Application for Authorization for Import of Seeds and Seedlings.
• Public Attorney of the importer (original and copy).
• Evidence of price (CP) or Proforma Invoice (original or copy).

Second Step: Request

The second step is to request the Consent to Release Customs, which must be in a decentralized unit of MAPA located in the region in which the goods arrived in Brazil. It's necessary to submit the following documents:

• Application for Consent to Release Customs.
• Application for Authorization for Import of Seeds and Seedlings consisting the Import Authorization.
• Commercial Invoice (original and copy).
• Bulletin Analysis of seedlings or equivalent document (original and copy , issued in the country of origin by a laboratory- identified and recognized by MAPA signed by a responsible technical) – In the case of seedlings or other materials that allows reproduction (such as grains).
• Phytosanitary Certificate (original and copy).
• Term of Custodian for the product that will be removed from the customs area before sampling collection for verification of identity and quality standards (two copies).

Third Step: In the Point of Entry

For the third step, which must occur at the goods point of entry, the following are necessary:

• Consent to Release Customs.
• Request for Inspection of Agricultural Products.
• Customs Documentation of the good (import license or simplified import license).
• Invoice (copy).
• Bill of Landing (copy).
• Term of Custodian, when necessary.
• And the regular import documents, such as import declaration and others.

Tax-Free and Temporary Exemption

The Foreign Trade Chamber of Brazil, best known as CAMEX, extended until the end of 2013 the duty free for wheat imports. The 30th of November is the deadline for free import tax designated to wheat importations up to 400 tons. The CAMEX decision is a response in front of the stocks reduction of the National Supply Company (Conab) and the inflationary impact of the product.

The shortage of grain in the Brazilian market due to the crop failure in Paraná, the main national producer, is one of the causes of the government measures, as well as the crop failure of Argentina, the main supplier of this product to Brazil.

The import tax reduction has been occurring since April of 2013, having it's deadline extended and the quota expanded all over the year. In total, 2.7 million tonnes of products were allowed to enter Brazil exempt from import tax.