Igor Utsumi

Igor Utsumi

Staff Writer
The Brazil Business

Updated

Removing Goods From Bonded Warehouses In Brazil

Igor Utsumi

Igor Utsumi

Staff Writer
The Brazil Business

Updated

Prior to withdrawing goods stored in bonded warehouses in Brazil there are some requirements and restrictions which must be adhered to. We will look at these in this article.

Bonded warehouses are one of the most useful and powerful logistical tools for any company importing goods to Brazil. In addition to the suspension of taxes and duties, it is possible to keep stock close to the local market and therefore reducing the time frame of most procedures of the value chain.

It is possible to find a lot of information regarding the admission of goods and the requirements needed to start using bonded warehouses but it is also necessary to pay attention to the requirements needed to withdraw such goods.

The Withdrawal Of Goods

The process is quite simple and should not be a headache for most companies importing goods to Brazil providing some conditions are followed. For example, the documentation part is not complex - only an Import Declaration (DI) is needed to withdraw goods.

The importer must pay the taxes and duties relative to the goods being removed and then they will be able to be customs cleared.

However, in the opinion of the customs and bonded warehouse specialist, Avelino Oliveira, it is necessary to pay attention to who is capable of removing goods from bonded warehouses. He affirms that “the withdrawal of imported goods from the Bonded Storage Regime can only be performed by the beneficiary, which is the consignee of the import shipment”.

The only exception is when goods that have been admitted have no commercial value. In this case, any Brazilian importer can withdraw goods covered by a Proforma Invoice providing they are in possession of a Commercial Invoice, issued by the supplier of the goods. According to Oliveira, “the Commercial Invoice proves that there has been a negotiation between the exporter and the importing company; it must be issued by the supplier covering the exact quantity and value of goods intended to be withdrawn”.

Who Can Receive The Cleared Goods

After clearance, goods are usually shipped from the bonded facility to the importer’s warehouse, where the goods are intended to be sold without any additional modification or to a factory for local processing. However, this is not always the case.

After all the necessary measures are taken and the taxes are paid, goods can go anywhere in Brazil as long as a Nota Fiscal is issued to cover its transportation within Brazilian borders. So the destiny of these goods could even go directly from the bonded facility to the end customer.

Minimum Quantity Of Goods Being Withdrawn

Brazilian law states that there is not a minimum quantity of goods that must be withdrawn from bonded warehouses in order to be customs cleared.

But according to Avelino Oliveira, it is fairly common that bonded storage facilities set a minimum quota of goods to be nationalized, for security purposes, to guarantee the integrity of imported goods. It is also a policy by the facilities to avoid excessive costs to handle small quantities of cargo.

“The established minimum quantity is usually in ‘Carton Box’ units”, points Oliveira. “That is the reason why the term ‘Box Level’ is commonly used to refer to the minimum quantity that will be handled.”

How Long Does It Take To Remove Goods From A Bonded Warehouse?

The necessary time frame to withdraw goods from bonded storage facilities can vary greatly. There are many factors that either agilize or slow the process. Some of the most important variables are:

  • Payment of all import duties and taxes, such as ICMS
  • Presentation of the proper import documents during the goods’ customs clearance
  • Proper payment of the AFRMM tax
  • Service offered by the bonded facility while separating the goods
  • Performance of the customs officials working at the bonded facility

If the importer forgets to pay a certain tax, the whole process will be delayed. Nevertheless, if all the procedures are correctly completed and on time, the average time frame is not that long. “We can consider a period of no longer than 48 hours, from the moment the Import Declaration is presented to customs to the actual delivery of customs cleared goods to the importer or its representative”, states Avelino Oliveira.