Unified Taxation System - RTU

Rebeca Duran

Staff Writer
The Brazil Business

Updated

6 November 2013

RTU was created to diminish the illegal trade activity usually practicde between the Brazilian and Paraguayan border. This article explains what the regime is, how it works, which goods can be imported under the system and how to be part of it.

Border trade was also a problematic issue for Brazilian authorities. Illegal trade practices are very common, especially between the Paraguayan and Brazilian border. In order to avoid the illegal flow of goods and encourage the legal trade activity in the border region, the Law number 11.898 created the Regime de Tributação Unificada – Unified Taxation System (RTU). That aims to ration the trade by land in the borders of Foz do Iguaçu (Brazil) and Ciudad Del Este (Paraguay).

RTU is an import regime that allows for micro importer companies the importation of certain goods from Paraguay, upon unified payment of the federal taxes and contributions owed, with simplified customs clearance. The regime is only valid for trade by land on the border.

Who Can Apply for the RTU

The application for use of the RTU can only be performed by a micro import company, which means, that only a company with an annual gross revenue of up to 360,000.00 BRL can be part of this regime. The company must also be part of Simples Nacional. The importations must respect maximum values annually and quarterly:

Goods that can be Imported under the Regime

The goods permitted for importation through the rules of RTU are on a list named Lista Positiva – positive list. Generally the list covers goods related to the electronic industry, such as information, telecommunication and electronic goods. However, the regime can be applied to the Lista Negativa – negative list:

• goods that aren't designated for the final consumer
• ammunition weapons, fireworks and explosives
• beverages (including alcoholic ones)
• cigarettes
• automotive vehicles in general and departures of all types (including parts and pieces, as tires, headlights, taillights and others)
• medicines
• used goods
• goods with importation suspended or prohibited in Brazil.

The list of goods accepted in RTU contains many items, but it can be accessed at the Federal Revenue Service web page in the link Mercadorias Admitidas and Mercadorias Admitidas, sujeitas a tratamento administrativo.

Tax Simplifications

The federal taxes due to the importation performed by companies accredited with RTU will be paid at the moment of import declaration registration with a rate of 25% over the value of the good. From this 25%:

• 7,88 % is referent to the Import Tax (II)
• 7,87 % is the rate of the Tax Over Industrialized Products (IPI)
• 7,6 % is equivalent to the rate charged of Confins-Importation
• 1,65 % is the PIS/Pasep- Importation rate.

The Federal Government may reduce to zero or increase to a 18% tax rate for the II rate and/or to 15% for the IPI rate. The rates are applied on the purchase price of the goods presented in their commercial invoice. In some cases, the ICMS could also be charged at the moment of the import declaration registry.

Customs Clearance Simplifications

The import operation under the terms of RTU has simplified flow, comprised of the following steps:

• The accredited representative of the micro importer goes to Paraguay to make good purchases.
• The Paraguayan retail and seller's establishment (accredited to RTU), to make the sale to the Brazilian micro importer company must emit electronically, on the computerized control system of the Federal Revenue of Brazil, the corresponding commercial invoices.
• The accredited representative performs the transport request in the System RTU ;
• The driver operates the vehicle registered in the System RTU should inform the international transportation to the Paraguayan Customs.
• The goods' amounts should be subject to the control of Paraguayan customs, that will register the beginning of the transport in the System RTU.
• The goods acquired in Paraguay enters Brazilian territory accompanied by the authorized representative, carried on a registered vehicle.
• The accredited representative must go to the location of the customs clearance for the goods under the terms of RTU, at Brazilian Customs.
• The Brazilian Customs certifies the execution of the international transportation of goods in the System RTU.
• The accredited representative registry the import declaration under the terms of RTU, only confirming data (s) of the invoice (s) issued (s) in System RTU.
• The declaration registered can be selected for customs check, according to criteria established by the Federal Revenue of Brazil.
• The accredited representative makes the impression of the DARF, a document that proves the payment of federal taxes, including ICMS tax (charged with different values depending on each of Brazilian States' rates).
• The goods are released and then can be freely transported into the country (accompanied by a specific invoice regime, allowing only sales to the end consumer).

Documents and Forms for Application