The Brazilian government has introduced new regulations aimed at modernizing import licensing and strengthening measures to combat fraud. The Secretariat of Foreign Trade (Secex) has been granted the authority to investigate irregularities based on received complaints or indications of misconduct. The objective is to simplify import licensing procedures and ensure a more efficient and transparent trade relationship between the government and the private sector.
The key highlight of the new regulations is the introduction of the “Flex License” (Decree 11.577/2023). This innovative approach simplifies routines and reduces costs for companies requiring authorization for imports or exports. It allows for a single license to cover multiple operations, either based on a period, volume, or specified value. This new licensing approach aims to streamline trade while maintaining necessary government controls.
Furthermore, the regulation introduces improvements to the issuance of proof of origin, particularly concerning preferential trade agreements. It also mandates the use of Digital Certificates of Origin (COD) instead of paper-based certificates for Brazilian exports to Colombia, under the Economic Complementation Agreement 72. This change is expected to expedite the certification process and reduce costs for commercial operators.
The government’s initiative aims to strike a balance between facilitating international trade and maintaining necessary controls to prevent fraud. By implementing these new rules, the Brazilian government seeks to enhance the competitiveness of businesses, promote transparency, and foster fair trade practices. The regulations represent a significant step towards modernizing import licensing, reducing administrative burdens, and ensuring a more efficient and secure trading environment for both domestic and foreign companies engaging in trade with Brazil.
If you want to know more about the new regulations and figure out how it applies to your operations in Brazil do not hesitate in contacting us. At Novatrade, we help you create a comprehensive go-to-market strategy and business plan that includes all the contingencies and details you need to be aware of.
Source: Ministry of Development, Industry, Commerce, and Services (MDIC)
Material reference date: July 7 th , 2023