Classification And Revision Of Customs Codes (NCM)

Prerequisites for Importing to Brazil

While classifying customs codes is one of the first necessary steps to embark on an importation, it is important to note that there are some prerequisites to meet in order to import products into Brazilian territory.

First and foremost, you need a RADAR Authorization, which is permission to operate on the Brazilian Foreign Trade Computer System. To obtain your own RADAR Authorization, it is necessary to have your company domiciled in Brazil and to ensure that you comply with all the initial administrative requirements to launch your business in Brazil in a viable manner.

If you need assistance in opening your company in Brazil, contact us and we will put you in touch with partners who can assist you.

In the event that you do not wish to open a company in Brazil, you will need to:

  • either deal directly with distributors who have a RADAR Authorization
  • or use a third-party company with this authorization. Novatrade has a RADAR Authorization and can assist you if needed.

Why Classify Your Customs Codes?

The Brazilian customs system (NCM System) differs from the international harmonized system (HS). In order to import products into Brazil, you must comply with its customs system by classifying your HS codes into NCM codes. NCM stands for “Nomenclatura Comum do Mercosul,” which is an 8-digit code established by the Brazilian Government to identify the nature of goods. It is different from the HS code, which consists of only 6 digits.

Classification Service for NCM Customs Codes

The NCM Customs Codes Classification Service is offered by Novatrade to address the complexity of the NCM system. This service allows you to identify the Brazilian customs codes for your products, whether it is for validating import/export projects or avoiding the blocking of your products in customs for an indefinite period.

The service involves the analysis, interpretation, and classification of the NCM:

  1. Analysis of the technical and commercial specifications of the product, followed by an analysis of its final use.
  2. Interpretation of various nomenclatures based on this information. Further research is conducted with the Receita Federal to distinguish the code of the considered product from its counterparts.
  3. Classification and presentation of the NCM code to be used for the product.

Our work involves researching and presenting detailed information necessary for the proper classification of our clients’ products. To achieve this, we consult legislation, NESH, Receita Federal, as well as any other documents that could justify our interpretation. NCM code classification is a lengthy and rigorous task, akin to a study by a foreign trade consultant, requiring the use of specialized software and highly qualified skills. For some products, the complexity of the research framework can result in more than eight hours of consultation.

Prerequisites for Starting a Consultation:

  • HS Code if needed
  • Technical product sheet
  • Commercial description
  • Final utility

Service Included in the Provision:

NOVATRADE also provides an analysis of the ICMS-ST (Tax on Circulation of Goods and Services – Tax Substitution) applied to your products. NOVATRADE offers the possibility to determine whether there is a possibility of tax substitution for this tax on your products.

Note 1: ICMS-ST applies only to interstate sales and resale.

Note 2: For intermediate products used by the industry in the composition of final products, there are no substitutable taxes.

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