NCM code(s) a requirements to import into Brazil
The identification of your customs codes in Brazil is one of the first steps necessary to start an import. NCM codes determine the import duties and taxes you will need to pay for each of your products. With each NCM code comes a different percentage of import duties and taxes. There are currently 5 different import duties and taxes (II, IPI, PIS, COFINS, ICMS) that need to be taken into accout for each NCM. Because of the brazilian tax specificity, the import duties and taxes calculation is not the simple sum of the percentage but a complex cascading calculation. All these reasons make essential the identification (or the classification if necessary) of your NCM code before doing business in Brazil.
As a consulting company specialized in brazilian fiscality we can assist you in identifying/classifying your HS code(s) into NCM code(s), as well as helping you calculate your Import duties and taxes. To identify your NCM code(s).
Small reminder on importing into Brazil
Before importing into Brazil, it is important to remember that for being able to Import your goods to Brazilian territory there are some pre-requisites to respect such as obtaining a RADAR. A RADAR is an authorization to operate on the IT system of Brazilian Foreign Trade (SISCOMEX).
To obtain a RADAR Authorization it is necessary to have a company in Brazil. If you need help to open a company or a subsidiary in Brazil, contact us or check out our service page on Opening a Company / Subsidiary in Brazil.
In case you don’t want to open a subsidiary in Brazil, you must either deal directly with distributors owning a RADAR Authorization or use a third party company with a RADAR authorization such as a Trading Company. Novatrade is also a trading company with a RADAR Habilitation, for more information on how we can accompany you have a look at our service menu with our Import-Export and Trading Solutions.
Difference between HS code(s) and NCM code(s)
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 in NCM code. NCM means “Nomenclatura Comum do Mercosul”, an 8-digit code set up by the Brazilian Government to identify the nature of the goods. It is different from the HS code which has only 6 digits.
NCM codes classification service
Novatrade propose the NCM Customs Code Classification service to address the complexity of the NCM system. This service enables you to know the Brazilian customs codes of your products, whether as part of the validation of an import / export project or in order to avoid your products being blocked in customs for an indefinite period.
Analysis, interpretation and classification of the NCM
- Analysis of the technical and commercial sheet of the your product, then the analysis of its end use.
- Interpretation, based on this information, of the various nomenclatures that could be applied to the product. Further research with Receita Federal to distinguish the code from the product that could be considered as similar.
- Classification and presentation of the NCM code to be used for the product.
Our job is to research and present in details the necessary information for the proper classification of the products of our customers. To do so, we consult the legislation, the NESH, Receita Federal, as well as many other documents that could justify our interpretation. The classification of the NCM code is a long and rigorous task, studied by specialized consultants, who requires 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 consultancy.
Requisites to start a consultation
- HS code
- Technical information on the product
- Commercial description
- Finale use
Also included in the service
Novatrade also provides an analysis of the ICMS-ST (Tax on Goods and Services – Tributary Substitution) applied to your products. Novatrade offers the possibility to determine whether or not there is a possibility of tax substitution valid for your products.
- OBS 1: ICMS-ST applies only to interstate sales and resales.
- OBS 2: For intermediate products used by the industry in the composition of final products there are no substitute taxes.