April 2011 Corporate Presentation 1 The Brazil Customs Challenge: How to Get Your Goods in and Get Paid Prepared by : Denise Carrion & Rubio Guimaraes
Apr 02, 2015
April 2011Corporate Presentation1
The Brazil Customs Challenge: How to Get Your Goods in and Get PaidPrepared by : Denise Carrion & Rubio Guimaraes
2Corporate Presentation April 11, 20232
2
GLOBAL
• Revenue – €6.8 billion
• Over 49,000 employees
• 1,200 locations in over 170 countries
• 10 million square meter combined storage space
BRAZIL • Employees : +6,500• Warehouses : +585,000 sqm +• Branches : 60
4th largest global supply chain company
CEVA Logistics Overview
John PattulloCEVA LogisticsCEO
Vision : “ CEVA will be the most admired company in the supply chain industry exemplifying Unity, Growth and Excellence”.
Mission : Making Business Flow
Manufacturing support
Inbound Transportation
Warehousing & Distribution
Centers
Outbound Transportation
Aftermarket Services
Final Mile Solution
• Receipt and management of raw materials and products at source• Control• Re-packaging• Value-added
services
• A range of multi-modal capabilities• Time definite
services• Customs
brokerage•Web enabled
tracking solutions
• Dedicated and shared warehousing• Distribution
network centers• Value-added
services
• Dedicated and/or shared transportation• CEVA Ground
distribution services• Transportation
network management
• Spare parts warehousing• Spare parts
distribution• Returns• Repairs• Reverse logistics• Call center
services
• Home delivery for finished goods• One and two man
home delivery• After sales set up• Installation• Reverse logistics
GlobalEnd-to-end Capabilities
4Apresentação Institucional011
Brazil
AM
CEVA Logistics Customers in Brazil
MA
MG
RJ
ES
SP
PR
RS
GO
PA
PEPE
The Brazil Customs Challenge: How to Get Your Goods in and Get PaidPrepared by : Denise Carrion & Rubio Guimaraes
Import LicenseProcess
InternationalTransportation
Customs Clearance Transactional Process
International Payments
AGENDAThe Brazil Customs Challenge
In order to avoid penalties and delays at customs clearance for our customers, it is mandatory :
• DECLARE CORRECTLY CONSIGNEE/SHIPPER'S NAME on all shipping documents.
• MAKE sure that the consignee's CNPJ (Company's ID number in Brazil) is mentioned on all shipment documents (commercial invoice + packing list).
• ENSURE that there is a perfect match among the weight shown on the invoice/packing list, and the actual weight of the cargo.
• NOTE that a HAWB/HBL can be amended only before arrival of the cargo in Brazil, and those documents are only issued at origin based on all details of Shipper Commercial Invoice + Packing List.
• PREPARATION of Commercial Invoice and Packing List as per Brazilian Legislation Requirements.
Key Import Elements for a successful Clearance in Brazil Customs Clearance Transactional Process
According to Brazilian laws and in order to avoid fines and delays during the Customs Clearance process, commercial
documents, such as commercial invoice and packing list must be prepared as per requirements below :
Key Import Elements for a successful Clearance in Brazil Customs Clearance Transactional Process
- Issued under Exporter’s letterhead, hand-signed in BLUE ink, by an authorized person; identifying title and name – Commercial Invoice must be expressly written in the title, invoice number, date;– Must contain : Exporter’s and Importer's complete name and address and Part number;– Complete description of goods in English language. The description must be done with complete words -Quantity of goods with respective unit and total price in accordance with the conditions negotiated, mentioning expressly, if agreed, the amount of reduction or discount offered to the Importer;– Marking, numbering, and, if available, package reference number;– Quantity and kind of package;– Package gross weight, thus considered the weight of the goods with all its recipients;– Net weight, thus considered the material free of any wrapper;– Country of origin, thus considered that where the goods was manufactured or where the biggest transformation was occurred; -Country of acquisition, thus considered that where the goods were acquired to be exported to Brazil, independently of the country of origin of the goods or its parts;– Country of shipment, thus considered that from where the goods was delivered at the moment of its acquisition;– Payment terms and negotiated currency;– Sales condition terms (Incoterms);
CommercialInvoice
No abbreviations !
Key Import Elements for a successful Clearance in Brazil Customs Clearance Transactional Process
- The phrase “Packing List” has to be expressly written in the document title;-The packing list must be hand-signed in BLUE ink, by the authorized person; identifying his title and name,
MUST CONTAIN : - Packing list number; issuing date;- Complete name and address of the Exporter (as it is in the commercial invoice);- Complete name and address of the Importer (as it is in the commercial invoice);- Type/ package model;- Package content (part numbers and quantities);- Package quantities;- Package Dimensions or cubic meters;- Total gross weight;- Total gross weight per package;- Total net weight;- Total net weight per package. - All cargoes will be weighted by Brazilian Customs and if they state any discrepancy, it will delay the clearance process and Customs will charge a penalty, therefore the correct gross weight must be mentioned in the document.- It is necessary to have a Packing List for each Invoice issued.
Packing List
• Some products requires an Import License prior to be shipped to Brazil. Those licenses are based on import control defined by the government and it can change from time to time accordingly to market situation, internal production and other factors.
• Prior to start exporting to Brazil, it is crucial to check if the product to be exported requires previous Import License. Based on the HC (Harmonized Code) is possible to check at Brazilian Customs Systems (SISCOMEX) the IL requirements.
• There are many government entitites that regulate the import flow to Brazil, such as Ministry of Agriculture, Ministry of Health, Ministry of Army, Suframa (that controls Free Trade Zones) and many others. Those entities define Import License Procedures and requirements.
• The Importer Company must attend all those requirements directly or using a broker company, procedures are executed through SISCOMEX or for some specifics Ministries, physical documentation must be presented.
• The time to obtain an Import License varies from 5 working days to 30 days. Per law, the international transportation documents (air or ocean waybill) cannot be issued prior to the date of Import License issuance.
Key Import Elements for a successful Clearance in Brazil Customs Clearance Transactional Process
• All goods that enters the country, imported permanently or not, is subject to customs clearance process, which is processed based on the Import Declaration (DI), prepared in SISCOMEX (Brazilian Customs Integrated System of Foreign Trade).
• Import Declaration is controlled by SISCOMEX based on the import requests for each product. An automatic sequencial reference is provided for each declaration. This reference identify the entire import customs clearance process and will be used to check :
• The status of Import Company with Customs for any irregularity;
• The compliance with exchange rules as per Central Bank;
• The arrival of the cargo (volumes, weight, documentation, etc);
• The Duties & Taxes Payments;
• And all kind of imported goods information
Key Import Elements for a successful Clearance in Brazil Customs Clearance Transactional Process
Key Import Elements for a successful Clearance in Brazil Customs Clearance Transactional Process
IMPORT DECLARATION
Importer Information
Cargo Information
GoodsValue
Duties & Taxes
ExporterInformation
Harmonized Code
GoodsDescription
Duties & TaxesDetails
Key Import Elements for a successful Clearance in Brazil Customs Clearance Transactional Process
IMPORT DECLARATION
Import Duty
VAT
PIS
Cofins
IMPORT DUTY: it will be charged from 0% till 35% over CIF value depending on kind of goods; VAT: will be charged from 0% till 33% over CIF value + IMPORT DUTY; PIS: (Social Integration Program Tax/Worker’s Tax): will be charged from 0% till 2,30% over CIFvalue + IMPORT DUTY + VAT + % ICMS; COFINS: (Social Security Financing Tax/Social Tax): It will be charged from 0% till 10,80% overCIF value + IMPORT DUTY + VAT + PIS + % ICMS;
LOCAL FEE: It will be charged between 7.5% till 25% over CIF value + IMPORT DUTY + VAT + PIS+ COFINS; depending on the state in Brazil that cargo will be released;
Key Import Elements for a successful Clearance in Brazil Summary of Import Taxes
Basic Import Regulations Requirements & FlowCustoms Channels & Conference Process
Green Channel
Yellow Channel
Red Channel
• Drives through an automatic Clearance Process• No Documents and Physical inspection required
• Requires a document review • No physical inspection is required unless some problems are found on the documents
• Requires a document review • Requires physical inspection• Red Channel is applied when customs systems identify a risk of fraud or issues on products description or quantities, any inconstancy on Import Declaration, etc
Gray Channel
• Requires a document review• Requires physical inspection• Gray Channel is applied when customs systems identify a risk of fraud or issues on goods amounts pricing (under or over)
Average1-2 days
Average3-4 days
Average7-10 days
Average10-15 days
• The Import Declaration will be accompanied by the following documents :
• Original bill of lading or equivalent document
• Original commercial invoice
• Other documents required by specific legislation or international agreements
• Once registered by SISCOMEX the system itself indicates the type of conference that can be :
CEVA receives copy of commercial invoice and/or instructions from the customer
Import LicenseRequired
CEVA prepares the Import License in the Customs system (Siscomex)
with detaild of goods, HS number and copy of proforma invoice
CEVA registers Import License in the system (Siscomex)
CEVA checks the Import License regularly waiting for Customs
approval
IL approved?
No
Yes
CEVA Authorizes
customer to proceed with
shipment
Check requirements and proceed
START
CEVA types the data into Customs system (Siscomex)
Yes
No CEVA requests information to customer
Registration OK
CEVA stands for the pre alert to finish data
typing
Pre alertreceipt
Registration, Part Number/
Instruction ok?
Basic Import Regulations Requirements & FlowImport Customs Flow
CheckingOK?
CEVA requests for missing documents and eventual
corrections
No
Yes
Import Declaration typing
CEVA sends advanced cash for expenses
Import Declaration Checking
CheckingOK?
No
Yes
Provides proper adjustments
Flight or Vessel arrival
CEVA awaits authorization from customer for debit of duties and taxes
DiagnosisOK?
No
Yes
Siscomex suppies errors and correction or follow-up
information (alerts: green, yellow, red)
CEVA proceeds with Import Declaration registration in Siscomex (register transfer): - Prints ID report- Pays ICMS – Enter ICMS information in Siscomex- Pays AFRMM (seafreight only)
CEVA access Siscomex and check diagnosis
Basic Import Regulations Requirements & FlowImport Customs Flow
Check Siscomex Sorting
Light ?
Red/GreyYellow
Physical checking by CustomsStatus informed in Siscomex
Status?
PendingCleared
Grey Light
Registers discrepancy in Siscomex and
performs warranty deposit
Issuing Nota Fiscal de Entrada
Documents checking by Customs agent. Status informed in
Siscomex
Status ?
Pending
Cleared
CEVA meets the requirements
CEVA meets the
requirements
Follows-up the process along with Customs
agent
Green
Basic Import Regulations Requirements & FlowImport Customs Flow
CEVA performs payment of storage charges to Infraero
Forward Nota Fiscal to Customs facility where the shipment is
Cleared by Customs - CEVA gets orignal shipping documents
Import Confirmation ticket issued by Siscomex
Import Declaration built up according to Customs Clearance facility
END
Documents tendered to the trucking company
File closingPaperworks build up for invoicing
P.S.: Government can change these amounts without previous notice !
Key Import Elements for a successful Clearance in Brazil Penalties (some of them …)
Advices to Companies Exporting to Brazil
• Nothing is forbidden to be imported to Brazil !
• It is complex and bureaucratic, however can be done properly using correct partners and correctprocess !
• Prior to start exporting to Brazil it is higlhy recommended to consult a Customs Expert that will guide your company through the rules and requirements of our Country.
Brazilian Customs Official Web-siteEnglish version available !
http://www.receita.fazenda.gov.br
CEVA Logistics Contacts
Denise Carrion Brazil Managing Director for Freight Management Tel (55) (11) 2199-6723Email : [email protected]
Rubio GuimarãesBrazil Customs Clearance DirectorTel (55) (11) 2199-6724Email : [email protected]
June 2011LATAM Finance Seminar 201122
...Making business flow...Making business flow