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Doing Business in Brazil
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on imports, acquisitions and rental of machines, tools, equipment, and civil construction materials to be used
or incorporated in infra-structure work destined to the fixed assets
of REIDI beneficiaries. It also grants PIS and COFINS exemption on the importation and/or acquisitions
of services destined to the same activities.
4.11 Drawback Regime
There are different types of drawback regimes in Brazilian statutory rules, but the main category provides
for the suspension of federal taxes levied upon the acquisition of
inputs. Accordingly, the Brazilian beneficiary shall be able to import raw materials with suspension of the federal customs duties (II, IPI, PIS and COFINS), as well to acquire inputs from local suppliers with suspension of IPI, PIS and COFINS, provided
that such goods are used in the manufacturing (i.e., transformation, improvement, assembly, renovation or reconditioning, packaging or repackaging) of a final product to be exported. Depending on the specific state legislation, the drawback transactions may also be exempted from the State VAT (ICMS).
4.12 Bonded Warehouse Regime (Entreposto Aduaneiro)
The Bonded Warehouse Regime allows the importer to storage
the imported goods or assets
in a certified bonded area, thus deferring the payment of the taxes and contributions levied upon the importation.
4.13 Certified Bonded Warehouse (DAC)
This Certified Bonded Warehouse allows that exported assets remain physically in a bonded warehouse in Brazil. The regime works well for Federal taxes, but depending on the State involved, the regime may not work for the State VAT (ICMS) purposes.
4.14 Temporary Export
Temporary Export regime allows Brazilian or nationalized products
to be exported on a temporary
basis and further re-imported with exemption of the taxes levied upon importation. This means that import taxes and contributions will be due only if there has been any value aggregated to the assets while it has been abroad.