Import taxes: Understand how they impact your business

When a country sets tariffs on imports, the repercussions reverberate through the domestic economy and international trade relations, directly influencing the entire foreign trade operation.

Importing products from abroad is an increasingly common practice, both for companies and consumers. However, when bringing in products from other countries, you need to be aware of the taxes levied on these operations. In this guide, we'll explain in simple terms the main taxes you need to know in order to import your products safely and economically.

The main import taxes:

When you import a product, you will be subject to various taxes. The main ones are

• Import Tax (II): This is a federal tax levied on all imported products. The rate varies according to the type of product and is defined in the Common External Tariff (TEC). The purpose of this tax is to protect local production and therefore balance trade. In Brazil, according to Law No. 3,244 of August 14, 1957, all foreign goods entering national territory are subject to Import Tax. In addition, the calculation of the Import Tax rate varies according to the value of the product, the services used for its transportation to Brazilian territory, as well as freight and insurance.

• Tax on Industrialized Products (IPI): This is levied on industrialized products (goods listed in theTIPI table, based on the Mercosur Common Nomenclature (NCM)), both domestic and imported. The rate also varies according to the product.

• PIS/PASEP and COFINS Import: These are social contributions levied on the import of products. They provide isonomic treatment between goods produced in Brazil, which are subject to these contributions, and imported goods, which are taxed at the same rates as domestic goods.

• ICMS: State tax levied on the movement of goods and services, including imported goods. The rate varies from state to state. In practice, its value is added to the price of the product or service provided.

• Other taxes: Depending on the type of product, other taxes may apply, such as Anti-dumping, CIDE-Fuels (for oil derivatives) and Countervailing and Safeguard Measures.

  
  

How are taxes calculated?

Calculating import taxes may seem complex, but the basis is simple:

1. Customs Value: This is the value of the product, including freight and insurance, declared on the import declaration.

2. Import Tax: Calculated by applying the TEC rate to the customs value.

3. Other Taxes: Calculated on the customs value plus import tax.

   
   

Tax	Tax Authority	Calculation Basis	Rate	Nature of Collection
Import Tax	Federal Revenue Service	Customs Value	Variable (according to NCM)	Tax - Direct
IPI	Federal Revenue	Customs Value + II	Variable (according to TIPI)	Tax - Direct
PIS/PASEP	Federal Revenue Office	Customs Value	Fixed	Contribution - Direct
COFINS	Federal Revenue	Customs Value	Fixed	Contribution - Direct
ICMS	State Department of Finance	Customs Value + Other Taxes	Variable (per state)	Indirect Tax

These taxes are set by the Receita Federal. Click here to access Receita Federal.

Certain taxes only apply to certain goods.

Why is it important to know import taxes?

• Financial planning: Knowing taxes allows you to plan your finances more accurately, including tax costs in your operation.

• Avoiding problems: Non-payment or incorrect payment of taxes can lead to fines and other penalties.

• Tax optimization: It is possible to look for alternatives to reduce the tax burden, as long as they are legal.

Import taxes are an important part of the import process. By understanding how they work and what their impacts are, you will be better prepared to make strategic decisions for your business.

Always consult a professional. A customs broker or tax consultant can help you import and optimize your costs.