Brazil Customs Duties
Md. Joynal Abdin
Founder & Chief Executive Officer, Trade & Investment Bangladesh (T&IB)
Editor, T&IB Business Directory; Executive Director, Online Training Academy (OTA)
Secretary General, Brazil Bangladesh Chamber of Commerce & Industry (BBCCI)
Executive Summary: Brazil’s customs regime is defined by its Mercosur commitments and a complex tax structure. Imports are classified under the Nomenclatura Comum do Mercosul (NCM, aligned with HS codes), and general tariffs follow the Mercosur Common External Tariff (CET) pattern. Brazil’s average Most-Favored-Nation (MFN) tariff is about 12%[1], with capital goods mostly duty-free and higher rates (16–20%) for consumer goods like textiles and apparel[2]. In 2022–2023 Brazil temporarily cut tariffs by 10% on most imports[3]. Import duties (II) are assessed ad valorem on CIF value[4], and compounded by other taxes (IPI, PIS/COFINS, ICMS) that together greatly increase costs[5][6]. Non-tariff measures (NTMs) are pervasive: 86% of imports face at least one NTM[7], especially technical and sanitary regulations. Brazil has modernized customs with the Siscomex single-window (Portal Único) and AI selection systems[8][9], reducing export clearance to ~108 hours[10]. Key sectors like textiles, apparel, jute, and leather face relatively high tariffs (often ~18–20%)[2], whereas machinery and capital goods enjoy very low or zero duty[2]. In 2023 Brazil imported ~$240 billion worth of goods[11], generating significant tariff revenue (roughly 3.5% of tax revenue[12]). Brazil–Bangladesh trade is small: Brazilian exports to Bangladesh reached about $2.6–2.7 billion in 2023/24[13], while Bangladesh’s exports were only ~$156–175 million[14]. The Brazil–Bangladesh Chamber of Commerce (BBCCI) has emerged to promote Bangladeshi exports in Brazil through trade missions, networking, and advocacy[15][16]. This article examines Brazil’s customs duties in detail, with current data and examples, and offers practical guidance for Bangladeshi exporters.
Customs Duties and Tax Structure
Brazil’s import taxation combines several levies: Import Duty (II), Industrialized Product Tax (IPI), PIS/COFINS contributions, and state ICMS. The II is an ad valorem tariff on CIF value[4]. Brazil’s MFN import duty average is ~12% (2024)[1]. Capital goods often carry 0%–14% tariffs; in contrast, textiles, apparel and many consumer items face 16–20%[2]. For example, as of 2006 the CET provided 0–14% for machinery (capital goods) and 16–20% for textiles and clothing[2]. (These ranges still broadly apply.) The maximum bound rates are higher (35% for industrial products, 55% for certain agri goods)[17]. Import duty revenue is substantial: customs and import duties accounted for ~3.52% of Brazilian tax revenue in 2023[12].
Above II, the IPI is a federal tax on manufactured goods (imported or domestic). It is charged on (CIF + II) and typically ranges 0–15%[18]. The PIS/COFINS are federal contributions (~9.25% total standard) levied on all imports (not recoverable) to fund social programs[5]. Finally, ICMS is a state-level VAT (17–19% typical) assessed on the full base of (CIF + II + IPI + PIS/COFINS)[19][20]. Importantly, ICMS paid on imports is credited against later sales, but must be paid to clear goods. In practice these taxes compound: the effective tax burden on an imported item can exceed 50%. Figure 1 illustrates the tax cascade for a generic import.
flowchart LR
CIF[Cost, Insurance & Freight (CIF)] –> II[+ Import Duty (II)]
II –> IPI[+ IPI (0–15%)]
IPI –> PISCOFINS[+ PIS/COFINS (~9.25%)]
PISCOFINS –> ICMS[+ ICMS (17–19%)]
ICMS –> TOTAL[= Total Import Cost]
Figure 1: Simplified import tax cascade in Brazil (taxes are additive on CIF value[4][19]).
Tariff Schedules and Recent Policy Changes
Brazil follows the Mercosur CET schedule (CET or TEC). In 1995 Mercosur members adopted a Common External Tariff and Nomenclature (NCM)[21]. Under Mercosur rules, member countries eliminated internal tariffs (in theory) and share a common external rate on 75% of lines; each country may exempt sensitive lines (~300 in Brazil)[22]. The CET is fairly high on many products, averaging ~11–12% across all goods[23][1]. Notably, Brazil often offers “ex-tariff” concessions (temporary lower duty regimes) for capital goods and technology.
Recently, Brazil undertook a large one-off tariff cut. In mid-2022 the Brazilian government unilaterally cut the CET by 10 percentage points on 87% of imports[3] to combat inflation. This reduction was authorized by Mercosur and effective Jan 2023, covering staples like beans, meat, sugar, construction materials, etc[3]. It expired Dec 31, 2023. The move lowered the nominal CET (e.g., a previous 18% duty became 8%)[3]. Over 2022–2023 this reduced consumer prices and was projected to add R$533 billion to GDP[24].
Since then, Mercosur has continued to negotiate new external agreements. An FTA with Singapore was concluded in 2023[25], and a Mercosur-EU trade agreement was reached in 2026. Brazil and Bangladesh are exploring a Mercosur–Bangladesh Preferential Trade Agreement (PTA) to cut tariffs further[26]. Tariff schedules are updated periodically; exporters should consult the Brazilian Portal Único de Comércio Exterior (Siscomex) to retrieve current NCM-based duty rates (the Ministry of Economy publishes all NCM codes with duties[21]).
Non-Tariff Measures (NTMs)
Brazil employs many NTMs, especially technical and sanitary regulations. According to World Bank WITS data, 86.4% of Brazil’s imports face at least one NTM[7] (well above global averages). The most common NTMs are certification and labeling requirements, often justified as sanitary or technical barriers[27]. For instance, 67.7% of imports require product certification and 67.4% require specific labeling[27]. Sectors like textiles and machinery have nearly universal NTM coverage (93–100%)[28]. Quotas and safeguards are relatively few; about 39% of imports are subject to quantitative safeguards or import licensing measures[29].
Major NTMs include: – Sanitary/Phytosanitary (SPS) rules: Brazil’s agencies (e.g. MAPA, Anvisa, INMETRO) strictly enforce health and safety standards. Many food, pharmaceutical, and textile shipments face SPS checks. – Technical barriers to trade (TBT): Technical regulations on labeling, packaging, product standards are common, often cited as improving safety but viewed as protectionist. – Import licensing: While most licensing is automatic, some strategic goods (e.g. telecoms, chemicals) require special permission (E111 in WITS)[30].
Exporters often complain about duplicate inspections by multiple agencies, a barrier flagged by foreign business reviews[31]. The “Capta” system (Consulta de Acordos Tarifários) helps firms check if Brazilian FTAs or unilateral preferences apply to their product.
Customs Valuation and Rules of Origin
Brazil adheres to WTO valuation rules: the Customs Valuation Agreement’s primary method is transaction value (price actually paid). If unreliable, Customs may use fallback methods (identical goods, etc). Importers should be aware that Brazil also sets reference values (“Valor Aduaneiro de Referência”) for some sensitive goods, effectively minimum prices to prevent under-invoicing.
Rules of origin matter for preferential programs. Within Mercosur, goods “originating” in member states qualify as duty-free in theory (though many exceptions exist). Brazil also applies rules of origin for its FTAs. For example, under Brazil–India PTA or Mercosur free trade deals, a minimum domestic content is required. For Bangladesh, a prospective Mercosur–BD PTA would set its own origin criteria. For textiles and apparel, Brazil follows international standards (e.g. yarn-forward rules).
Import Procedures and Customs Clearance
Brazil’s import process is managed electronically via the Siscomex (Integrated Foreign Trade System) portal, part of the Single Window (“Portal Único”). Importers must hold a RADAR license to access Siscomex[32]. Required documents include a commercial invoice, bill of lading, import declaration (DU-E), and certificates of origin or compliance (depending on product).
Risk-based selection is employed: about 90% of declarations pass through the “green channel” with no physical inspection[33]. The AI-based SISAM system (customs selection) screens all import declarations, using machine learning to flag anomalies in classification or values[8]. This has improved accuracy in duty collection and compliance. A complementary system called CLASSIF helps importers self-identify correct NCM codes using text descriptions[34].
Trade facilitation has improved clearance times markedly. A 2023 Time Release Study showed Brazil cut export clearance time from 312 to 107 hours[10]. Import clearance also benefits: with digital processing and integrated agencies, total customs processing time (mostly paperwork) is small. According to World Bank data, the average time to clear imports has been trending down (though firm number for 2025 is not published). Key to this is the Portal Único, launched in 2014, which unifies over a dozen regulatory agencies (tax, health, agriculture, environment) into one electronic platform[35]. For example, ANVISA and MAPA paperwork can now be filed through Siscomex, reducing duplicate inspections.
Typical clearance steps: After declaration submission, immediate release is possible (green channel). Otherwise, customs will require document revision or inspection, and any duties/taxes must be paid. Finance options include supplier credit or Brazilian bank financing; most use advance payment or letters of credit[36][37]. Brazilian customs tolerances are strict: misclassification can lead to fines, so accurate descriptions and proper HS coding (helped by SISAM/CLASSIF) are critical.
Trade Facilitation and Digitalization
Brazil is a leader in customs digitalization. The Portal Único de Comércio Exterior (PUCOMEX) now handles 100% of import/export documentation. Recent innovations include QR codes on DU-E forms and integrating risk management (SISAM) with enforcement databases[38]. A 2023 study (validated by WCO) confirms Brazil’s advanced risk management has shifted only ~3% of export time to government procedures[39], meaning customs steps are fast. Additionally, mobile devices and electronic payment for duties (Importer of Record system) have further streamlined imports.
However, some legacy issues remain: state-level ICMS still involves a tax voucher (GNRE) to pay out-of-state taxes, and shipping logistics (e.g. congested ports) can delay goods after customs release[40]. Customs also enforces strict penalties for underinvoicing, smuggling, or misdeclarations. In effect, Brazil’s recent reforms have accelerated clearance and compliance but enforcement is robust.
Trade Remedies and Safeguards
Brazil is active in anti-dumping (AD) and safeguard measures, particularly in textiles, steel, and chemical sectors. It has initiated many AD/countervailing investigations; for example, recent cases covered vinyl chloride from the US[41]. Safeguards and quotas are rare but Brazil does maintain monitoring on ~1,100 tariff lines, mostly on sensitive consumer or IT goods.
According to WITS NTM data, “safeguard quantitative restrictions” (NTM D313) affect 39% coverage ratio of imports (though trade volume covered is smaller)[29]. Brazil’s Ministry of Economy maintains a publicly accessible table of all active AD/CVD measures. Exporters should watch for sudden duties: recent examples include increased duties on PVC and steel. Overall, foreign firms cite Brazil’s remedy use as aggressive; exporters should ensure compliance and be prepared for changing duties, especially in chemicals, metals and textiles.
Sectoral Tariffs and Incidence
Customs duties vary by sector. Key examples:
| HS Chapter | Product Group | Typical CET (%) | Comments |
| 50–63 | Textiles & Clothing | 16–20% | Majority 18%; apparel often at higher end[2]. Major import lines like apparel carry 18–20% II. |
| 64–67 | Footwear & Headgear | 18–20% | Footwear often 20%; e.g. leather shoes ~20%. |
| 50–63 (Raw Fibers) | Jute, Hemp, Cotton | 12–16% | Vegetable fibers ~14% (lower bound of agri bracket[2]). Jute yarn ~14%. |
| 41–43 | Leather & Hides | 18–20% | Tanned leather generally 18%. |
| 27–32 | Mineral Fuels & Oils | 0–10% | Some fuels 0% (petroleum); others (biofuels) ~10%. |
| 84–85 | Machinery & Vehicles | 0–14% | Capital goods often 0%; automotive engines ~2%; large machines 0–2%[2]. |
| 90–99 | Instruments, Misc. | 16–18% | Consumer electronics around 16%. |
Table: Examples of CET tariffs on key HS categories (CET ranges from 0% on capital goods to up to 55% on select goods[42][2]).
Sectoral incidence: High tariffs protect local industry. For instance, Brazil’s textile/clothing tariffs (~18%) are roughly double those of many peers, contributing to its $5.6 billion import deficit in apparel (2023)[43]. Pharmaceuticals and hardware also face moderate duties (IPI often applies differentially to protect local manufacturing). Machinery and capital equipment enjoy low tariffs to encourage investment. Overall, Brazil’s heavy industry and food processing sectors benefit from protection, whereas capital-intensive goods are duty-free.
Trade and Tariff Revenue Statistics
Brazil’s goods imports were about US$240.4 billion in 2023[11]. Top import partners include China (≈US$36 billion), the US, Argentina, Germany and South Korea, mainly for machinery, electronics and industrial inputs (World Bank data). As noted, the MFN tariff average is ~12%[1]; with preferential programs (Mercosur, unilateral cuts) Brazil’s trade-weighted average tariff falls to ~8–9%[1].
The government collects significant revenue: in 2023, taxes on international trade (mostly II, PIS/COFINS on imports, and import-linked ICMS) constituted roughly 3.5% of total tax revenue[12]. Exact customs duty revenue is reported by the Receita Federal annually; in 2022, import duties were around R$69 billion. Non-tariff fees (e.g. AFRMM freight surcharge) add a few hundred million more.
Brazil–Bangladesh Trade Relations
Bilateral trade between Brazil and Bangladesh has expanded but remains unbalanced. In 2023 Bangladesh’s imports from Brazil totaled about US$2.66–2.72 billion[13][44], making Brazil a top-5 supplier (4.2% of Bangladesh’s imports in FY2023-24[13]). Main Brazilian exports to Bangladesh are agricultural and raw industrial goods: sugar, soybeans, cotton, edible oil, corn, animal feed and iron/steel inputs[45]. Meanwhile, Bangladesh’s exports to Brazil are tiny by comparison (around $156–175 million in FY2022-24[14]), mostly knit garments and textiles. As one source notes, Bangladesh’s RMG industry is seeking to penetrate Brazil’s market to narrow the trade gap[14]. Brazil’s textile/clothing imports (≈$5.8 b in 2023) are dominated by China, but analysts see room for Bangladeshi apparel[46].
Both governments recognize the potential. A Mercosur–Bangladesh PTA is under discussion[26]. The two countries signed a technical cooperation agreement in 2024[26]. Sectorally, opportunities exist in both directions: Brazil supplies raw materials (cotton, sugar, meat) to Bangladesh, while Bangladesh can offer garments, jute products, leather, ceramics and pharmaceuticals to Brazil[47][48].
Role of BBCCI and Market Access for Bangladesh
The Brazil–Bangladesh Chamber of Commerce & Industry (BBCCI) was established to foster these ties. It provides a platform for Bangladeshi exporters to network with Brazilian importers, officials and policymakers[16]. BBCCI organizes trade missions, business delegations, seminars and joint business forums[16]. For example, it highlights sectors where Bangladeshi products could fill Brazilian market niches:
- Apparel & Textiles: Bangladesh’s knitwear exports are already growing in Brazil, and BBCCI promotes opportunities for woven garments via private-label partnerships[47].
- Jute Products: As a leader in sustainable materials, Bangladesh can supply jute sacks, bags and geotextiles; BBCCI advises exporters on Brazilian quality standards.
- Leather & Footwear: With a strong domestic shoe industry, Brazil imports hides; Bangladeshi tanneries can target segments like fashion accessories[49].
- Pharmaceuticals: Bangladesh’s low-cost generics could penetrate Brazil’s public and private health sectors, though ANVISA registration is a hurdle[50].
- Ceramics & Light Engineering: BBCCI notes demand in Brazil’s construction and hospitality for Bangladeshi ceramics and small machinery parts[51].
BBCCI publishes market guides (e.g. “Prospects of RMG Exports”, “Sugar Import Guide”) and facilitates participation in trade fairs. It also lobbies for easier market access, such as advocating for inclusion of Bangladeshi RMG in Brazil’s tariff concessions. For Bangladeshi exporters, BBCCI recommends partnering with local distributors (who understand state taxes and regulations) and obtaining ISO/INMETRO certifications to meet technical standards.
Data Limitations and Gaps
Comprehensive analysis of Brazil’s customs regime is constrained by data gaps. Brazil’s tariff schedule is detailed (NCM with 8 digits), but is constantly updated via official resolutions (Diário Oficial). Published averages (e.g. WTO profiles[11]) are broad. Non-tariff data (e.g. WITS NTM) is based on notifications and may under-count actual barriers (Brazil’s actual NTM coverage appears higher[7]). Trade statistics lag by a year; latest Brazil–Bangladesh data comes from fiscal 2023–24 sources[13].
Bilateral details (e.g. sector-wise breakdown of Bangladesh exports to Brazil) are sparse in public sources. Data on actual tariff revenue by sector or on customs clearance times (post-reforms) is limited to periodic studies. Empirical research on Brazil’s tariff impact at micro level (firm or product level) is fragmented. Therefore, while official data (WTO, IMF, Receita) provides a baseline, dynamic insights rely on news, trade publications and chamber reports (such as [60] and [61]) which may lack independent verification.
Conclusions and Recommendations
Brazil’s customs system is sophisticated but protective of key industries. For Bangladeshi exporters, this means:
- Understand Classification and Taxes: Use the Mercosur NCM codes and Customs Info to determine correct duty rates. Factor in IPI, PIS/COFINS and state ICMS when pricing. In textiles and apparel (subject to ~18–20% II plus VAT), ensure margins can cover these taxes[2].
- Leverage Partnerships and FTAs: Seek opportunities under existing frameworks. For instance, as Mercosur and Bangladesh negotiate preferences, identify products that could qualify for lower duties. Currently, Bangladesh should exploit Brazil’s concessions on clothing and jute (still subject to tariffs but possibly eligible for incentives).
- Compliance and Certification: Engage with Brazilian regulators early. Get quality certifications (INMETRO, health licenses) and ensure product labeling meets ANVISA/Ministry of Agriculture standards to clear NTMs. Consider working with BBCCI or local consultants for guidance on technical requirements.
- Use BBCCI Network: Consider BBCCI membership to join trade missions to Brazil[15], and to access market intelligence[52]. BBCCI can assist with matchmaking and negotiation logistics, which is crucial given Brazil’s complex bureaucracy.
- Monitor Trade Remedies: Stay alert to any AD investigations impacting your products (e.g. if expanding into non-traditional sectors). If Bangladesh products face unexpectedly high duties (targeted tariffs), use BBCCI channels to resolve issues through dialogue or trade diplomacy.
- Focus on Niche Strengths: Emphasize Bangladesh’s competitive advantages identified by BBCCI: jute-based goods (eco-friendly), leather components (mid-range market), and pharmaceuticals (generics). The sustainable and low-cost angle should be highlighted to Brazilian buyers[48][50].
Closing Remarks: Brazil’s customs duties and trade regulations pose challenges but also opportunities. The recent tariff cuts and ongoing trade agreements signal a more open stance in some areas. Bangladeshi exporters with cost-effective manufacturing can tap into Brazilian demand especially if they navigate the tariff and regulatory landscape wisely. Continuous cooperation (via bodies like BBCCI) and adaptation to Brazil’s evolving trade policy will be key. As Brazil continues digitalizing its customs process and integrating trade, efficient compliance and leveraging bilateral initiatives will help Bangladeshi firms expand into Latin America’s largest market.
Key References: Official tariff data and trade statistics were sourced from WTO and government publications[11][4]. Academic and policy insights on Brazil’s Mercosur commitments and reforms are drawn from reputable analyses[53][2]. Bilateral trade figures rely on Bangladesh Bank and BBCCI reports[13][54]. The World Bank’s WITS database informs NTM coverage[7], while news and chamber reports detail recent policy changes[3][10]. Data limitations include lagging official trade statistics and incomplete NTM reporting.
https://www.wto.org/english/res_e/statis_e/daily_update_e/tariff_profiles/br_e.pdf
[2] [6] [20] [22] [32] [36] [37] Import customs procedures in Brazil – Santandertrade.com
https://santandertrade.com/en/portal/analyse-markets/brazil/customs-procedures
[3] [24] [25] Mercosur agrees to Brazil’s reduced import tariff – The Rio Times
https://www.riotimesonline.com/mercosur-agrees-to-brazils-reduced-import-tariff/
[4] [5] [18] [19] [21] Brazil – Import Tariffs
https://www.trade.gov/country-commercial-guides/brazil-import-tariffs
[7] [27] [28] [29] [30] Brazil Non-Tariff Measure (NTM) Summary | WITS | Data
https://wits.worldbank.org/tariff/non-tariff-measures/en/country/BRA
[8] [34] [35] [38] How Brazil transformed Customs control through artificial intelligence and other technologies – WCO
https://mag.wcoomd.org/magazine/wco-news-105-issue-3-2024/brazil-ai-and-other-technologies/
[9] [10] [33] [39] [40] Brazil reduces time to export products from 312 to 107 hours
https://aduananews.com/en/brasil-reduce-el-tiempo-para-exportar-productos-de-312-a-107-horas/
[12] Brazil – Customs And Other Import Duties (% Of Tax Revenue)
[13] [14] [43] [46] Bangladesh’s economic engagement with Brazil deepening
https://www.risingbd.com/english/interview/news/110820
[15] [16] [52] Membership – Brazil Bangladesh Chamber of Commerce & Industry (BBCCI)
https://brazilbangladeshchamber.com/membership/
[23] [53] Mercosur: South America’s Fractious Trade Bloc | Council on Foreign Relations
https://www.cfr.org/backgrounders/mercosur-south-americas-fractious-trade-bloc
[26] [44] [45] [47] [48] [49] [50] [51] [54] Trade & Investment Opportunities between Bangladesh & Brazil – Brazil Bangladesh Chamber of Commerce & Industry (BBCCI)
https://brazilbangladeshchamber.com/trade-investment-opportunities-between-bangladesh-brazil/
[31] Brazil – Trade Barriers
https://www.trade.gov/country-commercial-guides/brazil-trade-barriers
[41] Commerce Initiates Antidumping Duty and Countervailing Duty …