5 steps to prepare your business for exporting to Brazil

5 Steps to Export to Brazil with the New Preferential Tariffs\n\n### Introduction: Brazil, a More Accessible Market Than Ever\n\nFor European companies, Brazil has long been synonymous with immense potential but also with formidable customs and administrative barriers. The entry into force of the interim Trade Agreement (iTA) with MERCOSUR radically changes the game. With significant tariff reductions in key sectors such as automotive, machinery, chemicals, and wines, the Brazilian market of over 215 million consumers suddenly becomes much more attractive. However, to succeed, it is not enough to rejoice at the drop in tariffs. It is necessary to master the concrete steps of exporting to this South American giant. This practical guide breaks down the process into five key steps, from tariff classification to the management of formalities via the Siscomex system, to enable European exporters to fully seize this new opportunity.\n\n### Step 1: Tariff Classification (NCM), the Starting Point for Everything\n\nAny export operation to Brazil begins with a fundamental step: the correct classification of your product in the Brazilian nomenclature. Brazil uses the \"Nomenclatura Comum do Mercosul\" (NCM), an 8-digit system based on the international Harmonized System (HS). The first 6 digits are those of the HS, and the last two are specific to MERCOSUR.\n\n**Why is this so crucial?**\n\n* **Determination of the customs duty**: It is the NCM code that determines the rate of customs duty applicable to your product. With the iTA, it is essential to know your NCM to check the new preferential tariff and the reduction schedule.\n* **Applicable regulations**: The NCM also determines the other taxes (such as the IPI, a tax on industrial products), the necessary import licenses, and the specific regulatory requirements (e.g., ANVISA certification for health products).\n\n**How to find your NCM code?**\n\nYou can use the European Commission's Access2Markets tool or consult the tables of the Receita Federal (the Brazilian tax administration) directly. In case of doubt, it is strongly recommended to use a Brazilian despachante aduaneiro (customs broker) to validate the classification. An NCM error can lead to significant penalties and delays.\n\n### Step 2: Check the Preferential Tariff and the Rules of Origin\n\nOnce the NCM code has been identified, you can check the benefit of the agreement. The iTA provides for tariff reductions over several years. For example, a European wine (NCM 2204.21.00) whose duty was 27% could see its tariff drop to 20% in the first year, then 15%, etc., down to 0%.\n\nBut beware, this preferential tariff is not automatic. To benefit from it, your product must comply with the **rules of origin** of the agreement. As detailed in our complete guide on the subject, this means that your product must be either \"wholly obtained\" in the EU or have been \"sufficiently transformed\" there.\n\nThe proof of this origin is done via the **EUR.1 certificate** or, increasingly, via a **statement on origin** on an invoice issued by a **Registered Exporter (REX)**. Without this proof, your product will be taxed at the normal rate (\"most-favored-nation\"), and the entire advantage of the agreement will be lost.\n\n### Step 3: Documentation, the Nerve of War\n\nExporting to Brazil requires meticulous documentary preparation. The Brazilian authorities are known for their rigor. The key documents are:\n\n1. **The Commercial Invoice**: It must be detailed and contain precise information such as the NCM code, origin, sales conditions (Incoterms), weight, etc. It must be in Portuguese or accompanied by a translation.\n2. **The Packing List**: It details the contents of each package and is essential for customs control.\n3. **The Bill of Lading (for sea freight, Airway Bill for air freight)**: This is the transport contract.\n4. **Proof of origin (EUR.1 or REX statement)**: The essential document for obtaining the preferential tariff.\n5. **Import license (if necessary)**: For certain products (pharmaceuticals, food, etc.), the Brazilian importer must obtain an import license (Licença de Importação - LI) even before the goods are shipped. It is vital to check this point with your Brazilian client beforehand.\n\nAny inconsistency between these documents can lead to a blockage in customs.\n\n### Step 4: Understand Siscomex, the Single Portal for Brazilian Trade\n\nAll import operations in Brazil are managed via a single IT platform: **Siscomex (Sistema Integrado de Comércio Exterior)**. It is on this portal that your importer (or their customs broker) will register the **Import Declaration (DI)**.\n\nAs an exporter, you do not interact directly with Siscomex, but it is crucial to understand how it works to streamline the process:\n\n* **Importer registration**: Your Brazilian client must be authorized to import via the RADAR system (Registro e Rastreamento da Atuação dos Intervenientes Aduaneiros). This is a prerequisite.\n* **Customs clearance channels**: Once the DI is registered, Siscomex assigns a control channel to the goods:\n * **Green Channel**: Automatic customs clearance (the dream of every exporter).\n * **Yellow Channel**: Documentary control.\n * **Red Channel**: Documentary and physical control of the goods.\n * **Gray Channel**: In-depth investigation of suspected fraud.\n\nThe quality and consistency of your documentation are the best ways to obtain a green channel. With the iTA, the authorities expect an increase in flows, and simplified procedures are planned for reliable operators.\n\n### Step 5: Anticipate Costs and Logistics\n\nExporting to Brazil means having a good grasp of the costs. The price of your product on arrival (the cost price for the importer) will include much more than the customs duty.\n\n**Main costs to anticipate:**\n\n* **Import Duty (II)**: This is the tariff that is reduced by the iTA.\n* **IPI (Imposto sobre Produtos Industrializados)**: A federal tax on manufactured products, which is not affected by the agreement.\n* **PIS/COFINS**: Federal social contributions.\n* **ICMS (Imposto sobre Circulação de Mercadorias e Serviços)**: A state-level value-added tax, which is highly variable.\n* **Shipping costs, insurance, customs clearance fees, storage fees...**\n\n> An Italian machinery exporter told us: \"The reduction of the customs duty from 14% to 7% is excellent news. But it only represents a part of the total cost. We had to work with our importer to recalculate the entire cost price and make sure our product remained competitive. The agreement helps, but it doesn't do everything.\"\n\n### Practical Tips for Sustainable Success\n\n* **Choose a solid Brazilian partner**: A good importer/distributor who knows the administrative ropes well is your best asset.\n* **Use a \"despachante aduaneiro\"**: Do not try to navigate the Brazilian customs complexity alone. The role of the customs broker is central.\n* **Be patient**: Even with the agreement, the customs clearance process in Brazil can be longer than in Europe. Anticipate delays.\n* **Visit the market**: Nothing replaces a visit to the site to understand the business culture, meet your partners, and see how your products are perceived.\n\n### Conclusion: Rigorous Preparation for a Promising Market\n\nThe EU-MERCOSUR agreement has opened a breach in the Brazilian regulatory fortress. For European exporters, the opportunity is real, but it must be earned. Success will not only depend on the new preferential tariffs, but above all on the ability of companies to approach this market with professionalism, rigor, and flawless preparation. By mastering these five steps, exporters can turn the Brazilian challenge into a formidable growth opportunity.