Redex: what is it and how it impacts export operations?

In simple terms, Redex is a place where cargo that is to be shipped out of the country must stay while it waits for the export customs processes to be carried out. Its purpose is to speed up goods inspection procedures, minimize the bureaucracy involved in these operations, and reduce storage costs.

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This way, the exporter has a greater profitability margin in their commercial transactions, which makes room for fair competition and helps to foster relations between the domestic and international markets.

Do you want to know more about what Redex is, what it is for, how its workflow occurs and what its advantages are? Then continue reading this article!

What is Redex?

The Special Enclosure for Export Customs Clearance, or as it is better known, Redex, is a space destined for the customs clearance processes of goods that are waiting to be exported. Characteristically, a Redex is an area where export cargo in bulk and in containers are stored, by means of a declaratory act from the Federal Internal Revenue Service.

The customs services are inspected according to what the legislation disposes of, specifically in the Normative Instruction SRF 114/2001, and must be rendered, in the Redex, on a permanent or eventual basis, by means of justified demand for this decision making.

Customs clearance is processed in the exporter’s establishment or for the common use of several exporters – as long as they are from the same Federal Internal Revenue Service Unit (URF).

What is a Redex for?

The purpose of a Redex is to facilitate the process of monitoring the entire operational chain of export logistics, enabling more agility to the activities, through the centralization of processes, which reduces bureaucracy.

The basis for the implementation of a Redex in a metropolitan region – where it is structured – is to institute a large export hub and service generator in the country. Customs clearance of the cargo occurs in the Redex logistics centre itself, through the remote conference work of a competent authority.

Moreover, at Redex, special storage and handling services are performed, according to the demands of each exporter. With this, it is possible to reduce operational and administrative costs for exporters to enter the operations centre with their goods for clearance.

How does the operational flow of a Redex work?

The logistics centre of a Redex follows an operational flow composed of several stages, whose objective is to optimize the invoices for stuffing and shipping logistics, to ensure greater security in the anticipation of receipt and customs clearance, and to minimize the costs and risks of storage in the primary zone.

This flow works as follows:

Step 1

The cargo/goods are transported from the exporter’s manufacturing environment to a Redex logistics centre.

Step 2

All the cargo documentation goes through a rigid Customs analysis process, such as the packing list, certificate of origin (if applicable), commercial invoice, among other documents.

Step 3

After having the documents approved, the merchandise is forwarded to a physical inspection.

Step 4

At this stage, the goods are cleared for transit between the Redex and the port of loading.

Step 5

At this point, the cargo is already in the port area and checked once again, concluding the customs transit process.

Step 6

Finally, the goods are allowed to be shipped.

Which companies can benefit from Redex?

Any organization engaged in export trade activities can enjoy the benefits of a Redex qualification, as long as it meets the prerequisites determined by the Federal Internal Revenue Service.

What is its importance and impact on exports?

Given the amount of export operations that take place daily in Brazil, Redex plays an indispensable role in the market. This is because it is an alternative to avoid the problems of slowness and lack of space in the clearance of cargo in operational centres located in non-customs environments and secondary zones, reducing bureaucracy, costs and speeding up the operation.

Remember that the products remain subject to parameterization in the Integrated Foreign Trade System (SISCOMEX), even if Redex speeds up the export customs clearance process, that is, they will be forwarded to one of the customs conference zones.

What are the benefits of Redex in export operational logistics?

Now that you have a more comprehensive notion of what Redex is, we will show you the main advantages that these logistics centres provide to export activities. Among its numerous benefits, we can mention:

• greater agility in solving potential problems and reducing the waiting time for shipment – due to the proximity of the customs authorities to the exporter;
• reduced transportation costs – the transport vehicles do not have to wait for the bureaucratic paperwork involved in the operation;
• shorter time for completion of port operations at the time of shipment – the goods are cleared both physically and documentaly into the port;
• much more security – from the moment the goods go through the customs processe at the Redex logistics centre, they are sealed by a customs officer at the Federal Internal Revenue Service office, becoming internationalized;
• preference in the order of shipment – provided that the cargo is already cleared.

With these advantages provided by a Redex, the exporter is faced with a more satisfactory profitability margin, which is fundamental for the economic movement between the national and international markets. This will boost exports and allow companies to expand their business to new territories and audiences.

As you can see, the Redex enclosures are of great importance for the entire port logistics chain in the country, since they have the role of speeding up the processes, reducing the bureaucracy involved in releasing cargoes, and reducing a number of storage costs. In this way, Redex shows itself as an ally to the companies that work with exports in the domestic market.

For more information related to port logistics and how to ensure efficiency in the import and export process, check out this article with the main tips to avoid problems in customs clearance.