What You Need to Know About Customs Regulations and Their Key Points

To ensure a healthy economy, every country has laws and agreements that influence how goods move in and out of its borders. This is a way to control the entry of certain products and ensure fairness during negotiations. Brazil is no exception, having its own customs regulations.

For those working with import and export, it is essential to understand the main issues — from their fundamentals to some of their most relevant details. Failure to comply with customs regulations can lead to severe consequences and make it difficult to operate in the market.

In the following sections, understand the key points of customs regulations!

What is the Definition of Customs Regulation?

By definition, customs regulation is the legislation that oversees the entry and exit of goods in a country. In Brazil, this oversight is carried out by the Federal Revenue Service of Brazil, which is represented in each state by its respective Treasury Department.

The role of customs regulation is to ensure the correct collection of taxes, in accordance with the law.

Important Concepts

To assist in controlling goods, the legislation also defines certain common terms used in these activities, such as:

• Customs Territory — the area where customs rules are enforced, which may include the entire country as well as international zones like Mercosur.
• Dry Port — called the “Inland Customs Station,” it is a location in a secondary zone that functions similarly to a large port, storing goods for import or export.
• Customs Broker — a professional who represents import and export companies before the Federal Revenue Service.

These terms help to clarify customs regulations and facilitate communication between different tax authorities as well as between professionals dealing with the bureaucratic aspects of the process.

Structure of Customs Regulation

The legislation related to the customs code is divided into eight books, totaling 820 articles. Each book addresses a specific area of these rules.

Here’s a breakdown of each book and its contents:

• Book I (Articles 2 to 68) — discusses customs jurisdiction and vehicle control.
• Book II (Articles 69 to 236) — covers export and import duties.
• Book III (Articles 237 to 306) — addresses import taxes and contributions.
• Book IV (Articles 307 to 541) — deals with special customs regimes.
• Book V (Articles 542 to 673) — covers customs control of goods.
• Book VI (Articles 674 to 743) — discusses customs violations and penalties.
• Book VII (Articles 744 to 815) — includes tax credit and fiscal and administrative processes.
• Book VIII (Articles 816 to 820) — covers final and transitional rules.

This structure makes it easier to navigate the regulations and is a good reference point to find the articles you need.

If a company deals with import and export, it is essential to know these rules, as well as the challenges they bring to business management. In addition to costs and fees related to document issuance, it is necessary to analyze rules for different types of cargo and e-commerce regulations, as well as adapt to changes in the law as they arise.

What is the History of Customs Regulation?

The concept of customs regulation is quite old. Since the emergence of trade between nations, there have been rules to protect the economic interests of each country. In Mesopotamia, around 3000 B.C., there were laws granting tax exemptions on goods under certain conditions.

In Brazil, formal customs legislation emerged in 1985, when several laws were consolidated. This set of laws was replaced by a new regulation in 2002 and again in 2009, which is still in use today. The text is available online for consultation.

The articles are still updated and amended to adjust to economic changes and new legislation. Additionally, they consider international trade agreements.

What Are the Types of Customs Regimes?

In the regulation, there are two types of customs regimes. The first is the common regime, which is the standard one followed throughout the country.

The second is the special regime, which provides differentiated treatment for certain groups, territories, or goods. Examples include tax benefits for international partners or the simplification of bureaucratic processes for small businesses.

What Are the Stages of Customs Clearance?

Within port activities, customs clearance is the stage where the cargo undergoes verification of documentation, content, tax payments, and tariffs before or after international transportation. Its inspection ensures that it complies with the applicable customs rules.

Inspection and Release of Goods

To maintain logistics efficiency, it is also important to consider the inspection process of goods during customs clearance. This is when customs officers check whether the cargo complies with customs regulations.

Documents Involved

To go through customs clearance, a series of documents must be presented along with the cargo. The main documents required by law include:

• Certificate of Origin
• Bill of Lading
• Import Declaration
• Commercial Invoice
• GLME (Guide for the Release of Foreign Goods)
• ICMS (Tax on the Circulation of Goods and Services) guide
• Cargo Manifest
• Entry Invoice

Additional documents may be required for cargo release. Only after completing customs clearance can the goods be sent to their final destination. Therefore, it is crucial to understand the entire process to improve your company’s efficiency.

What is the Mercosur Customs Code?

The Mercosur Customs Code, implemented in 2010, is a set of rules governing the circulation of goods that applies to all member countries. Its aim is to facilitate trade among these nations, preventing the double taxation of goods and simplifying the legal processes involved.

What Are the Most Recent Changes in Customs Regulations?

In 2020, the customs regulation text underwent some updates. Its primary goal was to promote the integration of new technologies into the oversight and verification processes, making them more practical and efficient.

Two changes in particular relate to the integration of this technology into customs policy. First, there is now permission to correct the bill of lading using the Integrated Foreign Trade System (SISCOMEX).

Secondly, the use of electronic signatures and blockchain technology for document validation was authorized. These are two significant points that influence how companies plan their customs processes.

Therefore, understanding customs regulation is essential for facilitating the planning of import and export operations in any business. Companies are required to comply with these rules and stay updated with their revisions, taking advantage of the integration of new tools and processes, and avoiding potential negative consequences.

Want to dive deeper into the subject and improve your import and export planning? Then, check out our article on customs oversight and get informed now!