Importing products is an essential activity for companies seeking competitiveness and innovation. However, high tax costs can represent a major challenge, and reducing these taxes legally and efficiently is crucial to improving profitability and market competitiveness. In this article, we will comment on how the tax structure works and, more specifically, how the Ex-Tariff regime can be a powerful tool for reducing import costs.
How does the import tax structure work?
The tax structure on imports in Brazil is made up of taxes that can represent a significant cost for companies. The main taxes include Import Tax (II), Tax on Industrialized Products (IPI), PIS/PASEP-Import, COFINS-Import and ICMS. Each tax has its own rates and rules, which vary according to the tax classification of the product. Understanding this structure is essential to identify cost reduction opportunities. Below is how to calculate each tax:
- Import Tax (II): Calculated on the customs value of the merchandise, which includes the cost of the product, international shipping and insurance. The rate varies depending on the tax classification of the product in the NCM (Common Mercosur Nomenclature).
- Tax on Industrialized Products (IPI): Applies to the customs value added to the Import Tax. IPI rates also vary depending on the product's NCM and aim to protect the national industry.
- PIS/PASEP-Import: Charges on the customs value plus the value of Import Tax. The standard rate is 2.1%, but there may be variations depending on the merchandise.
- COFINS-Import: Calculated in the same way as PIS/PASEP-Import, that is, on the customs value added to II, with a general rate of 9.65%, subject to variations for certain products.
- ICMS: It is the most complex tax, as its calculation base includes customs value, Import Tax, IPI, PIS/PASEP-Importation, COFINS-Importation and ICMS itself. The rates vary according to the state of destination of the goods, generally between 17% and 25%.
What are the legal mechanisms to reduce taxes on imports?
There are several legal mechanisms that companies can use to reduce import taxes. Among them, the following stand out: Ex-tariff, Drawback, Customs Warehousing and Special Regimes.
As it is one of the taxes with the highest rate among those that affect operations, reducing the Import Tax (II) is an interesting strategy when thinking about reducing the cost of the process. For this, applying the ex-tariff regime is a good plan.
This regime consists of reducing the Import Tax rate for products that do not have equivalent national production and aims to encourage investment in technology and modernization of companies, reducing the costs of purchasing imported equipment and inputs.
The main advantage of the regime is that the II rate can reach zero, depending on the product. This results in a significant decrease in the total import cost. Furthermore, the reduction in import tax positively impacts other applicable taxes, such as IPI and ICMS, which are calculated on the customs value of the merchandise plus import tax.
What is the role of international agreements in reducing taxes?
International trade agreements complement the Ex-Tariff regime by offering additional tariff exemptions or reductions. These agreements, such as free trade agreements (FTAs), aim to eliminate or reduce tariff and non-tariff barriers between signatory countries. Brazil has trade agreements with Mercosur countries, the European Union, among others, which can be combined with the Ex-Tariff regime to maximize tax reductions, including II.
Furthermore, it is important to highlight that these agreements not only reduce import tariffs, but also simplify customs procedures and expand opportunities for access to strategic markets. Companies that exploit these benefits can obtain significant competitive advantages, such as lower input costs and easier access to advanced technologies and differentiated products, strengthening their operations in the global market.
How can companies prepare to reduce import taxes?
Reducing import taxes is an essential strategic step for companies seeking competitiveness in the global market. One of the most efficient ways to achieve this objective is through the Ex-Tariff regime, which allows exemption or reduction of Import Tax for goods that do not have equivalent national production. To fully take advantage of these benefits, companies need to adopt a proactive and well-structured approach, which involves everything from identifying eligible products to constantly monitoring current legislation. They must:
- Identify eligible products: Check that the capital, IT and telecommunications goods you wish to import do not have equivalent national production.
- Request inclusion in the regime: Submit a request to the Secretariat for Development of Industry, Commerce, Services and Innovation (SDIC) for inclusion of the product in the Ex-Tariff regime.
- Carry out tax planning: Integrate the use of the Ex-Tariff regime in import planning to maximize tax benefits.
- Monitor legislation: Keep up to date with changes in legislation and commercial agreements that may impact the application of the regime.
What are the success stories in reducing taxes on imports?
Companies from different sectors have benefited from the Ex-Tariff regime to reduce import costs. An example is a manufacturing company that, by using the regime, managed to reduce the Import Tax rate on machinery and equipment essential for the modernization of its production line to zero. This resulted in substantial savings and improved competitiveness in the domestic and foreign markets.
Another success story is that of a technology company that, when importing electronic components without similar national ones, used the Ex-Tariff regime to reduce its costs and invest in innovation, increasing its market share and enhancing its growth.
Reducing or even exempting import taxes is crucial to increasing competitiveness and reducing operating costs. Companies that prepare and take advantage of this benefit stand out in the global market.
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