A special customs regime—Drawback Integrado Suspensão—provides benefits for Brazilian companies that produce goods for export. Under the regime, taxes are suspended with respect to inputs (whether imported or purchased locally in the domestic market) that are used in the manufacturing process with respect to the products produced and scheduled for export. Also, the finished goods are exempt from taxation on export.
To participate in the special customs regime program, requests must be made of the government (via a website) concerning the volume and value of the inputs to be procured and the products to be exported. In addition, companies must comply with export rules in order to take advantage of the benefits under the program. The rules no longer require segregation of the goods or stock between drawback and non-drawback materials; however, certain provisions relating to the production cycle continue and remain unchanged. For instance, companies must observe certain information about the input used in the manufacture of the processed goods, as well as the dates of clearance (for imports) and invoices (for domestic purchases) that respect the time of their application in the manufacturing process. Failure to comply with these rules may subject companies to tax, interest, and penalties.
Read a February 2017 report (Portuguese) prepared by the KPMG member firm in Brazil: Drawback Integrado Suspensão
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