OTEXA Says New Brazil Textile/Apparel Rules May Delay Imports, Add Costs, Etc.
The Office of Textiles and Apparel has issued a notice on new regulations issued recently by the Brazilian government aimed at reducing illegal and irregular imports of apparel and textiles. Other new measures would also affect shoes and furniture.
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Special Inspection for Apparel May Delay Release up to 180 Days, Increase Costs
On August 17, 2011, Brazilian customs published a new regulation that includes special inspection procedures for the importation of apparel, which may delay the release of imported goods up to 180 days. The delays could also result in additional storage or other costs. The new procedures apply to apparel classifiable in chapters 61 and 62 of the Harmonized System.
Stricter Monitoring of Textile/Apparel Transactions, Especially “Irregular” Imports
Brazilian customs authorities have also recently enacted other regulations that will allow stricter monitoring and control of textile and apparel import transactions. These include Normative Instruction 1.169, related to the control of goods that are suspected of being irregularly imported and are subject to seizure, and Normative Instruction 1.181, concerning procedures for the customs compliance of foreign operators, which are defined in the regulations as the producer, manufacturer or exporter of goods to Brazil.
Differences in Declared & Actual Weight Could Lead to Special Procedures, Seizure
In addition, if customs authorities identify a difference between the weight declared on the import declaration and the actual weight identified in customs clearance, they will consult the voluntary information provided by foreign operators, as described in Normative Instruction 1.181 described above. If deemed necessary following a review of that information, the importation will be subject to the special customs control procedures described in Normative Instruction 1.169 and could be seized.
Customs Will Register Import Irregularities, Could Result in Future Targeting
Customs authorities will also register any import irregularities in the importing company’s file within the government’s RADAR (Brazilian Foreign Trade Authorization for Import and Export) system. This database comprises all Brazilian customs and trade data on goods and can be used to identify future divergences in customs data provided to authorities.
Will Raise Textile/Shoe/Furniture Cofins Rate from 7.6% to 9.1% on Dec 1
Additionally, beginning December 1, 2011, the Brazilian government will raise the Cofins contribution rate for imports of textiles, shoes and furniture from 7.6% to 9.1%.
New Rules Part of a Customs Modernization & Investigation Effort
OTEXA states that enactment of these new rules is part of a customs modernization and investigation package launched by the Brazilian government in May. Through these regulations and procedures, Brazilian customs authorities want to gain greater oversight of domestic companies through an enhanced ability to audit their operations.
According to the notice, companies that duly fulfill the requirements of these regulations will enjoy faster processing of their import transactions in the long run, with reduced time frames and avoiding special customs controls on their imports.