Benefits

The Drawback benefit can be conceded by the Customs Policy Committee, under the terms and conditions established as an incentive to the Exportation, under the following modalities (Decree-Law 27/1966, article 78, I to III):

  • I. Suspension of the duty payment demandable in the importation of goods to be exported after improvement or destined to the manufacturing, complementation or packaging of another to be exported;
  • II. Exemption of the duties demandable in the importation of goods, in quantity and quality equivalent to the one used in the improvement, manufacturing, complementation of a exported product.
  • III. Restitution, total or partial, of the duties already collected in the importation of goods exported after the improvement, or used in the manufacturing process, complementation or packaging of another exported.
    The benefit of Drawback can be conceded to:
  • I. Imported goods for improvement in the country e further exportation.
  • II. Raw-material, semi-finished or finished, used in the manufacturing of exported goods or to be exported.
  • III. Piece, part, apparel or machine complementing of a apparel, of machine , vehicle or exported equipment or to be exported.
  • IV. Goods destined to wrapping, packaging or presentation of an exported product or to be exported, provided that there is real adding value to the final product or.
  • V. Animals destined to slaughter and further exportation.

There are Drawback modalities:

  • • Integrated Drawback of Suspension:Importation and/or acquisition in the local market of raw-material, packages and components which will be used in the industrialization of the product to be exported, with suspension of the federal duties, namely: II, IPI, PIS, COFINS, PIS-Importation, Cofins-Importation and AFRMM and exemption of ICMS, under the terms and conditions of ICMS Convention 185/10. The collecting of duties is suspended for one year´s time, being possible to be extendable for one more year. In case the exportations are not confirmed under the terms and conditions of the legislation, the suspended duties must be collected with the addition of the legal interests.
  • • Integrated Drawback of Exemption:Importation and/or acquisition in the local market of raw-material, packages and components equivalent to the ones used or consumed in the industrialization of the exported product is exempted from the Importation duty and reduced to zero the aliquot of the federal duties such as IPI, PIS, COFINS, PIS-Importation, Cofins-Importation. The companies must prove the acquisitions taxed and the respective shipment of the exported goods.
    • These two first modalities of Drawback are run by the Foreign Trade Secretary – SECEX which is under the Ministry of Development of Industry and Foreign Trade.
    The details and specifications about the subject are ruled by the Ordinance SECEX 23/2011.
  • • Drawback of Restitution:The total or partial refund of the federal duties (II, IPI, PIS-Importation, Cofins-Importation and AFRMM) collected for the matter of the importation of raw-material, packages and components used in the manufacturing goods duly exported.

The restitution is done as a fiscal credit and must be required to Brazilian Federal Revenue Office within ninety (90) days from the exportation date, extendable for the same period of time if requested by concerned party and duly justified.