How to Export to Brazil - Sprint Lazio

Brazil – Ministry of External Relations
Due to the fact that Brazil is a Federative Republic, there are different laws for this tax.
Each of the 26 states and the Federal District have their own law, which originates 27
different ICMS laws with diverse rates and tax systems. Therefore, in order to estimate
the total value of the tax, it is necessary to know beforehand in which state the goods
will be consumed.
The calculation basis for the ICMS is the sum of the customs value, of the II, the
IPI, of the ICMS itself (recursive calculation), of any other taxes levied on the
import and the customs duties related to the import, which are the expenses
towards import expedition, such as storage, foremanship and others. As the total
sum of customs duties is only know after the arrival of the goods, only then it is
possible to make an estimate of the tax due, which is yielded by means of the
following formula:
ICMS = ICMS rate (%) x (CV + II + IPI + ICMS + other taxes + customs duties)
Or, alternatively:
ICMS = ICMS rate (%) x (CV + II + IPI + other taxes + customs duties) / [1 –
ICMS rate (%)]
It must be noted that, as previously seen, the ICMS is an integral part of the calculation
for the social contributions PIS-Import and Cofins-Import. Thus, in order to calculate
these contributions, the ICMS value is found through the multiplication of the tax rate
and the sum of the customs value, the II, the IPI and the ICMS (recursive calculation),
as follows:
ICMS to calculate Cofins and PIS = ICMS rate (%) x (CV + II + IPI + ICMS)
Or, alternatively:
ICMS to calculate Cofins and PIS = ICMS rate (%) x (CV + II + IPI) / [1 –
ICMS rate (%)]
III.6.7. Additional Tax on Freight Charges for the Renovation of
the Merchant Marine (AFRMM)
The AFRMM is a federal social contribution intervening in the economic domain,
currently regulated by Law no. 10,893/04, which is levied on the value of the
international or of the cabotage freight. It is destined to meet the federal government’s
expenses in support of the development of the merchant marine and the Brazilian
shipyard industry.
The AFRMM has to be paid prior to the Import Declaration registration by means of
the electronic Merchant System of the Merchant Marine Funding Department of the
Ministry of Transportation. This tax is calculated by applying a percentage on the
remuneration of port-to-port waterway transportation, including the port duties and
other expenses, appearing on the bill of lading. The rates for this tax vary according
to the type of navigation, as follows:
64 How to export to Brazil