Brazil Wine Market Report JBC EMP July 2011 - California Wine ...
Brazil Wine Market Report JBC EMP July 2011 - California Wine ...
Brazil Wine Market Report JBC EMP July 2011 - California Wine ...
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25<br />
<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />
• Period of validity (if applicable)<br />
• Gluten declaration: “Contém Glúten" (Contains Gluten) or “Não contém Glúten” (Does<br />
not contain Gluten)<br />
• Warning statement must be declared in bold letters on labels for beverages with<br />
alcohol content above 13 percent alcohol by volume: “Evite o consumo excessivo de<br />
álcool” (Avoid excessive consumption of alcohol).<br />
The exporter should forward a sample of the package to the importer in order to confirm<br />
label compliance. 12<br />
Tax and Duty Structure<br />
Importing wine to <strong>Brazil</strong> is met with a significant tax burden. Imported U.S. wine is subject<br />
to a 27 percent import duty for bottles containing two liters or less. Other wine categories<br />
(over two liters) like most other imported goods have only a 20 percent tariff. <strong>Brazil</strong>ian<br />
Federal authorities view bottled wine as a luxury good imposing a higher duty. In addition,<br />
the following taxes are imposed on a cumulative “compounded” basis with the value added<br />
tax imposed on the total “tax paid” value.<br />
HS Code Duty Applied On Taxes Applied On<br />
2204.21 27% CIF 40% IPI (industrial products tax) CIF + Duty<br />
7.6% COFINS (social security tax) CIF + duty + IPI<br />
1.65 PIS (social security tax) CIF + duty + IPI<br />
17% ICMS (Merchandise circulation<br />
tax) CIF + duty + IPI + (PIS + COFINS)<br />
1% Miscellaneous Tax CIF<br />
25% VAT CIF and all of the above<br />
Government Agencies Regulating Alcohol<br />
In <strong>Brazil</strong> the Secretariat of Agricultural Protection (SDA) and the Ministry of Agriculture,<br />
Livestock and Food Supply (MAPA) have authority over domestic and imported plant<br />
products and by-products. Within the SDA, the Department of Plant Origin Products<br />
Inspection Service (DIPOV) enforces federal law regarding the registration, compliance and<br />
labeling of beverages (including distilled spirits and wine, soft drinks and juices). With the<br />
recent rise in imports, the General Coordination for <strong>Wine</strong>s and Beverages (CGVB) was<br />
created to oversee wine and beverages. Inspections at points of entry are overseen by the<br />
General Coordination for International Sanitary Inspection of Agriculture and Livestock<br />
(CGVIG). 13<br />
12 http://www.ttb.gov/itd/brazil.shtml#REQUIREMENTS<br />
13 FAS GAIN <strong>Report</strong> BR10010
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