Since 2000, the Government of Brazil has made an allowance for temporary importation of products that are used for a predetermined time period and then re-exported. The U.S. Commercial Service has seen a number of delays in regards to temporary imports, and continues to work through the “U.S. – Brazil Commercial Dialogue” to counter these problems. The Brazilian Government is studying the adoption of the ATA Carnet, an international customs document that allows importers to temporarily import goods up to one year without payment of normally applicable duties and taxes, including value-added taxes. The adoption of ATA Carnet use in Brazil would have a huge impact on customs clearance for U.S. trade show exhibitors that currently face extreme difficulties and delays in getting these temporary imports into Brazil, often writing off the imports as a complete loss. The ATA Carnet study is at the Ministry of Foreign Affairs, MRE, for revision before it is sent to congress for approval.
Under Brazil’s temporary import program, the II and IPI are used to determine the temporary import tax. Products must be used in the manufacture of other goods and involve payment of rental or lease fee from the local importer to the international exporter. There are very strict rules regarding the entry of used merchandise into Brazil. Used items are not allowed in the country with very few exceptions. An example of products falling under this program would be the temporary importation of machine tools. The example below shows that taxes due are proportional to the time frame the imported product will remain in Brazil.