Blue Line

The Blue Line is a customs regime which enables industrial companies to carry out their business activities more efficiently and effectively. It also reflects the customs administration strategy of promoting the voluntary legislation compliance affects foreign trade.

The companies which meet the necessary requirements and are voluntarily qualified to operate in the blue line have their operations of import, export and customs traffic directed, especially to the green channel of checking and treatment of express customs clearance.

The previous and voluntary license of companies to operate in the Blue Line assures more and better controls as they are obliged to show the quality of their internal controls, to assure the compliance of their registering, documental, tax and customs liabilities and, further, to enable the permanent monitoring by the customs inspection.

The regime introduces not a new approach in the management of voluntary legislation compliance only, but also a more efficient and effective way to relate the Customs with importers and exporters that show their ability to provide tax administration with timely and precise information and that it is considered as low risk for customs control.

What are the benefits to be licensed in the Blue Line?

For importers:

- Cargo submitted to treatment of "priority storage" or "cargo not addressed to storage", depending on the goods clearance unit;
- Cargo released for customs to traffic, consumption or admission in customs regimes with the minimum of intervention of customs inspection and in priority;
- Customs checking of selected cargo made under priority.

For exporters:


- Cargo released for shipping abroad or for traffic – including clearance made in non-bonded warehouse – with the minimum of intervention of customs inspection and under priority;
- Customs checking of cargo selected made under priority.

Drawback Drawback

It is an incentive to export that enables the suspension, exemption or refund of several taxes falling over imports which are directed to make the productive process, package for packing or to improve the presentation of goods addressed to export.

It reduces production costs providing the end product export at highly competitive prices. As a consequence, quality standards required by foreign buyers are kept.

The taxes suspended or exempted are as follows: I.I., IPI, ICMS, AFRMM, PIS /COFINS.

For further information and doubts, please contact our department specialized in that customs regime that will be at your disposal.

Green and Yellow Drawback:

It consists in the suspension of Industrialized Product Tax (IPI), Social Integration Program (PIS) and Contribution to Social Security Financing (Cofins), in the acquisition of inputs or intermediate material in internal market by an industrial or trading establishment, for the industrialization of products addressed to export.

The green and yellow drawback was created by the Policy of Productive Development (PDP), launched in May of this year and will be one of the mechanisms used to reach the goal set by PDP of ranking Brazil among the top 20 biggest exporters in the world. Today the country is responsible for 1.17% of world exports and intends to reach 1.25% of total exported by 2010.

The new regime contributes for the cost reduction and for the growth of competitiveness of Brazilian products in foreign markets, as it will enable inputs acquired in internal market and employed in the production of exportable assets have the same tax treatment already granted for inputs imported, today benefited with the import drawback regime.

The government forecasts the tax treatment equality shall motivate the acquisition of national inputs and shall directly contribute for the production cost reduction and, consequently, the increase of Brazilian exports.

Drawback Recof

RECOF is the short form for Special Customs Regime for Industrial Warehouse under Computerized Control. Instituted in December, 1997, it was directed to attend the demands of IT and Telecommunication companies.

In 2002, a normative instruction determined that other two sectors of industry would be included in the list of companies covered by RECOF: aeronautical and automobile industries. The industry of semiconductors and high tech components for IT and Telecoms were also included in the regime, characterizing the RECOF semiconductors.

RECOF allows that a specific industrial establishment imports goods that, after industrialization, will be sold to the foreign market. More than that, it determines that this importation is free of charges. The goods can be imported with or without exchange coverage (with or without remittance of foreign currency).

The industrialization operations mentioned are limited to assemblage, transformation and improvement, packing and repacking. Part of the goods admitted in RECOF, in the state or incorporated in the product obtained in the industrialization can be dispatched for consume.

Benefits of the regime

- RECOF allows the importation of all of the components with suspension of II (Import Tax), IPI (Tax on Industrialized Goods), and PIS (Social Integration Program)/Cofins (Contribution for Social Security Financing)
- The national purchases have suspension of IPI and PIS/Cofins
- Allowance for transferring beneficiaries or supplier's co-qualification
- A one-year tax suspension, which can be extended to the upcoming year
- Allowance for the rectification of the DI – Import Declaration after physical checking
- The payment of the taxes for nationalized products must be made until the 10th day of the following month of the sale
- Allowance for the use of Drawback simultaneously, if required
- The tax suspension becomes export exemption
- Allowance for sales in local market or exportation that can reach 20% of the imported products without industrialization (making it possible for the percentage to be up to 30%, depending on the volume of the exportation)
- Reduction of storage expenditures in ports or EADIs (Dry Port) through negotiation or due to the fact that the clearances will occur in the first period
- Acceptance of the transfer of Customs Warehouses and other special customs regimes
- Provides cash flow gains for local market sales
- Usually, exports are dismissed from custom conferences, but even when they are required, they must occur within four hours
- Significant reduction in the company inventory, considering that the entire clearance process is easier
- Possibility for admitted goods to be dispatched abroad, by plane, for tests, repairs, restorations, and demos, while keeping suspension status (according to AMBRA - Authorization of movement of the goods admitted in RECOF)
- Importation and acquisition in the local market (SP) with suspension of ICMS (Tax on Circulation of Goods and Services) in São Paulo state (according to RESE - Simplified Export Regime).

(The Brazil Business.com)


DrawbackEx-Tariff

The Ex-tariff regime is a way to have temporary reduction of import tax over products that are not nationally produced. (The goods listed as BK and BIT, in the Mercosur Common External Tariff).

The advantages of the regime are:

- Provides increased technological innovation by companies from different segments of the economy;
- Ensures a level of protection to domestic industry of capital goods, since it is only awarded to goods that have no domestic production

DrawbackBonded Warehouse

Regime which in import and export operations enables to store goods in a certain place with suspension of tax payment and under tax control.

In export, there are two kinds of warehouse regime: the regular one, i.e., that checks the right of goods storage addressed to external market with tax suspension, when and if due (this kind of warehouse is characterized as of the date of entry of the goods and in the warehouse unit; and the special regime, i.e., that is granted to trading companies, whose goods acquired have the exclusive purpose of export (this kind of warehouse is characterized as of the outcome date of the goods from the seller’s establishment).

In import, the goods admitted in the regime can be nationalized by the importer, consignee or acquirer and, in his name, cleared for consumption or exported (this regime survives as of the date of customs clearance of goods).

Regime advantages:

The warehouse consists in a fundamental logistic tool for the management of stock, cash flow, market strategies, as it enables the tax suspension, the re-direction of goods to other countries and further, the possibility of operations bound together with other special customs regimes, such as: Drawback, Recof, DAC, and so on.

- Import without exchange coverage
- Tax suspension (up to 1 year)
- Storage < Infraero
- Compatibility with Recof and Drawback, among other regimes
- Partial withdrawal? of goods
- Import time reduction
- Inventory turnover/cost reduction
- Insurance coverage due to missing/loss and average the licensee gives as a cause to
- The goods can be nationalized by the consignee or by the acquirer
- The transfer to other customs regimes is allowed
- Operations of pack, repack, pricing or repricing on the goods can be made
- Re-export to a third country.

Temporary AdmissionTemporary Admission

The regime of temporary admission is what enables to import goods which must remain in the country during a fixed period, with total suspension of tax payment, or partial suspension, in case of economic use.

From the regime concession, the customs authority shall follow the cumulative compliance of the following conditions:

- Temporary import after this condition is proven by any qualified means
- Import without exchange coverage
- Goods suitability to the purpose they were imported for
- Constitution of tax liabilities in terms of responsibility
- Goods identification.

Temporary Admission with Total Suspension of Tax Payment

In this modality, the Admission is applied to goods destined to the following activities:

1. Fairs, exhibitions, congresses and other technical or scientific events
2. Scientific expedition or research projects, previously authorized by the National Council of Scientific Development and Research
3. Theatrical performances, exhibitions and other cultural or artistic events
4. Sports exhibitions or competitions
5. Industrial or commercial fairs and exhibitions
6. Trade promotion, including samples with no value commercial and showcases of salespersons
7. Technical assistance to be performed by foreign technicians (applied to goods imported under a warranty)
8. Replacement and repair of:
- Vessels, aircrafts and other foreign vehicles parked in national territory, in transit or under temporary admission regime; or
- Other foreign goods submitted to temporary admission regime;
9. Temporary replacement of goods due to warranty
10. When in need of assembly, reconditioning or renovation
11. Reconditioning and manipulation of other imported goods, if they are reusable
12. Identification, reconditioning or manipulation of other goods to be exported
13. Reproduction of phonograms and other audio-visual works, imported as matrixes
14. Temporary agricultural activities, such as animals for fairs or exhibitions, work, reproduction and care of veterinarians
15. Assistance and rescue operations due to calamities or to accidents which may cause threats to local environment and/or communities
16. Temporary exercise or non-resident professional activity
17. Immigrants waiting for their permanent visas to be authorized
18. Baggage of non- resident travellers
19. Carry out services of launching, integration and tests of systems, subsystems and space components previously authorized by the Brazilian Space Agency
20. Render repair and maintenance services of foreign goods, hired with a company located abroad

The regime application is subject to:

- The existence of any service agreement
- The presentation, by the interested party, of detailed description of industrial process to be carried out in Brazil, as well as the product quantification and qualification arising from industrialization.

Regime Extinction

The regime is extinct in the following cases:
- Re-export;
- Delivery to National Treasury, free from any expense, provided that the customs authority agrees to receive them
- Destruction, at the interested party expense
- Transfer to another special regime; or clearance for consumption, if nationalized