Let’s explore Brazil’s unique bonded warehouse system, a crucial tool for international trade. A bonded warehouse is a designated area where goods can be stored in bonded warehouses accredited by Receita Federal do Brasil, pending nationalization or final destination.

What makes this system particularly interesting is the suspension of import duties and taxes until customs clearance during the permitted period, giving businesses ample time to manage their inventory effectively.

Do you want to know how this might be valuable for your business? Keep reading this article!

Benefits for Exporters

1. Deferred Tax Payments: Taxes are only paid upon nationalization, giving exporters more cash flow flexibility.
2. Improved Logistics: Products are readily available in Brazil, reducing the customers lead time.
3. Market Penetration: Foreign exporters don’t need to establish a local entity in Brazil.
4. Flexibility in Sales: There is a possibility of partial nationalization, either by the same buyer or by different buyers, while WM Trading manages the local process as a facilitator. 

Some Rules of Bonded Warehouse

• Generally, the storage period starts from the day the products are registered with Receita Federal. Goods can be stored for one year, a period that can be extended, respecting the maximum limit set by the Receita Federal of three years.

• The movement of goods from the port to the warehouse is closely monitored by Brazil’s Receita Federal using a Transit Declaration (DTA).
• Not allowed cases for bonded warehousing: goods whose importation is prohibited and used goods, except for nautical and aeronautical purposes.

Allowed Goods

• Parts, pieces, machinery, computer, electrical, mechanical or electromechanical equipment and other materials for replacement, maintenance or repair of aircraft, vessels or other vehicles in the bonded warehouse
• Onboard supplies used in international commercial means of transport
• Other imported products that, consigned to individuals or legal persons established in Brazil, are intended for subsequent export

The bonded warehouse system operates under the supervision of Receita Federal, specifically in authorized locations such as port facilities, custom warehouses, and airports. 

Additionally, only Brazilian companies holding a RADAR import permit can register goods under the bonded warehouse regime. For foreign exporters, partnering with a local importer is necessary to use this system. This arrangement doesn’t transfer ownership of the goods – the foreign exporter maintains property rights until customs clearance.