Controlled products
- Document symbol
- G/LIC/N/3/BRA/12
- Original language
- English
- Published on
- 21/09/2023
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
The import licensing regime is implemented by the DFPC and all import licenses must be requested by SISCOMEX. The administrative procedures are electronic.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The products covered are those listed in Annex O of Ordinance No. 1.729 of 29 October 2019 of the Army Command, as amended by Ordinance No. 1.880 of 12 November 2019 of the Army Command, which can be consulted at: http://www.dfpc.eb.mil.br/index.php/legis-menu. List of products can be found on the following web page, on administrative processing at import: https://www.gov.br/siscomex/pt-br/informacoes/tratamento-administrativos/tratamento-administrativo-na-importacao/tratamento-administrativo-na-importacao.
Q3. The system applies to goods originating in and coming from which countries?
The system applies to goods of all origins, without distinction.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
The system aims to control the import of products related to public and/or national security and is not intended to restrict the quantity or total value of imports. There is a restriction on the quantity to be imported, according to the authorization to be imported in the previous register of the importer, made by the respective military organization, according to Ordinance No.56.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
Import licensing is mandatory by law and is not subject to administrative discretion. Licensing cannot be abolished without legislative approval. The inclusion or exclusion of specific products may be subject to administrative discretion if there is legal provision in this regard.
The legal grounds for licensing are: Law No. 10.826 of 22 December 2003; Law No. 10.834 of 29 December 2003; Decree No. 9.847 of 25 June 2019. Ordinance of the Army Commander No.1.729 of 29 October 2019 (updated by Ordinance No. 1.880 of 12 November 2019), establishes the regulatory rules for administrative procedures related to the Foreign Trade of Products Controlled by the Army (PCE).
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
In cases of non-automatic licensing, importers shall be instructed to obtain the license before the products are shipped. For the automatic license, the request must be made at any time before the start of customs clearance.
Q7.b. Can a licence be granted immediately on request?
The average period for granting import licenses by DFPC is 72 hours.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
There is no period limitation of the year. It can be done at any time.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Once the Portal Único de Comércio Exterior is fully operational, the application will be made online, will be reviewed by the competent administrative authorities and will not have to be transmitted to other authorities. For certain operations, DFPC consults other security agencies, such as municipal guards.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
License applications may be refused if they do not comply with the requirements of applicable law. The reasons are presented to the applicant. There is no possibility of administrative appeal if the license is rejected, but a new license may be required.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
Any person, company or institution may apply for import licensing. The only requirement is the registration in SISCOMEX. Only the Armed Forces may apply for a license to import prohibited products.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
Brazilian Federal Revenue Collection Slips (GRU); GRU Payment Proof (except exemptions provided for by law); Contract for provision of storage service, import (if applicable); Letter of commercial representation (in cases of exhibition, demonstration, test, repair, display and advertisement); Prior authorization of CMT of RM where the event will occur (in the cases of exhibition, demonstration and advertisement); Bill of Lading; Invoice/Proforma; Inspection Report.
The number of documents required to perform the license is variable, depending on who is requesting (natural or legal entity) and the purpose of the import. For green lane products, for example, the inspection report is not required.
Q11. What documents are required upon actual importation?
DFPC operates on effective import for physical inspection. If it is a green lane product, the bill of lading and payment of the two fees are required and does not need a physical inspection. For red lane products, a physical inspection is required: Bill of Lading; Invoice/Proforma; Inspection Report.
There is a second GRU to be paid for physical inspection, related to customs clearance.
Green lane products, in case of denunciation, may be subjected to physical inspection. Due to the possibility of police power, physical inspection fee of all products is charged, but the requirement is deferred. If there is no physical inspection, the requirement of both fees is in licensing. If there is physical inspection, the second GRU is required at clearance.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
Yes, R$ 320.00 as provided for in Law No. 10.834 of 29 December 2003.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
Deposits of advances or guarantees relating to the issuance of licenses are not necessary.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
The license shall be valid until the end of the import process, as provided for in Article 38, paragraph 2 of Decree No. 9.847 of 25 June 2019.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
The licenses are not transferable.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
In both cases, there are no other conditions to be observed for the issuance of licenses other than those related to automatic and non-automatic licensing.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
The importer must obtain authorization from the Federal Revenue of Brazil to operate in SISCOMEX.
Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?
There is no relation between the licensing regime and the foreign currency exchange regime.