CUSTOMS DUTIES: MARSHALL ISLANDS TO BRAZIL

Overview of Customs Duties from Marshall Islands to Brazil

Exporting goods from the Marshall Islands to Brazil involves navigating a complex Brazilian customs system with multiple layers of taxation and regulatory requirements. Brazil maintains one of the more challenging import environments in South America, with no de minimis threshold for commercial imports and substantial duty and tax obligations. All shipments from the Marshall Islands are classified as commercial imports and must proceed through Brazil's formal entry process, subjecting them to the full range of Brazilian import duties and taxes calculated on a Cost, Insurance, and Freight (CIF) basis.

The Brazilian government implements the Mercosur Common External Tariff (CET) framework and uses the Nomenclature Comum do Mercosur (NCM) for tariff classification, which aligns with the Harmonized System (HS). Understanding these classification systems is essential for accurate duty calculation and compliance with Brazilian customs regulations.

Import Tax Structure and Rates

Brazil levies four primary taxes on imported goods, calculated cumulatively on the CIF value:

Tax Type	Portuguese Abbreviation	Rate/Details	Calculation Basis
Import Duty	II	Varies by HS code - contact our experts	CIF value of goods
Merchandise and Service Circulation Tax	ICMS	17-20% (varies by state)	CIF value of goods
Industrialized Product Tax	IPI	0-15% typical; up to 300% for certain products	Cumulative basis; product-dependent
Federal Social Contribution Taxes	PIS/COFINS	Varies by product category	Cumulative basis

ICMS Tax Rates by State

The ICMS (state-level value-added tax) varies by destination state in Brazil for commercial imports:

State/Region	ICMS Rate
Amapá	18%
Pará	19%
Acre, Alagoas, Bahia, Ceará, Paraíba, Piauí, Rio Grande do Norte, Roraima, Sergipe	20%
All other states	17%

Required Documentation

• Commercial Invoice with complete product descriptions, quantities, and FOB pricing
• Packing List detailing contents and weight
• Bill of Lading or Airway Bill for transportation
• Certificate of Origin from Marshall Islands
• Product-specific documentation (certificates, licenses, or permits as required by product category)
• Import License or Registration (if required for specific product categories)
• Customs Declaration Form (Declaração de Importação)
• Insurance documentation covering CIF value
• Proof of payment of applicable duties and taxes

Important Regulations and Requirements

• De Minimis Threshold: Commercial imports from Marshall Islands have zero de minimis threshold, meaning duties and taxes apply to all shipments regardless of value
• Formal Entry Process: All Marshall Islands exports to Brazil must proceed through Brazil's formal commercial entry process, not the simplified informal process
• CIF Valuation: All duties and taxes are calculated on CIF value (Cost, Insurance, and Freight), not FOB value
• Product Classification: Accurate NCM/HS code classification is critical, as rates vary significantly by product category
• IPI Considerations: IPI rates vary dramatically by product type; certain goods like tobacco face rates up to 300%
• Data Protection Compliance: Importers must comply with Brazil's Legal Data Protection Law (LGPD), Brazil's equivalent to GDPR
• Customs Clearance: All taxes are assessed during the customs clearance process and must be paid before goods are released

Trade Agreements and Preferential Status

The Marshall Islands does not maintain preferential trade agreements with Brazil. As a non-Mercosur member nation, Marshall Islands exporters do not benefit from the reduced tariff rates available to Mercosur member states (Argentina, Paraguay, and Uruguay). All shipments are subject to the standard Mercosur Common External Tariff (CET) rates applicable to non-member countries. Exporters should consult the Brazilian Customs database and engage with customs brokers to determine specific tariff classifications and applicable rates for their products.