CUSTOMS DUTIES: PARAGUAY TO BRAZIL

Overview of Customs Duties from Paraguay to Brazil

Paraguay and Brazil are both members of Mercosur (Southern Common Market), which established a common external tariff framework beginning January 1, 1995. When exporting goods from Paraguay to Brazil, shipments are subject to Brazil's comprehensive import tax and duty system. The customs clearance process in Brazil is complex and involves multiple federal and state-level taxes calculated on a cumulative basis. Understanding the distinction between commercial (B2B) and non-commercial (B2C) imports is essential, as each follows different procedures and has different de minimis thresholds and duty rates.

Import Classification and De Minimis Thresholds

Brazil distinguishes between two types of imports, each with different customs treatment:

• Commercial Imports (B2B/Formal Entry): Goods intended for resale regardless of value. Duty and tax de minimis threshold is 0 BRL, meaning all commercial shipments are subject to duties and taxes.
• Non-Commercial Imports (B2C/Informal Entry): Personal shipments with a value up to 2,999 USD. Duty and tax de minimis threshold is 50 USD FOB value. Shipments under this threshold may qualify for simplified customs clearance.

General Duty Structure and Tax Rates

Imports into Brazil are subject to four primary taxes that account for the majority of import costs:

Tax Type	Abbreviation	Rate/Description	Calculation Basis
Import Duty	II	Varies by HS code - contact our experts	CIF (Cost, Insurance, Freight)
Merchandise and Service Circulation Tax	ICMS	17-20% (varies by destination state)	CIF value of goods
Industrialized Product Tax	IPI	0-15% (typically); up to 300% for specific items like tobacco	Assessed at customs clearance
Federal Social Contribution Taxes	PIS/COFINS	Varies by HS code - contact our experts	Cumulative basis

ICMS Tax Rates by Brazilian State

The ICMS (state-level VAT) rate varies depending on the destination state in Brazil:

• 18%: Amapá
• 19%: Pará
• 20%: Acre, Alagoas, Bahia, Ceará, Paraíba, Piauí, Rio Grande do Norte, Roraima, and Sergipe
• 17%: All other states

Required Documentation

Exporters from Paraguay must prepare the following documentation for shipments to Brazil:

• Commercial Invoice detailing product descriptions, quantities, unit prices, and total FOB value
• Packing List specifying contents, weights, and dimensions
• Bill of Lading or Air Waybill for transportation
• Certificate of Origin (preferably Mercosur-specific documentation to claim preferential treatment)
• Import/Export Declaration forms as required by Paraguayan and Brazilian authorities
• Product-specific certifications or compliance documents (if applicable)
• Insurance documentation (if CIF valuation applies)

Important Regulations

• Tariff Classification: All goods must be classified using the NCM (Nomenclature Comum do Mercosur), which aligns with the Harmonized System (HS) for tariff purposes.
• Valuation Method: Import duties and most taxes are calculated using CIF valuation, which includes the cost of goods plus insurance and freight charges.
• Mercosur Membership: As Mercosur members, Paraguay and Brazil maintain a Common External Tariff (CET), though each country maintains separate exceptions lists.
• Data Protection Compliance: Importers must comply with Brazil's Legal Data Protection Law (LGPD), particularly for shipments containing personal data.
• Cumulative Tax Calculation: Most taxes are calculated on a cumulative basis, significantly affecting total landed costs.

Trade Agreements

Paraguay and Brazil are both members of the Mercosur (Southern Common Market), established in 1995 alongside Argentina and Uruguay. This membership provides preferential trade treatment and the ability to claim origin certificates under Mercosur rules. Exporters should ensure proper documentation of Paraguayan origin to potentially benefit from reduced tariff rates under the Common External Tariff framework. However, specific duty reductions depend on product classification and individual state exceptions maintained by each country.

For precise duty rates on specific products, consult Brazil's Customs Info Database tariff lookup tool or contact customs brokers specializing in Mercosur trade.