Brazil Tariff 2026: Stay Compliant, Reduce Costs

Overview of Brazil's Import Structure
Brazil employs a complex import duty structure based on the MERCOSUR Common External Tariff (CET), which harmonizes rates among member nations. Importers must navigate a cascading tax system where federal duties (II, IPI, PIS, COFINS) and state taxes (ICMS) are applied cumulatively to the customs value. For Small and Medium Enterprises (SMEs), accurate classification is critical, as the total tax burden can often exceed 60-80% of the FOB value depending on the product category.

Detailed Duty Types

• Import Duty (II): This is the primary federal tax levied on the CIF (Cost, Insurance, and Freight) value of goods, serving as a protective tariff for domestic industry.
• Industrialized Product Tax (IPI): An excise tax applied to manufactured goods based on their essentiality; luxury goods incur higher rates while essential goods have lower or zero rates.
• PIS and COFINS: These are federal social contributions levied on the import of foreign goods, typically charged at a combined flat rate for general imports.
• ICMS (State VAT): A state-level value-added tax applied after customs clearance, with rates varying between 17% and 19% depending on the destination state.
• Antidumping Duties: Temporary surcharges applied to specific products from specific countries to counter unfair pricing practices that harm local industry.
• AFRMM (Merchant Marine Renewal): While not the US HMF, this is Brazil's equivalent port/freight tax, charged at 25% of the international ocean freight cost.