The import of textile products to Brazil involves various fees and taxes that must be considered in financial planning. Here are the main ones:

Import Duty (II)

This tax is calculated on the customs value of the goods, which includes the product price, the freight cost, and international insurance. The rate varies according to the type of textile product, generally between 18% and 35%.

Tax on Industrialized Products (IPI)

The IPI is applied to industrialized products, including imported ones. The rate varies according to the tax classification of the product in the IPI Incidence Table (TIPI). For textile products, it can range between 5% and 20%.

PIS-Import and COFINS-Import

The PIS-Import and the COFINS-Import are social contributions applied to the customs value of the goods. The rates are:

• PIS-Import: 2.1%
  
  

• COFINS-Import: 9.65%
  
  

ICMS (Tax on Circulation of Goods and Services)

The ICMS is a state tax, and its rate varies according to the destination state of the goods. The ICMS calculation is more complex, as it is calculated internally, meaning it applies to the customs value plus II, IPI, PIS-Import, COFINS-Import, and other customs expenses. The rate usually varies between 17% and 19%.

Usage Fee for Siscomex

The Usage Fee for Siscomex is charged by the Federal Revenue for using the Integrated Foreign Trade System (Siscomex). The amounts are:

• Import Declaration Registration (DI): R$ 185.00
  
  

• Addition of goods in the DI: R$ 29.50 per addition
  
  

Customs Clearance

There are also costs related to customs clearance, such as fees for the customs broker, port fees, and storage.

Example of Calculation

To better understand, let's consider an example of importing fabrics with a customs value of USD 10,000. Let's convert it to BRL at an exchange rate of R$ 5.00/USD, resulting in R$ 50,000.

1. II: 18% on R$ 50,000 = R$ 9,000
   
   

2. IPI: 10% on (R$ 50,000 + R$ 9,000) = R$ 5,900
   
   

3. PIS-Import: 2.1% on R$ 50,000 = R$ 1,050
   
   

4. COFINS-Import: 9.65% on R$ 50,000 = R$ 4,825
   
   

5. ICMS: 18% on (R$ 50,000 + R$ 9,000 + R$ 5,900 + R$ 1,050 + R$ 4,825) = R$ 12,215.40
   
   

Total Taxes:

• II: R$ 9,000
  
  

• IPI: R$ 5,900
  
  

• PIS-Import: R$ 1,050
  
  

• COFINS-Import: R$ 4,825
  
  

• ICMS: R$ 12,215.40
  
  

AFRMM

The AFRMM is calculated on the value of international freight at the following rates:

• Long-Distance Navigation (International): 25%
  
  

• Cabotage Navigation: 10%
  
  

• River and Lake Navigation: 40%
  
  

Example of Calculation

Assuming an international freight of USD 2,000 (R$ 10,000 considering an exchange rate of R$ 5.00/USD):

• AFRMM: 25% on R$ 10,000 = R$ 2,500
  
  

This amount is added to the total cost of the import and must be paid by the importer.

Considerations on the AFRMM

• Payment: The AFRMM is paid at the time of registering the Import Declaration (DI) in Siscomex.
  
  

• Reduction/Exemption: There are specific situations where the AFRMM may be reduced or exempt, such as for goods destined for the Manaus Free Trade Zone or specific government programs.
  
  

Important Tips

1. Correct Classification: Check the correct classification of the product to avoid surprises.
   
   

2. Planning: Include all these costs in your financial planning.
   
   

3. Specialized Consulting: Consider hiring a consultancy to optimize taxation and avoid errors in the process.
   
   
   

The textile import to Brazil involves a series of fees and taxes that can significantly impact the final cost of the product. With adequate planning and the help of specialists, you can navigate this process efficiently and minimize costs. If you have questions or need assistance, the Fast Shipping team is here to help.