Brazilian IRS amends the legislation on indirect imports
In summary
In September 13, 2022, the Brazilian IRS issued the Normative Ruling nº 2,101/22, which amends the Normative Ruling nº 1,861/18 that regulates the so-called indirect imports (import by order and import on account of third parties).
We highlight the provision that the predetermined acquirers of the imported goods can be both legal entities and individuals. Previously to the Normative Ruling nº 2,101/22, the Brazilian IRS understood that the indirect imports only applied to cases when both the importer of record and the predetermined acquirer were legal entities.
The fact that the individual acts as a predetermined acquirer does not imply the need of obtaining the import license (RADAR). However, the importer of record will need to indicate the Taxpayer ID (CPF) of the individual in the Import Declaration. The individuals are only authorized to act as predetermined acquirers when the goods are imported for its professional activities, own use or personal collection.
This amendment is relevant for the cases of fraudulent import involving individuals (as at that time there was no Regulation on the matter) and also for the future imports, because as from the Normative Ruling nº 2,101/22, the importer of record shall comply with the formalities arising from the indirect imports when the predetermined acquirer is an individual.
Moreover, the Normative Ruling nº 2,101/22 also foresees that the hiding of the predetermined acquirer by means of fraud or simulation will be subject to the seizure penalty (or a fine equivalente to the customs value of the goods, depending on the case), regardless of the existence of a formal agreement between the parties and of the compliance with the formalities concerning indirect imports.
Therefore, we recommend the importers to evaluate the impacts of the Normative Ruling nº 2,101/22 to its business, in order to avoid questionings from the Brazilian IRS. The Normative Ruling nº 2,101/22 enters into force in October 3, 2022.
