On 06/07/2022, the Federal Government issued Decree No. 11,090, which excludes from the customs value the terminal handling costs (“TCH”). The Decree No. 11,090 amends Article 77 of the Customs Regulation (Decree No. 6,759/2009), which lists the amounts that should be included in the customs value.
The customs value is the Import Duty basis. For many years, Brazilian importers have litigated to support that the customs value should not include the TCH, given that the Customs Valuation Agreement provides that the customs value can include the loading, unloading and handling charges associated with the transport of the imported goods to the port or place of importation. However, the most recent case law was unfavorable to the taxpayers.
According to the Federal Government, the Decree No. 11,090 aims at reducing the inflation and the costs associated with investments in Brazil, because the exclusion of the THC from the customs value represents a reduction of 10% of the Import Duty.
Considering that the Decree No. 11,090 enters into force as from the date of its publication, we recommend that the importers revise the Import Declarations prior to the registry to ensure that the THC is excluded from the customs value.