What is RADAR and how do I register with Brazilian customs?

RADAR (Registration and Tracking of Customs Operators) is the mandatory registration with the Brazilian Federal Revenue Service for foreign trade operations. Three tiers exist: Express (up to US$ 50,000/semester), Limited (up to US$ 150,000/semester), and Unlimited (no cap). Express registration is automatic via e-CAC; the others require fiscal review taking 10 to 30 business days.

What are the main import taxes in Brazil?

Key taxes include: Import Duty (II, 0-35% based on NCM code), IPI (0-300%), PIS-Import (2.1%), COFINS-Import (9.65%), state ICMS (4-25%), and Siscomex fee. Total tax burden can exceed 100% of the CIF value depending on the product classification.

What is NCM classification and why does it matter?

NCM (Mercosul Common Nomenclature) is the 8-digit code classifying goods for tax and statistical purposes. Correct classification determines import duty rates, IPI rates, PIS/COFINS, eligibility for tax benefits, licensing requirements, and preferential tariff agreements. Misclassification can result in a 1% penalty on customs value, minimum R$ 500.

How does the Manaus Free Trade Zone work for imports?

The Manaus Free Trade Zone (ZFM), governed by Decree-Law No. 288/1967, offers significant tax incentives: exemption or reduction of import duty on industrial inputs, IPI exemption on local production, up to 75% IRPJ reduction, and PIS/COFINS exemption on internal operations. Companies must comply with the Basic Productive Process (PPB) defined by SUFRAMA.

International Trade in Brazil: Import and Export Guide

Executive Summary

Brazilian foreign trade reached US$ 628 billion in 2025, according to data from the Ministry of Development, Industry, Trade, and Services (MDIC). Operating in this market requires RADAR registration with the Federal Revenue Service, mastery of the Siscomex platform, and precise NCM classification. This guide covers the legal and tax framework for importing and exporting, including trade agreements, tax incentives, and the Manaus Free Trade Zone.

If your company needs international trade legal support, our team provides comprehensive assistance.

RADAR Registration

RADAR (Registration and Tracking of Customs Operators) is a prerequisite for any foreign trade operation. Regulated by Federal Revenue Normative Instruction No. 1,984/2020, it is classified into three tiers:

Registration tiers

Tier	Semester limit	Requirements	Timeline
Express	US$ 50,000	Active CNPJ, tax compliance	Automatic via e-CAC
Limited	US$ 150,000	Financial capacity proof	10-20 business days
Unlimited	No limit	Proven net equity, audit	20-30 business days

Required documentation

For Limited or Unlimited registration, the Federal Revenue requires: updated articles of incorporation, balance sheet, partners’ income tax returns (DIRPF), federal tax clearance certificates, commercial address proof, and operational capacity declaration. New companies (less than 6 months of CNPJ) must start with Express tier.

Review and deactivation

The Federal Revenue may review RADAR registration at any time. Common deactivation reasons include: tax delinquency, inconsistency between declared operations and financial capacity, and registration irregularities. Deactivation immediately suspends all foreign trade operations.

The Integrated Foreign Trade System (Siscomex)

Siscomex is the government platform integrating registration, control, and monitoring of foreign trade operations. Since 2014, it has progressively migrated to the web module (Single Foreign Trade Portal), simplifying processes.

Key modules

Siscomex Import: registration of Import Declarations (DI) and Single Import Declarations (DUIMP)
Siscomex Export: registration of Single Export Declarations (DU-E)
Siscomex Transit: customs transit control
Siscomex Mantra: air cargo manifest and control
LPCO: licenses, permits, certificates, and other documents

DUIMP — the new standard

The Single Import Declaration (DUIMP) is gradually replacing the traditional DI, unifying customs, tax, administrative, and commercial information in a single document. The mandatory migration timeline began in 2023 and is expected to conclude by 2027.

Fiscal Classification (NCM)

The Mercosul Common Nomenclature (NCM) is the goods classification system adopted by Mercosul countries. Based on the Harmonized System (HS) of the World Customs Organization, it uses an 8-digit code.

Code structure

Digits	Meaning	Example
1-2	Chapter	85 = Electrical machinery
3-4	Heading	8517 = Telephone apparatus
5-6	Subheading	8517.12 = Cellular phones
7-8	NCM item	8517.12.31 = Smartphones

Consequences of incorrect classification

Misclassification carries serious risks:

Administrative penalty: 1% of customs value, minimum R$ 500 (Article 84, Provisional Measure No. 2,158-35/2001)
Tax difference: retroactive collection with SELIC interest and 75% penalty (Article 44, Law No. 9,430/1996)
Goods forfeiture: in cases of proven fraud (Article 105, Decree-Law No. 37/1966)
RADAR blocking: temporary or permanent suspension of registration

Classification consultation

NCM doubts can be resolved through formal consultation with the Federal Revenue (Consultation Solution), with a 60-120 day response time. The consultation binds the Federal Revenue to the stated interpretation while the consulted legislation remains in force.

Import Taxes

The tax burden on Brazilian imports is among the most complex worldwide. Key taxes include:

Import Duty (II)

Federal tax with rates set by the Mercosul Common External Tariff (CET), ranging from 0% to 35% per NCM code. The tax base is customs value (CIF value + adjustments per the Customs Valuation Agreement). Tariff reductions may apply via trade agreements (Mercosul, ACE, APP) or special regimes (Ex-Tariff).

IPI (Industrialized Products Tax)

Levied on imported industrialized products, with rates from 0% to 300% per TIPI (IPI Rate Table). Tax base: customs value + II.

PIS-Import and COFINS-Import

Standard rates of 2.1% (PIS) and 9.65% (COFINS), with variations for specific sectors. Tax base: customs value + ICMS + PIS/COFINS (calculated from within).

State ICMS on imports

State tax with the importer’s state internal rate (4% to 25%). Tax base includes customs value + II + IPI + PIS + COFINS + fees + customs expenses. Import ICMS is owed to the state where the importer’s establishment is located, per STF Precedent 661.

Siscomex usage fee

R$ 214.50 per DI/DUIMP + R$ 107.25 per addition (2026 values).

Trade Agreements and Tariff Preferences

Brazil participates in several agreements that reduce or eliminate import tariffs:

Mercosul

Common External Tariff (CET) with Argentina, Uruguay, and Paraguay. Free movement of goods among members with Mercosul Certificate of Origin. The Mercosul-EU agreement, signed in 2019 and progressively ratified, will reduce tariffs on up to 91% of European products over 15 years.

Economic Complementation Agreements (ACE)

ACE 35 (Mercosul-Chile): up to 100% preference on most products
ACE 36 (Mercosul-Bolivia): zero tariff on most products
ACE 58 (Mercosul-Peru): gradual reductions up to 100%
ACE 59 (Mercosul-CAN): Colombia, Ecuador, and Venezuela

CAMEX and tariff policy

The Foreign Trade Chamber (CAMEX), linked to MDIC, defines CET exceptions, rate reductions for supply shortages (CET Exception List — LETEC), and Ex-Tariff regime for capital goods and IT equipment without domestic equivalent.

Manaus Free Trade Zone (ZFM)

The ZFM, created by Decree-Law No. 288/1967 and administered by SUFRAMA, is Brazil’s main tax incentive zone, with validity guaranteed until 2073 (Constitutional Amendment No. 83/2014).

Tax incentives

Import Duty: up to 88% reduction for inputs destined for industrialization
IPI: exemption on output of products manufactured in the ZFM
Corporate Income Tax (IRPJ): 75% reduction for SUFRAMA-approved projects
PIS/COFINS: exemption on internal ZFM operations
ICMS: deferral or exemption per Amazonas state legislation

Basic Productive Process (PPB)

To benefit from incentives, companies must comply with the PPB — the minimum set of industrial operations characterizing effective local manufacturing. The PPB is defined by inter-ministerial ordinances (MDIC + MCTI) and varies by product.

Special Customs Regimes

Drawback

Regime that suspends, exempts, or refunds taxes on imported inputs used in manufacturing exported products. Modalities: suspension (most used), exemption, and refund. Regulated by SECEX Ordinance No. 44/2020.

Temporary Admission

Allows entry of goods with total or partial tax suspension for a defined purpose and period. Used for fairs, events, testing, and temporary projects (Federal Revenue IN No. 1,600/2015).

Customs Warehouse (Entreposto)

Storage of goods at bonded facilities with tax suspension for up to 1 year (renewable). Allows fractioning, consolidation, and re-export without nationalization.

Export: Legal Aspects

Exporter registration

Any RADAR-registered company can export. Operation registration is done via DU-E (Single Export Declaration) in Siscomex, with information on goods, consignee, value, and delivery terms (Incoterms).

Export incentives

ICMS exemption: Kandir Law (Supplementary Law No. 87/1996) exempts ICMS on exports
IPI exemption: Article 18 of Decree No. 7,212/2010
PIS/COFINS non-incidence: on export revenue
PROEX: BNDES export financing program
Export Credit Insurance (SCE): government guarantee against foreign buyer default

Foreign exchange control

Exporters must internalize export revenues within 750 days (BCB Resolution No. 277/2022). Currency exchange closing is mandatory and registered in Sisbacen. For operations exceeding US$ 50,000, consult our business law team about exchange structuring.

Customs Litigation

Disputes with customs authorities are resolved administratively (CARF — Administrative Council of Tax Appeals) or judicially. Common situations include:

Fiscal reclassification: when the Federal Revenue disagrees with the declared NCM
Customs valuation: when the declared value is questioned
Forfeiture penalty: applicable to goods with irregular or fraudulent documentation
Administrative infraction fines: missed deadlines, documentation errors

Our litigation team represents importers and exporters in administrative and judicial proceedings.

Key Legislation

Decree-Law No. 37/1966: general rules on foreign trade
Law No. 10,865/2004: PIS-Import and COFINS-Import
Customs Regulation (Decree No. 6,759/2009): consolidation of customs legislation
Federal Revenue IN No. 1,984/2020: RADAR registration
Supplementary Law No. 87/1996 (Kandir Law): ICMS on interstate and export operations
Decree-Law No. 288/1967: Manaus Free Trade Zone

Next Steps

Foreign trade operations require rigorous tax and legal planning. If your company needs guidance on RADAR registration, NCM classification, special regimes, or international contracts, contact our international law team.

For international taxation or document validation matters related to foreign trade, explore our specialized guides.

This article is for informational purposes only and does not constitute legal advice. Each case has specific circumstances that should be analyzed by a qualified attorney.