Wine consumption in Brazil has increased considerably in recent years.

According to data from 2020, which was a record year, the imported FOB value exceeded the USD 427 million mark, and the trend is that this trade flow will consolidate itself as one of the best business opportunities for Brazilian importers.

If you are thinking about entering this growing market and starting your imports on your own, today’s article was made for you to be aware of everything necessary in order to run your operation in the best possible way.

What kind of registration is required from your company? 

Brazilian Radar SISCOMEX

If your company still does not import or does so sporadically, an initial point of attention is the necessary qualifications to carry out foreign trade operations in Brazil.

The Radar Registration is necessary for your company to be authorized to access the Portal Único do Comércio Exterior – Siscomex.

Siscomex is the Brazilian government platform where all imports carried out in Brazil are duly registered and analyzed by the Brazilian Federal Revenue Service (“RFB”).

It is important to highlight the stage in which some importers sometimes suffer great losses, that is the modality request in which your company will be enrolled.

Each type of Radar Registration defines the value that a company can import every six months, limit that can vary between U$ 50 thousand imported per semester, U$ 150 thousand imported per semester or in the unlimited modality that has no restrictions.

So, before submitting your license application to the RFB (better if you have a Foreign Trade advisor for that), make an estimate of the amount you expect to import.

SIPEAGRO and SIVIGI Brazilian systems

As it is a product destined for human consumption, wine import procedures are scrutinized by the Brazilian Ministry of Agriculture, Livestock and Supply – MAPA.

Among the necessary records linked to MAPA, the importer shall request from this consenting body the registration of the product via the Integrated System of Agricultural Products and Establishments (SIPEAGRO). In addition, it is necessary to register an import application in the Management Information System for the International Transit of Agricultural Products and Inputs (SIGVIG). 

Wine Supplier (exporter) requirements 

Another highlight when importing is the Brazilian normative instructions about the documents that must be required from the exporter.

In other words, there is a need for the wine supplier to adapt to Brazilian bureaucratic requirements, especially about labels and certificates of origin and analysis. 

Labels 

The legal text that establishes the wine importation requirements is very explicit in detailing the information required both on the main label and on the back label of the packages.

Here’s some of the required information:

• Name of the wine
• Grape type
• Brand
• Ingredients
• Harvest
• Batch
• Preservatives
• Expiry date
• Alcohol content
• The warnings ‘avoid excessive alcohol consumption’ and ‘prohibited for minors under 18’
• Importer’s name and registration

Certificate of Origin (“CO”)

The CO is a certificate issued by the exporter with information proving the origin of the product.

This document can be issued by the agency equivalent to MAPA in the country of origin and must follow the parameters guided by the Brazilian Normative Instructions.

Certificate of Analysis

Among the documents required, the Certificate of Analysis is the one that most generates impasses for wine exporters.

This is due to the rigidity in the regulations regarding such document.

In addition to requiring meticulous analysis of the composition, alcohol, and sugar levels, quality and chemical characteristics, Brazilian legislation requires the laboratory abroad (where the analysis is carried out) to be duly registered upon MAPA.

Only upon that registration the laboratory will be entitled to issue the Certificate of Analysis according to the Brazilian rules and regulations on the matter. 

Standard import procedures 

So far, we have assessed many of the particularities related to the importation of wines, strictly.

However, in addition to the specific details, there is also all the ordinary details that any import requires, such as taxes, documentation, and contracting.

Taxes involved

The import of wines is no different from other products with regard to the tax burden involved.

Below is the list of taxes levied on wine imports:

• Import Tax (“II”)
• Tax on Industrialized Products (“IPI”)
• Social Integration Program Contribution (“PIS”)
• Contribution to Social Security Financing (“PASEP”)
• Tax on Operations related to the Circulation of Goods and Provision of Interstate and Intermunicipal Transport and Communication Services (“ICMS”) 

Import operation documents

In addition to the certificates already mentioned above, the documentation involved in the import operation is an important part of the success of the entire customs logistics chain.

Some of the required documents:

• Commercial Invoice
• Packing List
• Import Invoice
• Import Declaration (“DUIMP”)
• Import License – (“LI” or “LPCO” in Brazil)
• Bill of Lading
• Declaration of Custom Duty (“DAT”)

Logistical care

As it becomes clear, the importation of wines requires a significant volume of bureaucratic adjustments to be observed.

These particularities also impact on the logistical movements necessary for the international purchase of cargo.

Some important aspects about the importation of wines concern the international freight hiring, the modal chose, and customs movements in Brazil. 

International freight

International freight is one of the services with the highest added value in the import operation.

Through partners specialized in this type of service, it is possible for your company to have access to the best freight options indicated for this type of product, based on information related to international negotiation.

Two important points of attention in this regard are the contracting of international insurance coverage and the chosen Incoterms® 2020. 

Mode of Transportation

Some aspects are relevant for the decision of which modal of transport to use in the importation.

The location of the exporter and his company is a key point for such decision.

Some of the main Brazilian wine suppliers are in South America, Chile, and Argentina for example.

Normally, imports from these origins are made by road, and customs clearances are carried out at Brazilian borders.

Despite this, the most used modal is the maritime transport with the wines in packages, normally in boxes carrying 12 units, or these same boxes unitized in pallets.

The modal is chosen also based on the volume of imported wine.

The air modal is the least frequent due to the high cost involved and low volume transport capacity. 

Custom movements

Wine imports are commonly inspected by Brazilian Federal Revenue Service agents placed in bonded areas.

Due to such particularity, it is usually indicated that upon arrival of the goods in Brazil, the cargo of wines is transferred to a terminal authorized by the Federal Revenue Service to move the goods and make them available for inspection, such as their respective documentation.

In a practical way, when the goods arrive at the port or airport, to avoid high storage costs in these custom primary zones, the cargo is transferred before formal nationalization.

Which means the goods are transferred to locations authorized by the RFB to carry out the movement of the goods before the due documental and physical analysis, when necessary.

Only after this inspection and subsequent authorization can all customs clearance procedures, tax collection, and transport to the importer’s address take place normally.

It is clear now that importing wines is not for amateurs, right?

The high degree of requirements to be followed makes this type of import demand very specific technical knowledge and high-risk management capacity at each stage.

That’s why it’s important to count on a company used to this type of procedure and that will make sure your entire operation is carried out in the best possible way.

Talk to one of our specialists and we will plan your import together so that you can celebrate the success of your business enjoying a fine wine.