Brazil Customs Duty Rates Compared for Selected Imports

Aug 9, 2010
Daniel Workman

Running Shoes Imported into Brazil Duty Rates - Michael (Picasa Web Albums)

Brazil's customs duty rate on imported running shoes is 35%. That is much higher than Canada's rate of 16% and the U.S. general tariff rate of 10.5%.

Entrepreneurs planning to sell their products in Brazil must first research Brazilian tariff duties and taxes.

After all, tariff duties and taxes imposed on imported goods increase costs and therefore the final prices charged to the ultimate consumers in Brazil.

High customs duty tariff rates can impact international trade opportunities. If the customs charges cost too much, fewer people will buy the imported goods particularly where there are product alternatives.

Brazilian tariff duties below are compared with customs rates payable in the United States and Canada for 10 popular consumer products. For all countries, non-preferential tariff rates are used.

Brazil Customs Tariff Rates Compared

The following products are listed in alphabetical order. Shown within brackets are the first 8 digits of the harmonized tariff schedule (HTS) code. Note that the seventh and eighth digits of the HTS code can vary by country of import, while the preceding 6 digits are usually follow World Trade Organization (WTO) standards.

Bottled water (HTS code 2201.90.00) … 20% of imports’ declared value
Cell phones (8517.12.31) … 16%
Computer parts and accessories (8473.30.19) … 10%
Flu medicine (3002.20.11) … 2%
Hard cheese (0406.90.10) … 28%
iPads (8471.30.12) … 16%
Perfume … (3303.00.10) … 18%
Running shoes (6404.11.00) … 35%
Shaving cream (3307.10.00) … 18%
Sunglasses (9004.10.00) … 20%.

At 35%, athletic footwear imported into Brazil is subject to the highest tariff duty rate. Additional excise duties and taxes are applied after the tariff duties are added to the import shipment’s price.

Other consumer products subject to costly Brazilian duty rates include hard cheese (28%), bottled water (20%) and sunglasses (20%). Flu medicine including vaccines has the lowest tariff rate at 2%.

Canadian Customs Rates Compared with Brazil’s Tariffs

Under Canada’s Most Favoured Nation (MFN) tariff treatment, there is no customs duty payable for 3 of the 10 consumer products. Among the remaining imported products, all 7 are subject to lower Canadian duty rates than are imposed in Brazil.

Bottled water … 6.5% of imports’ declared value (308% lower than Brazil’s rate)
Cell phones … duty free
Computer parts and accessories … duty free
Flu medicine … duty free
Hard cheese … 2.84 cents per kilogram
iPads … duty free
Perfume … 6.5% (277% lower than Brazil’s rate)
Running shoes … 16% (219% lower)
Shaving cream … 6.5% (277% lower)
Sunglasses … 5% (400% lower).

The highest Canadian tariff rate is 16% on running shoes. Even there, that percentage of customs duty less than half Brazil’s rate of 35% on imported athletic shoes.

US Customs Rates Compared with Brazil’s Tariffs

Under America’s General Tariff treatment, 4 consumer products are subject to lower tariff rates when compared with Brazilian duties on those same imports while 6 require no customs duties at all.

Bottled water … duty free
Cell phones … duty free
Computer parts and accessories … duty free
Flu medicine … duty free
Hard cheese … 12% of imports’ declared value (233% lower than Brazil’s rate)
iPads … duty free
Perfume … duty free
Running shoes … 10.5% (333% lower)
Shaving cream … 4.9% (367% lower)
Sunglasses … 2% (1,000% lower).

American customs duty rates on imported running shoes at 10.5% are 70% lower than the 35% payable on athletic shoes delivered in Brazil.

Brazil International Trade Leads

In general, Brazil charges higher tariff duty rates on imported products. This in turn increases the cost that Brazilian consumers have to pay for many foreign-made goods that are not covered under a preferential tariff agreement.

Canadian or American entrepreneurs looking to expand into Brazil’s vast market of 201.1 million consumers must carefully evaluate the impact of Brazilian tariffs when they price their exported goods.

For example, a 16% tariff on imported Apple iPads may not decrease demand among Brazilians looking for must-have technologies.

However, 18% customs duty rates on perfume and shaving cream may well motivate Brazilians to buy those goods locally where prices are more competitive.