We use cookies to give you the best online experience. By using our website you agree to our use of cookies in accordance with our cookie policy. Learn more here.Close Me
The Customs service pledges additional difficulties to
exporters that do not repatriate the proceeds of their
sales.
In recent months, the Government has been proactive in limiting
the flow of currency out of the country, on the understanding that
this helps to maintain the balance of payments.
Complementing this policy, the Customs service issued two
instructions that allow us to foresee additional difficulties for
exporters breaching the obligation to repatriate the proceeds of
their sales.
1. Initiation of summary proceedings on the grounds of an
alleged inaccurate declaration
The first instruction (i.e. number 2 of the year 2012), sets
forth that the Customs service will initiate summary proceedings
under Section 954, paragraph c) of the Customs Code to exporters
that do not repatriate the proceeds of their sales. This summary
proceeding applies whenever an importer or exporter makes an
inaccurate declaration to the Customs service.
The instruction says that the service will "impute and
condemn" exporters. This wording leads us to think that the
Customs service will not be eager to take into consideration the
defenses of the exporters.
But the most important observation is that the lack of
repatriation of proceeds must not be framed as an inaccurate
declaration; not even when the exporter had indeed received the
payment.
The declaration that the exporter has to make when filing the
export transaction includes the tariff code, the price and other
items of the relevant goods. Such declaration does not become
"inaccurate" because of a subsequent event (i.e. not
repatriating the proceeds.). The obligation to repatriate the
proceeds is set forth in foreign exchange rules, not in
customs' laws and/or regulations.
We can predict that the Customs service will try to apply fines
on exporters ranging between one (1) and five (5) times the
un-repatriated amounts.
2. General blockade of payments of exports' incentives
In the second instruction (i.e. number 7 of the year 2012), the
Customs service instructs that any exporter that has breached the
obligation to repatriate the proceeds of their sales will not
receive any export incentive.
The repatriation of proceeds is a condition precedent to the
payment of the benefits of the relevant sale. But the Instruction
goes far beyond this rule, since it sets forth a total blockade of
the benefits of the entirety of the export sales.
The Customs authority is aiming to implement an electronic
blockade based on the tax ID number (i.e. CUIT) of the exporter and
the system implemented by the Central Bank to control any breach to
the foreign exchange rules.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The Department of Trade Remedies (DECOM) of the Ministry of Development, Industry and Foreign Trade recently launched several new anti-dumping investigations and a safeguard investigation in Brazil.
Brazilian companies, Brazilian individuals, and foreigners residing temporarily or permanently in Brazil who have assets abroad must submit the Declaration of Brazilian Capital Abroad to the Brazilian Central Bank.
The Federal Court of Appeals has directed Customs to allow the import of certain goods without prior presentation of the "Import Prior Sworn Statement".
Mr. Fernando Pimentel, the Brazilian Minister of Development, Industry and Foreign Trade (MDIC), confirmed on May 11, 2011, the adoption of a new customs policy that will affect car imports into Brazil.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
