Brazil: Monitoring and reviewing certifications to the Authorized Economic Operators program

Activities related to the monitoring and review of certifications granted under the Brazilian “Authorized Economic Operator program”

Monitoring and reviewing certifications

The Brazilian tax authority (Receita Federal do Brasil—RFB) on 6 April 2022 published guidance (ordinance RFB nº 163) providing for activities related to the monitoring and review of certifications granted under the Brazilian “Authorized Economic Operator program” (Programa Brasileiro de Operador Econômico Autorizado).

The purposes of monitoring authorized economic operator companies are to:

  • Verify that authorized economic operator companies are committed to the objectives, principles, requirements and criteria of the program
  • Promote initiatives aimed at strengthening the security of the international supply chain
  • Encourage voluntary compliance with tax and customs legislation, through preventive actions and incentives for self-regulation

The monitoring activities of certified companies aim to encourage the maintenance of compliance with the requirements of the Authorized Economic Operator program and consist of:

  • Accompanying authorized economic operator companies in the process of detecting vulnerabilities and improving controls in the following cases:
    • Involuntary involvement in supply chain breach actions
    • Detection of evidence or non-compliance with customs legislation
  • Performing periodic validations of the set of requirements and criteria required by the Authorized Economic Operator program
  • Monitoring indicators
  • Carrying out research and evaluation of customs information on authorized economic operator companies
  • Guiding authorized economic operator companies regarding compliance with the program's requirements and criteria
  • Requesting information from authorized economic operator companies regarding compliance with the requirements and criteria of the Authorized Economic Operator program

The activities referred to in the monitoring and periodic review of the procedures of authorized economic operator companies do not characterize the beginning of a tax procedure.

The monitoring activities provided for in Ordinance RFB 163/20 do not affect the execution of procedures designed to investigate violations committed by authorized economic operator companies.

The company certified as an authorized economic operator may have its benefits graduated or interrupted, as a result of the monitoring activities carried out by the RFB team.

In the course of monitoring authorized economic operator companies, if non-compliance with the criteria for permanence in the Authorized Economic Operator program is found, the RFB inspector must initiate a procedural rite of verification, in the form of specific legislation.

Authorized economic operator company information—necessary for monitoring activities—will be obtained internally and externally from the RFB. The aforementioned information will be obtained through:

  • Public sources of data
  • RFB computerized systems
  • Contact of the official responsible for monitoring with the authorized economic operator
  • Alerts or information sent by the authorized economic operator itself
  • Communications sent by any area of ​​the RFB or external body

Possible contacts with authorized economic operator companies will occur:

  • By electronic means
  • Through a face-to-face or virtual meeting
  • By phone

Monitoring activities will be the object of planning and follow-up.

Read an April 2022 report (Portuguese) prepared by the KPMG member firm in Brazil

 

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