There is new guidance in Brazil concerning the procedures for verifying the country of origin of imports subject to preferential tariff treatment.
Instrução Normativa RFB nº 1.864/18 was published in the official gazette at the end of 2018 and, in setting forth new rules of the tax authority (Receita Federal do Brasil—RFB) with respect to the country of origin measures, repealed an earlier regulation (IN SRF 149/02).
The new guidance generally aims to modernize and facilitate the procedures related to origin verification, in accordance with the Mercosur “regime of origin.” The guidance also aligns the rules in Brazil with other international agreements entered into both by the Mercosur trading block and Brazil.
The new guidance defines several relevant terms in an effort to address and clarify possible issues that taxpayers and importers may have. For instance, the following terms are defined:
Among other innovations under the new guidance are the following:
Read a March 2019 report (Portuguese) prepared by the KPMG member firm in Brazil
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