Brazil's import tax system is among the most complex in the world. Seven different taxes cascade on each other, meaning each tax is calculated on a base that includes the previous taxes. The result: imported goods typically cost 40–100% more than their FOB price by the time they clear customs.
This guide explains each tax, shows how they're calculated, and covers the upcoming reform that will fundamentally change the system between 2026 and 2033.
The seven import taxes
1. Import Duty (II — Imposto de Importação)
The primary customs duty, set by CAMEX based on the product's NCM code. Rates range from 0% to 35%, with most industrial goods at 14–20%.
The rate is determined by Brazil's TEC (Tarifa Externa Comum) — the Mercosur Common External Tariff. Products with Ex-Tarifário status get 0% duty.
2. IPI (Imposto sobre Produtos Industrializados)
Tax on industrialized products. Rates vary widely by product (0–300%), with most goods at 0–15%. Determined by the TIPI table indexed by NCM code.
Note how IPI is calculated on CIF plus II — this is the cascading effect.
3. PIS (Programa de Integração Social)
Social integration program contribution. Fixed rate on imports.
4. COFINS (Contribuição para Financiamento da Seguridade Social)
Social security financing contribution. Also a fixed rate on imports.
Some products in Annex I of Law 10.865/04 have an additional 1% COFINS (total 10.65%), extended through 2027 by Law 14.784/2023.
5. AFRMM (Adicional ao Frete para Renovação da Marinha Mercante)
Maritime freight surcharge — only applies to goods arriving by sea.
If your goods arrive by air or land, this doesn't apply.
6. ICMS (Imposto sobre Circulação de Mercadorias e Serviços)
State-level VAT — and the most complex tax in the cascade. Each of Brazil's 27 states sets its own rate (17–22%). ICMS is calculated "por dentro" (gross-up), meaning it's included in its own calculation base.
ICMS = ICMS base × ICMS rate
This gross-up formula means the effective ICMS rate is always higher than the nominal rate.
ICMS rates by state (2026)
For interstate transactions involving imported goods, a flat 4% ICMS applies regardless of state.
7. Siscomex Fee
Fixed administrative fee per import declaration: R$ 214.50.
Full calculation example
Product: industrial machine, NCM 8459.61.00, FOB $10,000, sea freight $600, insurance $50, destination São Paulo (ICMS 18%), exchange rate R$ 5.70/USD.
| Step | Value (BRL) | Formula |
|---|---|---|
| CIF | 60,705.00 | (10,000 + 600 + 50) × 5.70 |
| II (14%) | 8,498.70 | 60,705 × 14% |
| IPI (0%) | 0.00 | (60,705 + 8,498.70) × 0% |
| PIS (2.1%) | 1,274.81 | 60,705 × 2.1% |
| COFINS (9.65%) | 5,858.03 | 60,705 × 9.65% |
| AFRMM | 273.60 | 600 × 5.70 × 8% |
| Siscomex | 214.50 | fixed |
| ICMS base | 93,688.59 | 76,824.64 ÷ (1 − 0.18) |
| ICMS (18%) | 16,863.95 | 93,688.59 × 18% |
| Total taxes | 32,983.59 | |
| Landed cost | 93,688.59 | +54.3% over CIF |
Try it yourself with our calculator →
Tax Reform 2026–2033: what changes
Brazil is transitioning from the current cascading system to a dual VAT. The timeline:
The reform aims to simplify the cascading system into a cleaner dual VAT, but the transition period itself adds complexity. Our calculator currently uses 2026 rates — we'll add year-by-year projections as the reform progresses.
Quick reference
?What is an NCM code?
NCM (Nomenclatura Comum do Mercosul) is Brazil's 8-digit tariff classification code. The first 6 digits match the international HS (Harmonized System) code — the remaining 2 are Mercosur-specific. Every import tax rate in Brazil is determined by the NCM code.
HS → NCM lookup tool?What is Ex-Tarifário?
Ex-Tarifário is a Brazilian government program that temporarily reduces import duty (II) to 0–2% for capital goods (BK) and IT/telecom equipment (BIT) that have no domestic equivalent. Applications are analyzed by SDIC and resolutions published by GECEX.
Check Ex-Tarifário eligibility?What is AFRMM?
AFRMM (Adicional ao Frete para Renovação da Marinha Mercante) is an 8% tax on international ocean freight for goods arriving by sea. It funds Brazil's merchant marine fleet. Only applies to maritime shipments — air freight is exempt.
All 7 import taxes explained?What is a Despachante Aduaneiro?
A despachante aduaneiro is a licensed customs broker — required for all import clearances in Brazil. They file declarations in Siscomex, classify NCM codes, pay taxes on your behalf, and handle inspections. Must hold a registration from Receita Federal.
How to choose a customs brokerKey takeaways for foreign exporters
- Always calculate the full landed cost before quoting to Brazilian buyers. The cascading taxes can more than double the FOB price.
- Check Ex-Tarifário status for your product — it can save 22% of the landed cost.
- The destination state matters — ICMS varies from 17% to 22%, directly affecting final cost. Zona Franca de Manaus has even lower rates.
- Sea freight adds AFRMM (8% of freight value). For high-value, low-volume goods, air freight may be cheaper overall.
- Drawback eliminates ALL taxes if your buyer uses the import to manufacture for export.
- Temporary admission suspends all taxes for goods brought to fairs, demos, or testing.
- The EU-Mercosur agreement will progressively reduce II for EU exports over 10–15 years, starting May 2026.