Brazil Customs Incoterms Restriction
Delivery Duty Paid Incoterm should not be used in Brazil.
U.S. exporters should avoid utilizing the Delivery Duty Paid (DDP) Incoterm when shipping to Brazil.
According to the Brazilian Ministry of Economy’s Foreign Trade Chamber, all ICC Incoterms for the international sale of goods can be used when shipping to Brazil, as long as they comply with the national legal system. While most Incoterms fulfill the criteria, the Brazilian government determined that DDP is an exception on the import side.
In the Brazilian legal system, U.S. or other foreign exporters do not have the legal status to participate in the clearance of goods at the port of entry. Only the Brazilian importer, or a third-party company legally established in Brazil operating on behalf of an importer, may clear goods and pay the respective duties and taxes. With the DDP Incoterm, the foreign exporter is allegedly the party accountable for such payments, which is not permissible under Brazilian law legislation.
For more details regarding the DDP limitations in Brazil and potential alternate solutions, please contact the U.S. Commercial Service’s Trade Facilitation Team via Office.Recife@trade.gov.