Import by account and order and custom import are two forms of indirect import into Brazil, but they are not interchangeable. The central difference is the commercial, financial, and documentary structure of the operation, which the trading company defines according to the characteristics of each project.
In both models, a trading company participates in the operation and appears in the documentation. In import by account and order, the goods may be paid for by the client or by the trading company, with the funds advanced for foreign-exchange payment. In custom import, the goods are purchased abroad to fulfil a predetermined order, and the payment for the goods must be made by the trading company.
What is import by account and order into Brazil?
In import by account and order, the acquiring company purchases the goods abroad and hires a trading company to carry out the import into Brazil. The trading company appears as the consignee in the documentation and acts in accordance with the agreement between the parties. The financial resources originate from the acquiring company, even when the trading company makes payments to the foreign supplier as part of the contracted service.
According to Brazil's Federal Revenue Service, the acquiring company is the principal in the import operation and the trading company acts as its agent. Learn more about WM's import by account and order solution.
What is custom import into Brazil?
In custom import, the trading company is hired to carry out the import into Brazil for a predetermined ordering company. The trading company appears as the importer in the documentation and issues a sales invoice to the ordering company as part of the structure of the operation.
This does not mean that the ordering company only pays after nationalization. In custom import, payment to the foreign supplier must be made by the trading company, which requires the ordering company to advance all or part of the funds, as provided for in Normative Instruction RFB No. 1,937/2020. These details must be set out in the agreement and comply with the applicable legislation.
Custom import is used mainly in operations in which the ordering company and the trading company are located in different Brazilian states, allowing the parties to assess tax incentives applicable according to the destination and use of the goods.
See how WM structures custom import operations.
Import by account and order or custom import: what are the differences?
| Criterion | Import by account and order | Custom import |
|---|---|---|
| Financial resources | They are made available by the acquiring company, which may advance the funds for the trading company to make the foreign-exchange payment. | The ordering company may advance all or part of the funds related to the obligation, in accordance with the agreement and applicable legislation. The trading company must pay the supplier. |
| Trading company's role | Service provider and agent of the acquiring company, appearing as consignee in the documentation. | Responsible for carrying out the import into Brazil, appearing as importer in the documentation and issuing a sales invoice to the ordering company. |
| Contractual relationship | A service agreement between the trading company and the acquiring company. | A custom import agreement between the trading company and the predetermined ordering company. |
| After nationalization | The documentation must reflect the provision of services and delivery of the goods to the acquiring company. | The trading company issues a sales invoice to the ordering company, as provided for in the structure of the operation. |
How is the import model defined?
The trading company must assess the commercial, financial, and documentary reality of the import operation into Brazil in order to structure a model that is consistent with legislation and business objectives.
For both import models, it is important to assess:
- the location of the importing company;
- how commercial, tax, and customs documentation will be organized;
- the RADAR Siscomex authorization and available limit for the operation;
- tariff classification, taxes, and applicable incentives;
- regulatory requirements, production lead times, transportation, and delivery.
Tax incentives are also part of the assessment
The use of the goods, the Brazilian state of destination, and the company's characteristics influence the definition between import by account and order and custom import, as well as the tax incentives that may apply to the operation. In some cases, it may be possible to obtain a reduction in ICMS, Import Tax, or IPI rates, for example.
For this reason, it is important to rely on specialists to assess applicable tax opportunities while respecting legislation and the particularities of each project. The goal is to structure the operation safely, predictably, and with the best possible tax efficiency for the case.
How does WM Trading define the appropriate model?
With operations in 12 Brazilian states and a unit in Panama, WM Trading analyzes the particularities of each import project to define the most appropriate model for bringing goods into Brazil.
The assessment considers the origin and destination of the cargo, the company's characteristics, the specific characteristics of the goods, required documentation, taxation, and applicable tax incentives. This helps optimize operational and logistics expenses, as well as the taxes levied, always in compliance with legislation.
With more than 20 years of experience in foreign trade, WM coordinates the tax, customs, and logistics stages of an import operation, from planning to delivery of the nationalized cargo in Brazil. Defining the model before the purchase helps reduce risks, improve total-cost predictability, and organize the operation from the outset.
Frequently asked questions about import by account and order and custom import
Does the importer need RADAR Siscomex authorization?
Yes. In both import by account and order and custom import, the importer must hold RADAR Siscomex authorization, with a limit available for the operation. Depending on the operation, the acquiring or ordering company must also meet authorization requirements and complete the linkage in RADAR Siscomex, subject to applicable rules and exceptions.
Does the trading company own the goods under either import model?
No. In both cases, the acquiring company is the owner of the goods and the trading company provides a service. In custom import, the trading company issues a sales invoice to the ordering company, but ownership remains with the ordering company, except in cases governed by a different agreement.
Can the model be defined solely by tax savings?
No. The trading company must define the model based on the commercial, financial, and documentary reality of the operation. Taxes and possible incentives are assessed within the complete structure and do not replace the legal requirements of each model.
Is an agreement between the parties required?
Yes. The Federal Revenue Service provides for an agreement previously signed by the parties and rules on linkage and documentation in Siscomex. Its content and formalization must be compatible with the selected model.
How can my company determine the most appropriate import model?
Seek guidance from a trading company to assess the operation and help define the best path through a tax, customs, and logistics analysis before contracting the import into Brazil.
Count on specialists to import by account and order or custom import
Register here, and a WM Trading specialist will help your company structure the import into Brazil under the model most appropriate for your operation, with efficiency and tax optimization.
