The National Tax Policy Council (CONFAZ) approved on 07/11/2012 a resolution that puts an end to the so-called “ports’ war”.
The referred resolution, which was based on Resolution No. 13/2012 of the Brazilian Senate, stipulates that the 4% interstate ICMS tax rate will apply to 100%-imported goods and also to those that even going through an industrialization process, result in a product with more than 40% imported content.
But there are several lawsuits questioning the resolution, and according to several state secretaries, it seems that adjustments will be made to the process currently in force.
The main change forecasted sets forth that companies will no longer be obligated to list on the invoice the product’s percentage of imported contents that underwent an industrialization process within the Brazilian territory, being sufficient to inform the value of the imported portion employed as input in the commercialized merchandise.
The breakdown of the details of the imported product will be provided in a separate document, to which the state tax authority will have exclusive access.
This measure shall prevent the strain on the commercial relations between Brazilian companies and their foreign suppliers, since in the procedure currently in force such information was public.