The 3rd Chamber, 2nd Panel, 3rd section, of the Administrative Board of Tax Appeals (Conselho Administrativo de Recursos Fiscais – CARF) has recently decided that the PIS-Importation and COFINS-Importation are not imposed on international freight and commissions of international agents paid by a Brazilian legal entity upon exportation.

In summary, the taxation was dismissed based on the argument that the result of the international freight and sales intermediary action does not take place in Brazil, thus dismissing the taxation in the country. The National Treasury’s argument to maintain the tax assessment issued by the Brazilian Revenue Service was that the payments made by a Brazilian legal entity to a foreign company characterize services importation, subject to PIS and COFINS.

This is the first precedent on the matter and, considering that there are no diverging decisions of the 2nd Panel, this case cannot be object of appeal to the Superior Chamber of Tax Appeals.

(Panel Decision n. 3302001.927. Available at: <>. Access in: Mar. 2013).