Drawback and Special Customs Regimes in Brazil: Cutting Import Tax on Exports
Short answer. Brazil’s Drawback regime lets exporters avoid or recover the import taxes on inputs that go into goods they export — neutralizing what would otherwise be a heavy landed-cost stack (II, IPI, PIS/COFINS-Importação, and in some cases ICMS). For export-oriented manufacturers, it is one of the most valuable customs tools in Brazil.
What Drawback does
Drawback is an export-incentive customs regime: it ties relief on imported inputs to a commitment to export the resulting product. It comes in three classic modalities:
- Suspension — import taxes on inputs are suspended, pending the export commitment;
- Exemption — replenishment of inputs already used in exports, free of tax;
- Refund (restituição) — recovery of taxes already paid on inputs used in exports.
[Source: Decreto-Lei 37/1966; Regulamento Aduaneiro — Decreto 6.759/2009 — Planalto]
The economic logic: a country should not export its taxes. Drawback keeps Brazilian exports competitive by stripping import tax out of the input cost.
Other special customs regimes to know
Beyond Drawback, Brazil maintains several special regimes relevant to foreign operators:
- Repetro — a special regime for the oil and gas sector, covering imports of equipment used in exploration and production.
- RECOF — industrial customs regime allowing import with suspension for companies that meet control requirements.
- Temporary admission and customs warehousing (entreposto aduaneiro) — for goods entering temporarily or held under suspension.
Each has eligibility and control conditions, administered through the federal trade and customs systems. [Source: Regulamento Aduaneiro — Decreto 6.759/2009; gov.br/Siscomex]
Practical takeaway
If your Brazilian operation imports inputs to export finished goods, Drawback can materially cut your landed cost — model it into your sourcing decisions. If you are in oil and gas or run a controlled industrial import flow, check Repetro/RECOF. These regimes are conditional and documentation-heavy, so plan the compliance before relying on the benefit.
FAQ
What is Drawback in Brazil? A customs regime that suspends, exempts or refunds import taxes on inputs used to manufacture exported goods.
Which taxes does Drawback cover? Typically II, IPI and PIS/COFINS-Importação, and in some cases ICMS, on the qualifying inputs.
Are there other special regimes? Yes — e.g., Repetro (oil & gas), RECOF, temporary admission and customs warehousing.
Sources
Official sources reviewed for this brief: the import-duty legislation (Decreto-Lei 37/1966) and the Customs Regulation governing Drawback and special regimes (Decreto 6.759/2009), administered through the federal foreign-trade system (Siscomex — gov.br).