Foreign Trade Glossary

A type of duty rate calculated on the value of the goods (not on weight or quantity). Most import taxes in Brazil, such as the Import Duty (II), are calculated ad valorem on the customs value (CIF). Example: a 12% rate on USD 10,000 = USD 1,200 of Import Duty.

Brazil's National Waterway Transportation Agency (Agência Nacional de Transportes Aquaviários). It regulates and oversees waterway transportation in Brazil: ports, terminals, inland waterways and ocean freight forwarders (NVOCCs). Registration with ANTAQ is mandatory for freight forwarders to operate legally in ocean freight.

Brazil's National Health Surveillance Agency (Agência Nacional de Vigilância Sanitária). A consenting agency responsible for approving imports of medicines, food, cosmetics, medical devices and other items subject to health surveillance. The import license (LI) with ANVISA approval must be obtained before shipment at origin. Products without valid approval are held at customs.

The air transport document issued by the airline or its IATA agent. The AWB is non-negotiable and serves as the contract of carriage, cargo receipt and delivery guide. The HAWB (House Air Waybill) is issued by the consolidating forwarder to the shipper. The MAWB (Master Air Waybill) is issued by the airline to the consolidating forwarder.

The ocean transport document issued by the carrier. It is the contract of carriage, the cargo receipt and a negotiable document of title, required to collect the goods at the port of destination. Types: Original (negotiable, 3 originals), Surrender (released at origin, no physical original), Telex Release (electronic release authorization) and Sea Waybill (non-negotiable, delivered to the named consignee).

LCL (Less than Container Load) is used when the importer's cargo does not fill a whole container. The consolidator groups cargo from several customers in one container (Master B/L) and issues an individual House B/L to each. LCL is cheaper for small volumes but has a longer transit time because of consolidation and deconsolidation at the CFS.

Brazil's Freight Market Information Center, operated by the Merchant Marine authority. A mandatory electronic system for registering every bill of lading (B/L) for cargo bound for Brazil. FollowNet One integrates with CEMercante to automatically obtain arrival data, B/L, vessel and status for each shipment.

A document that proves the country where the goods were manufactured or substantially transformed. Brazil's Federal Revenue may require it to apply preferential rates under trade agreements (e.g., Mercosur, ALADI), and consenting agencies may require it too. In the case of FORM A (Generalized System of Preferences), it allows a reduction or exemption of Import Duty.

An Incoterm in which the seller pays for the goods, international freight and insurance up to the port of destination. Risk passes to the buyer when the goods are loaded on board at the port of shipment. In Brazil, CIF is the basis of the customs value for tax purposes: all import taxes are levied on the CIF value.

Brazil's Social Security Financing Contribution levied on imports of goods and services. It is calculated on the customs value (CIF) plus ICMS and the contributions themselves (tax-inclusive base). The standard rate is 7.6% for goods in general and 3% for some products. Companies under the actual-profit tax regime (lucro real) can recover it as a tax credit.

A document issued by the foreign exporter detailing the sale: parties, description and quantity of goods, unit and total price, Incoterm, payment terms and bank details. It is the main reference document for the DI/DUIMP and the basis of the declared customs value.

Brazilian ministries and agencies that control imports of specific categories. Main ones: ANVISA (health), MAPA (agriculture and livestock), the Army (controlled products), ANATEL (telecom), INMETRO (metrology), IBAMA (environment) and DECEX/CAMEX (sensitive products). They require an import license (LI) before or after shipment, depending on the category.

The main types used in foreign trade: Dry (general dry cargo, 20' or 40'), High Cube (40'HC, taller interior), Reefer (refrigerated, for perishables), Open Top (cargo taller than the container), Flat Rack (machinery and special cargo) and Tank (bulk liquids). A 20' carries about 28 tons; a 40' also carries about 28 tons, with more cubic volume.

A platform that centralizes, in real time, all the information in an import or export chain: shipment status, alerts, KPIs, owners and deadlines. It removes the need to check multiple systems, spreadsheets and emails. In FollowNet One, this view appears as order-to-delivery visibility, with dashboards by department and management by exception.

The unit of Brazil's Federal Revenue Service (Receita Federal) that controls goods entering and leaving the country at bonded facilities (ports, airports, border crossings and dry ports). Customs checks documents, assigns inspection channels, releases or holds cargo and fights smuggling and undervaluation. In Brazil, customs clearance is electronic, through Siscomex.

A company licensed by Brazil's Federal Revenue to provide customs clearance services. It acts on behalf of the importer or exporter to file declarations, pay taxes and release cargo. The licensed customs broker (despachante aduaneiro) is the professional who performs the service on behalf of the firm.

The selection parameter Siscomex applies to each import declaration (DI) to define how closely Brazil's Federal Revenue examines the goods. There are 4 channels: Green, automatic clearance with no inspection; Yellow, document review; Red, physical inspection of the goods; Gray, document review, physical inspection and customs value analysis (suspected undervaluation). The channel is assigned automatically by Siscomex risk management.

The basis for calculating import taxes. It corresponds to the value of the goods plus international freight and insurance (CIF), under the WTO Customs Valuation Agreement (GATT). It is declared in the DI and is the basis for II, IPI, PIS and COFINS. Differences from Federal Revenue reference values can trigger the gray channel. Undervaluation is a serious customs violation.

Brazil's federal tax payment document for foreign trade (Documento de Arrecadação de Receitas Federais, Comércio Exterior). It is the payment slip for federal import taxes (II, IPI, PIS, COFINS, AFRMM), generated automatically in Siscomex when the DI is registered. Payment is made by debit from an accredited bank account.

A charge the ocean carrier applies when the container is not returned empty within the free time (the free-of-charge period). It applies to the period the container stays at the terminal waiting to be picked up. It ranges from USD 20 to USD 200+ per container per day, depending on the carrier and route. FollowNet One monitors the free time of every shipment and issues predictive alerts.

A charge the ocean carrier applies when the container is picked up from the terminal but not returned to the container yard within the free time. Detention differs from demurrage: demurrage applies at the port terminal; detention applies outside the port, while the container is at the customer's site or in transit. Together they are called D&D and are among the largest avoidable costs for importers.

A special customs regime that suspends or exempts taxes (II, IPI, PIS, COFINS) on imported inputs used to manufacture products for export. Types: Suspension (most common), Exemption and Refund. It requires precise tracking of balances, usage deadlines and proof of export, all available in FollowNet One.

A bonded terminal located inland (away from seaports and airports), licensed by Brazil's Federal Revenue for storage and customs clearance of import and export cargo. It lets inland importers clear goods close to their plant without moving the cargo to the seaport. Also called EADI (Estação Aduaneira do Interior) or ICD (Inland Container Depot).

The replacement for the DI in Brazil's new customs clearance model (New Import Process, NPI), rolled out gradually since 2023. The DUIMP combines the import license and the customs declaration in a single document and moves part of the process to before shipment. It brings more efficiency and lower operating costs.

An integrated management system that consolidates finance, accounting, production, inventory and HR. The most common ERPs in Brazil are SAP and TOTVS (Protheus, RM). FollowNet One integrates with ERPs via XML, spreadsheet or REST API, receiving purchase orders (POs) and automatically returning customs clearance data, costs and tax invoices.

A special regime that reduces to zero (or to lower rates) the Import Duty on capital goods and IT equipment with no equivalent produced in Brazil. It is granted by GECEX/CAMEX upon petition. Each ex-tarifário has a set validity period and is tied to the specific NCM code of the goods. It is one of the main competitiveness tools for manufacturers that import equipment.

A simplified import mode for low-value goods sent through courier companies (DHL, FedEx, UPS). Clearance follows a simplified declaration for shipments of up to USD 3,000, with Import Duty paid to Brazil's Federal Revenue when applicable.

The mode in which the importer uses the whole container, whether or not the cargo fills it. In FCL, the container is sealed at origin and opened only at destination. It is best for volumes above roughly 10 to 15 tons or when the goods need to be kept separate (chemicals, food). The opposite of LCL (consolidated).

An Incoterm in which the seller is responsible for the goods until they are loaded on board the vessel at the port of shipment. From then on, freight, insurance and risk belong to the buyer. FOB is widely used in Brazilian commodity exports (soybeans, iron ore) and in imports where the buyer already has its own freight contract.

e.Mix software for freight forwarders, customs brokerage firms and trading companies. It automates shipment follow-up, document issuance, data extraction from Siscomex and customer communication. It is the day-to-day operating system for companies that manage imports and exports on behalf of third parties.

e.Mix's foreign trade software, built on management by exception, for importers, exporters, manufacturers, automotive companies and airlines. It brings real-time visibility to the entire foreign trade operation: predictive alerts, KPIs, POs, costs and ERP integrations. Unlike a TMS (which manages freight), FollowNet One manages the whole operation, from purchase order to customs clearance.

The free-of-charge container usage period granted by the ocean carrier, counted from the vessel's arrival. It ranges from 7 to 21 days depending on the carrier, route and negotiation. Monitoring the free time of each shipment is critical to avoid demurrage (at the port) and detention (outside the port). FollowNet One automatically tracks the free time of every open shipment.

A company or professional that organizes and coordinates international transportation on behalf of the importer or exporter. In Brazil it is called an agente de carga, and it often operates as an NVOCC (Non-Vessel Operating Common Carrier). The freight forwarder books space with ocean carriers or airlines, issues the House B/L or HAWB, coordinates door-to-door logistics and represents the customer before carriers. In Brazil, it is regulated by ANTAQ (ocean) and ANAC (air).

The air transport document issued by the consolidating forwarder to the shipper, based on the MAWB (Master Air Waybill) that the airline issues to the forwarder. In consolidated shipments, each shipper receives an individual HAWB, while the airline only sees the consolidator's MAWB.

The ocean transport document issued by the freight forwarder (NVOCC or consolidator) to the importer for LCL (consolidated) cargo. The HBL is the importer's transport document; the carrier issues the Master B/L to the forwarder. The HBL is not a document of title issued directly by the carrier: to release the cargo, the local forwarder needs to receive the original HBL and present the Master B/L to the carrier.

A Brazilian state tax (tax on the circulation of goods and services) levied on imports. Import ICMS is collected by the state where the importer is established. The rate ranges from 4% to 25% depending on the product and the state. It is calculated on a tax-inclusive basis over the customs value plus II, IPI, PIS and COFINS.

A document issued automatically by Siscomex after the import declaration (DI) is cleared. The CI confirms the import has been regularized and is required to issue the inbound tax invoice for the goods and to book the import in the accounts.

The electronic declaration registered in Siscomex that formalizes an import into Brazil. It consolidates supplier, goods, NCM code, taxes, freight, insurance and customs regime. After registration, it is assigned an inspection channel (green, yellow, red or gray). Once cleared, it generates the Import Clearance Certificate (CI). It is being gradually replaced by the DUIMP (Single Import Declaration).

A federal tax on the import of foreign goods into Brazil. Tax base: customs value (CIF). The rate ranges from 0% to 35% (or higher in safeguard cases) depending on the NCM code and the country of origin. It can be reduced by trade agreements (Mercosur, ALADI), ex-tarifário or special regimes. It is the federal government's main trade policy tool.

The total time between the purchase order (PO) and the goods becoming available. It includes manufacturing + international freight (transit time) + customs clearance + domestic delivery. Lead time varies widely: from China by sea it can be 60 to 90 days; by air, 7 to 15 days. FollowNet One records each stage with its actual date, so you can calculate historical lead time by supplier, mode and product.

Electronic approval in Siscomex for products subject to government control (ANVISA, MAPA, the Army, ANATEL, IBAMA, etc.). For some products it must be obtained before shipment; for others it can be registered before or after shipment, depending on the agency. It has an expiration date. FollowNet One monitors expiration dates and issues automatic alerts.

The electronic tax invoice (Nota Fiscal Eletrônica) issued by the importer to bring imported goods into inventory after customs clearance. It must reference the DI/CI number. It is the basis for ICMS, IPI and PIS/COFINS credits, depending on the importer's tax regime, and is mandatory for any inventory movement of imported goods.

11 terms standardized by the ICC that define the responsibilities of buyer and seller: freight, insurance, customs clearance and the point where risk transfers. Any mode: EXW, FCA, CPT, CIP, DAP, DPU, DDP. Sea only: FAS, FOB, CFR, CIF. The most used in Brazil: FOB (commodity exports) and CIF (basis of the customs value). On imports, DDP is rare because it requires the foreign seller to clear customs in Brazil.

Insurance covering loss, damage and theft of goods during international transport. It is mandatory when the Incoterm requires it (CIF, CIP). It is calculated on the CIF value plus 10% (market practice). The policy can be open (covering recurring shipments) or specific to one shipment. It is part of the customs value calculation base.

A Brazilian federal tax on domestic and imported industrialized products. On imports, it is levied on the customs value plus Import Duty. Manufacturers can recover it as a tax credit (non-cumulative). The rate varies by NCM code from 0% to 330% (beverages, tobacco). Many capital goods have a zero rate.

The customer's internal user responsible for administering the e.Mix platform, driving continuous improvement and serving as the link with support. The key user sets up reports, creates users, manages access, follows integrations and takes part in continuous improvement reviews. Operations with an active, dedicated key user (4 to 8 hours a week) achieve the best results on the platform.

Consolidated cargo: the importer's volume does not fill the whole container. The freight forwarder groups cargo from several customers, issues a House B/L for each and a single Master B/L to the carrier. Best for volumes under roughly 15 tons. Transit time is longer because of consolidation and deconsolidation at the CFS (Container Freight Station).

A professional licensed by Brazil's Federal Revenue to represent importers and exporters before customs. They file declarations in Siscomex, follow inspection channels, release cargo and advise on tariff classification, customs regimes and documents. They usually work for a customs brokerage firm (comissária de despachos).

A method in which managers focus only on the shipments that deviate from the standard, the "exceptions", instead of monitoring everything all the time. In foreign trade, the team receives automatic alerts only when a deadline is at risk, a cost exceeds the forecast or a license is about to expire. It multiplies operating capacity without adding headcount. FollowNet One is built around this concept.

Brazil's Ministry of Agriculture, Livestock and Supply (Ministério da Agricultura, Pecuária e Abastecimento). A consenting agency responsible for approving imports of agricultural products, food of animal and plant origin, seeds, live animals and farm inputs. MAPA approval is mandatory for these products and may be requested before or after shipment, depending on the case.

The ocean transport document issued by the carrier directly to the freight forwarder (NVOCC/consolidator) for consolidated (LCL) shipments. The final importer receives the House B/L issued by the forwarder. In direct FCL shipments (with no intermediary), the carrier issues the B/L directly to the importer or exporter.

The air transport document issued by the airline to the consolidating forwarder. The forwarder issues a HAWB to each individual shipper. On direct shipments without consolidation, the airline may issue the AWB directly to the importer.

The 8-digit code that classifies goods in Mercosur, based on the WCO Harmonized System (HS). It determines the rates of II, IPI, PIS, COFINS and ICMS, the licenses required and any special treatment. The first 6 digits follow the HS (chapter, heading and subheading); the last 2 are the Mercosur breakdown. Incorrect classification can lead to fines, cargo holds and retroactive taxation.

The reform of Brazilian customs clearance launched in 2020 by the Federal Revenue, which replaces the DI with the DUIMP (Single Import Declaration). The NPI moves part of the process to before shipment (product catalog, LCOR), removes redundant documents and digitizes steps. The rollout is gradual by NCM code and operator.

An ocean transport operator that owns no vessels but books space with ocean carriers to resell it. The NVOCC issues its own bills of lading (House B/L) and is contractually liable to the shipper. In practice, many freight forwarders operate as NVOCCs.

The company that owns or operates the vessel carrying the cargo. The ocean carrier issues the Master B/L, sets freight rates, defines free time and charges demurrage and detention. The largest carriers operating in Brazil include Maersk, MSC, CMA CGM, Hapag-Lloyd and Evergreen.

Thomson Reuters' global trade management (GTM) platform, used by large importers, exporters and manufacturers to manage tariff classification, customs compliance, licensing and document automation. FollowNet One integrates with OSGT (Thomson Reuters ONESOURCE Global Trade) via API and EDI, syncing import and export events (PO approval, shipment, customs clearance, delivery) with no re-keying between platforms.

The packing document issued by the exporter detailing each package in the shipment: number of packages, packaging type, gross and net weight, volume and the contents of each box or pallet. It complements the commercial invoice and is required by customs for physical inspection (red channel) and to calculate ocean and air freight.

Brazil's Social Integration Program contribution levied on imports of goods and services. It is calculated on the customs value (CIF) at a standard rate of 1.65% for goods in general. Companies under the actual-profit tax regime (lucro real) can recover it as a tax credit. Together with COFINS on imports, it makes up the "PIS/COFINS" on imports.

The purchase order the importer sends to the foreign supplier. It formalizes product, quantity, price, deadline and payment terms. In FollowNet One, the PO module automatically links the order to the shipment and to customs clearance, so you can track the full cycle with partial receipts per item and visibility of the open balance.

The mandatory electronic registration to operate in Siscomex. Types: Unlimited (no value limit), Limited (up to USD 150k per six months) and Express (imports exempt from licensing). Obtaining it requires good tax standing, and irregularities trigger automatic suspension. It is managed by Brazil's Federal Revenue.

Since 2020 it has replaced the Export Registration (RE) and the Export Dispatch (DE). The DUE is the electronic document in Siscomex that formalizes an export from Brazil. FollowNet integrates with Siscomex to track the status of DUEs automatically.

The Brazilian Federal Revenue system that controls cargo movement in bonded facilities. It records entry, exit, storage and transfer of cargo at ports, airports and terminals. FollowNet One integrates with Siscarga to automatically obtain arrival status and the situation of cargo at terminals.

Brazil's Integrated Foreign Trade System, run by the Federal Revenue. The mandatory electronic platform for registering imports (DI/DUIMP) and exports (DUE). It centralizes all Brazilian customs clearance. FollowNet integrates with Siscomex to automatically extract data from DIs, DUEs, bills of lading and channel status.

An agreement that sets maximum deadlines for carrying out activities. In foreign trade, SLAs are used to control partner response times, document release deadlines and support response. FollowNet One lets you set SLAs by shipment type and issues alerts when an SLA is at risk of being missed.

The Portuguese term for detention: the charge the ocean carrier applies when the container is not returned empty within the free time after being picked up from the terminal. "Sobrestadia" is the term used in Brazil, while "detention" is the international term. Together with demurrage (inside the port), it makes up the D&D costs that FollowNet One monitors and helps prevent.

Differentiated treatment with suspension, reduction or exemption of taxes in specific situations. Main ones: Drawback (inputs for export), Temporary Admission (goods that will be returned), Customs Warehouse (storage with tax suspension), Recof (IT and electronics manufacturers), Repetro (oil and gas) and ATA Carnet (trade fairs and exhibitions).

A transportation management system that handles freight procurement, tracking and payment. A TMS focuses on the logistics and financial side of freight. It differs from FollowNet One: a TMS manages freight; FollowNet One manages the entire foreign trade operation, from purchase order to customs clearance, including licenses, taxes, operational alerts and KPIs.

A company specialized in handling foreign trade operations for third parties, importing or exporting in its own name on behalf of its customers. It has specific tax benefits under the drawback regime and access to differentiated credit lines. FollowNet One has a specific module for trading operations with multiple customers and suppliers.

The time it takes to move the goods from origin to destination. Benchmarks: China to Brazil by sea, 25 to 45 days; Europe to Brazil, 15 to 25 days; USA to Brazil by sea, 10 to 20 days. By air, 1 to 5 days. Transit time is one of the main inputs for calculating import lead time and planning safety stock.

The means of transport used for international movement. Ocean: largest volumes, lowest cost per ton, long transit time. Air: high speed, high cost, limited by weight and volume. Road: South America, Mercosur. Rail: rarely used for exports. The choice of mode affects cost, lead time and required documents.

The process of grouping packages into larger units to make handling and transport easier: palletizing or containerizing. Unitization reduces port handling time, cuts damage and improves traceability. Some logistics operators require it, and it can affect the ocean freight calculation (W/M, weight or measurement).

The verified gross weight of the container (goods + packaging + tare), mandatory since 2016 under the IMO SOLAS Convention. The shipper must provide the VGM to the carrier before loading at the port. An incorrect or missing declaration prevents loading. It can be determined by weighing the packed container or by adding up the weights of all packages (Method 2, with documented traceability).

A warehouse management system that controls inbound and outbound movements, stock locations and traceability inside a distribution center or bonded warehouse. The WMS feeds physical inventory data into the ERP. FollowNet One can integrate with the WMS to match physical inventory with open import shipments, closing the gap between physical and fiscal inventory.