Mercosur Common Nomenclature (NCM)
The tax classification or NCM (Mercosur Common Nomenclature) used in Brazil is the numerical coding that identifies the product to be imported or exported before the supervisory bodies. It is responsible for determining the taxes levied on the customs process and their administrative treatments, that is, whether there is any supervisory body that inspects the goods.
For the correct classification of the tax classification it is necessary to follow the general rules of interpretation of the harmonized system, however, knowing the product and its operation is essential to determine the most appropriate classification.
WHAT IS THE IMPORTANCE OF TAX CLASSIFICATION?
The NCM is an extremely important subject in the customs process, as the vast majority of penalties applied by the Federal Revenue Service are related to the tax classification and description of the goods. Therefore, it is essential to study the classification at the beginning of each process, in order to avoid doubts by inspection and fines to the importer.