Advisor: Brazil Customs Bonds
Marsh's latest advisor examines how a recent change in the way companies operating in Brazil must meet importation tax requirements could result in increased costs for many companies operating in Brazil. Under Brazilian legislation, firms that import equipment for use in Brazil on a temporary basis, or that have service contracts with Brazilian entities, are eligible to suspend importation tax.
Previously, a company-signed guarantee of R$1 million was acceptable for the local tax authority but due to a change in legislation, third party guarantees for the entire suspended amount are now required.
Those potentially affected include companies with high value units operating in the Brazilian exclusive economic zone (EEZ).
Customs bonds are one solution to this change. With over 10 years of local experience, Marsh's Surety Practices have the depth of experience, expertise and insurance market relationships to provide secure surety solutions on competitive terms and with strong and respected surety companies.