What Is NCM Code and Why It Is Needed to Import Into Brazil (2025)
Index
- Introduction
- What Is NCM Code in Brazil
- Why Is NCM Important for Imports
- Difference Between NCM and HS Code
- Risks of Wrong NCM Classification
- Taxes and Regulations Linked to NCM
- How to Classify Products Correctly
- Conclusion
Introduction
If you are planning to export or import goods to Brazil, one of the first things you will come across is the NCM code (Nomenclatura Comum do Mercosul). Understanding the NCM number is essential for international companies because it directly impacts import duties, regulations, and even whether your product will be cleared by customs without delays.
What Is NCM Code in Brazil
NCM stands for Mercosul Common Nomenclature. It is an 8-digit code that classifies all goods circulating within Mercosul countries. Each NCM number defines the nature and characteristics of a product, ensuring that customs authorities apply the correct taxes and regulations.
Why Is NCM Important for Imports
When importing, exporting, or moving goods inside Brazil, the NCM code is required to regulate transactions. Incorrect classification can lead to fines, assessments, and operational delays. For this reason, every international company must understand how NCM codes work before exporting to Brazil.
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Difference Between NCM and HS Code
The NCM code is based on the Harmonized System (HS Code), which uses 6 digits to identify goods worldwide. The NCM adds two additional digits, making it more specific for Brazil and Mercosul countries. While the HS Code might classify a general product category, the NCM goes deeper, differentiating between product variations that may be subject to different taxes or regulations.
Risks of Wrong NCM Classification
Through NCM codes, products are identified and classified for Brazilian customs. Any mistake in the classification may result in fines, delays, or unexpected costs. Since the NCM determines the correct taxation, an error can also cause overpayment or underpayment of import duties, both of which create legal and financial risks.
Taxes and Regulations Linked to NCM
There are currently five main import duties and taxes associated with each NCM:
- II (Import Duty)
- IPI (Tax on Industrialized Products)
- PIS (Social Integration Program Tax)
- COFINS (Contribution for Social Security Financing)
- ICMS (State VAT)
In addition, some NCM codes require approvals from regulatory bodies, such as ANVISA for health-related products or MAPA for food-related goods. In certain cases, tax benefits may apply, such as Import Duty exemption through Ex-Tarifário.
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How to Classify Products Correctly
Correct NCM classification is the first essential step before exporting to Brazil. It directly impacts:
- The taxes to be paid
- Whether your product qualifies for special customs regimes
- The speed and cost of customs clearance
By avoiding generic or incorrect classifications, companies reduce risks of fines, delays, and excessive costs.
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Conclusion
The NCM code in Brazil is more than just a number — it defines how your goods will be taxed, regulated, and cleared through customs. For foreign companies, getting the classification wrong can mean costly consequences. That is why working with experienced professionals is the best way to ensure compliance and efficiency in your Brazilian import operations.
