Taxation
NCM Tariff Classification: What It Is and How It Works
Learn how NCM tariff classification works and why it is essential for any foreign trade operation.
NCM Tariff Classification (Common Nomenclature of Mercosur) is the system used to identify and classify all goods in the foreign trade operations of Mercosur countries. It is based on the Harmonized System (HS) of the World Trade Organization.
What is NCM?
NCM is an 8-digit numerical code that uniquely identifies a product. The first 6 digits follow the international Harmonized System, and the last 2 are specific to Mercosur.
Why is correct classification important?
NCM classification determines the rates for Import Tax (II), IPI, ICMS, and PIS/COFINS. Incorrect classification can result in fines, clearance delays, and even seizure of goods.
How to classify a product?
Classification follows general interpretative rules defined in the Harmonized System. It is necessary to analyze the product's composition, its main function, the predominant material, and its form of presentation. For complex products, it is recommended to consult a tariff classification specialist or request a Formal Consultation Solution from the Federal Revenue.
Common classification errors
The most frequent errors include classifying products by similarity without proper technical analysis, not considering the Explanatory Notes of the Harmonized System, and confusing products with multiple functions. Distefano Consulting offers specialized tariff classification consulting to ensure compliance and efficiency in your operations.