Importing into Brazil: third-party (conta e ordem) vs. order-based (encomenda)

Both models allow companies to import into Brazil through a trading company, but they affect cash flow, liability and taxes differently. Understanding the differences avoids surprises in customs audits and in the final cost.

Third-party import (conta e ordem)

The trading company provides the import service: it files the customs clearance in its own name, but the goods are bought with the buyer's funds, and the buyer is the actual purchaser. The buyer is named in the import declaration and must be registered in Siscomex (RADAR). The trading company is paid a service fee.

Order-based import (encomenda)

The trading company buys the goods abroad with its own funds and then resells them to a buyer defined before the operation. That buyer is also named in the declaration and must also be registered in RADAR. Because the trading company pays the supplier, the client's cash stays free until the resale.

Liability

In both models, the buyer is jointly liable with the trading company for import taxes and any penalties. A clear contract, correct documents and sound tariff classification protect both sides.

Taxation

• Import taxes (import duty, IPI, PIS/Cofins-Import and ICMS) are paid at customs clearance in both models;
• The buyer is treated as a manufacturer for IPI purposes, so its resale is also subject to IPI;
• In the order-based model, the trading company's resale to the buyer is a regular domestic sale, with an invoice and sales taxes on the price including the trading company's margin;
• The state where the operation is structured affects ICMS. In Minas Gerais, the Import Corridor special regime can lower that cost, depending on the product.

Which one to choose

Third-party import usually suits companies with cash available that want to keep their margin and tax planning. Order-based import usually suits companies that prefer to buy the goods domestically and ease their cash flow. WW Trading compares the total landed cost for your product before you decide.