Electronic Correction Letter CC-e: find out what it is and in which cases it can be used!

Electronic Correction Letter CC-e: find out what it is and in which cases it can be used!

As in any document, the completion of electronic invoices is subject to possible errors. It is to remedy these misunderstandings and ensure the smooth progress of trade relations that the Electronic Correction Letter exists!

Even with similar resources, such as the adjustment or supplementary tax invoice, the CC-e serves to correct specific fields more practically, in cases that do not compromise essential operations of the (NF-e electronic tax invoice) such as prices, taxes and quantities.

Extremely advantageous in situations of nonconformity, its use requires special attention, as the document counts aspects and limitations that must be observed in order for its validity to be assured.

Find out more about the Electronic Correction Letter concept, its applications, situations in which it can and cannot be used, as well as its main points of relevance below. Continue reading!

What is the Electronic Correction Letter?

The act of issuing electronic invoices sometimes requires certain less-common procedures to be performed.

Once authorized by SEFAZ, the NF-e cannot undergo any type of modification, as changes to its content invalidate the digital signature.

Where an irregularity is found after issue, it is possible to cancel the invoice, provided that the goods stated therein have not circulated.

Another possibility is to issue an additional invoice or adjustment according to each situation. The most appropriate feature, however, is that the errors are corrected in the fields in which they occurred.

For this specific correction to be made in an appropriate and authorized manner, we have the Electronic Correction Letter, known as the CC-e!

As the blog Infovarejo points out, the CC-e does not change the file of the NF-e issued, but functions as a supplementary document, able to textually clarify the corrections related to the invoice in question.

Basically, the Electronic Correction Letter acts like the traditional paper correction letters, but with adaptation to the current computerized invoice issuance system.

Without a defined standard, the text entered in the CC-e is free and can be up to 1000 characters long. Its description must be clear, objective and accurately point out the corrections that need to be considered.

What is it for?

The paper correction letter has no longer been used since 2012 as determined by  the  SINIEF Adjustment

Therefore, the issuance of the Electronic Correction Letter is mandatory for the resolution of any misunderstanding or irregularity present in an electronic invoice.

Its sole and main objective, therefore, is the eventual correction of information present in the NF-e.

The CC-e was regulated by means of a decree that has been valid throughout the Brazilian territory since 2011.

When using it, however, it is necessary to bear in mind that not all fields of an electronic invoice can be rectified. Check out the situations that can be corrected by the Electronic Correction Letter in the following item!

In which situations can it be used?

As mentioned earlier, not all data from an NF-e can be changed using the CC-e!

The information that can be reviewed in the Electronic Correction Letter, as highlighted by the blog Compliance, is as follows:

  • Description of the goods
  • Tax Code of Operation, provided that there are changes to the nature of the taxes
  • Business Name of the Recipient
  • Information on volume, weight, and packaging, provided that they do not change the invoiced quantity of the item
  • Omission or misrepresentation related to the Legal Basis of possible tax benefits
  • Tax Status Code, provided that there are changes to the tax values
  • Carrier details, such as address
  • Entering or changing additional NF-e information such as vendor name, carrier for reshipping, customer order etc.
  • Date of Issue or Departure, provided that there are no changes to the ICMS calculation period.

Now that you know what is the information that can be changed by CC-e, check the following item for the data in which the rectifications are denied.

When should it not be used?

The information in the NF-e that cannot be corrected using the CC-e, as addressed by the blog Conta Azul, are as follows: 

  • Changes in registration data that result in changes of the recipient or sender
  • Itemization of Taxes or other information that may change the Operation or Tax Calculation
  • Tax amounts corresponding to the value of taxes, such as tax rate, calculation basis, quantity, price difference, operation value etc.
  • Description of the goods capable of changing the tax rates.

With the concept, application, and possibilities of using the Electronic Correction Letter in mind, find out below all the points that must be considered for the CC-e to be issued correctly!

What must be considered for it to be done correctly?

First of all, it is necessary to know that the focus of the Electronic Correction Letter is only the correction of minor errors that do not compromise the primary operations of the NF-e, such as prices, taxes and quantities.

Therefore, its use should be avoided by focusing on the correct completion of the invoice. The CC-e is a last resort only.

If the perceived mistake refers to the tax legislation, usually the best solution is to issue a supplementary tax invoice. When the NF-e is still with the issuer, it is also possible to cancel the document and prepare a new one.

The issuance of the Electronic Correction Letter can be made within 30 days, or 720 hours, from the authorization of the use of the NF-e to be corrected.

The transmission of the CC-e can only be made for an authorized electronic tax invoice , as it is impossible to correct a canceled NF-e.

A tax invoice can have up to 20 correction letters, but the data is cumulative. This means that each CC-e issued must contain the corrections already pointed out in the previous documents.

The digital file of the correction letter must be made available, not only to the recipient, but also to all those interested in the operation, in the same way as the issuance of the tax invoice.

Did you already know about the concept and applications of the Electronic Correction Letter? If you have any questions about the matter, please contact us!

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Fruit exports: check out some of the necessary documents!

Fruit exports: check out some of the necessary documents!

Fruit exports re a very profitable market for the national economy. To get an idea, according to the website Dinheiro Rural, in 2018 Brazil exported 877.5 thousand tons of fruits, both “in natura” and processed.

Even though this represents a share of only 0.9% of exports of the entire national agribusiness, the sector has been showing strength and growth year after year, attracting new investors.

Anyone who wants to start exporting fruit, however, needs to be aware of the documents required for the practice. Check out more figures about the sector and what these documents are! Continue reading!

Check out more figures about the fruit export market

In the year 2018, importing countries purchased more than 95 million tons of fruits, according to data presented on the website Abracomex. The number is extremely attractive.

This generated a movement of USD 135 billion for the sector, 4.9% higher than the previous year.

The International Trade Center, which provided the basis for the data of the matter, points out that 5 years ago this market was 18.5% lower, which shows constant growth.

Brazil also presents a great volume harvested of fruits, guaranteeing a margin for greater growth in exports. The country is behind only India and China. As an exporter, however, the issue is different.

Although the volume harvested is high, Brazil sells only 2% of its domestic production, which puts it in the 32nd position of the global market. In South America we are behind Argentina, Chile, Ecuador, and Peru.

Fruit export crops need to be better cultivated on national territory.

We have every reason to lead this market, but we need to get started. One of the most viable routes is the European Union, which accounts for the largest share of Brazilian exports.

In 2018, 630 thousand tons of Brazilian fruits went to the countries of the European Union, representing 72% of sales, according to Abrafrutas.

With approximately 740 million inhabitants, Europe is a large market, although the scenario is also changing and presenting new potential trading partners. One of them is China.

What is China’s relevance in this market?

What is China's relevance in this market?

There are many trade negotiations between Brazil and China starting, which increases the expectation for all sectors, including fruit. This is true for both exports and imports.

The Brazilian Northeast has the advantage, as it is a region benefiting from melon farming, produced in states such as Rio Grande do Norte and Ceará, a delicacy that is highly sought after internationally.

Through the decision to increase trade with the Asian country, Brazil recently signed nine protocols with the Chinese government.

These include one document that involves importing pears into Brazil and exporting melon to the Chinese territory.

Chinese trade is highly disputed and has always been targeted by exporters. After all, it is the most populous country in the world and already consumes a lot of fruit from neighboring regions. This new agreement will strengthen and diversify the sector.

See what key documents are needed to export fruit

We already know that the international market is opening up to us and that Brazil can export even more. Given this, it is very important to understand what documentation is required when exporting fruit out of the country.

It is worth noting that the Ministry of Agriculture, Livestock and Food Supply (MAP) does not act on the classification and certification of plant products intended for export. The only exception to this is when the requirement of the importing country arises.

In the latter case, the General Coordination of Plant Quality (CGQV) of the Department of Products of Plant Origin (DIPOV) monitors and promotes activities aimed at hygienic-sanitary and technological inspection and inspection.

This is true for any in natura, processed, industrialized plant product and its derivatives, including olive oils, fruits, cereals, and others. These measures are important to ensure the quality and safety of products leaving Brazil.

Regarding the documents, we will list those most important for fruit exports. Check it out:

See what key documents are needed to export fruit

Registration with Decex (Department of Foreign Trade, MIDC)

Without Decex registration, nothing can be done. The purpose of the company must be included in the articles of association, only then to register with the agency through Banco do Brasil.

From there, it is also necessary to register with SISCOMEX ( Foreign Trade System ).

Commercial invoice

Another essential document is  the  Commercial Invoice, which serves as the basis for  customs clearance  abroad. It is very important that the document does not contain errors, erasures or amendments and can therefore be invalidated.

In the absence of an official model, the form must be completed mainly following the requirements declared by the importing country.

As we have seen before, depending on the country, there are specific inspection requirements, so it is important to remain attentive!

Packing List

In this document, it is necessary to describe all goods shipped or, depending on the product, all components of that same goods in their quantity of fractional parts.

This serves to identify and locate the item within a batch more easily. It also allows an easier conference at the time of inspection, upon loading and also during unloading.

In the case of fruit, it is good to specify the type of packaging, whether boxes, pallets, etc. Also included here are net weight, gross weight, unit dimensions and total volume.

Certificate of origin

This request is very common among importers from MERCOSUR, the Latin American Integration Association (LAIA) and other countries that bring this requirement into their legislation.

If everything is within the requirements, the Certificate of Origin will receive a visa from federations, associations and chambers of commerce or government departments.

Certificate of weight, quality, and conformity

Some countries require that imported goods be inspected by specialized organizations even before shipment. This mainly applies to products of plant origin but is not restricted to them alone.

Certificates issued after inspection are basic documents for the release of these materials in the countries of destination.

Phytosanitary Certificate

The Phytosanitary Certificate can be considered one of the most relevant among all documents. It is requested in cases of export of plants, fruits, and foods in general. Therefore, it is good to always have you at the top of your documentation list.

Export registration

Without export registration, you will not be allowed to export the product.

The document is obtained electronically through SISCOMEX, and the importer must be connected to the Federal Revenue Service via Serpro, or even hire the services of a customs broker.

So?

We have talked about some data from this market, what has happened in relation to China, and also presented the main documents that you need to have on hand to export fruits without major complications.

We know that acquiring and gathering all these documents can take some time that you may not have, so the best thing is that you rely on the help of a  logistics operator to provide even more agility and effectiveness in relation to the documentation.

If you have any questions about the matter or are interested in knowing how we can help you export fruit with quality and efficiency from the origin to the destination of the cargo, click and request a quotation with no commitment!

Maritime import: understanding damage and dirt in the container!

Maritime import: understanding damage and dirt in the container!

In the field of maritime imports, care for cargo and the transport process is fundamental. Often, for certain reasons, damage can occur, which compromises the integrity of the cargo and service.

According to maritime law, damage is defined by any harm caused to the cargo or the ship during the journey, that is, between loading and unloading.

According to Law No. 6,288, in case of signs of damage or any violation, the Lack of Damage Statement (TFA) and the Notice of Receipt of Cargo are the documents containing the main information on the status of the container and cargo.

However, these documents do not have a category standard when it comes to damage. For these and other reasons, it is important that you know exactly what is characterized as damage and also how to avoid this type of problem. Continue reading and learn more!

What is damage in maritime import and what are its categories?

Damage present in maritime imports can be divided into two main categories.

Gross or common damage

When cargo suffers accidents or goes through situations that endanger the ship and crew, it may end up suffering profound damage. In such cases, the cargo will also suffer damage.

For example, if cargo becomes wet with seawater in an attempt to extinguish a fire or explosive charges need to be thrown overboard, the expenses will be borne by all involved and benefited.

Therefore, the carrier must bear the losses, as the damage was voluntary and caused by the need for survival or physical maintenance of the crew and the vessel itself.

When a case of gross damage is declared, each owner of the cargo is charged, usually from 2% to 7% of the sum of the cost of the goods and freight.

These extraordinary expenses are covered by international transportation insurance, in accordance  with the York-Antwerp Rules, created in order to standardize transport contracts and the resolutions of problems generated by the gross damage.

It is essential, therefore, that the importer never carries out an import without contracting an international transport insurance policy.

Simple or specific damage

In this case, the malfunction is caused by situations where human action was not the cause of the damage. Storms, high winds, and damage caused by the crew (without theft) are some of the most common scenarios of this event.

So-called simple damage refers exclusively to damage to the cargo, not to the crew or ship. In the case of a simple breakdown, compensation for the damage shall be borne by the owner of the cargo or the insurer responsible.

What is the letter of protest and what is its importance?

In the event of damage during the maritime import process, there are certain duties to be performed by the insured party to make sure that their rights will be intact.

After the issuance of the TFA, depending on the situation, inspections and sending a letter of protest may be required by the insurers.

When the damage is located, it is essential that the sender writes a letter of protest. This document will have the role of informing the carrier that the cargo has not arrived as agreed and that legal measures should be taken.

The letter of protest must be sent within 10 days of receipt of the order.

Another detail of this document is that there is no protocol for its submission. Therefore, it can be sent by email, mail and even on the border of the order receipt document itself.

The data to be included in the letter are consignee/importer data,  commercial invoice data and other general shipping information.

In accordance with article 754 of the Civil Code, the letter of protest is a vital document to establish the process after damage.

In addition to sending the letter, it is necessary to inform the insurers of the damage immediately, so that they contact commissioners and analysts to verify the problem.

How to avoid damage and dirt in the cargo?

It is interesting to know how to avoid a scenario of damage or dirt that will compromise the integrity of the container and its cargo. Therefore, we are presenting some basic information to help with cleaning and protection when transporting cargo in containers.

Container cleaning

Container cleaning

Generally focused on NOR Containers, cleaning, deodorization and decontamination is required for use in food shipments, chemicals etc.

One suggestion is to sweep the container inside with a brush suitable for removing waste, dust, earth, sand etc. It is important not to leave any liquid on the surface of the container, so that it does not cause oxidation or rust.

Precautions with the flooring

It is important to avoid oil stains or nails on the floor, which are typically used to secure the cargo to the container.

These objects are potentially hazardous, can cause damage to future loads that will be allocated in space and need to be removed prior to return.

Rubber seals

The seals end up wearing out over time, so it is important to be careful to observe them when making any movement of the container and request the necessary replacements whenever necessary.

In addition, it is essential to pay extra attention when there is stuffing to avoid contact and damage to the rubber.

Rust

Containers end up wearing out over time and with contact with liquids.

Rust is a natural process in this environment, which must be avoided through basic care and properly reported by importers when present in the equipment.

Therefore, it is very important to make reservations in the documents when collecting the container. This is to avoid problems in the return.

Crushing, cuts, holes, scratches etc.

Generally caused by the use of forklifts, these are necessary points to be included in the previous inspection when using the container. You should be extra careful when it comes to the NOR Container.

It is essential to note that if the container is returned with any damage not found in the document or contract, a repair and/or cleaning fee will be charged for the equipment.

So?

We have talked about what kind of damage exists, what the letter of protest is, and we also indicate some tips to avoid damage and dirt in the container.

Remember that containers are collected at the port of origin in good condition for use and must be returned under the same conditions at the port of destination. The document attesting the conditions that containers are made available and delivered is called EIR (Equipment Interchange Receipt).

It is the responsibility (and right) of the exporter to inspect the container and make reservations in the EIR upon collection, and may even refuse them, avoiding problems in the return of the container at the port of destination by the importer. These responsibilities are provided for in the clauses on the back of the bills of lading (BL).

By relying on a qualified logistics operator, it will not only analyze the best container option to carry out its import, but will also act effectively in the event of damage.

If you have any questions about the matter, please contact us! If you want to carry out a maritime import with attention to all the most relevant points, click and request a freight quotation now!

Understanding the CE Mercante and how it works!

Understanding the CE Mercante and how it works!

The CE Mercante (Merchant CE) is nothing more than a method of tax control for maritime operations, which consists of a bill of lading informed electronically to customs authorities.

Made through digital certification of the issuer, this is a process that aims to lessen bureaucracy, cheapen, facilitate, and accelerate the collection control, which previously depended on confused and unclear forms.

Find out more about the CE Mercante concept, those responsible for its data, its main purposes, deadlines for its registrations, fines provided for in cases of noncompliance and means of consultation below! Continue reading!

What is CE Mercante?

Created through Ordinance No. 328/2001 of the Ministry of Transport, the CE Mercante is a number generated through the Electronic System of Collection Control of the Additional Freight for Renewal of the Merchant Navy (AFRMM).

Its main purpose is to determine the criteria and establish standards for the procedures for making waterway transport data available.

CE stands for Electronic Bill of Lading and serves to replace the old method, which was previously done through physical forms and with unclear controls.

According to Decree 5.543/05, art. 2, the CE Mercante characterizes as an “electronic system of collection control of the Additional Freight for Renewal of the Merchant Navy – AFRMM”. ”

In the next item, check out who is responsible for including the data in this important system.

Who is responsible for the inclusion of the data?

Representatives of shipping companies and agencies are the holders of the information included in the Master bills of lading and responsible for including the ship’s manifest and stopovers.

Therefore, they need to transmit electronically through the CE Mercante, all data present in each process, generating the Master CE number.

Electronic deconsolidation of the Master bills must be done by the  freight forwarder, who must also inform the houses bill of lading in the CE Mercante.

As highlighted by the Fazcomex , the Mercante System has been integrated with the waterway cargo control module of the Integrated Foreign Trade System (Siscomex), called Siscomex Carga, since 2008. 

What is the purpose of using the system?

The CE Mercante aims to make the processing of information from maritime cargo transport operations systematized and less bureaucratic.

It also serves to integrate the different institutional information management systems of foreign trade of the Federal Government, especially SISCOMEX systems, with emphasis on Siscomex CARGA.

Another important purpose of CE Mercante is to automate the AFRMM collection process and improve the performance of the Regional Units through automatic control methods.

In addition to improving control and government actions, de-bureaucratization benefits agents, reducing operating costs related to cargo release procedures and methods in ports.

Lastly, CE Mercante also provides a complete management of the procedures for granting the most diverse tax benefits that are provided for by current legislation.

What are the deadlines for its use?

The company responsible for navigation must transmit the data of its Master bill of lading within 48 hours prior to the arrival of the vessel at the first national port of call.

The freight forwarder needs to deconsolidate the Master bill of lading up to 48 hours before its process arrives at the final port of unloading.

There are exceptional routes, especially in foreign ports near to Brazilian territory, such as Uruguay, Argentina, and Panama, for example.

In these situations, the deadline may vary according to the vessel and its origin, with an average of 12 hours to 24 hours before arrival. The record, which can be consulted by the transporters, is done on Siscomex Carga by Coana.

If any information is not provided within the deadlines foreseen, a fine is generated automatically, according to the formalization of the infraction in the tax process.

Cases of “bill corrections” are not configured as infractions, so the fine is not applied. They are provided for in art. 44 of Decree No. 4543 of 2002 of the Customs Regulations, which states:

“For tax purposes, any correction to the bill of lading shall be made by means of a letter of correction addressed by the issuer of the bill of lading to the customs authority of the place of unloading which, if accepted, shall result in correction of the manifest.”

What fine is imposed in case of noncompliance with the deadline?

If the deadlines mentioned in the previous item are not respected, a fine of BRL 5,000.00 is applied for each process not entered in time.

The penalty may be applied within 5 years of release or with correction outside the information period.

How can a CE Mercante be consulted?

In order to perform a cargo item consultation in the CE Mercante, it is first necessary to access the website of the Collection Control System of the Additional Freight for Renewal of the Merchant Navy – AFRMM.

With the Mercante System open, proceed to the “Bill Tab”, then “Bill/BL/BL-House”, then “Consult” and finally “Cargo Item”.

Once this is done, simply enter the input parameters, such as the cargo item or the CE Mercante number.

To consult all items of the electronic bill of lading, simply follow all the steps described, but after the “Consult” tab, the “All Items” option must be selected.

The input parameter in this case is simply the CE Mercante number.

On the website of  the Federal Revenue Service , there is a complete description of the operations that can be carried out in the system. Simply follow the steps indicated to perform any consultation!

Did you already know about the concept and peculiarities of CE Mercante? If you have any questions about the matter, please contact us and learn how we can assist you in this matter!

7 tips to avoid delays in the clearance of goods!

7 tips to avoid delays in the clearance of goods!

In foreign trade operations, it is essential to have full logistical knowledge about the procedures, in addition to the laws and standards that govern the sector to avoid problems in the clearance of goods.

Without proper efficiency in management processes, all planning can be compromised, imports can suffer from delays and worse, unnecessary costs can be generated!

So that your company is not hit with this type of problem, check out the 7 main ways to avoid errors in the clearance of goods. Continue reading!

What are the best ways to avoid delays in the clearance of goods?

Ensuring the proper management of the import processes is essential to ensure the expected income, both financial and operational.

From a legal point of view, it is necessary to make sure that all laws and regulations in force are respected, to avoid fines and penalties with the Federal Revenue Service and consenting bodies.

Regarding the operational segment, it is necessary to have agility and organization in relation to the control of documents and stages of negotiation!

With these precautions in mind, check out the 7 main ways to avoid problems in the clearance of goods:

1 Classify items accurately

It is through the  Mercosur Common Nomenclature  (NCM) that taxes and possible contingencies on certain goods are calculated and applied, respecting administrative rules and international agreements.

Because of this, it is essential that all goods are properly classified with the corresponding NCM, since this can directly affect the good progress of the entire  import process.

It is the NCM that facilitates access to information related to items by all tax agents involved, as the code classifies each product based on its characteristics and its market nature.

Any imported product must receive the code and, if its classification is wrong, all cargo will be stopped at customs and will receive fines capable of compromising all final logistics costs.

2 Fill out the Import Declaration correctly

If the Import Declaration is not completed correctly, the import will also suffer from rectifications capable of generating significant delays in the release of the goods and, consequently, for the entire logistics process.

Among the main details that need to be included in the DI, pay special attention to the correct Incoterm , number of the presence of cargo, Commercial Invoice with the exporter’s signature, in addition to the corresponding gross weight in the DI and bill of lading.

In addition, expenditure not included in the bill of lading should be entered. The description of the goods in the Import Declaration must be compatible with the LI and the Commercial Invoice.

If the imported product is machinery, the model and serial number of the item must be included. In addition, if there is the collection of any fine, it must be included in the additional data of the DI.

3 Ensure effective compliance

In the area of​ ​foreign trade, compliance is a term that refers to due verification and attention related to standards and legislation valid for all import and export processes intended.

Maintaining effective compliance means checking at each stage whether the goods are authorized by the competent agencies, if the required documentation is up to date, if the necessary seals have been applied, if the sanitary requirements are met etc.

Each type of product, as well as each country of origin, has different authorization standards, so it is necessary that the control of the steps is thorough, so that no documentation is missing or misrepresented.

When practicing compliance efficiently, the cargo will never return to its origin or be stopped due to documentary problems, which may result in serious losses.

4 Monitor Siscomex

Always keep the Siscomex system installed in your company, even if you are not responsible for directly carrying out the import process.

Using this resource, it is possible to monitor the performance of its logistics representative and compliance with the deadlines, avoiding delays with the possibility of intervening if any nonconformity is detected.

5 Maintain a good management system

By managing import processes through computerized systems specific to this purpose, it is possible to ensure more effective communication between those involved, more productivity and better compliance!

The possibility of monitoring all processes involving importation makes the steps safer and managers have a more accurate and global view of the international negotiations carried out.

Without a good management system, communication failures can occur, less control of import deadlines, as well as problems in the planning and execution of logistics services.

Even when the import is outsourced, it is important that this type of monitoring is done by the business managers. Therefore, it is important to require that the contracted company has software for this purpose.

6 Perform physical verification of the imported items

Even if a good management system is able to align all import demands, it is still imperative that managers perform the physical verification of loads to ensure that there is no problem.

Monitoring the conference of items in the customs area is fundamental to ensure that the negotiation has been carried out within the desired parameters, to remedy occasionally any discrepancies and prevent the cargo from returning to destination.

7 Hire a good freight forwarder

Companies wishing to operate with imports in Brazil need to bear in mind that all bureaucracy, regulations, and standards that involve this type of process are extremely complex and have details that can go unnoticed.

More than facilitating logistics, companies that hire a good  freight  forwarder add more security, as the expertise of this type of professional ensures that no legal or operational issues are overlooked.

It is this type of professional that regularizes the clearance of the goods, fits them in their due regimes and classifications and communicates the information required by the competent agencies.

A good logistics operator knows the peculiarities of each item and its market of origin, speeding up the procedures necessary for import, predicting possible problems and anticipating their respective solutions.

Through the freight forwarder, the whole process becomes more agile, calm, and safe, making the items reach their destination without extra costs and in the shortest time possible!

Do you take these precautions in your logistics to carry out the clearance of the goods?

If you want to perform the logistics of your cargo with safety and quality, contact us and ask for a quote with no obligation!

Air transport of batteries: check out some of the rules and important issues!

Air transport of batteries: check out some of the rules and important issues!

The transport of lithium batteries underwent changes in its legislation in 2016, as this material presents several risks due to its composition.

Considered a dangerous article by ANAC, lithium batteries can cause situations such as explosion, emission of toxic smoke and flammable gases, among others.

Thinking about the importance of understanding the specifications of this product, we have brought in this content the main characteristics of these batteries and what are the risks during transport, in addition to presenting the different types of lithium batteries and their respective rules for air transport.

Therefore, if you deal with the logistics of products that use lithium batteries, continue reading and understand more about the legislation of this material!

Why is the transport of lithium batteries considered dangerous?

According to the publication  of the National Civil Aviation Agency (ANAC), a dangerous article is an object or substance that, when transported by air, presents a risk to health, safety, property and the environment and that is included in the List of Dangerous Articles of the Technical Instructions, or that is classified according to the Technical Instructions. 

As the air mode presents more sensitive conditions, the Technical Instructions define the ideal conditions to maintain safety in the transport of dangerous goods.

It is important to note that the Technical Instructions include the Dangerous Goods List, where more than three thousand articles are specified. These include objects or substances most likely to explode, produce flames, toxic and corrosive vapors, among other factors.

Thus, lithium batteries are configured as dangerous articles, presenting several risks during transport.

Even though lithium is the lightest material among those used in batteries, it has a high electrochemical potential, in addition to the highest energy density by weight. During air transport of lithium batteries, the thermal disruption process may occur, which occurs in a single battery, but begins propagation, affecting other batteries in the same cargo compartment environment.

According to ANAC, “a damaged, short-circuited, heated or defective lithium-ion battery may spontaneously initiate an internal reaction that increases the temperature, that is, an exothermic reaction occurs. This reaction generates flammable gases that can generate an explosive environment. In this way, the battery goes into combustion, as it produces its own fuel and oxidizer”.

According to an article published by Conexão Sipaer, the risks associated with air transport of lithium batteries include:

  • Smoke in the cabin: this occurs when the aircraft ventilation system is not sufficient to dissipate smoke from uncontrolled fire in the cargo
  • Explosion: if the batteries overheat, it is possible that a sufficient amount of gases is released to cause an explosion
  • Electrolyte emission: these are elements with high calorific value, which may cause sparks and flames in nearby materials
  • Superheated vapors: when overheated, batteries also form vapors, running the risk of reaching vital systems of the aircraft, in addition to contributing to the spread of fire
  • Flammable gases: the emission of these elements also contributes to the spread of fire
  • Toxic smoke: toxic smoke comes from overheating the batteries, which is flammable and dangerous to health.

Learn about the types of lithium batteries

Learn about the types of lithium batteries

In the List of Dangerous Goods cited by ANAC differentiates the types of lithium batteries that exist. Below are the characteristics of each one:

UN 3090 – Lithium metal batteries 

UN 3090 represents lithium metal batteries that are transported individually without the equipment. Lithium metal is present in non-rechargeable batteries and cells, which should be discarded after use.

These batteries are prohibited from being carried on passenger aircraft. Their transport should take place only on cargo aircraft.

UN 3091 – Lithium metal batteries transported inside the equipment or packed with the equipment

This code represents two ways of transporting the lithium metal battery: installed in the equipment and packaged with the equipment, that is, when it is not installed.

In this classification, batteries can be carried on passenger aircraft and exclusive of cargo, as long as they are in accordance with the packaging instructions.

UN 3480 – Lithium ion batteries

Lithium-ion batteries are transported individually without being installed in the equipment. Lithium ion makes up batteries or cells that are rechargeable.

This type of battery is prohibited from being carried on passenger aircraft and allowed only on cargo aircraft.

UN 3481 – Lithium ion batteries transported inside the equipment or packed with the equipment

Like UN 3091, this code also covers two ways of transporting the battery. UN 3481 batteries can be carried on both passenger and cargo aircraft.

Rules for air transport of batteries

Since 2016, the transport of lithium-ion batteries on passenger aircraft throughout the national territory has been prohibited, as determined by the International Civil Aviation Organization (ICAO). In addition, restrictions have also been created for the transport of these batteries on cargo aircraft.

The objective of the resolution was to reduce the safety risks presented by the type of material used in batteries. To do so, several tests and studies were carried out confirming the risks described.

According to news published by the ANAC portal , the restrictions for the isolated transport of lithium batteries on cargo aircraft are:

  • Determination of a maximum charging state limit of 30% for lithium-ion batteries
  • Limit of only one volume per shipment, prepared as per Section II of Packaging Instructions 965 and 968 for lithium-ion and lithium-metal batteries, respectively
  • Lithium ion and metal lithium batteries prepared in accordance with Section II of Packaging Instructions 965 and 968, respectively, shall be offered for separate transportation of other charges and may not be charged in a unitized charging device (ULD) prior to being offered to the air operator for transportation
  • Limit of only one volume containing lithium-ion and lithium-metal batteries, prepared as per Section II of Packaging Instructions 965 and 968, respectively, within the same overpack.

So?

You have seen in this content that lithium batteries are considered dangerous articles during air transport and can cause several problems such as explosions and emissions of fumes and toxic gases, putting passengers at risk.

Therefore, in 2016, the transport of lithium batteries on passenger aircraft was prohibited. Since then, this material can be transported only on aircraft exclusive for cargo.

We also present the different classifications of lithium batteries, as well as the rules and restrictions for their transport in air transport.

We hope that in this way the main issues relating to the subject have been clarified! In the meantime, if you have any questions, please feel free to contact us.

Finally, if you need a certified logistics operator who acts with safety in freight transport, click and request a quotation!

Notice: due to the coronavirus outbreak, DC Logistics Brasil team will be working from home

Notice: due to the coronavirus outbreak, DC Logistics Brasil team will be working from home!

Respect to people is one of our company values and guarantee the safety and health of our employees and family member are our only priorities. DC Logistics Brasil informs that our entire team, in all offices, will be working from home.

In the last few days, we have already started this setup and soon everyone will be allocated to their home offices. Only a limited number of employees will provide essential services, when necessary, following all WHO recommendations to avoid contagion. This way, we also hope to collaborate to prevent the spread of Coronavirus (COVID-19).

Our teams suspended national and international visits, prioritizing video conferences with our customers and partners. Job interviews will also be conducted virtually.

All our work flow and functions will continue normally and we are reachable via any of the below tools:

  • E-mail: at this time of adaptation, we request that communications be prioritized (if possible) via e-mail;
  • Telephone: all our telephone numbers will work normally, as all calls will be forwarded automatically to the employee mobile number;
  • Skype: all employees will be connected on Skype through the same e-mail ID followed by “.dc”. Example: Mr. Gustavo Valmorbida’s e-mail is gustavo.valmorbida@dclogisticsbrasil.com , his Skype ID is gustavo.valmorbida.dc ;
  • Whatsapp: text and vídeo / áudio calls are available through this largely used app in Brazil and in many countries;
  • Video calls: DC uses ZOOM and also HANGOUT from Google is available for all, allowing us to have a virtual meeting room set up at any moment.

Finally, we will continue to monitor the logistics scenario in our country and around the world, to avoid disruption in our customers / partners supply chain and finding solutions during this challenging time. You can count on us.

We sincerely thank you for your understanding and please do not hesitate to contact us whenever necessary.

Stay safe.

DC Team

Find out the best way to avoid the red channel in imports!

Find out the best way to avoid the red channel in imports!

When dealing with foreign trade, the red channel in imports represents one of the most feared causes of delays, losses, and even legal problems with the Brazilian Federal Revenue Service.

Any import procedure involves the supervision of Brazilian customs, which uses an intelligence system created in order to inspect and verify the accuracy of the data declared by the importer in relation to the imported goods, the documents submitted and the specific legislation, with a view to its customs clearance  (nationalization of foreign goods).

If the imported goods are classified in the dreaded red channel, the entire customs clearance process can become a real nightmare for those involved.

Find out more about the classification channel system below. Then check out the consequences and how to avoid the red channel in imports!

What are classification channels and how do they work?

Before we specifically learn about the red channel, it is necessary to understand the classification system used as a whole.

As already mentioned, all imports must pass through the control of the Federal Revenue Service – RFB, through the registration of the Import Declaration (DI). After registration, the DI will be submitted to tax analysis by Siscomex and selected for one of the classification channels. Their function is to define the type of customs verification that will take place for the cargo.

The purpose of customs is to closely inspect all the goods entering our borders, and as there is a high volume of imports, this prevents all of them from actually being thoroughly inspected at the moment they arrive.

For this reason, RFB intelligence systems perform risk management and select the appropriate classification channel for each declaration. According  to  RFB Normative Instruction  No. 680 of 2006, some of the criteria taken into account include:

I – tax regularity of the importer.

II – habituality of the importer.

III – nature, volume, or value of the import.

IV – value of taxes levied or that would be levied on the imports.

V – origin, provenance, and destination of the goods.

VI – tax treatment.

VII – characteristics of the goods.

VIII – organizational, operational, and economic-financial capacity of the importer; and

IX – occurrences verified in other operations performed by the importer.

Thus, the vast majority of loads that are not considered hazardous by these criteria undergo automatic clearance in green channel, without documentary or physical verification of the goods. When this happens, the time limit for customs clearance is considerably shortened, facilitating the bureaucracy for the importer.

Now that you understand the role of verification channels, see what they are and how they work in practice.

Green Channel

As pointed out in the legislation, the green channel is one in which the system records the clearance of the goods automatically, dispensing with the documentary examination and physical verification of the cargo.

When entering this channel, it means that after the proper procedures at the customs terminal, the cargo will be released to follow the flow to its final destination. The green channel is a sign that the Federal Revenue Service understood that there are no imminent risks in the import.

Thus, the green channel is a resource that allows filtering of the relevant volume of monitored information and is a great ally in the speed of the customs clearance procedure. The RFB currently estimates that 80% of Brazilian imports are directed to this channel.

Yellow Channel

The yellow channel involves a documentary verification. This means that the inspector analyzes the cargo documents, comparing them with the DI registration information in the Siscomex system.

The objective is to determine whether the information provided is in accordance with the rules of the Customs Regulations and whether there is any possible irregularity in the import.

In the absence of irregularities, customs clearance is carried out, dispensing with physical verification of the goods. In the event that the RFB Tax Auditor concludes that better verification is required, the completion of the documentary examination may be made conditional on the physical verification of the goods.

Red Channel

This is the nightmare of many importers! In the red channel, in addition to the documentary verification, physical inspection of the cargo is mandatory. This means that containers and/or volumes will be opened for thorough verification of the characteristics of the goods present, as well as weights, quantities, specifications, and tax classification.

Generally based on sampling, inspection involves a process of comparison between that described in the document and the cargo itself. This can be considered as a source of delays because it involves procedures for opening the cargo by the customs terminal, as well as availability in the Federal Revenue Service’s inspection agenda to carry out the verification together with the importer or its legal representative.

Consequently, the red channel is linked to higher storage costs in the terminal, for the extra days that were necessary, and also the cargo handling for opening. This is in addition to possibly being susceptible to customs fines for errors in the declaration, incorrect collection of taxes or anti-dumping measures, among other possibilities.

Gray Channel

The gray channel involves a special procedure. If the cargo is directed to it, it is common that an indication of irregularity or fraud has been found by the RFB, including with regard to the declared price of the goods. Usually, there is a suspicion of underbilling in the declared products.

In this case, the analysis of the documentation as well as the cargo is much more stringent. The whole procedure can take up to 90 days, which can be extended for another 90 days, which means a significant delay for delivery and losses to the importer’s pocket.

Why fear the red channel?

It is not only those who know they have committed an irregularity who lose peace of mind by thinking about the red channel.

In general, the documentary and physical inspection already leaves many importers concerned, after all, it is not uncommon for errors to generate irregularities in the declarations.

When the goods are classified in the red channel, it does not automatically mean that there is something irregular: that is precisely why it was directed to the verification channel, with the objective of analyzing the cargo and checking its compliance.

The red channel in imports, as highlighted by the blog Soften, is greatly feared precisely because it retains the cargo for much longer in control of the RFB, considerably delaying delivery and generating financial losses to the importer who has deadlines to use or resell certain goods.

Anyone who depends on timely delivery for the financial health of their business can get into real trouble at this time. Here is how to avoid this problem!

How to avoid the red channel in imports?

First of all, the most important thing is to have all the documentation up to date and completed correctly according to the Brazilian import rules.

It is much more worthwhile to carefully check the completion of the documentation than to worry in advance about the channel in which the goods can be classified.

Even with the documentation very well completed and without any irregularity, the chance of the cargo being destined to the red channel still exists. Therefore, another tip is to include this possibility in the schedule, always scheduling with a longer deadline than necessary, avoiding unpleasant surprises at the end.

Avoiding the red channel in imports mainly involves the conduct of the import process by capable professionals who treat it with all necessary regularity. If all is well, the chances of being surprised by the consequences of the red channel drop dramatically.

Counting on the support of a freight forwarder is extremely relevant!

Many businesses already rely on the service of a  freight forwarder  so as not to get lost in the midst of so much documentation.

They are responsible for the entire documentary and physical part of the shipment, ensuring the integrity of the cargo.

Remember: just one wrong document and your cargo runs the risk of falling into the red channel in imports. In addition to good organization and verification, extensive knowledge and experience in the sector are worth a lot.

With this type of professional, you have greater assurance of assertiveness in the actions that involve the entire logistics process and are able to breathe a little easier having done your part correctly!

Did you already know the characteristics of the red channel in imports and the best ways to avoid it?

If you have any questions about the matter or want to know how DC Logistics Brasil can contribute to smoother, safer, and better logistics, click below, and request a freight quotation!

Check out the 10 most imported and exported products from Brazil in 2019!

Check out the 10 most imported and exported products from Brazil in 2019!

Knowing which are the most imported and exported products in Brazil is of utmost importance to know the demands and bottlenecks offered to businesspeople who trade with other countries.     

Of extreme relevance to the world market, Brazilian foreign trade continues in full growth and full of opportunities.

Check out the most imported and exported products from our country and get to know our reality in the face of the global competitive scenario! Continue reading!

Most imported products in Brazil

According to data collected in 2018 by the Brazilian Ministry of Economy, Industry, Foreign Trade and Services, our country is the 29th largest importer of products worldwide.

According to data covered in a special article by the Blog FazComex on the subject, in 2019 Brazilian imports were 15.4% higher than the previous year, reaching the mark of USD 550.73 million marketed in August.

According to the information gathered by the blog, the most imported products in Brazil were:

1 Manufactured products

The items that have reached the first position among the most imported products in the country are manufactured products, that is, those that are mass produced, in a standardized manner and in large quantities. In total imports, they represent about 5.57% of the total.

2 Medication for human and veterinary medicine

Medication for human and veterinary medicine

Medicines, both for human and veterinary medicine, accounted for 4% of Brazilian imports. The data includes medicinal products in the form of raw material, such as semi-finished product, in bulk or even finished.

3 Fuel oil

With a share of 3.31% of the total of the most imported products in the Brazilian market, fuel oil is a petroleum derivative that can be considered as heavy fuel oil or as residual fuel oil.

4 Parts and pieces for motor vehicles and tractors

With 2.75% of imports, the international market for vehicle parts and pieces still has great relevance among Brazilians.

Even though the country stands out for the large number of automobile manufacturers, tractors and other vehicles, imports are still very relevant, winning fourth place in the ranking.

5 Integrated circuits and micro electronic assemblies

With 2.93% of imports, integrated circuits are characterized by assemblies that include miniatures of transistors, resistors, diodes, capacitors, among other components, printed on silicon chips.

6 Insecticides, formicides, herbicides and similar products

With 1.84% of the business, the substances used in pest prevention and control, both in farming and at home, are the sixth most imported products in the Brazilian market.

7 Heterocyclic compounds, their salts, and sulfonamides

Fundamental to the chemical market, heterocyclic compounds are those that rely on one or more different carbon atoms in their ring, such as sulfur, oxygen, and nitrogen. This type of product represents 2.73% of imports.

8 Drilling or exploration rigs, dredgers etc

Drilling or exploration rigs, dredgers etc

Used mainly in the drilling or production of natural gas and oil, the platforms consist of large structures that gather the necessary equipment for this type of exploration and its professionals. They represent 2.3% of the total of the most imported products.

9 Naphtha

Mainly employed in the petrochemical industry as raw material for the production of items such as propene, ethene, benzene, xylene and toluene, Petrochemical Naphtha or Non-Energy Naphtha account for 1.9% of imports. The most common end product that exemplifies its use is domestic piped gas.

10 Passenger vehicles

Passenger vehicles are those of small size, with a maximum capacity for 7 passengers. They correspond to 1.89% of the most imported products, ranking tenth on the list.

Now that you know what items Brazil imports the most, find out in the following item what we export the most to other countries!

Find out which items our country exports the most

Disclosed in the  2019 Comex Vis survey by the Brazilian Ministry of Economy, Industry, Foreign Trade and Services, data indicate that, between January and October of this year, Brazil exported USD 185.54 billion.

Compared to the previous year, the country registered a growth of 9.1%, presenting one of the best results in its history in exports.

In another article on the Blog FazComex, we gathered the 10 products that we sell the most to other countries based on the MDIC surveys. Check it out:

1 Soybean

Soybean

Losing only to the US, Brazil is the second largest soybean producer in the world. Its share of exports was 12.36%, and 77% of the total of these exports were directed to China.

2 Oil

Up to October 2019, oil exports generated revenue of USD 19.46 billion. Like soybean, the main buyer of this product was China, with 64% of purchases. Second is the US, with 13%.

3 Iron ore

Also exported mainly to China, iron ore and its concentrates, between January and October 2019, generated revenue of USD 18.57 billion, representing 10% of all exports made by Brazil.

4 Cellulose

Originating mainly from the State of Mato Grosso do Sul, Brazilian cellulose ranks fourth on the list with an exported revenue of USD 6.55 billion up to October.

5 Corn

With a share equivalent to 3.19% of all Brazilian exports, corn grains generated revenue of USD 5.92 billion up to October.

Their destinations, unlike the items mentioned above, are quite distinct. Iran receives 15% of the products, while Japan has a 13% share and Vietnam 9.2%.

6 Chicken

Chicken

Revenue generated by chicken exports was USD 5.18 billion, representing 2.79% of the business. Among the main destinations of the product are countries such as China, Japan, Saudi Arabia, and the United Arab Emirates.

7 Manufactured products

If manufactured products occupy the first position among the most imported products in Brazil, their relevance is also great among exported products, where they take the 7th position on the list with revenue of USD 4.92 billion.

8 Beef

With 2.63% of exports up to October 2019, Brazilian beef generated revenue of USD 4.88 billion.

Its commercialization, whether frozen, fresh, or refrigerated, is directed mainly to China and the autonomous territory of Hong Kong, which acquired, respectively, 34% and 13% of the total.

9 Soybean meal

Soybean meal, exported mainly by the State of Mato Grosso, represents 2.6% of all Brazilian exports. Revenue generated by the product up to October was USD 4.81 billion.

10 Sugar

In tenth place, cane sugar is exported mainly by the State of São Paulo and has Algeria, Bangladesh, China, and Saudi Arabia as its main destinations.

Did you have any idea what the most imported and exported products from Brazil were in 2019? If you have any questions about the matter, click and contact us!

DC Logistics Brasil with Complete Ceramic Tile Polishing Machine Shipment

With over 10 years’ experience handling special projects in Brazil, DC Logistics Brasil have moved a complete ceramic tile polishing machine from Italy to South Brazil.

The shipment consisted of 2 loose pieces each weighing 33.5tns and measuring 16.90 x 2.40 x 2.40, 1 x 40′ flat-rack, 10 x 40′ OT and 2 x 20′ OT. The cargo was picked up at 3 different locations in Northeast Italy and shipped from Leghorn to Navegantes in Brazil. See the gallery below for photos.

“The main challenge was to load the loose pieces with the containers to a Santa Catarina State Port in Brazil where there is no regular breakbulk service. Due to the length of the loose pieces (16.90m), we were able to ship both pieces loose on a container vessel, loaded and lashed on a bed of flat-racks, along with the containers, all under same Bill of Lading.”