Government cuts review time for export incentive by half

The time required to review applications under the drawback regime, one of Brazil’s main export incentives, has been cut by more than 50%, the Ministry of Development, Industry, Trade and Services said. Two regulations published in the Federal Official Gazette simplify application procedures and reduce the number of steps in the process.

With the changes, review time, which could previously take as long as 60 days, will now fall to less than 30 days. The measure is intended to make access to the benefit faster and simpler for companies, without changing the rules governing eligibility.

The new rule streamlines the review process. Previously, an application went through separate stages: first an initial review was carried out, and only afterward were companies asked to submit additional documents. Now the entire process will take place in a single step, allowing documentation to be submitted at the time of application.

That submission is made through the Single Foreign Trade Portal, Siscomex, the system that centralizes Brazil’s foreign trade operations. The change removes intermediate steps and shortens total waiting time.

The first regulation authorizes the submission of documents at the moment a company applies to join the regime. The second updates the operational manuals for drawback procedures.

According to the government, the update preserves the control criteria while modernizing operational procedures, making it easier for companies to use the benefit.

Tax relief on inputs

Regulated under World Trade Organization rules, drawback is a mechanism that reduces or eliminates taxes on inputs used to produce goods that will be exported. Companies can import or purchase raw materials in Brazil while paying lower taxes, provided those inputs are used to manufacture products destined for foreign markets.

Drawback is considered strategic for Brazil’s competitiveness in international trade. It covers several taxes, including import duties, the industrialized products tax, PIS, Cofins and freight-related charges, reducing production costs for exporters.

There are two main modalities: suspension, which eliminates taxes on inputs purchased for goods that will still be exported, and exemption, which allows companies to recover taxes previously paid in similar transactions.

Statistics

According to the ministry, about 20.8% of Brazilian exports in 2025, equivalent to $72 billion, used drawback under the suspension modality. Around 1,800 companies participate in the regime, especially in sectors such as meat, mining, automotive and chemicals.

Source: Agência Brasil

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