Brazilian Customs and Ports Regulation

Just remind and or information of revision of Brazilian Customs and Ports Regulation (SISCARGA) that for all shipper booking cargo on Marine Bills of Lading to or via Brazil ports that effective March 31st, 2008 Brazil Customs has been apply new regulation to the export and import cargo shipped from/to Brazilian ports including also cargo transshipped or remaining on board at these ports. This new regulation requires all shipping line company as Maritime Carrier to provide all relative information in the Bill of Lading pertaining to the merchandise carried as above 5 working days before the arrival of vessel at first Brazilian port of call.

Sea Waybills to Brazil are – as in the past - not accepted. However, Original Bills of Lading may be printed and released at Carriers’ Office in Brazil I/O release atorigin office upon request of shipper.

Shipping Lines/Carrier will do not recommend issuance of Order Bills of Lading to Brazil; anyhow the full consignee information as below must be updated until local closing time (see
below).

Required information will be sent by electronic transmission from carrier’s system to the Brazilian customs system (SISCARGA).

Shipper is responsible for providing the following data to Casrriers’ Documentation Office at origin latest until closing time as locally announced for preparation of correct Bill of Lading and Manifest:
1. Full Consignee Information.

• a. Full name, address, telephone, fax and CNPJ (for Company Business) / CPF(for Personal Effect or Household Goods) number.
• b. If consigned “To order,” supplementary information such as full addresses, CNPJ. Telephone, fax and contact person must be followed.
• *CNPJ : Brazilian Company Registration Number / * CPF : Brazilian Personal Identification Number (For non-Brazilian citizens: Passport Number).

2. Full Notify Information

• a. with corresponding CNPJ/CPF number
• b. “Same as consignee” is acceptable

3. Precise Cargo Description (requirements are in line with AMS and ACI customs systems established by US Customs an Canadian Customs)

• a. Generic terms such as General goods/merchandise, F.A.K, miscellaneous is not acceptable.

4. NCM Number (Brazilian Harmonized Commodity Description and Coding System)

• a. The first 6 digits meet the standardized HS system.

5. M3 (Cubic meter of real cargo stuffed)
6. Dangerous Cargo: IMO/UN, Technical name, Packing group and all other relevant information in case of Dangerous cargoes as per accepted Carrier's Dangerous Cargo Booking

• a. Dangerous Cargo should be properly labeled and directly discharged to importer’s truck without staying in port area
• b. No In-transit movement (remaining on board) and/or Transshipment is allowed for certain dangerous goods (please contact your Shipping Lines’ partner).

In addition, the following stipulations remain valid:
1. Shipment of Household goods, used cars and all cargo consigned to natural persons (CPF number applied for consignee)

• a. Payment term should be “Prepaid” for ALL charges manifested

2. Transshipment

• a. Cargo to be transshipped at Brazilian port also should be manifested to Brazil customs 5 working days prior to vessel arrival (see above).
• b. Domestic transshipment is authorized only if it’s connected and carried by Brazilian flag vessels.

3. Correction of Documentation for cargo to/via Brazil.

• a. Correction can be accepted by Brazilian customs until 2 working days (48 working hours) before vessel arrival at first Brazilian port. After that deadline the cargo can be discharged to bonded warehouse, however delay, extra costs and heavy fines for customer will be unavoidable.
• b. Corrections of the freight & charges must be followed by notarization & stamp
• c. If the consignee is manifested as NVOCC or “To order (of YYY)”, change/correction of consignee is not allowed.

Additionally, the SISCARGA customs system requires information about container tare weight, which will be sent by Carrier IT System from the existing container database directly to Brazilian Customs. This information will not be shown on the printed Bill of Lading and is actually not required to be provided by Shipping Line's customers.

Brazilian customs may fine US$2,500 per B/L (subject to customs process fee) for any cargo which is not manifested and/or incorrectly documented. And if any violation is detected, the cargo could be arrested by Brazilian authorities or retained on board by carrier in compliance with relevant Brazil customs rule