Importing Fertilizers: what you should know

See, in this article, how to import manure and fertilizers and what you should prioritize in this operation.

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Author: Bianca Noronha Anchieta Aragão

Why import manure and fertilizers?

We all know that Brazil’s flagship is agribusiness and, as a large agricultural producer, it plays a fundamental role as a supplier of grains to the whole world.

It happens that, during this productive activity, farmers need to treat the soil with manure and fertilizers to maintain productivity and be able to meet the high demand for agricultural commodities.

However, many are unable to extract the most from the land due to the scarcity of products of this type in the domestic market due to the lack of infrastructure and raw materials.

Thus, Brazil has become one of the largest importers of manure and fertilizers in the world, breaking import records every year.

Either because of the more attractive prices or because of the tax incentives offered, imports have become a way for large producers to leverage their profits.

So, if you are a farmer who suffers from a lack of high-quality manures and fertilizers in the national market, or you are a businessman who wants to venture into this area. Keep reading this article to learn how to become an importer of manures and fertilizers!

What should I prioritize when importing fertilizers?

In summary, importing manure and fertilizers safely requires the observance of some points that will be discussed below:

Registration with the Ministry of Agriculture (MAPA):

First, you should know that both natural and legal persons can import fertilizers, as long as they are registered with the Ministry of Agriculture, also known as MAPA.

In addition, the products to be imported must also be registered, except when imported for research, experimentation, quality tests, own use, or intended for agricultural cooperatives.

Finally, always pay attention to the guidelines of the SFA (Federal Superintendence of Agriculture) and SIPEAGRO (Integrated System of Agricultural Establishments and Products) for the purpose of updating your registration.

Packaging that meets the requirements imposed by legislation:

If you want to import manure and fertilizers to resell them in Brazil, be aware that you should pay attention to the labeling and labels of the products so that they have all the requirements provided for in Law 6.894/80, namely:

• Contain correct, clear, and precise information about its characteristics and qualities;
• There must be indications and recommendations for use;
• There must be specifications about their quantity, guarantee, origin, composition, dosage, care, restrictions, precautions, contraindications, incompatibilities, and risks they present to human and animal health and the environment;

Provide the required tax documentation: 

 In addition to the records, you must also provide the required tax documentation, such as:

• Commercial invoice, also known as commercial invoice;
• Packing List, also known as Packing List;
• Import license;
• International Agricultural Transit Declaration;
• Certificate of Analysis (Normative Instruction 27 of 2006);
• Phytosanitary certificate.

 If you have any questions about these documents, please feel free to contact us.

Hire a reliable carrier that provides an adequate transport service:

Another issue that should be prioritized is transportation.

For the product to reach you safely, it’s essential that transport offers a clean, dry space, free of residues or rust so that the products are not compromised.

Likewise, the storage of some types of manure and fertilizers must meet certain legal specifications. For example, ammonium nitrate must meet the requirements established by the Brazilian Army.

Therefore, always keep in touch with an advisory so as not to forget any legislation that could compromise the receipt of your products.

How to import fertilizers and fertilizers?

Now that you already have an idea of ​​what you need to prioritize when importing fertilizers, see below how to import:

• Select which products will be imported, look for reliable suppliers that offer the best conditions and hire them;
• Hire a dispatcher to deal with bureaucratic issues and avoid obstacles due to lack of knowledge of the necessary procedures during customs clearance;
• Choose a secure international payment method;
• Calculate the taxes, fees, and customs fees that will be charged during the operation;
• Verify the regularity of the said tax documents for later presentation, if requested;
• Keep in touch with legal advice for any requirements during customs clearance;
• And, after the goods enter Brazil, a carrier must be hired to deliver the goods to their warehouse;

What are the taxes charged when importing fertilizers?

Import operations are subject to Import Tax (II), Tax on Industrialized Products (IPI), PIS and Cofins contributions and Tax on Circulation of Goods (ICMS).

Therefore, it’s recommended that you hire a professional specialized in imports so that your operation is completed successfully and that you do not have to disburse unforeseen amounts due to delays or undue collection of taxes.

In addition, each product must be analyzed in detail by a professional, as there are several tax incentives for importing certain types of products.

Importation of fertilizers and inorganic fertilizers and damage to the environment

Various reputable studies show that the increasing and indiscriminate use of industrialized fertilizers compares to the reduction in the use of organic fertilizers.

This is because the value is better and the amenities are greater, and in the industrialized ones the amount of nitrogen and other compounds is always exact, and in the organic ones it’s variable, which makes cultivation difficult.

However, the chemical processes generated by inorganic (industrialized) fertilizers consume natural gas, coal, and other raw materials that emit a lot of carbon dioxide into the atmosphere, strongly contributing to the greenhouse effect.

The Harber-Bosch process is the most serious example of fertilizer production and its harm to people and the atmosphere.

There is not much that the Brazilian farmer and importer can do about this, however, researching suppliers that eliminate the most harmful and harmful processes is the main attitude that can be taken. In addition, keeping an eye on the 2050 National Fertilizer Plan is important, not only to prioritize the consumption of national production but also to define long-term plans and not lose money in the future.

Are there any benefits to importing manure and fertilizers?

 Yes!

As previously mentioned, the biggest attraction in importing manure and fertilizers comes down to the large tax incentive granted in these operations.

This is because, in some cases, the rates are set at zero on the importation of manure and fertilizers or on revenue from the sale of these products on the domestic market.

Just remember that the products must be analyzed according to their NCM code, classified by TIPI, and that research must be carried out in the legislation and in the Consultation Solutions to find out the appropriate rate for each case.

Therefore, in order not to lose any tax benefits offered by the Government, it is recommended that you work with a team of specialized professionals who know all the peculiarities of this type of operation.

For this, you can count on the Koetz law firm!

If you want to know more about how we can help you, contact us through our area service. We will be happy to serve you!