Expert: Ken Rapoza Cruz - 12/7/2008

Question
QUESTION: Dear Sir

I will move to Brazil and live (Resident) there and I wish to have my car with me. I have this link that explain that the car must be 30 years old to be imported by me in Brazil.


http://estrategiaempresarial.wordpress.com/2008/04/06/conheca-o-passo-a-passo-pa.


In my case will it be an importation or an exportation???

Here I am lost! I do not know what is the 30 years old car means, because somebody told me that any car can be exported to Brazil. But...They cannot stay in Brazil..I think

But in the  case of 30 years old cars, I think that they can stay in Brazil because I will be a Brazilian resident. Am I right? It's confusing to me.

And how can you prove that you are a collector?

Can we use the car on the road? Or is it for shows only?

I intend to live in Brazil and have my car with me.

What do I have to do? What will be the tax if the car is a personal effect (I read that a car is not a personal effect)

I really need your help about this problem. Because I am confuse about that law Collectible or used cars.

Thanks a lot for you kindness and help!

Best regards

Guy Bodart

ANSWER: If you are in Brazil and your car is in the US, and you want to bring your car to Brazil, it will be an IMPORT.  Because you, the buyer, are importing it to Brazil. However, as you are both buyer and seller, you will also likelly have to pay an export tax on the product leaving the US and that amount I cant help you with.

Any corporation can import BRAND NEW cars into Brazil. So Kia can export its new SUV to Brazil and Kia in Brazil will import it from Kia in Korea. Both will have to pay taxes; which is why cars in Brazil cost so much. But you cannot import used cars into Brazil. That market does not exist. Only for classic cars that are 30 years old and above.

You can use that classic car anyway you like.

Your best bet now is to contact the Brazil-American Chamber of Commerce in Washington DC; they know the laws on this.

KEn

---------- FOLLOW-UP ----------

QUESTION: Dear Ken
Thank you so much for your help.
I forgot to tell you that I own the car and have US licence plates. So, I will not be a Brazilian resident who buy a US car. I wil be a Brazilian residen who want to import his car to Brazil.
In that case , I do not see why do I have to pay to export from the US and import in Brazil. If the car is 30 years old and I own it before to become resident, it maybe a personal effect.
What do you think?
Do you know how much it cost to have a Brazilian licence plate and insurrance for a Big Lincoln Continental 400 engine?

Thanks a lot for your help.

Guy


Answer
Sure, I understand you are not importing the car to Brazil as a merchant. But I dont know if this affects the taxes you will pay on it. Call the Brazil American Chamber of Commerce in DC and they can help you. Auto insurance will cost you around $1,200 a year. For a classic car, youre going to want top insurance for replacement parts (busted window) and theft and accidental coverage. You can pay in 4 installments, without interest.