Customs valuation
Suspected under-invoicing requires proof of the price actually paid: contract, invoice, wire transfer and history of transactions. The company may challenge the valuation method applied.
Foreign trade · customs inspection
Cargo held at customs: why it happens, what the deadlines are and how to seek release
The hold starts with a doubt of the inspectors about value, classification, origin or the importer. What the company presents in the first days defines whether the goods are released, taxed further or forfeited.
Straight answer: what happens when cargo falls into the grey channel or is held
In the grey channel, Brazil's Federal Revenue opens a special control procedure to check signs of fraud, such as under-invoicing, fraudulent interposition or false declaration of origin. The goods remain held while the company answers the notices, usually within 10 to 20 days, extendable, and the procedure must be concluded within 90 days, extendable for an equal period. If the inspectors conclude there was fraud, an infraction notice with the forfeiture penalty is issued; if not, the cargo is released, possibly with additional taxes. In some cases the goods can be released against a guarantee while the procedure continues.
This page is for importers, exporters, trading companies, customs brokers and companies with goods held at a port, airport or bonded warehouse in Brazil. We serve companies throughout the State of São Paulo, Brazil, with meetings at our Paulista or Tatuapé offices or by video call, and act before the São Paulo courts (TJSP), the labor courts (TRT-2, TRT-15), the federal court (TRF-3) and administrative bodies.
Reasons for holds and the response to each
Tariff classification
A divergent NCM code generates tax differences and, in some cases, a hold. Technical reports and advance rulings support the classification adopted.
Fraudulent interposition
The inspectors question who the real buyer is. Proving the origin of funds and the importer's operational capacity is the core of the defense.
Origin and licenses
Invalid certificates of origin and missing import licenses from regulatory agencies block release until regularized.
Forfeiture penalty
Applied through an infraction notice, with 20 days to challenge. The administrative defense and, in parallel, the judicial one must be assessed immediately.
Release against a guarantee
In certain situations a deposit, insurance or surety allows release of the cargo while the procedure continues, reducing storage costs.
What weighs on the outcome
Speed and completeness of the answer
Partial answers generate new notices and more storage time. Gathering everything at once shortens the procedure.
Documentary consistency
Invoice, contract, payment and declaration must tell the same story. Small divergences are read as signs of fraud.
Storage and demurrage costs
While the cargo is held, costs run. Assessing release against a guarantee and liability for those costs is part of the strategy.
How the work is organized
1. Identifying the reason
Reading the hold record, the channel and the notices to know exactly what the inspectors question.
2. Administrative answer
Submission with documents and technical opinions within the deadline, requesting release or a guarantee.
3. Judicial measures
Writ of mandamus against holds without a procedure or with excessive delay, and defense against forfeiture.
Do not alter documents already submitted with the declaration to 'fix' inconsistencies. Amendment has its own procedure; informal changes are treated as forgery.
Frequently asked questions about cargo holds
Is there a maximum period for the Federal Revenue to conclude the inspection?
The special procedure must be concluded within 90 days, extendable by another 90. Past that period without a conclusion, the hold may be challenged in court.
Can I sell the goods while they are held?
No. The goods remain under customs custody until release or forfeiture. Trading held cargo may constitute a new infraction.
Is the customs broker liable for the hold?
The broker is liable for their own acts, but liability for the declaration and documents lies with the importer. If the broker erred, the dispute is contractual.
Official references and related pages
Brazilian customs rules of reference. The actual procedure depends on the type of proceeding and the notices issued.
Goods held at the port or airport?
Send the hold record and the import declaration through the secure channel. The screening identifies the reason, the deadline and the fastest route to release.