Selling, importing or installing machinery in Brazil involves customs regimes, tax incentives and long technical contracts. Foreign manufacturers and Brazilian buyers of capital goods need contracts and import structures that work under Brazilian law and in practice.
Legal questions we address
- Import structures for machinery and equipment, including the ex-tarifário regime for capital goods without national equivalent, and drawback.
- Supply, installation, commissioning and technical assistance contracts.
- EPC and turnkey contracts for industrial plants, with allocation of performance, delay and warranty risks.
- Distribution, agency and after-sales arrangements for foreign manufacturers.
- Establishment of local companies for sales, assembly or service.
- Disputes over performance, warranties and payment, in court or in arbitration.
Key considerations
The ex-tarifário regime temporarily reduces import duty on capital goods and on IT and telecommunications goods without equivalent national production. It is granted on application, and the timing of the application should be coordinated with the delivery schedule of the supply contract.
The transition to the new consumption taxes, CBS and IBS (Complementary Law 214/2025), began in 2026 and runs until 2033. Supply and EPC contracts that span this period should state how tax changes affect the price.
Where a foreign manufacturer sells through a Brazilian commercial representative, Law 4,886/1965 grants the representative, on termination without cause, an indemnity of at least one twelfth of the total remuneration received. This cost is relevant when choosing between agency, distribution and a local company.
How the work is organised
Equipment projects connect commercial, customs, tax and engineering questions. The legal team works with the client’s engineers, customs brokers and accountants, so that the contract reflects the technical scope and the import route.
Main legal framework
Decree-Law 37/1966 (drawback) · Civil Code, art. 421-A (risk allocation in business contracts) · Law 4,886/1965 (commercial representation) · Complementary Law 214/2025 (consumption tax reform)
Information updated in November 2026. General information; it does not constitute legal advice.