The Brazilian Government updated the customs regulations regarding the application and sentencing of the penalty of confiscation of goods, vehicles and currency, establishing a rite own and simplified administrative procedure, which guarantees double recourse.
According to the Brazilian Federal Revenue Service (RFB) on Monday (28.03.2023/XNUMX/XNUMX), the Law No. 14.651/2023 It establishes a trial mechanism with a double appeal instance, in charge of the Customs Penalty Judgment Center (Cejul), composed of tax auditors of the RFB, with national jurisdiction and exclusive competence to act in the activity, replacing the resolution in a single instance.
The agency explained that the new procedures will speed up the sentencing process, “which is positive for the company.” It explained that “this is because, in the event of a favorable judgment, the company will have its merchandise released. Promptness is also important for the Tax and Customs Administration, since in the event of an unfavorable judgment for the accused, the merchandise can be destined, reducing storage costs.”
A period of 20 days is guaranteed to challenge the decision of the tax auditor, ensuring a period of time to challenge the decisions of companies.
Specifically, the new law introduces changes in the area of sanctions for confiscation of property, vehicles and currency, which updates the criteria established in the "World Trade Organization (WTO) Trade Facilitation Agreement«. With regard to the implementation of the right to appeal against an administrative decision in the first instance, Brazil is ordered to comply with the "WTO and the Revised Kyoto Convention of the World Customs Organization (WCO)", stated the Federal Revenue.
Thus, Brazil has aligned itself with such international agreements incorporated into national regulations through the Decree 10.276 / 2020.
Confiscation is a sanction provided for in Brazilian customs legislation that is applied in cases of serious irregularities, such as smuggling, embezzlement, falsification of documents and other illegal acts.
According to the Federal Revenue Service, the regulations will lead to greater uniformity in decisions, allowing for the construction of administrative jurisprudence. They will also be more transparent, since the summaries of the rulings will be published on the Internet.
Once the new law text was approved by the Brazilian Legislature, the regulation was published in the Official Gazette on August 23, 2023 and entered into force immediately. (Law No. 14.651)
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