On August 12, 2020, the Central Bank of Brazil (Banco Central do Brazil – “BCB” or “BACEN”) approved Resolution BCB No. 4 (“Resolution BCB 4”) with the objective of adjusting certain deadlines related to import transactions and updating the minimum amount in deposit accounts in Brazilian Reais to be reported to BACEN.
In accordance with Resolution BCB 4, in cases in which there is documented proof of the impossibility, due to factors beyond the importer’s control, of boarding or entering into Brazil of imported goods within 360 days of the import advance payment, it is permitted that such boarding or entrance into Brazil occurs in up to 720 (seven hundred and twenty) days as of the closing of the foreign exchange contract.
Previously, the regulation established that the importer would have to repatriate the funds corresponding to the payments made or register the transaction before the BACEN, according to the applicable regulation.
In addition, Resolution BCB 4 also increased to BRL 100,000.00 (one hundred thousand) the minimum amount in deposit accounts in Brazilian Reais held by individuals or entities resident or domiciled outside Brazil to be reported to BACEN.
Previously, the regulation established the minimum amount of BRL 10,000.00 (ten thousand) in such deposit accounts to be reported to BACEN.
Resolution BCB 4 will come into force on September 1, 2020.
Demarest’s Banking and Finance team is closely monitoring these and other measures and is ready to assist you in any matters regarding this topic. For more information, please feel free to contact us.