Again, the penalty is US2800 per violation.

Contact our Brazil agent closely before you book any Brazil shipment.

=======================================================================

Siscarga (the new automated system for Brazilian Customs and its implementation has the objective of controlling the entrance and exit of vessels on bonded ports, foreign cargo for imports, exports or in transit) will be officially implemented on March 31st, 2008 and our processes were redesigned in order to accomplish with the new rules which will have a huge impact on the period to present documents to Local Authorities and its contents, directly affecting our documentation deadline for both Imports and Exports shipments.

Export from Brazil: requires all shipping information at least 48 hours prior to cut-off date. Otherwise no loading is accepted.

As we depend on receiving such information from exporters/brokers via shipping instructions (Bs/L draft) and need time to process them into our systems, we established a deadline of 48 hours prior to cargo cut-off (excluding weekends) to receive all the shipping instructions and submit these information to the Local Authorities / Customs, to be able to load the cargo.

This new deadline is in place for some time to give our customers the opportunity to adjust their processes before the official implementation, when containers will not be able to go on board if shipping instructions are not received in the timeframe above mentioned.

From March 31st on, all cargoes not covered by shipping instructions in the established deadline (48 hours prior to cargo cut-off excluding weekends) will not be loaded, considering we will not be able to process the information and submit it to authorities via SISCARGA timely.

The following information will be mandatory on all shipping instructions, according to the requirements from involved authorities:

1. Loading and Discharge port and country

2. Shipper Name and CNPJ

3. Consignee Name

4. Complete commodity/goods description per container

5. Cargo NCM (Nomenclatura Comum do Mercosul)

6. Payment terms (prepaid / collect)

7. Conatiner Type and Seal

8. Unit identification (container number)

9. Cargo gross weight (in Kgs) per container (without tare)

10. Cubic meters per container

Import to Brazil: import documents must be sent to customs 48 hours prior to the calling of the first Brazil port, not the final destination port.

The deadlines to present import documents will also be so impacted, as they have changed from 48hrs from vessel arrival at each port to 48hrs from vessel arrival at first port in Brazil, where port authorities requires a full vessel manifest (including cargo that is going to remain on board for discharge outside Brazil). On the B/L (nor container) can be added after manifest submission is done and quality of information declared by carriers and physical printed document presented by customers will be compared more efficiently and discrepancies will receive heavy fines.

Below you can find the summary of critical points (it is of utmost importance that origins make sure that all cargo loaded to Brazil are duly manifested in compliance with the law, to avoid having cargo held on board once there will be little flexibility):

1. The drafts of shipping document should be sent to our agent by us before cargo loading.

2. Small corrections (such as weight, volumes, measurements, details on cargo description, etc) can be changed in advance upon confirmation from discharge port.

3. Changes on type of cargo (commodity type) are not allowed.: can not change the commodity.

4. Short shipments can only be done if informed before manifest transmission, so documentation can be amended and switched.

Once the manifest is sent, no change of short shipment.

5. “Freight as per agreement” is not allowed by Brazilian customs, freight and charges (both prepaid and collect) must be clearly stated on Bs/L, with breakdown per charge, including Capatazia.: needs to list breakdown of all charges on B/L.

6. Seaway Bs/L, Express/Telex Releases are not allowed.: need original MB/L to be sent to our Brazil agent.

7. Container and Seal numbers can not be discrepant.

8. Weight must be correct and in metric system (Kgs).

9. Goods description must reflect the correct and accurate contents of the container (with correct piece count / packages).:

Detailed description of the commodity and correct piece count / package count.

10. NCM (Harmonized cargo code) / HS CODE is mandatory in all import Bs/L (at least the firsts 04 numbers).:

We need to check with Brazil agent for the HS CODE prior to loading. The HScode has to be shown on B/L.

11. Generalized goods description (FAK, GDSM, etc) are not allowed.:need details of the commodity.

12. CNPJ (Brazilian company’s National register number) is a mandatory information in all Bs/L or CPF (in case of personal

effects).: need to ask our Brazil agent to check with consignee their CNPJ or CPF number. We need to show that on B/L and manifest.

13. Freight Values declared in the space reserved for the description of goods is not accepted.: freight charge need to Be listed at left corner of our B/L, not in the middle part of our B/L where we put description of cargo.

14. Bs/L with consignee “to order” are not accepted, and cargo will be held / blocked by Customs until real consignee is nominated.

Need to show the real consignee on the B/L. Can not show “to order:.

In case you have any doubt or concern, please feel free to contact us.