As Brazil becomes more integrated into global supply chains, the demand for import licenses for consumer and durable goods has surged, doubling over the last five years.
The explosion in demand for import licenses has put a strain on government resources and led to delays in processing import license applications.
Older generation IT systems and underutilisation of risk management principles are also contributing to processing delays.
INMETRO, the standards agency responsible for issuing import licenses, has put in place temporary measures to help address the current processing bottleneck, but with the scaling up of trade volumes, sustainable reforms are needed to ensure timely and easy processing of import licenses.
What are we doing
With the support of key government agencies and leading private sector businesses and organisations, our project will:
- assist in modernising and upgrading INMETRO’s internal IT systems to improve processing and fully automate data exchange with other IT systems such as Customs’ IT system in line with international best practices
- help to achieve full interoperability between INMETRO’s IT systems and Brazil’s new single window, Portal Único
- introduce a risk-based, streamlined licencing process to differentiate between low and high-risk applications, allowing all low-risk applications to be approved automatically
Ultimately, we expect this project will help to reduce the average time to issue licenses to compliant traders from seven to three working days for 70% of applications. This project will also help the Brazilian government take steps toward its larger goal of fostering risk management principles within all government agencies operating at the border.
The modernisation, upgrade and interoperability of INMETRO’s IT systems:
- will simplify and streamline processes providing sustainable efficiency gains for INMETRO
- eliminate the need to manually cross-reference data from multiple IT systems, a major bottleneck in the licensing process
- means that traders will only need to log into Brazil’s new single window to request and obtain import licenses, making the licensing process less burdensome and time-consuming for traders and improve compliance
Introducing a risk-based licensing system will:
- immediately help to reduce the bottleneck in issuing licenses as all low-risk applications will be approved without delay
- free INMETRO analysts from manual checks and enable them to focus on processing medium to high-risk applications, thereby protecting consumers more effectively
- increase transparency and predictability in the processing of licenses for compliant traders
Key indicators of success will include the reduction in number of days to obtain an INMETRO license and the number of license applications processed through Portal Único. We will also measure the number of small and medium-sized enterprises benefiting from the reduction in license processing time.
How can the private sector get involved?
We are looking for businesses to actively participate in key project implementation activities, such as by participating in public-private dialogues to re-engineer processes, sharing international best practices in licensing processes, and participating in focus groups that will test the new IT systems.
The project will be completed over 18 months in two overlapping phases:
Modernisation of licensing procedures
Modernisation and upgrade of IT systems