Business Corruption

According to a CMI 2008 report, foreign companies in Brazil perceive Brazilian customs to be prone to complex bureaucratic regulations and slow procedures. Furthermore, customs was the area most frequently referred to as a challenge for companies. Companies reveal that bribes are not normally requested by customs authorities; however, other types of problems are often encountered that are typically solved by some kind of facilitation payment. Other companies cite that strikes in harbours create challenges which are often solved by corruption, typically by letting intermediaries solve the problem through bribes or gifts. Recently, however, some companies have pointed at improvements regarding customs efficiency, a view supported by the World Bank, which points to important reforms that have improved customs administration.

The time used for exporting and importing goods into and out of Brazil reflects the regional average, but the number of days it takes to clear goods through customs is still significantly higher than the average for OECD countries.

Political Corruption

In a case illustrating the questionable integrity of some officials within the customs administration, one of the world's most wanted drug lords, the leader of the Columbian Norte Del Valle Cartel, Juan Carlos Ramirez Abadia, was arrested in Brazil in August 2007. By bribing customs officials and the police, he managed to run his illegal business during a three-year period in Brazil, where he coordinated the sale of 122,000 kg of cocaine.

Frequency

The World Bank & IFC: Doing Business 2012:
- A standard export shipment of goods requires 7 documents and takes 13 days at an average cost of USD 2,215 per container.

- A standard import shipment of goods requires 8 documents and takes an average of 17 days at a cost of USD 2,275 per container.

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the efficiency of customs procedures (formalities regulating the entry and exit of merchandise) in Brazil a score of 3.1 on a 7-point scale (1 being 'extremely inefficient' and 7 'extremely efficient').

Transparency International: Global Corruption Barometer 2010:
-No households who had contact with the customs authorities throughout 2009 report having paid a bribe.

World Economic Forum: The Global Enabling Trade Report 2010:
- Business executives give the transparency of border administration (pervasiveness of undocumented extra payments or bribes connected with imports and exports) a score of 3.5 on a 7-point scale (1 'extremely inefficient' and 7 'extremely efficient').

The World Bank & IFC: Enterprise Survey 2009:
- 1.7% of the surveyed companies report that they expect to give gifts in return for import licences.

- 28% of companies trading across borders identify customs and trade regulations as major constraints.

Transparency International: Bribe Payers Index 2008:
- Business executives give customs authorities a score of 3.2 on a 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt').