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Drawback and RECOF: tax free inputs for exporters

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Last verified: 2026-10-27 · Status: Stable

Drawback lets exporters buy or import inputs without paying, or later recovering, import duty, IPI, PIS and COFINS, in three modalities: suspension, exemption and restitution. Suspension is granted by the Foreign Trade Secretariat (SECEX) through Siscomex for one year, extendable once, and up to five years for long cycle capital goods; inputs not exported must be dealt with within 30 days of the export deadline. RECOF, authorised by Receita Federal, suspends taxes on imports under computerised control for manufacturing and export, for up to one year plus one, and up to five years in justified cases.

USD conversions use the Banco Central do Brasil PTAX selling rate of 26 October 2026, BRL 5.5007 per USD.

Key facts

Drawback suspension term	1 years (one extension of 1 year)Decreto nº 6.759/2009, art. 388, as of 2026-10-27 · in force
Drawback term for long cycle capital goods, maximum	5 yearsDecreto nº 6.759/2009, art. 388, as of 2026-10-27 · in force
Window to give unused drawback inputs a destination	30 daysDecreto nº 6.759/2009, art. 390, as of 2026-10-27 · in force
Unexported by products and waste disregarded up to	5 %Decreto nº 6.759/2009, art. 401, as of 2026-10-27 · in force
RECOF suspension, maximum in justified cases	5 yearsDecreto nº 6.759/2009, art. 423, as of 2026-10-27 · in force

The rule

1. Drawback is an export incentive with three modalities: suspension, exemption and restitution of the taxes on inputs.Decreto nº 6.759 (Regulamento Aduaneiro), as worded by Decreto nº 8.010 of 2013, art. 383, 2009-02-05 official text · verified 2026-10-27

2. Under drawback suspension, a company authorised by SECEX may buy locally or import inputs used or consumed in making a product to be exported with import duty, IPI, PIS, COFINS, PIS import and COFINS import suspended; the suspension also covers inputs for repair, creation, cultivation or extraction of exported products and intermediate manufacturers that supply exporters.
Cost to do it: No tax is paid up front on qualifying inputs; any guarantee required covers only the suspended taxes and is released as exports are proven (Decreto 6.759 art. 386).Lei nº 11.945, art. 12, caput and §§ 1 and 2, 2009-06-04 official text · verified 2026-10-27

3. SECEX grants drawback suspension through Siscomex and the electronic record is the grant act; a term of responsibility is needed for clearance, and any guarantee covers only the suspended taxes and falls as exports are proven.Decreto nº 6.759, art. 386, 2009-02-05 official text · verified 2026-10-27

4. The suspension regime lasts one year, with one extension for the same period; for capital goods with a long manufacturing cycle it may run up to five years. The term ends on the deadline for the export commitment.Decreto nº 6.759, art. 388, 2009-02-05 official text · verified 2026-10-27

5. If the inputs are not used as planned, the beneficiary has 30 days from the export deadline to return them abroad, destroy them at its own cost, clear them for consumption paying the taxes, or deliver them to the Treasury.Decreto nº 6.759, as amended by Decretos nº 7.213 of 2010 and nº 8.010 of 2013, art. 390, 2009-02-05 official text · verified 2026-10-27

6. Under drawback exemption, SECEX grants the exemption on proof that the requirements are met; the grant states the value and description of the exported goods and the classification, quantities and unit values of the imported or locally bought inputs, and the company must report changes above 5 percent in yield or input price.Decreto nº 6.759, as amended by Decreto nº 8.010 of 2013, arts. 393, 394 and 395, § 2, 2009-02-05 official text · verified 2026-10-27

7. Restitution may be paid as a tax credit usable on a later import.Decreto nº 6.759, art. 398, 2009-02-05 official text · verified 2026-10-27

8. By products and waste that are not exported are disregarded if they do not exceed 5 percent of the value of the imported goods.Decreto nº 6.759, art. 401, 2009-02-05 official text · verified 2026-10-27

9. RECOF lets an authorised company import goods, with or without FX cover, with taxes suspended under computerised customs control, for manufacturing and export; part of the goods may be cleared for consumption and goods in original form may be exported, re exported or destroyed. Receita Federal authorises the regime and sets eligible goods, operations, waste tolerance, minimum export share and the maximum share sold in Brazil.Decreto nº 6.759, based on Decreto-Lei nº 37 of 1966 arts. 89 and 90, arts. 420, 421 and 422, 2009-02-05 official text · verified 2026-10-27

10. Under RECOF, the tax suspension lasts up to one year, extendable by up to one more year, and up to five years in total in justified cases; from clearance the company is the legal custodian of the goods.Decreto nº 6.759, art. 423, 2009-02-05 official text · verified 2026-10-27

Regime	Who grants	How it works
Drawback suspension	SECEX, through Siscomex	Taxes on inputs suspended and settled by exporting; 1 year plus one extension, up to 5 years for long cycle capital goods (art. 388)
Drawback exemption	SECEX	Tax exemption on inputs, granted on proof that the requirements are met (art. 393)
Drawback restitution	Receita Federal	Taxes refunded, possibly as a credit usable on a later import (arts. 397 and 398)
RECOF	Receita Federal	Imports with suspended taxes under computerised control for manufacturing and export; up to 1 year plus 1, and 5 years in justified cases (art. 423)

Drawback modalities and RECOF (Decreto 6.759/2009 and Lei 11.945/2009)

Worked example

An exporter imports components with a customs value of BRL 1,000,000 (about USD 181,795). Without drawback it would pay at least BRL 117,500 (about USD 21,361) of PIS and COFINS import at 2.1 and 9.65 percent, plus import duty and IPI. Under drawback suspension none of that is paid if the finished goods are exported within the term.
Waste tolerance: if BRL 40,000 of imported inputs (4 percent of BRL 1,000,000) ends up as scrap that is not exported, it is disregarded under art. 401; at BRL 60,000 (6 percent) the excess falls outside the tolerance and must be regularised.

Step by step

Map which inputs go into exported products and their NCM codes; check that both imported and local purchases are covered.
Apply to SECEX for drawback suspension in Siscomex before buying or importing; the electronic grant is the authorisation.
Sign the term of responsibility and post any guarantee required for clearance.
Export within one year, or request the single extension in time; for long cycle capital goods ask for the longer term at the outset.
Track yields and input prices and report changes above 5 percent where the exemption grant requires it.
Within 30 days after the export deadline, return, destroy, nationalise with taxes or deliver to the Treasury any inputs not used.
For high volume manufacturers, compare drawback with RECOF, which is authorised by Receita Federal and runs on computerised control of stock.

Common traps

Buying inputs before the SECEX grant: suspension applies only to an authorised company (Lei 11.945 art. 12, § 2).
Missing the 30 day window after the export deadline: inputs not given a destination become taxable with penalties.
Counting on more than one extension: art. 388 allows one extension of the same length, save for long cycle capital goods.
Assuming RECOF is open to anyone: Receita Federal sets eligibility, minimum export share and the cap on domestic sales in its normative act.

Sources

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