Law No. 10,833, of December 29, 2003 — Article 70

Article 70. Failure by the importer, exporter or purchaser of goods imported on their account and order to comply with the obligation to keep, in good order and safekeeping, the documents related to the transactions they carry out, for the statutory period established in the tax legislation to which they are subject, or with the obligation to present them to customs inspection when required, shall entail:

• I — if related to the documents proving the commercial transaction or the respective accounting records:
• a) the determination of the customs value based on a substitute method to the transaction value, if there is doubt about the declared customs value; and
• b) non-recognition of any more beneficial treatment of a tariff, tax or customs nature that may have been granted, with retroactive effect to the date of the taxable event, if evidence is not presented of regular compliance with the conditions set forth in the specific legislation to obtain it;
• II — if related to the mandatory documents supporting customs declarations:
• a) the arbitration of the price of the merchandise for the purpose of determining the calculation basis, according to the criteria defined in Article 88 of Provisional Measure No. 2,158-35, of August 24, 2001, if there is any doubt as to the price actually charged; and
• b) the cumulative application of fines of 5% (five percent) of the customs value of the imported goods and of 100% (one hundred percent) on the difference between the declared price and the price actually charged on importation, or between the declared price and the arbitrated price.

Paragraph 1. The documents referred to in the caput include the documents supporting customs declarations, commercial correspondence — including negotiation and price quotation documents — instruments of commercial, financial and foreign exchange contracts, transport and insurance of goods, accounting records and the corresponding tax documents, as well as others that the Federal Revenue Secretariat may require in a regulatory act.

Paragraph 2. In the event of fire, theft, robbery, loss or any other event causing the loss or deterioration of the documents referred to in Paragraph 1, written notice must be given within 48 (forty-eight) hours of the event to the customs inspection unit of the Federal Revenue Secretariat with jurisdiction over the taxpayer's head office.

Paragraph 3. The fines provided for in item II of the caput do not apply in the case of regular notice of the occurrence of one of the events provided for in Paragraph 2.

Paragraph 4. Only notice given within the period referred to in Paragraph 2 and accompanied by documents proving the record of the occurrence with the authority competent to investigate the fact shall take effect.

Paragraph 5. In the event of the closure of the activities of the legal entity, custody of the documents mentioned in the caput shall be assigned to the person responsible for keeping the other tax documents, in accordance with the specific legislation.

Paragraph 6. The application of the provisions of this article does not affect the application of the fines provided for in Article 107 of Decree-Law No. 37, of November 18, 1966, as worded by Article 77 of this Law, nor the application of other applicable penalties.