Unfair Gaps🇧🇷 Brazil

Turned Products and Fastener Manufacturing Business Guide

7Documented Cases
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All 7 Documented Cases

Penalidades por Violação de Conformidade de Dados (LGPD)

Up to 2% of annual Brazilian revenue per violation (maximum BRL 50,000,000 per single violation). For manufacturer with R$ 50M annual revenue: R$ 1,000,000 maximum per violation; typical enforcement ranges R$ 500,000-5,000,000 for operational violations[2][3][8].

Non-conforming material review processes that involve customer notification, supplier data sharing, or quality report distribution without explicit LGPD consent management, data minimization, or breach protocols trigger administrative fines from Brazil's National Data Protection Authority (ANPD). Violations include inadequate consent documentation, slow breach response, and unauthorized data transfers.

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Multas por Não Conformidade LGPD em Dados de Clientes

Up to 2% of annual Brazilian revenue per violation (capped at BRL 50 million ~USD 10 million)

Customer specification change orders contain personal data (customer names, contacts, order preferences). Manual handling without digital controls creates LGPD violations. ANPD enforces penalties on companies processing customer data without proper safeguards, consent documentation, or deletion procedures.

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Multas por Não Conformidade em Regime de Drawback Suspenso

Suspended import taxes (typically 15-25% of imported goods value) + interest at Selic rate (~12% annually) + non-compliance penalty from customs clearance date retroactively. Example: R$ 100,000 in suspended taxes can generate R$ 15,000-30,000 in accumulated penalties and interest over 12 months.

Non-conforming material review processes that delay nationalization decisions beyond 30 days of the concession deadline trigger full tax suspension conversion to payable status with accumulated interest and penalty multipliers. The penalty calculation base includes all suspended import taxes from the original customs clearance, compounded across the delay period.

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Riscos de Conformidade AML em Transações de Materiais Não Conformes

Criminal penalties: imprisonment + substantial monetary fines for individuals facilitating non-compliance; Administrative fines: proportional to transaction value; Regulatory action by COAF and Central Bank. Estimated exposure: R$ 50,000-1,000,000+ depending on transaction magnitude and intent severity[4].

Non-conforming material disposition processes involving return payments, refunds, or supply chain partner transactions lack suspicious activity reporting (SAR) protocols required by Brazilian AML framework (Law 12,683/12 and COAF regulations). Failures include inadequate customer due diligence (CDD) on high-value refund recipients, missing transaction documentation, and delayed suspicious activity reporting to COAF.

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