Web Alert: The CTe cargo trading system in Brazil

The International Group (IG) have recently agreed that the CTe (Conhecimento de Transporte Eletrônico) system in Brazil is not an electronic trading system within the definition contained in Appendix V of the Pooling Agreement (PA), and there are no cover implications for members if the system (which is compulsory in Brazil) is used in the future.

The CTe is an electronic document used for carriage of cargo by air, sea and land within Brazil. It was created by the Brazilian Government primarily in order to document, for federal and state tax purposes, the transportation of cargo 'within' the country. Hence, the cargo value is expressed on the CTe.

As a general rule, cargoes transported by sea in Brazil are not delivered directly by the sea carrier to the consignee. The cargo is instead discharged to a port or to a terminal (public or private), who then takes custody of the cargo and delivers it to the consignee. Prior to delivering the cargo to the consignee, the port or terminal consults to ascertain that all taxes have been paid so as to clear the cargo for its onward delivery.

The DACTE (Documento Auxiliar de Conhecimento de Transporte Eletrônico) is an auxiliary document and is essentially the CT-e but in printed form, which physically accompanies the goods until they are handed to the consignee. The DACTE, as a paper document, may contain on the reverse side the carrier’s conditions of transport.

It is mandatory that the shipper and consignee/receiver are duly identified in the CTe. There are no CTe’s issued ‘to order’ and there is no possibility of endorsement. The original CTe is also not required for inspection upon delivery, since the consignee/receiver is already mandatorily identified. The CT-e does neither alter the carrier´s standard terms and conditions, nor does it impose additional liabilities other the existing ones. Further detailed information can be found on the portal of the CTe (Portuguese).