NCM and tax classification in SAP: the master record that decides the tax
In the material master, the NCM places the goods in the official table. IPI, import treatment and tax substitution depend on it, and now also the IBS and CBS rate: standard, reduced or zero.
One wrong code on the material repeats in every order, every invoice and every file of the period.
Start with your role
One starting point for each role.
01Tax and taxation
Where the NCM decides the tax, how LC 214/2025 ties the benefit to the classification and what the federal tax authority (Receita Federal) advises for classifying.
Go to section02Material master
Where the NCM lives on the material, who approves a new code and how to review the master data when the table changes.
Go to section03Foreign trade and logistics
The NCM in the import tariff, in the Single Portal attributes, in the fine for wrong classification and in the declaration.
Go to section04IT and integrator
NCM, CEST and GTIN on the invoice, the predictable rejections and the SAP points where the NCM enters the calculation.
Go to sectionOne code in the master data, several taxes
The NCM is the eight-digit code stored in the material master, and it is what SAP, the invoice and the tax authority rely on to decide the tax. It governs IPI, imports and tax substitution; with the reform, it also shows whether the product pays IBS and CBS at the standard, reduced or zero rate.
What the NCM is
Nomenclature adopted by Brazil, Argentina, Paraguay and Uruguay since 1995. It is part of the Harmonized System (SH), kept by the World Customs Organization, and gives a single code to each good.
Eight digits, two owners
The Harmonized System sets the first six digits, by international convention. Mercosur defines the seventh and eighth. The material master stores the full code.
One table, several tariffs
Add the Import Tax rates to the NCM and you get the TEC. Add the IPI rates and the tariff exceptions (Ex tarifários) and you get the TIPI. The classification is the same in both cases.
From heading to subitem: how the code is organized
The table combines interpretation rules, explanatory notes and a four-level list, and the eight-digit code is the final level.
- 01
Heading
The first four digits group goods of the same nature, following the Harmonized System.
- 02
Subheading
The fifth and sixth digits subdivide the heading and still follow the Harmonized System.
- 03
Item
The seventh digit is the first level that Mercosur defines.
- 04
Subitem
The eighth digit completes the code. It is the 8-digit code that the material stores and that fixes the rates.
The set has 6 General Rules of Interpretation of the SH and 2 Complementary General Rules, plus section, chapter, subheading and complementary notes. The code list covers 21 sections and 96 chapters, with just over 10,000 codes.
How to look up the code
Receita Federal runs NCM On-line inside the Classif system, which searches by code, by word or by the nomenclature tree. The IMP button in the same system opens the treatment for Import Tax and IPI.
When you doubt the classification
The company itself classifies the product, applying the rules of the nomenclature. If the doubt remains, the consultation ruling is up to Receita Federal, by written request to the unit of the applicant's tax domicile.
Receita Federal pages on the NCM and Invest Export Brasil pages on the Harmonized System, the NCM and the TEC.
Six rules that decide under which heading the good falls
The Harmonized System has six General Rules of Interpretation, applied in order. The NCM adds two complementary rules.
Titles only indicate
Titles of sections, chapters and subchapters are only indicative. The legal classification comes from the text of the headings and from the section and chapter notes.
Incomplete, disassembled, mixed
An incomplete or unfinished article with the essential characteristics of the complete one, and a disassembled article, are classified as the complete article. Material mixed with another follows similar logic.
More than one heading fits
The most specific heading prevails. If the tie remains, the material or article that gives the essential character applies, and last the heading that comes later in numerical order.
The most similar
What the previous rules do not solve goes to the heading of the most similar articles, after comparing the good with similar ones.
Cases and packing
Cases made for an article and for long use, and packing of the type normally used, go with the goods they contain, unless the packing is clearly reusable.
Subheadings
Within a heading, the texts of the subheadings and of the subheading notes apply, and only subheadings of the same level are compared.
The Explanatory Notes of the Harmonized System (Nesh) are the official interpretation of the SH and explain the rules, the notes and the scope of each heading. The current version comes from IN RFB 2.169/2023, published in the DOU (Federal Official Gazette) of 08/01/2024, and you look it up in the Classif system. The Mercosur rulings (ditames) and the opinions of the World Customs Organization (OMA in Portuguese) are mandatory for Receita Federal and for the other parties involved.
Receita Federal: Nesh, Mercosur classification rulings and World Customs Organization classification opinions.
Four codes that live on the same item
The same item can carry more than one classification code, and each one answers a different question.
| Code | Size | What it identifies | Who defines it | Where it appears |
|---|---|---|---|---|
| NCM | 8 digits | The good, in the Mercosur nomenclature. | Mercosur and Camex, by Gecex Resolution. | NCM field of the NF-e, record 0200 of the EFD, import declaration. |
| CEST | 7 digits | The good subject to tax substitution, alongside the NCM and the description. | Confaz, in ICMS Agreement 142/2018. | CEST field of the NF-e and record 0200 of the EFD. |
| GTIN | 8, 12, 13 or 14 positions | The commercial product, with the NCM and CEST registered. | Brand owner, in the Centralized GTIN Registry. | cEAN field of the NF-e. |
| NBS | Own code | The service, the intangible or the operation that changes equity. | RFB/SECEX Joint Ordinance 2.000/2018. | National-standard NFS-e and the service annexes of LC 214/2025. |
The size of the table that the master data follows
The table is not static: the official download lists each code with its start date and the act that created or changed it.
chapters
The current table runs from chapter 01, live animals, to 97, and each chapter groups a family of goods.
8-digit codes
These are the codes the material master stores, just over ten thousand in the table in force.
amending acts
Gecex and Camex Resolutions, from 2022 to 2026, created or changed codes of the current table. The one in force on 16/10/2026 is Gecex Resolution 926/2026, effective from 01/10/2026.
longest chapters
Organic chemistry, mechanical machines and appliances, and electrical machines and materials hold the largest number of codes.
NCM table in force in the official download of the Classif system, in JSON, with the history of acts for each code.
Six points where a wrong code creates tax cost
Even without the reform, the NCM already serves as a key in several taxes and obligations. The table shows each point and the rule behind it.
| Where | Role of the NCM | Basis |
|---|---|---|
| ICMS with tax substitution | Description, NCM/SH and CEST (7-digit code) identify the goods under the regime. When the item description differs from the NCM description, only the good that the agreement description covers falls under the regime. | ICMS Agreement 142/2018 (clauses 6 and 7) |
| IPI | The TIPI takes the NCM as its base. If the Camex Executive Management Committee changes the NCM, Receita Federal may adjust the TIPI, as long as no rate changes. | Decree 11.158/2022, arts. 2 and 4 |
| PIS and Cofins | Some TIPI headings, such as 30.03, 30.04 and 33.03 to 33.07, have their own rates for these contributions. Check the current wording of the provision for each product. | Law 10.147/2000, art. 1 |
| Foreign trade | The full NCM defines the Import Tax and several domestic taxes, and also guides administrative treatments and special customs regimes. | Receita Federal, NCM page |
| NF-e | In the reform NF-e, the item NCM field (prod/NCM) takes part in validation rules. CBS at zero rate between taxpayers of the same incentive area only passes if the NCM does not start with 93, 24, 2203 to 2208, 8703 or 33, except 3303 to 3307. | NT 2025.002-RTC: UB56-10 and UB66a-20 |
| EFD ICMS/IPI (SPED Fiscal) | In record 0200, each item carries COD_NCM, EX_IPI and CEST. Industrial producers and equivalents, tax substitutes, and those who import or export must report the NCM. A service has no NCM. An item code can never be repeated or reused, and a generic description is forbidden. | Record 0200 of the EFD ICMS/IPI Practical Guide, in the version set by COTEPE/ICMS Act 44/18 (3.2.4 since 10/09/2026). |
How SAP uses these fields in tax determination is in Tax setup in SAP; the electronic document side is in Electronic tax documents.
In the reform, the classification opens or closes the benefit
LC 214/2025 grants reduced and zero rates through product lists, and each list uses the NCM/SH as its key. For services, the key is the NBS. Without the right code, the product stays outside the benefit.
Zero rate by NCM
National Basic Basket (article 125, Annex I), medical and accessibility devices (articles 144 and 145), menstrual health items (article 147) and vegetables, fruit and eggs (article 148, Annex XV).
60% reduction
Covers medical and accessibility devices (articles 131 and 132), food (135), hygiene and cleaning (136), farm inputs (138) and others, each with its own annex.
Services by NBS
Education and health services come in through the Brazilian Nomenclature of Services, in Annexes II and III. Farm inputs and cultural productions, in turn, require NCM/SH and NBS at the same time, in articles 138 and 139.
Selective Tax
Applies to the goods whose NCM/SH codes appear in Annex XVII, in articles 409 and 419 to 422. In this case, the NCM decides whether there is an additional tax.
The law itself says which table applies: Gecex Resolution 272/2021 for the NCM/SH and RFB/SECEX Joint Ordinance 2.000/2018 for the NBS (article 492). A later change that moves a product named in the law does not affect what was already applied under the old classification (§ 2), and Decree 12.955/2026 repeats the rule. The master data must record the version of the table in which the code was chosen.
The articles of LC 214/2025 that use NCM or NBS
The table lists the provisions that use NCM or NBS as a key. The list of products in each annex is read in the text of the law itself, not from memory.
| Article | Annex | Key | Effect |
|---|---|---|---|
| 125 | I | NCM/SH | National Basic Basket at zero rate. In Annex I, powdered milk and infant formulas depend on compliance with the specific legislation. |
| 129 | II | NBS | Education services pay 60% less. |
| 130 | III | NBS | Health services pay 60% less. |
| 131 | IV | NCM/SH | Medical devices pay 60% less, but only if registered with Anvisa (§ 1). |
| 132 | V | NCM/SH | Accessibility devices pay 60% less. |
| 135 and 136 | VII and VIII | NCM/SH | Food and hygiene and cleaning items pay 60% less. |
| 138 and 139 | IX and X | NCM/SH and NBS | Farm inputs and cultural productions pay 60% less. |
| 142 | XI | NBS and NCM/SH | Information security and cybersecurity pay 60% less. In item II, as worded by LC 227/2026, the key is the NBS only. |
| 144 and 145 | XII and XIII | NCM/SH | Medical and accessibility devices at zero rate. |
| 146 | VI (§ 2) | Health registration (main text) and NCM/SH (§ 2) | Medicines registered with Anvisa and intended, according to the health registration, for the purposes of the article get a zero rate. A joint act publishes the list every 120 days (§ 3), and Annex XIV was repealed by LC 227/2026. |
| 147 | no annex | NCM/SH 9619.00.00 | Menstrual health products get a zero rate, as long as they meet the Anvisa standard. |
| 148 | XV | NCM/SH | Vegetables, fruit and eggs at zero rate. |
| 409, 419 to 422 | XVII | NCM/SH | Selective Tax. |
| 492 | no annex | NCM/SH and NBS | Defines the reference tables and protects what was applied before a change. |
Some lists are reviewed every 120 days by joint act, such as those of articles 131, 132 and 138. The impact of the review of the medicines list on the master data is the subject of the text on the zero rate for medicines.
Complementary Law 214/2025 in its consolidated version, already with LC 227/2026.
Fuels, customs regimes and capital goods also use the NCM
The CBS regulation uses the NCM/SH at other points besides the benefit lists. Each one has its own table and rule.
Fuels, a single stage
CBS applies only once to gasoline, ethanol, diesel, biodiesel, liquefied petroleum gas (GLP), aviation kerosene and other fuels (LC 214/2025, article 172, and Decree 12.955/2026, article 259). In the calculation, the regulation considers the ANP and NCM/SH codes of each fuel (article 261, § 1).
Regimes with an NCM list
Repetro (article 164), Reporto (article 186) and the suspension for capital goods (article 196) refer to tables of goods with NCM/SH in the decree itself. The material master must reflect the code from the regime table.
Farm machinery and cargo vehicles
Article 197 zeroes CBS on tractors, machines and implements for a non-taxpayer farm producer, and on cargo vehicles for a self-employed individual carrier. The goods are listed by NCM/SH in Tables II and III of Annex IV.
Decree 12.955/2026, CBS regulation, with reference to the articles of LC 214/2025.
From the NCM to the invoice field
On the document, the NCM appears with two other codes per item: the CST and the cClassTrib of IBS and CBS, required by NT 2025.002-RTC. Version 1.52 was released on 01/10/2026 and, according to the 05/10/2026 notice of the NF-e Portal, takes effect in the test environment on 26/10/2026 and in production on 16/11/2026.
What the NF-e asks for
Each cClassTrib code points to a provision of LC 214/2025, so the item states precisely how it bears IBS and CBS. The table with the codes is on the National NF-e Portal, in the Documents tab, Miscellaneous option. The NCM enters validation rules, such as those that restrict CBS at zero rate in an incentive area.
What the NFS-e asks for
A service has no NCM: the classifier is the NBS. The NFS-e Questions and Answers treat it as mandatory on every national-standard invoice, except the MEI Simplified Issuance. The system only accepts NBS from version 2.0 of the national table and returns error E0316 in other cases. Each NBS allows only certain cClassTrib codes, listed in Annex VIII.
The NFS-e classification field is detailed in a blog article on classification in the NFS-e. The rules of the service invoice are in National-standard NFS-e in SAP.
What the invoice checks on NCM, CEST and GTIN
The NF-e rejects the item when the code is missing, does not exist in the table or does not match the GTIN registry. The table lists the rules and the rejection numbers.
| Field | Rule | Rejection | Basis |
|---|---|---|---|
| NCM (I05) | Eight digits. For a service or an item with no product, enter 00. The NF-e identifies goods by the NCM. | 777 NCM not complete. 778 NCM does not exist in the table. 471 NCM 00 not allowed. 779 (NFC-e) NCM not compatible. | SINIEF Adjustment 07/05, clause 3, V. MOC 7.0, Annex I. |
| CEST (I05c) | Seven digits. Required when the good appears in a specific agreement, whether or not it is subject to tax substitution. | 806 operation with ICMS-ST without CEST. | SINIEF Adjustment 07/05, clause 3, VI. MOC 7.0, Annex I. |
| GTIN (cEAN) | With prefix 789 or 790, validated in the Centralized GTIN Registry, which stores the NCM and CEST of each product. | 890 GTIN does not exist in the registry. 891 not compatible with the NCM. 892 not compatible with the CEST. | SINIEF Adjustment 07/05, clause 3, VII. NT 2017.001. |
| Reform groups | NT 2025.002-RTC links the cClassTrib to the Portal table and requires the Selective Tax for certain NCM. | Use of the Selective Tax is required for this operation classification and this NCM. | NT 2025.002-RTC. |
The Individual Microentrepreneur (MEI) fills in GTIN, CEST and NCM as optional, and the NCM is only mandatory in interstate operations and exports (SINIEF Adjustment 07/05, clause 3, XII). For other issuers, the code on the document must be the same as in the master data.
SINIEF Adjustment 07/05 and Taxpayer Guidance Manual 7.0, Annex I, on the NF-e Portal.
In which field of the material master the NCM sits
According to the SAP documentation for the Brazil localization, the Control code field, in the foreign trade import and export tabs, stores the NCM of the material.
What the S/4HANA documentation says
- The Control code, in the foreign trade import and export tabs, stores the NCM.
- The system uses the NCM to calculate taxes, and it is printed on the invoice.
- In Customizing, you can assign the NCM by material group.
- CFOP category, usage and origin of the material feed the CFOP determination.
In the purchase order
The Brazil tab of the item shows Material Usage, Material Origin, NCM Code, Material Category and Produced In-House, for materials kept in a plant in Brazil. Documentation of an earlier ERP version describes that the order uses the NCM of the material and vendor info record when it exists. If your environment keeps this record, cross-check it with the material master.
The same item with two NCM
When the info record and the material master carry different codes, the order uses one and the master data stores another. The difference only appears when you compare order, invoice and master data. The analysis of the basic basket reaches the same conclusion: getting the NCM right does not solve it if the annex sets a product condition. In SAP, the master data steps for these items are in another blog article.
SAP Help Portal, SAP S/4HANA, Brazil localization: material master data, purchase order, CBS and IBS tax situation and ICMS-ST rules.
Where SAP uses the material NCM up to the invoice
Four points of the process carry the NCM from the master data: the material, the order, the invoice and the ICMS-ST rules.
- 01
Material
Control code with the NCM in the foreign trade tabs. CFOP category, usage and origin in the Accounting 2 tab.
- 02
Purchase order
The Brazil tab of the item shows NCM and material category, and the system calculates taxes from them.
- 03
Invoice
The NCM enters the calculation and is printed on the invoice, and the material category determines the CFOP.
- 04
Rule by NCM
In a purchase with ICMS-ST, the contributor configuration accepts NCM or EAN/UPC in place of the material number.
The tax code view (J_1BTAXCODEV) gained the CBS and IBS tax situation column for inbound invoices, with mapping of the situation code and the tax classification code. The setup follows the guide attached to SAP Note 3646289 and applies to SAP S/4HANA and Private Edition.
The path that Receita Federal advises to reach the code
Receita Federal describes a four-step path to classify a good. The client decides the final code.
- 01
Understand the product
Identify the main function, secondary functions, working principle and use of the good.
- 02
Read the legal notes
Read the Section and Chapter Notes of the chosen heading, because they complete the text of the headings.
- 03
Compare the same level
Compare the NCM texts only among breakdowns of the same level.
- 04
Look for a general-effect act
Look for a World Customs Organization opinion, a Mercosur ruling or a consultation ruling that classifies the good or a similar one.
The Classif system brings together the NCM table, the legal notes, the Nesh, the general rules of interpretation and more than 30 thousand national and international classification decisions. The query is free and the NCM history covers the acts since January 1, 1996.
Receita Federal: guidance on classifying and the Classif system.
How to ask Receita Federal for a consultation ruling on the NCM
When the doubt remains, a written consultation to Receita Federal is the official path, and it protects whoever files it while waiting.
Who can consult
The taxpayer, a public administration body or a category representative entity. The head office files, and the effects reach the other establishments. Each case covers only one product.
What to describe
Commercial and technical name, brand and model, form, dimensions, composition, function, use, production process, images, catalogs, leaflets and reports. From chapter 27 to 40, the composition and the chemical formula too.
Effects of the ruling
An effective consultation, filed before the payment deadline, removes late-payment fine and interest and prevents a tax procedure on the good for 30 days after notice. The ruling binds Receita Federal and backs any taxpayer who applies it.
When it has no effect
Among other cases: a generic consultation, one in thesis, one by branch, one with a pending dispute on the classification, one where the classification is already set in a regulation or in law, or one that does not fully describe the good.
The decision is single-instance, with no appeal or request for reconsideration, except a special appeal when two rulings differ on the same good. The consultation does not suspend the payment deadline or the filing of returns.
Normative Instruction RFB 2.057/2021, which regulates the consultation on tax classification of goods, and the consultations page of Receita Federal.
What it costs to classify the good under the wrong code
A wrong classification has a direct consequence on the import, on the document and on the benefit.
| Consequence | When it happens | Basis |
|---|---|---|
| Fine of 1% of the customs value | Imported good classified incorrectly in the NCM, in the complementary nomenclatures or in other identification details. | Decree 6.759/2009, art. 711, I |
| Floor, base and ceiling of the fine | BRL 500.00 is the minimum amount. Different goods with the same correct classification generate a single fine, on the sum of the values. The total of the fines under the article does not exceed 10% of the value of the goods in the declaration. | Decree 6.759/2009, art. 711, §§ 2 to 5 |
| Taxes and other penalties still apply | The fine does not waive the collection of taxes, the fine for an inaccurate declaration (art. 725) or other administrative penalties. | Decree 6.759/2009, art. 711, § 6 |
| NF-e rejection | NCM missing, not in the table, equal to 00 without reason or not compatible with the NFC-e, and GTIN not compatible with the registered NCM. | MOC 7.0, Annex I (777, 778, 471, 779, 891) |
| Benefit out of reach | The benefits of LC 214/2025 apply to the products listed in each annex, and a product without the code or without the annex condition stays at the standard rate. | LC 214/2025, arts. 125 to 148 |
Customs Regulation, article 711, and Taxpayer Guidance Manual, Annex I.
From the master data NCM to the import declaration
In an import, the problem usually starts in the master data: with an NCM different from the declared one, tax, credit and cost come out wrong in every operation.
The NCM sets the tariff
From the 8-digit code come the Import Tax rates. In the Classif system of Receita Federal, the IMP button opens the II and IPI tabs of the code consulted.
Attributes by NCM
Importers now report, for each NCM code, structured attributes in the Product Catalog, in the Duimp and in the LPCO. According to Siscomex, they will replace the NVE, the highlights and the description fields of the licensing forms. The list is published in XML and JSON, refreshed every midnight.
Administrative and tax treatment
The Classif system shows import and export licenses, permits and bans, and simulates rates, tariff preferences, antidumping duties and tariff exceptions (Ex tarifários).
What to check in the master data
- Master data and declaration with the same NCM, item by item.
- The unit of measure must match between the material and the declaration.
- Attributes that the NCM requires kept with the master data or with the Product Catalog.
- Every NCM change is recorded as a master data change: when and by whom.
Duimp, customs value, special regimes and exports are in Foreign trade in SAP.
Siscomex Single Portal, attributes page of the New Import Process, and Classif system.
From the 1995 NCM to the table and the invoice of 2026
Classification changed little per year and always changes by official act. The sequence shows where each rule came in.
- 01
1995, the NCM in Mercosur
Brazil, Argentina, Paraguay and Uruguay adopt the NCM, based on the Harmonized System, and the TEC takes effect on January 1.
- 02
1997, the TIPI on top of the NCM
The TIPI, based on the NCM, takes effect on January 1, 1997, under Decree 2.092/1996.
- 03
2022, the table of Gecex Resolution 272/2021
The table in force today comes from this resolution, effective from 01/04/2022, and it is the reference set in the law (LC 214/2025, article 492).
- 04
2023 to 2026, targeted adjustments
Thirteen Gecex and Camex resolutions, from 2022 to 2026, created or changed codes of the table, effective on dates such as 01/01/2023, 01/04/2024, 01/10/2024 and 01/02/2026.
- 05
2024, Nesh and WCO opinions
IN RFB 2.169/2023 updates the Nesh (DOU of 08.01.2024), and IN RFB 2.171/2024 updates the WCO opinions (DOU of 10.01.2024).
- 06
2025, LC 214
The complementary law of January 16 creates IBS, CBS and the Selective Tax and ties reduced and zero rates to lists by NCM/SH and NBS.
- 07
2026, Decree 12.955
The decree of April 29 regulates CBS and repeats, in article 3, the reference table of the law.
- 08
October 2026, table and technical note
On 01/10/2026 the NCM table update and NT 2025.002 v1.52 come in, going to the test environment on 26/10 and to production on 16/11.
Receita Federal (NCM, Nesh, opinions), Planalto (decrees and complementary law) and NF-e Portal (notices and technical reports).
The table changes, and the master data must keep up
Each tax reacts in its own way to an NCM change by official act. In all of them, the master data must be reviewed.
IPI and TIPI
If Camex changes the NCM, Receita Federal may adjust the TIPI, as long as this does not change rates (Decree 11.158/2022, art. 4).
ICMS with tax substitution
Reclassifying, grouping or splitting codes does not take the good out of the regime or put it in. The invoice carries the current NCM, with the previous treatment, and the CEST stays (ICMS Agreement 142/2018, clause 7, §§ 2 to 4).
IBS and CBS
If the NCM/SH or the NBS changes later and alters the classification of a product listed in the law, the rules applied under the old classification remain valid (LC 214/2025, art. 492, § 2).
On the invoice
The NF-e Portal announced on 03/09/2026 Technical Report 2024.001 v2.40, which updates the NCM table from 01/10/2026. Material with a code outside the current table must be reviewed before issuing.
Signal, probable cause and check
Each cause is probable, not certain: what shows up varies from one environment to another.
| Signal | Probable cause | Check |
|---|---|---|
| The same item appears with different NCMs on the material, on the order and on the invoice | The info record has its own code, or someone changed the NCM on the invoice without fixing the master data. | Cross-check the master, the info record and the latest invoices and orders of the item, looking only at the NCM. |
| Rate or CST not as expected after a table change | An act reclassified, split or grouped codes, and the master data was left behind. | Check whether the master data code is still in the table in force. |
| Many different products concentrated in one generic NCM | Classification done for convenience, without analyzing the product. | Count how many materials sit in each NCM and review, by a sample of the highest value, those that concentrate diverse products. |
| Tax substitution applied, denied or missing for no clear reason | The NCM and CEST pair does not match, or the item text departs from the agreement text. | Look up the NCM and CEST pair of the item in the matching annex of the agreement. |
| Standard rate on a product that would have a benefit in the reform | The code is not in the annex list, or the master data does not record the condition required of the product, such as the health registration. | Read the annex and the article of LC 214/2025 that cover the product and compare with the master data. |
| NF-e rejected for incompatible classification | The Portal table does not allow the combination of NCM, CST and cClassTrib of the item. | Redo the item combination and test it in the table published on the National NF-e Portal. |
| EFD file with a repeated item, reused code or vague description in 0200 | A code already used was assigned again and the history was not recorded in 0205. | Audit records 0200 and 0205 according to the EFD ICMS/IPI Practical Guide. |
| The NFS-e comes back with an error of non-existent NBS or invalid combination with the cClassTrib | NBS that does not match the service provided, or outside version 2.0 of the national table. | Look up the NBS of the service in Annex VIII, which maps NBS to cClassTrib. |
| GTIN rejected for incompatibility with the NCM or the CEST | The material master differs from what the brand owner registered in the Centralized GTIN Registry. | Compare the NCM and CEST of the material with those in the GTIN registry for the product. |
Six steps to review the master data and the routine that sustains it
A one-off check clears the backlog. What keeps the master data right over time is the review routine, with a record of who decided what.
- 01
Extract the master data
Gather material, info record, material group and the NCM of the latest orders and invoices for each item.
- 02
Prioritize
Start with the highest-value materials, those that appear in reform annexes and those with ICMS-ST and imports.
- 03
Describe the product
Record function, composition and use of each item, with the same list that the consultation to Receita Federal asks for.
- 04
Validate the code
Tax validates the NCM, with the customs broker or with the consultation to Receita Federal when the doubt remains.
- 05
Fix at the source
Adjust the master data and the process that feeds it, and keep the evidence of the decision.
- 06
Repeat at every change
Run the scan when the NCM, the TIPI or an annex of the law changes, before it takes effect.
One owner
One person in the tax area approves any new or changed NCM, with a substitute for absences. Whoever creates the record creates the material, but the code only counts after tax validation.
Evidence per decision
Each choice is recorded with the reason: what the product is technically, the opinion or consultation that backs it, the date and who decided. The audit will ask for this history.
Stable item code
The EFD Practical Guide forbids duplicating or reusing an item code: a new characteristic needs a new code, and the change is kept in record 0205.
Master data check, with the decision on the client side
The scope is the behavior of the system: what the master data stores, what the invoice carries and what the file declares.
DFSpro checks the NCM master data, shows the divergences and proves how the system behaves, and the decision to classify stays with the client.
What DFSpro does
- Writes with tax the check criterion for each master data field, such as NCM, origin, CEST and regime.
- Takes a sample and cross-checks material, info record, order, invoice and record 0200.
- Ranks the divergences by tax impact and by volume of documents.
- Points to the fix at the source, so the error does not repeat.
- Designs the master data scan for each change of table or annex.
What stays with the client
- Classifying each product, with the customs broker and, if in doubt, with the consultation to Receita Federal.
- Approving the NCM through a tax owner.
- Making the master data change in the environment (client or its technical team).
- Sustaining the tax thesis for each benefit.
The SAP Tax Diagnostic includes the master data check, and the material master as a whole has its own page: tax master data.
It is up to us to design the check criterion, configure the master data and prove how SAP behaves. Classifying the product and deciding the tax thesis are up to the client, with the customs broker and, in doubtful cases, the consultation to Receita Federal.
Where the NCM shows up in other fronts
Rules and documents of reference
Receita Federal and Mercosur
Legislation
Confaz and SPED
NF-e and NFS-e
Frequently asked questions about NCM and tax classification in SAP
Understanding the NCM4 questions, 01 to 04
01Does the NCM apply to services?+−
No. Under the EFD ICMS/IPI Practical Guide, a service has no NCM. The law classifies services by the NBS, and the national-standard NFS-e asks for the NBS on the invoice.
02Who defines the NCM of a product?+−
The company classifies the product, applying the rules of the nomenclature, and Receita Federal answers classification consultations. DFSpro finds the master data divergences and suggests the fix, but the decision to classify is the client's.
03Are NCM, CEST and GTIN the same thing?+−
No. The NCM classifies the good in eight digits. The CEST, with seven digits, identifies the good subject to tax substitution. The GTIN identifies the commercial product and is validated in the Centralized GTIN Registry, which stores the NCM and CEST of each product.
04How do I know the right NCM?+−
Receita Federal advises understanding the function and use of the product, reading the legal notes of section and chapter, comparing only texts of the same level and looking for a World Customs Organization opinion, a Mercosur ruling or a consultation ruling. The search is done in the Classif system, and the decision is the client's.
Tax document and reform6 questions, 05 to 10
05Does being on the annex list guarantee the benefit?+−
Not always. Some items have their own condition: the powdered milk of Annex I requires compliance with the specific legislation, and the medical devices of Annex IV need registration with Anvisa (art. 131, § 1). For medicines, article 146 looks at the purpose stated in the health registration. The NCM is necessary, but it is not enough.
06What if the NCM is changed by official act?+−
The effect varies by tax. In tax substitution, reclassification neither includes nor excludes the good, and the invoice carries the current NCM (ICMS Agreement 142/2018). LC 214/2025, in turn, keeps the earlier classification of the products it names (article 492, § 2). Either way, the master data must be reviewed.
07Which NF-e rejections depend on the NCM?+−
The Taxpayer Guidance Manual lists 777, for an NCM without the eight digits, 778, for an NCM not in the table, 471, for NCM 00 without reason, and 779, for an NCM not compatible with the NFC-e. There are also those for GTIN not compatible with the NCM (891) and with the CEST (892), and 806, for ICMS-ST without CEST.
08What is the fine for wrong classification in an import?+−
Article 711 of the Customs Regulation sets a fine of 1% of the customs value of the good classified incorrectly in the NCM, with a floor of BRL 500.00 and a ceiling of 10% of the value of the goods in the declaration. The fine does not waive the taxes or other penalties.
09Does the reform require reviewing the NCM master data now?+−
The law ties reduced and zero rates to lists by NCM/SH, and the reform NF-e asks for CST and cClassTrib per item, with validation rules that read the NCM. Version 1.52 of NT 2025.002 takes effect on 26/10/2026 in the test environment and on 16/11/2026 in production, and reviewing before then avoids rejection and a wrong rate.
10Can I ask Receita Federal to confirm the NCM of my product?+−
Yes, by written consultation on tax classification, regulated by IN RFB 2.057/2021. Each case covers one product, the decision is single-instance and the ruling binds Receita Federal. A consultation filed before the payment deadline removes late-payment fine and interest for 30 days after notice.
In SAP3 questions, 11 to 13
11In which SAP field does the NCM sit?+−
In the S/4HANA documentation for Brazil, it is the Control code field, present in the import and export foreign trade tabs of the material. The system uses the NCM to calculate taxes and prints it on the invoice, and what applies in your environment is confirmed in it.
12Why does the order NCM differ from the material NCM?+−
Documentation of an earlier ERP version describes that the order uses the NCM of the material and vendor info record, when it exists. If your environment keeps this record and it differs from the master, the difference only shows up when you compare order, invoice and master data.
13Does SAP check whether the NCM is right?+−
Choosing the right code for the good is a tax decision and belongs to whoever knows the product. What the system accepts or refuses in the master data depends on the version and the configuration, and a sample check shows what happens in your environment.
With DFSpro4 questions, 14 to 17
14Where do I start the NCM master data review?+−
Start with a sample that gathers the highest-value items and those named in the reform annexes. Then check, item by item, whether the NCM is the same on the material, in the info record, in recent orders and invoices and in record 0200, and fix the difference where it started.
15Does DFSpro fix the master data?+−
DFSpro points out the divergences and says how to fix them. Changing the master data in the environment is a task for the client or its technical team, just like classifying each product.
16Is it only for those who have GUEPARDO Tax?+−
No. The master data check serves any SAP environment, with or without GUEPARDO Tax, a product of NTT DATA.
17How long does a check take?+−
The time depends on the volume of records and the number of companies, and DFSpro does not promise it without knowing the environment. The scope conversation starts from a sample of the highest-volume materials.
Start with the materials that weigh most on your tax
A sample of the highest-value materials and of those that appear in the reform annexes already shows whether the NCM master data keeps up with the law and the invoice. The conversation with DFSpro starts from that sample, with no price and no commitment on timing.