The advantages of importing are many, but doing business in Brazil can be a bureaucratic challenge. See below some of the regulations of exporting from Brazil.
1 – Payment Modalities
Payment in Advance
The transaction value is issued by the importer and the exporter provides the documentation and export of the goods. They must also provide the exchange contract with a bank before shipping the product.
Remittance without Draft
The exporter prepares the documents, ships the goods and sends the papers to the importer. The payment will be sent once documents and goods have been received.
It happens when a bank is in charge of all the documents, and act as international debt collector for a transaction previously agreed between the parts, being totally free from any responsibility over the result of the transaction.
Letter of Credit
It is issued by a bank according to the importer’s orders. It assures the payment to the exporter if they follow their obligations.
2 – Main Documents
It concentrates all basic information on the deal and can be used (by the importer) to go ahead with custom clearance and collect the goods. Not all ports accept them, especially Italian ports.
It must follow the good until it arrives at the shipping location and must be issued in national currency, based on the FOB price conversion from Brazilian reais (BRL) to dollars (USD) on the day it was issued.
Refers to the operation, in which all the information had already been presented on the pro-forma invoice, along with others confirming the transaction. It is issued by the exporter and has to be filled in according to the regulations of the importer country.
it is a document issued by the carrier or its agent, and represents the transportation contract, being the proof that the good has been shipped. It can be accepted by the bank as a guarantee that the good has been shipped.
It has the purpose of listing the packages and their contents and is filled in by the exporter, facilitating customs procedures.
Certificate of Origin
It shows where the goods come from, and is issued by accredited entities.
3 – Fiscal Incentives
Exporters are given fiscal incentives (which contribute to tax exemption), such as the decrease of the tax aliquot to 1,5% on top of the billing of companies exporting clothing and furniture, for example. Some of the internal taxes exporter may be free of are PIS, ICMS, IPI, COFINS and IOF.
4 – Norms and Certification
For products to achieve certain quality levels, some procedures are required and in Brazil, ABNT technical norms help companies to achieve these higher levels. When it comes to international commerce, environmental and technical regulations can be a problem to the Brazilian exports and are called “non-tariff technical barriers” working as a way to protect the market.
5 – Direct and Indirect Commercialization
Direct Commercialization occurs when the exporter is responsible for all the transaction process, from the first contact to the conclusion of the sales. Indirect Commercialization happens when the company has to use a third party, specialized in finding buyers in markets overseas, requiring the participation of a trading company, which acquires goods in the domestic market for export.