Understanding Halal certificate

The Halal certificate separates opinions, moreover due to the way of how it’s conducted by companies, or even, by the uncertainty of their true objective and credibility. But, let’s ask ourselves, what is Halal certificate really about? How does it reflect on our daily lives? Which are the companies that have this certificate?

Also spelled hallal or halaal, is any object or action which is permissible to use or engage in, according to Islamic law. The term covers and designates food and drink as well as matters of daily life.

We can use as an example, the food production process which is conducted by a Muslim, preferably, if the process isn’t conducted by a Muslim, it should at least, mention the word “ bissmillah”, that means  “ in the name of God”. It should be done at the beginning of the process. The tools used for the slaughter should also be certified to ensure that the whole blood has been removed.

Halal can be seen as a certificate of quality for food, in practice, this is seen as a differential for many companies, however, we should see how, exactly, it has been explored.

What is the perception of Brazilians regarding The Halal Certificate?

Brazilians perceive Halal as a way to ensure high quality standards are maintained during the food production process, even if they have to pay more for that. It’s possible to find this certificate simply by going to the supermarket and looking at the different packages that contain the halal stamp on them. This helps to build up each brand that carries the stamp. Many people believe that the Halal stamp adds value to the products. They also believe that the Halal certificate, enhances the relationships between the Muslim community with the rest of the world, making business transactions easier to undertake, once the product carries the Halal stamp.

Which brazilian companies are Halal certified?

Well, in practice, there are many, we will go through some of the biggest Brazilian industries that carry this special certificate. Nicolini (Frigorífico Nova Araçá), Oderich, Agrodaniele, Doux, Languiru, Minuano, Sadia, Seara,Ajinomoto, Batavo, Café Iguaçu, Açucar União, Aurora, BRF, Agrogen, DoBon, Cargil, Carrefour, Elegê, Nestlé, Nescafé, Oderich, Piracanjuba, JBS, Peccin, Bunge, Prolab Cosméticos, among others. We can deduce that all this companies mentioned before, are part of different industry sectors and produce products of all kinds, from make up to frozen meat and others. The “Prolab Cosméticos Company”, for example, is proud to be the first Company with Halal certificate in the cosmetic sector. This way, Prolab differentiates from its competitors in that manner, as no other Brazilian make up manufacturer carries the Halal certificate.

Today, Brazil is the biggest exporter of Halal products around the world, and it is constantly increasing its market share due to the high added value that Halal certificate brings along. Based on current research, we found out that 30% of Brazilian beef and poultry exports are full Halal certified.

Here in Brazil there are a few established consultant companies, which facilitate all the steps a Brazilian company must undertake in order to be Halal Certified, and be able to place the stamp on its products. For example we have the case of “Alimentos Halal Brasil”. This organization offers assistance and guidance throughout the whole certification process, to companies from all sizes. All this entities need is the right intention of investing in this market further. As suggested by “Alimentos Ha+lal Brasil” any company that wants to be Halal certified, must search for information on how to get this certificate, even before starting production and packaging of their product.

In other words, we can be sure that Brazil is getting more qualified as time goes by, in order to attend the requirements demanded by the Muslim community. Brazil is now more than ever investing in improving qualification processes and training more people, by keeping this strategy going, they will appeal more to their prospect buyers around the world.

Come visit us at IDEX 2017!

Starting February 19th, Doracorp will be present at the biggest military show in the world, the 13th International Defence Exhibition and Conference! The event will take place in Abu Dhabi, and is expecting over 1.200 exhibitors and 100.000 attendees.

IDEX 2017 will bring together 56 countries and 42 official delegations in 133.000m² of exhibition and display area. Doracorp will have its own stand, so you’ll be able to find us there easily! The fair also features land, air & water demonstrations, and will showcase the latest technology in all sectors of defence.

We’ll be proud to represent our country in the occasion – Doracorp is the only brazilian food company present in the event. You can count on our experience supplying food resources to governments and the military to deliver the best solutions when it comes to international trading.

 

What: 13th International Defence Exhibition and Conference (IDEX)

When: 19-23 February 2017

Where: Abu Dhabi National Exhibition Centre (ADNEC), in Abu Dhabi, United Arab Emirates

 

You can register to visit here. Hope to see you there!

Practical guide: how to import from Brazil

Management, logistics and planning play a key role in international trade. It can become a huge problem when things do not go as planned. The logistics when it comes to importing can impose a real challenge, especially if you’re not familiar with the country’s policies and particularities.

Information about aspects such as certificates, necessary documentation, taxes and other specific requirements can be hard to find depending on the country your company wants to trade with. As for Brazil, that is already a leader in world exports in many segments, it still has a great potential to become the number one in some other areas of the foreign trade, given its size and its economic potential.

Doracorp can help you understand more about the brazilian reality, and facilitate your importing process. With that in mind, we created a Practical Guide on how to import from Brazil. The material is very objective and contains the answers to the many questions you might be asking yourself.

Our e-book gathers valuable information on topics such as:

  • General notions of logistics;
  • general summary of the importing process;
  • permissions and necessary documentation;
  • possibilities to be explored within the country;
  • tax planning for legal tax cost reduction;
  • and directions on how to choose the ideal partner companies.

Download the material now and enjoy the best Brazil has to offer, importing the most practical and economical way possible!

Gulfood 2017, here we come!

We’re happy to announce that DoraCorp will be participating once again in the biggest and most important food and hospitality show in the world, Gulfood 2017!

Hosted in the Middle East’s biggest trading hub, Dubai, the event will bring together over 200 countries during its 5 day period, from February 26th to March 2nd. Being hosted in Dubai World Trade Center and expecting over 5.000 exhibitors, it is a great opportunity to make new connections, study the market, find business partners and meet potential clients.

In 2016, Gulfood received over 93.000 visitors from 152 countries. From local distributors to small business owners, the show attracts people from different markets: government, retail, hospitality, catering, between many others.

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Represented by a team of professionals and our Sales Director and President, Marcio Barbosa, DoraCorp was there and was proud of being part of such an important global showcase.

This year’s show will feature an Export Advice Clinic, where market experts and analysts will offer impartial, independent advice to those seeking help attracting new international buyers. If you’re looking to export and need advice on legal issues, transportation, regulation, or just want to have access to reliable market research, attending Gulfood 2017 might be a good investment. Other features include the traditional Gulfood Awards, the Emirates Salon Culinaire and the 9th World Cezve/Ibrik Championship.

So come and visit us in Dubai! We hope to see you there!

 

Gulfood 2017

When: 26 February – 2 March 2017

Where: Dubai World Trade Center

Za’Abeel New Hall, stand number Z5-H28

under the name ‘DORA EXPORT’

The influence of the Vienna Convention over Brazil’s contracts for the international sale of goods

In Brazil, contracts for the international sale of goods are not usually established by a physical document signed for that purpose. We are used to considering the Commercial Invoice as a contract, where every information is mentioned, such as the information about the seller and the buyer, as well as the method of payment and details about the operation.

However, the parties’ obligations and the risk transferences and costs are not always described in detail, and this may make posterior litigation difficult, particularly in cases when the goods are damaged during the transport, or payment delinquency. With Brazil’s accession the convention, this lack of detail in commercial invoices can be remedied by the Convention’s dispositions.

In case there’s contractual resolution or violation of their duties and rights, the parties will be able to pursue losses and damages. It is important to highlight that, in case of resolution for contract violation foreseen in the Convention, it is possible to extend the deadline for payment, and also to take extrajudicial alternative measures. Furthermore, there’s a maximum deadline of two years in which the buyer may claim problems with the quality or the quantity of delivered goods, with a few exceptions; and the criteria for the calculation of the amount to be paid as indemnity are well defined (according to Articles 74 to 77 of the Convention), unlike the Brazil legislation.

Another interesting point that reinforces the buyer’s and seller’s legal freedom in the Convention is the permission given to the parties to opt out of the Convention’s application and regulate the deal according to their own will (according to Article 6).

One controversial point pertains to the sales in which the Convention cannot be applied. These situations. provided by Article 2, are: goods acquired for personal, family or household use, goods acquired in public auction or sold as result of lawsuits; securities, credit titles, currency, ships, vessels, hovercraft, aircraft and electricity.

Brazil is known for having legislation that is widely favorable to protecting consumers rights and, therefore, many times doubt can arise: where does the buyer protection stand as provided by the Consumer Defense Code (CDC, Law 8.078/1990)?

On this subject it is important to highlight was Moser and Pignatta (2015) clarify: item ‘a’ of article 2 provides for the exclusion of contracts established with a buyer. Different from the consumer qualification given by article 2 of the Consumer Defense Code, the Convention mentions “personal, family or household use”, restricting the buyer only to individuals, since companies cannot acquire goods for “personal, family or household use”. The expression was carefully chosen so that there would be no doubt as to the buyer characterization. Therefore, the Convention will not be applied in case where the goods have been acquired for “personal, family or household use”. The deal closed by an individual with corporate or commercial objective is subject to the Convention. Another possibility for the application of the Convention occurs when the seller is an individual who is not a merchant. Different from the Brazilian CDC, the Convention does not define the character of a supplier and therefore there’s no need for the seller be a trader so that the Convention is applied. All that is needed is that the buyer does not use the goods for “personal, family or household” purposes for the Convention to apply.

Conclusion

The Vienna Convention was conceived with the aim of standardizing the rules applicable to the contracts of international sale of goods and creating the mechanisms to ensure legal security and the predictability of trading relations between Brazilian and foreign companies, determining the seller and buyer obligations, as well as establishing measures in case of losses and damages and contract violation and other form of breaches.

Analysing the text of the Convention, it is possible to notice an attempt to give greater autonomy to the involved parties, with solid support on transparency and uniformity, neutrality and good faith (objective), avoiding at most legal disputes and foreseeing alternative ways to prevent and solve conflict between the parties.

For Brazilian companies the application of the Convention may contribute to overcoming difficulties that arise from cultural barriers between the countries of sellers and buyers, as well as reduce legal costs in light of the certainty regarding the rules applied to the contracts and the ease with which conflicts can be solved. In this way, when a businessman decides to sell his product in a country that is party to the Convention he will be able to consult the local regulations in his own language, without the worry of knowing foreign legislation, given that the Convention is translated and available in the six official languages of the UN and many other unofficial translations, including Portuguese. This will allow the fluence of deals of internationally-trading Brazilian companies to grow in a secure, foreseeable and transparent way. This international uniformity in legislation tends to reducing harmful discrepancies in arbitral reports our nacional court decisions based on subjective norms or distinct domestic legislation.

Lastly, the tips

It is necessary to observe the finality of the acquisition of goods for, as we have seen, depending on the situation they may not be subject to the Convention. It is also important to remember to negotiate every detail of the operation, as well as costs and risks that are to be accepted for the choosing of the best incoterm, and, lastly but not less important: it is important to study the legislation of the dealing country, as in Brazil, for example, the commercial invoice must contain a series of information required by law (Article 557 of Customs Rules – Decree 6759/2009), or the importer may be liable to fines for disagreeing invoices.

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The advantages of working with Trading Companies (TC)

Trading Companies are enterprises specialized in export and import operations. These types of firms have the infrastructure to facilitate businesses between the selling and the buying companies.

Playing the role of intermediators, the trading companies are seen as an opportunity, mainly, by small and medium domestic producers, which, in most cases, do not have bureaucratic knowledge, time nor structure to carry out foreign trade operations.

There are many advantages on using the foreign trade services that the trading companies offer, such as:

  • the relationship between the manufacturer and the purchaser;
  • insurance of the goods and the services provided;
  • contracts;
  • financial assistance;
  • supply chain;
  • businesses, tax and customs managements.

For been specialized on the foreign trade sector, the Trading Companies have more expertise on these type of transactions than the manufacturer or the purchaser themselves, once They do not only focus on the buying and the selling of goods. International businesses involve much more than that, for example: tax benefits (exempting, reducing or taking credit for some taxes using logistics strategies).

There are several logistical strategies that can be planned by the trading companies, among them are: analyzing through where the goods will transit to get to its final destination and identifying which country is more profitable to negotiate with, considering that there are many global treaties, such as the Southern Common Market (Mercosul) and the European Union (EU), to facilitate the free trading among member countries.

For both the buyer or for the foreign manufacturer, the advantages of working with the Trading Companies are seen as real business opportunities when you do not know directly buyers, domestic producers or manufacturers.

Many brands from the automotive import into the national local market through Trading Companies. The most common services for this segment are: importation on behalf of third parties and importation under order.

 

Importation on behalf of third parties

The client hires a trader or a company specialized on importing transactions to perform, along with the customs authorities, all service related to the importing of their goods. Inside this category, other services can be included, such as: financial transactions and commercial management (article 1 of the IN SRF No. 225/02 and article 12, § 1, I, of the IN SRF No. 247/02).

 

Importation under order

The trader or the company specialized on importing transactions plays the role of a buyer in this service segment. These types of companies’ functions are purchasing goods abroad and carrying out all the bureaucratic issues required by the customs authorities to, later, resell them to the final client. (Art. 2, § 1, I, of the IN SRF No 634/06)

The advantages of using the Trading Companies services are numerous. It is up to the client to analyze and decide which method of export or import is more appropriate to his/ her business.

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