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.

To keep updated on all the news related to International Trade subscribe to our newsletter!

How about sharing this post?
Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedIn

Get our latest articles
straight to your inbox

Enter your email address below: