Export to Brazil, a country of opportunities for companies
Export to Brazil, why is it an attractive market?
Brazil is a large market. Its 8.5 million square kilometers of surface and its more than 207 million inhabitants, 85% living in urban environments, make export to Brazil an opportunity because it is a country with a high potential for consumption.
Brazil is the ninth largest economy in the world. In 2017 its GDP reached 2,021 billion dollars and experienced a growth of 1%. It is expected that this economic progress will be maintained and increased over the next few years and that Brazil will recover its role as the driving force behind Mercosur.
The consumption potential of the Brazilian population and its economic leadership in Mercosur make it an attractive market for companies that want to sell their products. Exporting to Brazil is not complex, but there are certain peculiarities because the country was only opened up to imports in the 1990s.
The exporter who wants to sell his goods in Brazil must know the procedures and requirements to be met, especially those related to administrative and customs regulations.
At Logisber we are experts in the Brazilian market and we have our own office in the city of Sao Paulo, Logisber Forwarding do Brasil Ltda. We know all the details to export and deliver your goods to Brazil.
“At Logisber we are experts in the Brazilian market and we know all the ins and outs of exporting your goods to Brazil”
What does Brazil matter and from where?
Brazil’s trade balance has been showing positive results. In 2017 its exports grew by 18.5% over the previous year, and imports increased by 10.5%, i.e. exports to Brazil are on the rise. In the period January-August 2018, Brazilian exports have grown by 9% and imports by 24.8%, compared to the same period last year.
This positive evolution of Brazil’s trade shows that the country is opening up to the outside world, especially to countries in Latin America, the Middle East and Asia, but the United States, Japan and the European Union remain important trading partners. Of the total volume imported by Brazil in 2015, exports from Asia to that country represented 32.6%, those from the European Union 21.4%, those from South America 19.6% and those from NAFTA countries (United States, Canada and Mexico) 12.6%.
“Brazil is increasing its imports and is an attractive market for Spanish exporters”
Trade relations between Spain and Brazil have evolved differently over the last two years. If in 2016 Spanish exports to Brazil fell by 17% with respect to the previous year (2,565 million dollars), in 2017 Spanish exports recorded an increase of 11.7% (2,851 million dollars).
Exporting to Brazil is an opportunity because Spain is Brazil’s 12th largest trading partner, behind China, the United States, Argentina, Germany, South Korea, Mexico, Italy, Japan, France, Chile and India.
According to ICEX data, currently more than 5,800 Spanish companies are exporting to Brazil and selling mainly semi-manufactured goods (37.2%), capital goods (19.5%), energy products (19.7%), food (8.1%) and consumer manufactures (5%).
The main items of Spanish exports to Brazil were mineral fuels and oils, mechanical machines and apparatus, electrical apparatus and material, plastics and their articles, motor vehicles and tractors, organic chemical products, pharmaceutical products, aircraft and space vehicles, unpreserved fruit and nuts and inorganic chemical products.
“Brazil is a potential market in sectors related to infrastructure, the environment, the steel industry, the agro-food sector or smart cities”
What can Spanish companies export to Brazil?
Brazil is beginning to develop an open import culture and entities such as the Brazil-Spain Chamber of Commerce are working to help Spanish companies export to Brazil as it is a potential market.
In addition, the Brazilian administration, through the Ministry of Industry, Foreign Trade and Services of Brazil, is promoting various investment projects in different areas such as transport, water and energy infrastructures, which require materials and equipment. The environment is another sector that presents opportunities to export to Brazil, since the country is betting on renewable energies and efficient waste management and recycling.
Another interesting sector for the Spanish export company is agriculture and agri-food. Brazil is an importer of machinery and fertilizers for agriculture and of products such as olive oil, wine and fruit.
It is also interesting to export to Brazil steel products and equipment for smart cities, sectors that present interesting opportunities for those Spanish industries that want to sell their raw materials and goods in Brazil.
Knowing the market before exporting to Brazil
Before starting any operation, a company that wants to export to Brazil must know the procedures required for the product or merchandise to be introduced in the country.
Siscomex (Integrated System of Foreign Trade) is the platform that collects and integrates all the procedures required in a commercial operation. This system interrelates the Brazilian government agencies with the agents that have active participation in the export and import processes.
“The Siscomex portal interrelates Brazil’s government bodies with exporters and importers”
According to the Department of Trade Promotion and Investment of the Brazilian Ministry of Foreign Affairs, a series of rules and procedures must be followed for an import to be viable and accepted.
The first step in exporting to Brazil is to catalogue the goods according to their tariff classification in Brazil and use the Siscomex online system. It is also necessary to have representation before the Brazilian customs and to know the customs procedure and the administrative, tax and financial treatment that the intervening bodies give to the imports. Likewise, depending on the merchandise, it is important to know whether there are tariff preferences or special customs treatments in Brazil that affect the specific product to be exported.
Through Logisber Forwarding do Brasil Ltda, based in Sao Paulo, we can manage from beginning to end any international trade operation.
What are the procedures for exporting to Brazil
Once we have the general information of the steps to follow to export to Brazil, we have to start all the documentary processing.
To send a merchandise to Brazil, the first document we must issue is the proforma invoice in which the price, international purchase and sale conditions (Incoterm), payment conditions, freight and insurance are determined.
The next step is to send all the documentation of the operation to the Brazilian importer, which must be registered in the Customs Acting Tracking System (RADAR), managed by the Receita Federal do Brasil, in compliance with its customs authority functions. Depending on the merchandise or product that is going to enter the country, the Brazilian importer must request and have an import license.
“The Brazilian importer must be registered in the System for Tracking the Performance of Customs Officers (RADAR)”
Subsequently, the goods will be shipped at origin and the bank procedure relating to the exchange contract must be carried out. As mentioned, the operation will have to be registered with the Siscomex in order to manage all stages of the operation. Likewise, international documents must be issued and customs clearance and registration of the Import Declaration must be carried out. The last steps to export to Brazil will be to pay the taxes and duties that affect the operation, perform the customs verification of the goods and obtain the release of the cargo in Brazil.
In Brazil, an imported merchandise can go through four verification channels before its release: the green channel (without documentary and physical verification), the yellow channel (documentary verification), the red channel (documentary and physical verification) and the gray channel (documentary and physical verification due to suspicion of fraud in the declared values).
Which documents are required to export to Brazil
Before shipping the goods at origin, the exporter must send the original international documents to the importer in Brazil.
The documents that will be required by the Receita Federal do Brasil (entity that registers and identifies importers and exporters) to allow the entry of the merchandise in the country will be the commercial invoice; the Bill of Lading (B/L) or Bill of Lading in case of entry by sea, Airway Bill (AWB) in case of entry by air or Road Transport Bill (CRT) in case of entry by land border; the Packing List, a list delivered by the exporter to the carrier containing the description, quantity, brands, numbers and models of the goods to be transported; the Certificate of Origin; the Inspection Certificate (only in case the Brazilian buyer requires it) and the International Cargo Insurance (only in case of using the CIF or CIP Incoterms).
“At Logisber we take care of any shipment to Brazil, from shipping and customs clearance to storage and distribution at origin or destination”
Entities such as Invest & Export Brasil offer information on the requirements demanded by the Brazilian Administration for the entry of goods and products into Brazil.
At Logisber we take care of any shipment to Brazil, from shipping and customs clearance to storage and distribution at origin or destination. More than ten years of experience guarantee our knowledge of this market and how to be successful when exporting to Brazil.
Air transport, International Trade, Sea transport