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What should you pay attention to when exporting to Brazil

Basenton Logistics’ advice on exporting to Brazil

The differences in Brazilian culture, language, legal system, and trade habits may become potential risks for Chinese companies’ export business. For this reason, the editor has collected and compiled the following suggestions for exporting to Brazil for the reference of enterprises. www.basenton.com

1. Familiar with Brazil’s customs clearance rules
The Brazilian government requires that all imported goods must apply for import licenses (automatic import licenses and non-automatic import licenses). Among them, the scope of non-automatic import license management is wide and the approval procedures are relatively complicated. Therefore, exporters should find out whether the goods are subject to non-automatic import license management before shipping to Brazil. If so, they should provide the importers with relevant certificates and documents in time, and urge the importers to apply before the goods are shipped. , In order to avoid the goods being detained or fined by the customs after they arrive at the port, causing unnecessary trade disputes.

2. Pay attention to Brazil’s trade barriers
Brazil is one of the countries with the most trade barriers in the world. One is tariffs, the second is anti-dumping, countervailing and other restrictive measures, and the third is other trade protection measures. The Brazilian government often introduces some temporary measures, and the lack of transparency in laws and regulations puts imported products at a disadvantage in the Brazilian market.

3. Pay attention to Brazil’s foreign exchange management
The real is the only currency in circulation on the Brazilian market. The Central Bank of Brazil is the management department of foreign exchange. The Brazilian Central Bank stipulates that under normal circumstances, the payment period for import trade shall not exceed 180 days before the goods are shipped and 360 days after the goods are shipped; in addition, the delivery period shall not exceed the external payment period. The “Brazil Central Bank Network” and “Brazil Foreign Trade Network” are interconnected. The Ministry of Development and Industry and the Central Bank monitors customs declaration procedures and foreign exchange exchanges at any time. If they are found to be inconsistent with the regulations, customs clearance may be blocked, importers may not be able to settle foreign exchange or be fined.

4. Follow Brazil’s litigation and arbitration
Brazilian law is different from common law and civil law. It is a mixture of Portuguese law and Napoleonic civil law. There is no civil or commercial judicial assistance treaty between China and Brazil to enforce litigation decisions.

5. Prevent the risk of D/P in Brazil in the long term
D/P means Documents against Payment. The seller’s documents must be subject to the buyer’s payment. That is, when the exporter delivers the draft together with the shipping documents to the bank for collection, the bank will be instructed to deliver the shipping only when the importer has paid for the goods. Documents. If the importer refuses to pay, he cannot obtain the shipping documents from the bank, nor can he retrieve the goods under the documents.
Latin American merchants often require the use of D/P forwards when importing, but never use D/P forwards when exporting. Although it is common for Latin American banks to use D/P, they only use D/P spot. For D/P forward, it is considered contradictory, so D/P forward is regarded as D/A.
Although the International Chamber of Commerce reiterated in URC522 that the D/P forward will be regarded as a D/P method and clarified the responsibilities of both parties, it does not have the general binding force of the law and usually cannot exceed the domestic laws of the importing country. The exporter must correctly grasp the difference between the ship’s voyage of the D/P forward export cargo and the delivery time (the ocean shipping is about 15-30 days), and the D/A method can be used after this period.

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