With around 200 million inhabitants Brazil is one of the largest markets in South America. This makes it ideal for any company that is looking to grow and expands their business to new frontiers. A crucial component for any business looking to establish themselves in Brazil is to understand their rules and legislation regarding export. What rules a company must follow in order to export their products from the country of origin to Brazil. Let’s try and summarize some key points regarding exporting goods to the wonderful country of football and sandy beaches.
Brazil imported around 150 billion dollars worth of products in 2017. The breakdown of those 150 billion dollars products imported looks like this: Oil and mineral fuels 21.6 billion (14.3%), Electrical equipment and machinery 20.7 billion (13.7%), computers and components 17.4 billion (11.5%), cars and other vehicles 11.2 billion (7.5%), organic chemicals 8.4 billion (5.6%), fertilizers 7.3 billion (4.9%), pharmaceuticals 6.6 billion (4.3%), plastic and plastic products 6.5 billion (4.3%), medical equipment 4.9 billion (3.2%) and chemical goods 4.1 billion (2.7%). Altogether these main imports account for 73% of total imported products to Brazil. The remainder goes to various miscellaneous products.
There are several online tools that are provided directly by the Brazilian government. The tools offer already existing companies importing to the country (The Catalogue of Brazilian importers) and the Brazilian trade guide which deals with companies who import and export to Brazil specifically. Additionally, you can find much useful information on sites like ConnectAmericas etc.
On average and for most goods the tariff is 10.73%. Brazil is a member of Mercosur, an alliance of South American countries that include Argentina, Paraguay, Venezuela and Uruguay that ensures free movement of goods through these countries. The alliance also has trade deals with the EU, Chile, and Bolivia.
Yes, there are! The Brazilian government wants their residents to be properly informed on what they buy. In accordance with this, every product has to contain specific information about the quantity, quality, the composition of the product, potential health and safety risks, origin, date of expiry, price etc. All the information must be clear, precise and easy to understand.
In most cases, goods are transported into Brazil by land or sea. Most South American countries share land borders with Brazil which makes land transportation an easy choice for moving goods. There are many established routes and many companies that specialize in land transport within South America. If we are looking towards international trade most of the product that is imported from the EU is transported to Brazil via sea routes. Cumulatively, sea freight is the most used option since it is used by neighboring countries (alongside land travel) and countries from the EU or other international countries trading with Brazil.
Following Ministry of Foreign Affairs of Brazil, all inputs and outputs of foreign currency must have the exchange rate-regulated through a currency exchange contract that is made according to the rules set by the Central Bank of Brazil. These kinds of rules are contained in the Currency Exchange Industry and International Capital Regulations (RMCCI, for its phrase in Portuguese. )
In conclusion, with its diverse market for many types of products that are on the high and low end of the quality and price spectrum and with relatively small tariffs and sensible easy to follow importing rules Brazil is a great country to further expand your business!