Brazil Trade and Export Guide

8/18/2019 Brazil Trade and Export Guide

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Doing business in Brazil:Brazil trade and export

guide

UPAO – Industrial EngineeringIng. Scott Christopher Schriener

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As of 11 April 2014Contents

1.ra!il e"port o#er#ie$2.Challenges doing %usiness in ra!il

&.'ro$th potential4.U( and ra!il trade).Opportunities for U( %usinesses in ra!il*.Start+up considerations,.-egal considerations./a" and custos considerations.Entr re3uireents10.Contacts

https://www.gov.uk/government/publications/exporting-to-brazil/exporting-to-brazilhttps://www.gov.uk/government/publications/exporting-to-brazil/exporting-to-brazilhttps://www.gov.uk/government/publications/exporting-to-brazil/exporting-to-brazilhttps://www.gov.uk/government/publications/exporting-to-brazil/exporting-to-brazilhttps://www.gov.uk/government/publications/exporting-to-brazil/exporting-to-brazilhttps://www.gov.uk/government/publications/exporting-to-brazil/exporting-to-brazilhttps://www.gov.uk/government/publications/exporting-to-brazil/exporting-to-brazilhttps://www.gov.uk/government/publications/exporting-to-brazil/exporting-to-brazilhttps://www.gov.uk/government/publications/exporting-to-brazil/exporting-to-brazilhttps://www.gov.uk/government/publications/exporting-to-brazil/exporting-to-brazilhttps://www.gov.uk/government/publications/exporting-to-brazil/exporting-to-brazilhttps://www.gov.uk/government/publications/exporting-to-brazil/exporting-to-brazil


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Brazil export overview

Brazil is the fth largest country in the world, with a population o approximately 190million. Brazil is the world’s sixth largest economy and y ar the largest in !outh"merica.

#t has one o the world’s most rapidly developing economies and a $ross %omestic&roduct '$%&( per head that is greater than #ndia and )hina.

*00 o the world’s +00 largest companies operate in Brazil. hese include many -

companies, such as /olls /oyce, B$ $roup, !hell, B&, )B, /exam and xperian. Brazil is one o our countries which ma2e up the B/#) 'Brazil, /ussia, #ndia and )hina(

economies. $oldman !acs Ban2 reported that it has the potential to e one o the world’smost dominant economies y 30+0.

!trengths o the Brazilian mar2et include4

strong industrial, usiness and consumer ase a sustained period o economic growth

uropean5oriented culture and usiness practices

political staility and a solid democracy

most o the world’s largest investment an2s are head6uartered in !7o &aulo

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)hallenges doing usiness inBrazil Brazil has an enormous potential or - companies, ut it will

ta2e time, money and e8ort. )hallenges include4

complex tax system with high taxes

long ourneys etween cities and states, where cultures can

vary signifcantly a lot o importance is put on personal contact, you may need

to visit several times eore securing a deal

ran2ed :; in the ransparency #nternational’s corruptionperception index ')(

organised crime is a signifcant prolem in some parts oBrazil

&lease show the students this we page and fnd &eru.

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$rowth potential> Economicgrowth ?ver the past decade, Brazil has shown solid economic staility. #n

the past 10 years, more than @+ million Brazilians have een litedout o poverty into the emerging middle class. Brazil has seen anaverage growth o @.*A $%& over the last * years.

Brazil’s services sector accounts or more than two thirds o its

$%&, ollowed y industry and agriculture. he comined value othese sectors represented -! 3.+ illion $%& in 301@. hey wereresponsile or approximately 1.+A o gloal trade.

Brazil has identifed the inrastructure as a priority sector oreconomic development. his includes road and air transport,

cargo logistics and energy.

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Catin "merica competition

Brazil is the largest economy in Catin"merica. #t is a gateway or usiness inneighoring countries.

he largest port in the continent is !antos,in the !tate o !7o &aulo. #t is the point oaccess or most imports rom urope and#ndia.

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Dree rade "greements4E/)?!-/

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5ercosur is South Aerica6s leading trade %loc. It is li7e the EU $ith tariff+freetrade %et$een its e%er states. 5ercosur encopasses ra!il8 Argentina8Urugua8 Paragua and 9ene!uela and has a regional ar7et of o#er 2)0 illionpeople.


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Brazil trade7

: Priar e"ports

/ransport e3uipent8 iron ore8 so%eans8 foot$ear8 coffee8 autooti#e products

Priar e"port partners

China 12.4;8 US 10.);8 Argentina .4;8


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- and Brazil trade

he - has a strong and historic trading relationship with Brazil,going ac2 over 300 years. #t is the -’s largest trading partnerin Catin "merica with a ilateral trade in goods worth F+.1 illion. his grew y @.+A in 301@. ?ver the last * years, - exports toBrazil have grown y 30A, reaching F3.+ illion in 301@.

op - exports to Brazil include4

machinery vehicles pharmaceuticals chemicals plastics everages

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?pportunities or usinesses inBrazil Aerospace; The Brazilian Aerospace Industry is the largest in

the Southern emisphere! There are opportunities "orcompanies in the "ollowing areas:

!upply chain and partnerships composites and metallic structures

automation technology connectivity

maintenance, repair and operations

Automoti#e; Brazil is the se#enth largest producer o" #ehiclesin the world! Brazilian manu"acturers in#ested $S%&&!' billionin the mar(et between ')&) and ')&'! The automoti#e sector

also attracts massi#e o#erseas in#estments!

low caron technologies engineering services, such as sotware and consultancy

lightweight components and advanced materials

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?pportunities or usinesses inBrazil )ont.. *reati#e Industries; Boosting the creati#e industries

sector is a priority "or the Brazilian go#ernment! +ecentstudies showed that creati#e industries account "or &,!-.percent o" Brazil/s 0D1!

2pportunities in the sector are a#ailable "or the "ollowing

sub3sectors:

architecture music flm computer games

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?pportunities or usinesses inBrazil )ont.. ED$*ATI24; Educational attainment is low in Brazil! It is

56th in the 2rganization "or Economic *ooperation andDe#elopment/s ran(ing! The Brazilian go#ernment isplanning on in#esting &). o" 0D1 on education by ')')7the highest rate o" any country in the world!

There will be many opportunities "or companies in:

nglish Canguage eaching 'C( vocational education higher education

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?pportunities or usinesses inBrazil )ont..

nergy> Brazil is the largest energy mar2et in !outh "merica and hasthe second largest oil reserves in Catin "merica. &etroras plans toinvest -!330.; illion y 301G. he #nternational ?il )ompanies'#?)( is investing an extra -!+0 illion over the next two years.

Brazil is particularly interested in the -’s expertise in the ollowing

areas4 ringing challenging oil and gas proects to completion o8shore e6uipment and services

pipeline and seaed surveys

inspection, repair and maintenance

!ports #nrastructure>

Brazil is hosting /io 301; ?lympic and &aralympic $ames.

)ompanies with experience in the 3013 $ames have a uni6ueselling point in the Brazilian mar2et.

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?pportunities or usinesses inBrazil )ont.. "irports, /ail and &orts> #mproving Brazil’s inrastructure is critical

to maintaining the growth o the economy. -ran moility isanother ocus, responding to the demands o a growingpopulation.

here are opportunities or companies with technologies and

innovative products in either o these areas.

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!tart5up considerations14

/he ost coon options for a copan starting up in ra!il are=

%ranch liited lia%ilit copan corporation

@oint #enture direct or indirect in#estent agents or distri%utors


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Cegal considerations

ra!il is a e%er of the orld Intellectual Propert Organi!ation BPO. Its legalpro#isions are generall consistent $ith international standards. A ne$ tradear7 andpatent agreeent la$ $as enacted in ra!il in 1*. It follo$s international standardsesta%lished % the /rade+Delated Aspects of Intellectual Propert Dights B/DIPS.

-egal processes in ra!il can %e tie consuing and costl.


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ax and customs considerations

Tax;

The Brazilian tax year starts in 8anuary and ends in December!There are a number o" taxes in Brazil7 these include:

*297 a Social Security tax

STT7 a state tax o" &6 or &. 1IS7 income tax

I*S7 #alue added tax

I1I7 excise tax

)ustoms>

Hou will need to 2now what import duties a product will attract when itlands in Brazil. Iigh duties may ma2e an export too expensive or theBrazilian mar2et.

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Documents

Brazil Trade and Export Guide