Gateway to Success: A Comprehensive Guide to Exporting to Brazil

Exporting to Brazil can open up a vast market, promising new opportunities for international businesses. This guide aims to demystify the process and offer valuable insights into successfully exporting to Brazil.

Identifying Your Product’s NCM Code

Before you export to Brazil, you’ll need to identify your product’s NCM (Common Nomenclature of Mercosur) code. The NCM is the 8-digit code that defines all goods circulating within Mercosur countries, and it forms the basis for determining the taxes involved in import operations, as well as if your product will be classified under a special customs regime.

Understanding the RADAR Import Permit

Customs clearance in Brazil can only be performed by a Brazilian company certified with a RADAR import permit. This permit is crucial for carrying out the customs clearance of the product and paying for the import taxes. Before exporting products, certify that the customers have a RADAR import permit.

Choosing the Right Incoterm

Selecting the appropriate Incoterm is an essential step when exporting to Brazil. Incoterms, short for International Commercial Terms, define the responsibilities of buyers and sellers involved in international trade. They cover aspects such as who is responsible for the costs associated with the transportation, insurance, taxes, and duties, as well as who manages the logistics of shipping and the clearing of goods through customs.

It’s important to note that the Incoterm DDP (Delivered Duty Paid), where the seller is responsible for delivering the goods and paying all associated costs, including import duties and taxes, is not possible when exporting to Brazil. This restriction exists because, in Brazil, customs clearance can only be conducted by a Brazilian company certified with a RADAR import permit.

While all other Incoterms from EXW (Ex Work) to DAP (Delivery at Place) are allowed, it’s advisable not to offer the incoterm DAP. The reason is that the bureaucratic delays and potential inefficiencies in Brazil’s port infrastructures can make it risky for the exporter to commit to operational costs beyond the arrival of the goods.

Understanding Brazilian Regulatory Standards

Brazil has unique standards with little recognition of the international standards commonly used worldwide. Therefore, it might be necessary to re-test and re-certify products to meet the specific technical requirements used in Brazil, especially for products related to health, cosmetics, electronics, food, and agriculture.

Applying for Importer Licenses

Depending on the product, you may need to apply for automatic or non-automatic import licenses. This process involves communicating information related to the importation via SISCOMEX (customs electronic system) before the goods boarding.

Conclusion

Navigating the process of exporting to Brazil can be challenging, but it’s far from impossible. With a solid understanding of the import procedures, product classification, and regulatory standards, you can unlock vast opportunities in the vibrant Brazilian market. At Novatrade, we’re committed to assisting businesses through this process, providing expert guidance every step of the way.

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