Brazil's strong internal demand, market fundamentals and government support offer some reassurance in the face of a dim economy. Keen on expanding to Brazil? IE Singapore's Centre Director for Latin America offers insider tips and insights.
SIA Cargo: Given differences in culture, language and local
customs, it does help to have a strong, respected local contact to introduce us to the right business partners.
UPS EXPORT SERIES
UPS has daily flights from Singapore which connects to UPS's Global Air Hub in Louisville, Kentucky, then links to Brazil.
Non-industrialised foods, such as homemade foods, raw meat and fish that are not made in the country of origin, must have a certificate from the Food and Drug Agency.
The full value of software shipments should be declared. Although duties and taxes are calculated on only the physical value, the commercial invoice must state both intellectual and physical values.
Labels or stickers that include company logos, trademarks and service marks require a proof of authorisation or a license. This refers to loose labels only; merchandise with labels does not require a proof of authorisation.
Brazil, the fifth largest territory in the world, is South America's leading economic power. With around 196 million inhabitants, the Brazilian society is multiracial, historically formed by a mixture of indigenous population, European immigrants and African slaves.
With large and well-developed agricultural, mining, manufacturing and service sectors, the Brazilian gross domestic product reached an estimated US$1.67 trillion in 2008.
This former Portuguese outpost continues to expand its presence in the world market, where its current economy outweighs that of all other South American countries.
Brazil's major industries include textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, and machinery and equipment.
In 2008, trade ties between Singapore and Brazil got a further boost after the signing of trade and air services agreements including direct air links. Business between both sides has grown steadily and the past five years' trade volume has surged by 230 percent, making Brazil Singapore's largest trade partner in South America.
The Singapore-Brazil trade turnover reached US$2.6 billion in 2007, representing a 20 percent growth versus 2006.
Singapore's exports to Brazil was US$1.2 billion, comprising mainly electric and electronic products. Meanwhile, imports from Brazil were recorded at US$1.38 billion primarily from fuel oil, mechanical appliances, and meat cuts and frozen poultry.
Imports into Brazil are subject to government control from at least three levels of authority: the Secretary of Foreign Trade (SECEX), who supervises registration and licensing; the Central Bank of Brazil, which approves payments for financed imports; and the Federal Tax Authorities, which supervises valuation for customs purposes.
Importers will first have to register with the Integrated Foreign Trade System (SISCOMEX), a network that links the three levels of authority. For goods that are not subjected to licensing, they do not need any authorisation from the Brazilian authorities.
There are certain products which are subjected to approval and special control by government agencies. These might include arms and ammunition, herbicides and pesticides, beverages, narcotic substances, human blood and food.
Value Added Tax, known as Imposto Sobre Circulação de Mercadorias e Serviços (ICMS), is applied for shipments to Brazil. ICMS has a standard rate of 18 percent is calculated over the declared value plus the import duty value.
Need further information? UPS can advise you on any restrictions or special requirements for shipping to Brazil.
A complimentary service by www.iadvisory.com.sg
Name: Sunny Chia
Company: UPS
Expertise: Import/Export
Market: Asia Pacific, Europe
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