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Brazil - Selling and buying

Contents extracted from the comprehensive atlas of international trade by Export Entreprises

Reaching the consumers

Marketing opportunities

Consumer behavior: Consumers are loyal to brands; including the low income population which this allows to assert itself. More well-off consumers pay particular attention to quality, after-sales service, and the company's social commitment (protection of the environment, sanitary standards, etc.)
National pride is reflected in consumer habits, but Brazilians remain attached to foreign products as exterior signs of wealth (technological equipment, American sports brands, etc.). Payment terms are an important factor.
Consumer profile: Consumption among the majority of the population is turned towards food and housing. The Brazilian consumer is more demanding and selective. He is aware of quality, the price of goods and special offers. Brazil is a dual economy, in which the upper classes distinguish themselves by consumption close to that of the United States and Europe, while the poorer people have to be careful with prices and buy almost exclusively on the unofficial market.
Main advertising agencies:

Distribution network

Evolution of the sector: With the liberalization of trade, undertaken since 1990, many agents and distributors have formed themselves into companies and begun to import to sell on their own account. Today, the majority of the large distribution chains have their own import agency. For several years, supermarkets and in particular hypermarkets, have become more and more important in the distribution milieu. Brazilian hypermarkets make 80% of sales of staple commodities.
Types of outlet: CBD/Casino : 9.19% ; Carrefour : 5.96% ; Wall Mart : 4.1% ; Atacadao: 2.43% ; Lojas Americanas (en portugais): 2.18% ; SHV Makro: 2.01%.
Organizations in the sectors:

Market access procedures

Economic Cooperation: Member of MERCOSUR
Latin American Integration Association (ALADI) (in Spanish)
Free Trade Area of the Americas (FTAA)
The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).
Non tariff barriers: A large number of imported products are subject to a prior license application to the SECEX (Secretariat for Foreign Trade), which is the only organization authorized to issue this license. The license is valid for 60 days from the date of shipment of the goods (sometimes from the date of the license application). This period cannot be extended and is often insufficient. A new license application must then be made. For textiles, regulations are even more strict: the license is only issued if payment is carried out within 30 days following the date of the B/L (importers have to prove that they have effectively paid within the 30 days).
All imports must be accompanied at least by 2 copies of the commercial invoice and the B/L. In the case of non-compliance with the legal requirements of the country, the Customs have the right to impose large fines, up to 100% of the usual Customs duties being common. It is advisable in any case to work with a very good Brazilian Customs broker who alone will be in a position to be informed more or less in due course about Customs regulations. It is necessary to consult the numerous sanitary regulations before importing anything.
Average Customs Duty (excluding agricultural products): 10.73 %, within the average for emerging countries.
You can find Customs duties by country on the International Customs Tariffs Bureau website.
Customs classification: Brazil applies the Harmonized Customs system.
Import procedures: Every importer must be registered with the authorities in charge of foreign trade, SISEX, in order to integrate the Customs computer system, the SISCOMEX. This represents a costly investment, as the prerequisites, especially in terms of minimum capital, are considerable. The regime in place in Brazil has an automated process for issuing import licenses, except for a certain number of products listed below. In general, all used consumer goods are prohibited from being imported.
Customs website: Customs Department

Organizing goods transport

Organizing goods transport to and from: The Brazilian transportation infrastructure faces many challenges, as roads and ports need to be upgraded. Brazil's participation in the waterway modal of transportation is small when compared to other countries, despite its enormous potential for river traffic. Only 13% of cargo is transported by this mode. The roads represent 58% of the total freight while railroads comprise 21%.

Brazil's large cities are well served by air. However, goods transport is not much developed, mainly because of the high cost of this type of transport.
Practically all the State capitals are linked by tarmac roads. São Paulo, Rio de Janeiro and other important States have expressways. The road and motorway network covers approximately 1.5 million kilometers, of which some160 000 are tarmac, an increase of more than 300% over the last two decades. This is the means of transport used most, as it handles about 85% of the transport of people and Brazilian products. Recently, the exploitation of several motorways has been transferred to the private sector.
The railway network carries 22.5% of goods traffic. Only 7% of the lines are electrified.
Sea transport organizations:
Air transport organizations:
Rail transport organizations:

Domestic business directories

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