Brazil

Table of Contents.

  1. Overview.
  2. Benefits of Brazil.
  3. What to import from Brazil.
  4. What to export into Brazil.
  5. To manufacturers.
  6. Manaus Free Trade Zone (MFTZ).
  7. Contact us.
  8. Sources.

1. Overview.

Brazil’s economy is the largest of Latin America and the second largest in the Western Hemisphere, and it also holds the eighth largest economy by nominal GDP. With a GDP over 3 trillion USD, it also holds the largest population in South America with over 211 millions citizens. It is a member of several multinational trade organizations, such as Unasul, WTO, Mercosur, Brics and G-20. Brazil’s continental magnitude offers a wide range of opportunities for international trade (see source 1 and 6).

2. Benefits of Brazil.

Brazil stands outs in many trade sectors. In agriculture, Brazil is one of the main international exporters of seeds, sugar and meat, and it has conquered markets in Asia, Europe and the Americas (see source 1 and 7). It also holds the 12th oil production in the world, with a production of over 2 million barrels per day (see source 2 and 3). Also, Brazil has the third-largest manufacturing sector in the Americas continent, and it accounts for almost 30 percent of its GDP. This sector ranges from steel, automobiles, petrochemicals, computers, aircraft, and consumer durables (see source 6).

Brazil is a major importer when it comes to machinery, computers and consumer electronics, pharmaceuticals, fertilizers and medical equipment (see source 1 and 5). Brazil has a very wide port sector, due to its coastline geography, that is liable for more than 90 percent of the country’s total international trade (see source 14).

3. What to import from Brazil.

Brazil is a major exporter when it comes to soya beans followed by iron, mineral fuels, vehicles, meat and sugar (see source 4).

Top 10 exports:
  1. Oilseeds.
  2. Ores, slag, ash.
  3. Mineral fuels including oil.
  4. Vehicles.
  5. Meat.
  6. Machinery including computers.
  7. Sugar, sugar confectionery.
  8. Iron, steel.
  9. Wood pulp.
  10. Food industry, animal fodder.

The Brazilian government has many incentive programs for businesses willing to import from Brazil, along with bureaucratic advantages and tax exemptions.

4. What to export into Brazil.

Due to the trade deficit of electronic products, with a very low national production, Brazil is forced to resort to importing. Such scarcity clearly indicates that Brazil has competitive disadvantages in the international electronics market and definitely reveal trade opportunities for manufacturers (see source 1 and 5).

Top 10 imports into Brazil:
  1. Electrical machinery, equipment.
  2. Fertilizers.
  3. Organic chemicals.
  4. Pharmaceuticals.
  5. Optical, technical, medical apparatus.
  6. Machinery including computers.
  7. Other chemical goods.
  8. Plastics, plastic articles.
  9. Mineral fuels including oil.
  10. Rubber, rubber articles.

The downside for any business willing to export into Brazil is the heavy bureaucratic barriers and taxation (see source 8). This can be a challenge for business since Brazil’s governmental policies heavily defend the national industry. With the election of right-winged President Jair Bolsonaro, Brazil is expected to be more open to receiving imports, since his governmental plan follows a more liberal agenda than his predecessors.

5. To manufacturers.

Manufacturers who wish to import from or export to Brazil can rely on Ubinodes expertise to find the ideal partner for their tradings.
Some products can only be imported and sold in Brazil if the manufacturer establishes a local Brazilian manufacturing unit or local office, or if the manufacturer appoints Brazilian distributor(s) who is (are) authorized and licensed by the Brazilian authorities to import and distribute products. For, these products there can be an importer and separate distributor(s). The Brazilian government does not allow imports of several types of meat (see source 8).

The Brazilian government is also willing to reduce taxes on products that have no similar national production. Recently, the Foreign Trade Chamber has temporarily reduced taxes to imported auto parts and machinery (see source 9 and 10).

All other products can be imported and managed directly through our import and distribution partners. Although it may sound complicated, there are ways for manufacturers to benefit from a trusted importer and distributors, tax exemptions and lower bureaucracy, like the ones who utilize the Manaus Free Trade Zone facilities.

6. Manaus Free Trade Zone (MFTZ).

The Manaus Free Trade Zone (MFTZ) is a free import and export trade area with special tax and incentives. It was set up with the aim of creating an industrial, commercial and agricultural center in the Amazon Region, which would be equipped with economic conditions that would enable the region to be occupied and developed.

A common gateway to import to Brazil, for example in the electronics sector, is to have part of their products to be assembled on the MFTZ hubs. Companies willing to accommodate part of the assembling on the Free Zone may benefit from tax exemptions and lower bureaucracy.
As an example, Nokia, Pepsi, Siemens, Semp-Toshiba, Panasonic, Samsung, Philips, Harley Davidson, Honda and LG are among some companies that have established part of their assembling procedure at the MFTZ.

The main sectors of the MFTZ are two-wheel products, electrical and electronics, informatic goods, chemical, metallurgy, thermoplastics, mechanical, disposables, watchmakers, followed by other sectors.
Another benefit is the low-cost labor force. Recently many Asian companies, driven by China, have established themselves at the MFTZ (see source 11 and 12).

7. Contact Us.

To successfully enter the Brazilian market, you’ll need a deep knowledge about Brazil’s trading systems and its opportunities. We make all this knowledge accessible for you and more offering these services: freight forwarding, customs clearance, regulations, packaging, storage, designing websites, brochures, running marketing campaigns, advertising, finding points of sales, and whatever is required to make your project successful.

We make a profound analysis of your product(s) and the potential performance of it. If you are interested in exporting to Brazil or importing from it, please contact us at our Public chatroom: https://riot.im/app/#/room/#Ubinodes-World:matrix.org or send us an e-mail to dispatch.2019@ubinodes.info and ask for a Brazilian based consultant for more details.