Doing Business In Brazil

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Best Practice & Risk Management

Finding A Customer or Partner

Builders Hat

Once you have identified where you would like to start and the best market‑entry option for your company, the next step is to find potential customers or partners.

The following are effective ways of finding potential customers, partners, agents or distributors:

  • Commission a UK Trade & Investment Overseas Market Introduction Service (OMIS) workplan for a tailor-made list of potential customers/ partners. A programme of meetings with these potential customers/ partners can also be arranged for you when you visit Brazil. This is a very cost-effective way of using locally based, experienced UK Trade & Investment staff to identify potential partners on your behalf.

  • Attend trade shows and exhibitions. Numerous trade shows and exhibitions take place in Brazil throughout the year and these can be an excellent way to meet potential customers face to face.

  • Take part in a trade mission. UK Trade & Investment supports a number of trade missions to Brazil, run by accredited organisations such as trade associations and local chambers of commerce. Travel grants may be available to eligible participating companies.

  • If your company is small or medium sized and Brazil is a new market for you, then you may be eligible for financial support to visit the country under UK Trade & Investment's market visit support scheme.

In addition, the approaches below are suitable for companies who want to export to Brazil:

  • Make an approach via the relevant trade association in Brazil. The members themselves will often be the most appropriate partner for your product or service in Brazil, and many Brazilian companies who are well established in their home market are looking for new and innovative products to complement their range. You can ask for a list of trade associations when commissioning an OMIS workplan.

  • Advertise in professional newspapers, magazines and journals. This can be beneficial for hightech companies with leading-edge products, but less effective for companies without a technical background.

  • Hold a technical seminar or product introduction meeting in Brazil to attract potential customers. UK Trade & Investment can help you organise product promotion events and identify the audience you need to target as part of our chargeable services. Alternatively, you may wish to involve a local consultancy or public relations firm to assist you.

For more information on how UK Trade & Investment can help you to do business in Brazil, please speak to your local UK Trade & Investment team on +44 (0)20 7215 5000 or visit www.ukti.gov.uk.

 

Marketing

Corcovada

Trade shows, exhibitions and advertising are good ways to attract potential customers. You will need to ensure that your sales literature is effective both in English and Brazilian Portuguese and consider whether advertising is appropriate.

We recommend that you involve a Brazilian specialist consultancy who can develop an appropriate marketing strategy for your product and the areas of Brazil it will be sold in.

You may need to adapt your product to meet Brazilian preferences or requirements to be able to sell it. Ignoring local regulations, tastes and cultural preferences is a recipe for failure - it's hard to sell a right-hand drive car in a left-hand drive country! This Guide highlights some aspects of Brazilian culture that you should be aware of when promoting your product.

The advertising industry is advanced in Brazil and considered one of the best in the world. Therefore, UK companies wishing to advertise to the general public should engage the services of a local advertising agency to ensure their messages are both localised and sophisticated. Given the rise in internet, we recommend companies localise their websites to reflect Brazilian interests. Where a "flag" system is used, the Brazilian flag should be displayed, rather than the Portuguese flag, to indicate the Brazilian Portuguese language.

You may also consider using UK Trade & Investment's Export Marketing Research Scheme. This aims to encourage UK companies to use export marketing research in the development of a market-entry strategy for their overseas markets. It also helps companies to undertake or commission marketing research based on sound methods. In addition to advising companies how to use export marketing research effectively, financial support towards the costs of undertaking approved projects is also provided.


Branding

In order to create a favourable impression of your company and your product in Brazil, it is essential to have a name that Brazilian consumers can remember. If a product name cannot be remembered, it is unlikely that many people will buy it. It is not advisable to have a Portuguese translation of your company name. English names are very well accepted by Brazilians.

However, it is advisable to spend some time on getting this right. The name is, after all, the first thing your potential customers will see.

 

Due Dilligence

Due diligence is a security measure that companies often choose to undertake in order to check the viability of potential new business before contracts are signed.

Due diligence is strongly advisable, particularly in connection with the acquisition of a shareholding interest either in a limited liability company or a corporation, and in the acquisition of all quotas of a limited liability company or shares of a corporation.

For practical purposes, it is recommended that due diligence covers all accounting, tax and legal issues concerning a particular business enterprise. Special attention should be given to ongoing, or threatened, commercial and tax claims at administrative and judicial level.

Wherever the purchase of property is involved, a review of the Real Estate Registry status is crucial to establish that the seller has the valid title, and that the property is free and unencumbered.


Language

Top Tip

It is essential that you request Brazilian
Portuguese translation of your literature.
A very common mistake is to request a
translation into Portuguese without
stressing that it should be Brazilian
Portuguese. The resulting literature will
be seen by Brazilian businesses as
demonstrating both a lack of knowledge
of the country and a degree of rudeness.

The language spoken in Brazil is Brazilian Portuguese. The differences between Brazilian and European Portuguese are slight and are similar to those between British and American English (i.e. differing accents and some different words). Making the effort demonstrates a seriousness about entering the Brazilian market and any attempt to communicate in Portuguese will be met with a positive response.

Where a visitor possesses no Portuguese language skills, Spanish or Italian can be useful to communicate basic messages, and Brazilians will find it fairly easy to understand "Portuñol", the mixture of Spanish and Portuguese spoken by many Spanish-speaking Latin American visitors to Brazil. However, do not assume that Spanish will always be welcome. The best advice is to offer a "disclaimer" i.e. "I'm sorry I don't speak much Portuguese, but I do speak English and some Spanish". If you start speaking Spanish directly, Brazilians might think that you don't know that their first language is Portuguese and it will give a bad impression.

While an increasing number of Brazilian companies, particularly those with an international outlook, have English speakers on their staff, do not assume that everyone speaks English. It is advisable to engage a local interpreter to accompany you to your first meeting with a potential partner until you have established whether your partner is confident doing business in English. Your interpreter will be one of your key assets and should be selected with care.

Initial written approaches to Brazilian companies should always be in Brazilian Portuguese and company literature (including a basic company profile and product descriptions/ profiles) should also be translated into Portuguese. It is courteous to have your business card translated into Portuguese too.

The Export Communications Review provides companies with impartial and objective advice on language and cultural issues, in order to help them develop an effective communications strategy, thus improving their competitiveness in existing and future export markets. Subsidies are available for eligible companies.


Day-to-day Communications

Some Tips To Remember

• Brazilians communicate with a blunt
cultural style. However, this is often
determined by the level of a
relationship i.e. the warmer it is, the
blunter it gets.

• Brazilians place a lot of emphasis on
non-verbal gestures to enhance their
point.

• Communication is generally very
polite. However Brazilians' 
conversations can be held at 
breakneck speed, with plenty of 
animation, frequent interruptions and
lots of physical contact.

• Brazilians like depth, background and
context. You should consider offering
more information than you normally
would.

Once you have made contact with a Brazilian company, it is likely that your day-to-day telephone and email communications will be in English with one of their English-speaking members of staff. If you do not think the standard of English in the Brazilian company is up to scratch, you might wish to ask for parallel Portuguese texts and get them translated; this could be a valuable investment. An important part of setting up arrangements in Brazil is to ensure that communication issues are covered in detail. Most failures occur in business relationships because of fractured communications and mutual misunderstandings.

In any case, both parties should agree in writing the language of official documents. This is to avoid endless disputes about meaning and definition between two versions of the same contract. In the event of a dispute, a judge will want to know whether the English or the Portuguese version is the official one.

If Brazil is likely to become a significant part of your business, you should consider hiring a Portuguese-speaking member of staff. You may also wish to take up the challenge of learning Portuguese yourself - even having a basic level of communication will create a positive impression and will have the added benefit of making your trips to Brazil more enjoyable. However, even if you do attain a reasonable level of fluency, an interpreter - or a Portuguese speaking member of staff - will be essential in business meetings.


Intellectual Property Rights

Brazil is a signatory to the main intellectual property treaties and is a member of the World Intellectual Property Organisation. Its legal provisions are therefore generally consistent with international standards.

In principle, Brazil has a sound intellectual property rights and patent system that does not discriminate unduly against foreign companies. However, the effectiveness and impartiality of enforcement is variable and any legal processes will be both protracted and costly. A new Trademark and Patent agreement law was enacted in Brazil in 1996 which follows international standards and general guidelines established by TRIPS (the Trade-Related Aspects of Intellectual Property Rights). This has encouraged substantial investment in the country, both in the construction of new manufacturing facilities and in research and development in the pharmaceutical and biotechnology industries.

For companies whose business involves intellectual property, there are issues of piracy to consider, particularly for goods such as books, CDs, textiles, cosmetics and spare parts. While the Brazilian Government has made some progress on intellectual property rights legislation and implementation, there is scope for further progress.

Further contacts

The UK Intellectual Property Office is the Government body responsible for the national framework of intellectual property rights in the UK, comprising patent, designs, trademarks and copyright. If you are thinking about trading internationally, then you should consider registering your intellectual property rights abroad. For more details on intellectual property abroad, please visit the UK Intellectual Property Office web page: www.ipo.gov.uk

Further information is also available from the Brazilian Intellectual Property Office:

Instituto Nacional da Propriedade Industrial (INPI)
Praça Mauá nº 7 - Centro
Rio de Janeiro - RJ 20081-240
Tel: +55 (21) 2139 3000
Fax: +55 (21) 2139 3398
Website: www.inpi.gov.br
(English-language option available).


Certification, Standards and Documentation

It is very important that you comply with all aspects of Brazilian regulations on documentation. The necessity of this cannot be overemphasised as this is a source of frequent difficulties between supplier and buyer. A good partner and/or freight forwarder with a local office in Brazil can provide invaluable advice on documentation.

A commercial invoice and bill of lading/air waybill are required, as are sanitary certificates for the shipment of certain goods. These documents must show the import licence number issued by SECEX (the Brazilian Foreign Trade Secretariat). The commercial invoice should be completed by the supplier in the country of origin and show full details of the goods.

The general documentation requirements for Brazil are:

  • Customs Import Declaration

  • Simplified Import Declaration

  • Declaration of Customs Value

  • Import Licence

  • Commercial Invoice

  • Pro Forma Invoice

  • Air Waybill

  • Bill of Lading

  • Certificate of Origin

  • Packing List

Some goods may be subject to additional documentation, such as sanitary certificates, licences, permits and certificates of free sale.

Further details can be found on the EU market access database:

http://madb.europa.eu/mkaccdb2/indexPubli.htm

Import Certificates

Passport

The number and date of issue of the import certificate must be shown on the commercial invoice immediately following the declaration of the merchandise (i.e. the description and value of the consignment).

Certificates of Origin

Satisfactory proof of origin of the merchandise must be provided by the exporter to the importer for submission to Brazilian customs. Usually the original plus four copies of the invoices are given to the British or Brazilian Chamber of Commerce for certification. The original plus three copies appropriately certified will then be returned to the exporter.

SITTER-aligned documentation is available for Brazil. SITTER is a special certified invoice overlay which enables the required declaration to be produced electronically on a computer screen template, on the lower quarter of the export invoice (ref 380-1).

Certificates of Free Sale

A Certificate of Free Sale can be required to show that goods are available for retail sale, that they comply with EU regulations and are suitable for use by EU consumers.

For more details, please telephone:

  • BIS - UK Department for Business, Innovation and Skills Tel: +44 (0)20 7215 5000 - cosmetics, chemicals, detergents and cleaners, and disinfectants

  • Defra Tel: +44 (0)8459 335577 - food, drinks, additives, disinfectants, pesticides, animal medicines, milk and dairy products, pet food and animal feeding, fertilisers, sugar and sugar products, protein crops, tea, coffee, cocoa, herbs, spices, tobacco flavouring and wines

  • Department of Health Tel: +44 (0)20 7972 2927 - medical equipment

  • Medicine and Healthcare Products Regulatory Agency Tel: +44 (0)20 3080 6000 www.mhra.gov.uk

  • Forestry Commission Tel: +44 (0)131 314 6549/6120 - phytosanitary certificates for products or packaging material made out of or containing wood

Second-hand goods

Applications for import licences for second-hand goods must be accompanied by a technical report issued by SGS United Kingdom Ltd, (www.uk.sgs.com) or another such company appointed by the Brazilian Embassy in London, evaluating the condition of the equipment. The import will also have to meet further criteria determined by the individual nature of the consignment.

Export Licences

Freight Bridge Picture

Export controls apply to goods upon which the UK Government has placed export licensing requirements. Typically, export controls relate to goods that may be used in some way for military applications, goods of national heritage (eg works of art), and certain chemicals used in the production of controlled drugs.

BIS's Export Control Organisation's helpline
Tel: +44 (0)20 7215 4594
Email: eco.help@bis.gsi.gov.uk
Website: www.bis.gov.uk/exportcontrol is the first point of contact for information on export controls. The helpline provides advice on many issues, including how to establish whether or not specific goods need an export licence, the different types of export licences, how to complete export licence application forms and how long they take to process. The helpline is also the point of contact for Export Control Organisation publications and licence application forms.

If you think your goods may be applied to military purposes, you are advised to phone the helpline or visit www.bis.gov.uk/exportcontrol.

If you think your goods may be of importance to national heritage, you are advised to contact the Department for Culture, Media and Sport (Tel: +44 (0)20 7211 6000 Email: enquiries@culture.gov.uk).

For chemicals that are used in the production of drugs, contact the Home Office (+44 (0)20 7035 0445).

If the above departments consider your products to be sensitive, you will need to apply for an export licence before you can take them out of the UK.

Export documentation

SITPRO is the UK's trade facilitation body dedicated to encouraging and helping businesses to trade more effectively, and to simplifying the international trading process. It focuses on the procedures and documentation associated with international trade. SITPRO offers advice on the documents and procedures for the movement of goods through its briefings, completion guides and checklists at www.businesslink.gov.uk/internationaltrade and through its free helpdesk Tel: +44 (0)20 7215 8150 email: info@sitpro.org.uk.

Duties and taxes

It is important to know what import duties a product will attract when it lands in Brazil. High duties may make an export too expensive for the Brazilian market.

In addition to import duties, taxes such as COF (the Social Security tax), STT (the State Tax of 17 or 18 per cent), PIS, ICMS (VAT) and IPI are levied against products' duty-paid value. We recommend the European Commission's Market Access Database as a useful resource to research how much it will cost to import your product: http://madb.europa.eu/mkaccdb2/indexPubli.htm

The Market Access Database is a free tool designed to assist exporters:

  • It provides information on trade barriers which may affect you in overseas markets,

  • The Applied Tariff Database section allows users to enter a Harmonised System code or product description to obtain a tariff rate and details of taxes applicable, enabling you to calculate a landed cost,

  • The Exporters' Guide to Import Formalities database (searchable by Harmonised System code or by product), gives an overview of import procedures and documents, as well as any general and specific requirements for a product, and

  • The Sanitary and Phytosanitary Database facilitates the identification of sanitary and phytosanitary export problems with any non-EU country.

The Market Access Database can only be accessed through an internet service provider that is based in the EU.

Tariff Harmonised System Code

The Harmonised System (HS) code is an international method of classifying products for export purposes. This classification is used by customs officials around the world to determine the duties, taxes and regulations that apply to the product. To obtain a HS code, you should contact HM Revenue & Customs, Tel: +44 (0)845 010 9000.

Although it is advisable to insert the details of the HS code of the product to be exported to Brazil on the Invoice and Certificate of Origin where required, only the first four digits of the HS code should be inserted, as these are common for every country in the world under the HS rule.

The importer must consult the Brazilian import tariff for the rest of the tariff code number to satisfy the Brazilian customs authorities at the time of import of the consignment. The full tariff code required by the Brazilian customs authority may differ significantly from that ascertained by the exporter from the Market Access Database. Although the Market Access Database can be used for reference purposes, it is the prime responsibility of the importer to make their own import declaration to customs, and thus use their own national tariff for this purpose.

Commercial samples and temporary imports

Sao Paulo Morumbi

Regulations governing the import of samples are complicated, and samples should not be sent to Brazil except by prior arrangement. Some samples may require previous authorisation from specific government departments in Brazil, such as the Ministry of Health and the Ministry of Agriculture. Samples cannot be sent if the product is forbidden. Commercial travellers can import small quantities of samples of no commercial value in their baggage without payment of duty. You may take in samples of value on a duty-free basis subject to the posting of a bond to Brazilian customs at the point of entry into the country, to cover payment of any duties and taxes payable if the samples are not re-exported. Samples imported under these arrangements must be listed. Two copies of the list, signed by the traveller's company, are required to be kept by the traveller when they arrive in Brazil, for submission to customs at the point of arrival if required. If the samples are to be distributed to potential customers, proper records should be kept concerning how many samples and their value were given away. All other items retained by the traveller should be noted and recorded for the purposes of exit from the country.

Legislation

Brazil now has very strict legislation for the import of certain products, especially in the food and health sectors. Some products need to be registered with the Health Inspection Agency before they are allowed to enter the country, and this process can be expensive, complicated and time consuming. Local help and expertise are necessary and UK Trade & Investment's teams in Brazil can provide further assistance.

Labelling and packaging

Imported products can be sold in Brazil in their original packaging provided a label is attached, giving the following information in Brazilian Portuguese:

  • A description of the product,

  • The weight (metric) according to local standards,

  • The composition of the product,

  • Its validity (sell-by date or expiry),

  • The country of origin,

  • The name and address of the importer, and

  • Any special warning on risks to health or security.

Usually this label is placed on the product in Brazil by the importer. Special labelling regulations apply to imported pharmaceutical specialities, antiseptics, disinfectants, cosmetics, beauty and hygienic preparations, alcoholic beverages and foodstuffs.

The Brazilian government requires the pre-approval of all animal product labels. This is usually the responsibility of the exporter, through his agent or representative, or importer. For a UK company to become an approved supplier of foodstuffs, their local importer has to prepare a Brazilian Portuguese translation of the company's labelling and submit it, along with the required questionnaire, to the Brazilian Department of Animal Origin Products (DIPOA).

The UK company will need to supply the following information:

  • Name of the product,

  • Ingredients and country of origin,

  • Special storage instructions (where necessary),

  • Net weight (in metric units),

  • Date of production (must be identified on master carton), and

  • Expiration date (shelf life, established by the manufacturer).

When an instruction manual accompanies any specific product it must also be in Brazilian Portuguese.

Label approval can be accomplished through the importer or specialist consulting firms in Brazil. UK Trade & Investment's team in Brazil can supply appropriate contact details.

Certificate of Quality

All products imported into Brazil also require a Certificate of Quality, which must be supplied in order for the Brazilian importer to obtain the necessary import licence. British manufactured goods will require certificates issued by the British Standards Institution

http://www.bsigroup.com/en/

Foreign-made goods will require certificates supplied by the appropriate standards organisation in the original country of manufacture. The Brazilian Standards Organisation is INMETRO National Institute of Metrology, Standardization and Industrial Quality - www.inmetro.gov.br.

The UK National Physical Laboratory maintains detailed information on international aspects of standards, accreditation and measurement infrastructure, including specific facts and figures for a number of countries. The information should help exporters and investors form a view of a country's underpinning technological infrastructure. For more details contact the National Physical Laboratory, email: enquiry@npl.co.uk Tel +44 (0)20 8977 3222.

Details of shipment

It is also wise to plan ahead when making marine shipments to Brazil. Journey times can be several weeks, and there are not many shipping lines making direct sailings to Brazil. Check details of sailings through your local freight forwarder or through Lloyd's Loading List, as well as obtaining competitive quotes for freight rates. Remember, the higher the freight cost, the more import duty the Brazilian importer will have to pay. The Import Landed Cost comprises Cost, Insurance and Freight (CIF). For the purposes of import clearance, all invoices, packing lists and shipping documents should contain the clearest information possible concerning the consignment being shipped, with specific details of the description of the goods and quantities thereof. Under the new World Customs Organisation freight security initiatives, the phrases "Said to Contain" and "Freight of all Kinds" are no longer acceptable and must be avoided.

Foreign exchange

The Brazilian currency is the Real, and it is quoted on all the main foreign exchange markets. Check each week on the exchange rate in newspapers such as the Financial Times. There is also a branch of Brazil's main bank, the Banco do Brasil, in the City of London, and they can assist with foreign exchange matters where required. Transactions with Brazil can also be negotiated in US dollars.

Technical help for exporters

This service is provided by the British Standards Institute (BSI) to give information and advice on compliance with overseas statutory and other technical requirements. BSI produces a wide range of publications and provides a special updating service of information in some product fields. It can: supply detailed information on foreign regulations; identify, supply and assist in the interpretation of foreign standards and approval procedures; research and give consultation on technical requirements for a specific product; and provide translations of foreign standards, items of legislation and codes of practice. Fees vary according to the amount of work involved.

For specific enquiries, contact BSI on

Tel: +44 (0)20 8996 9001
Fax: +44 (0)20 8996 7001
Email: cservices@bsigroup.com

The Brazilian currency is not freely negotiable and foreign currency can only be purchased for transactions that are authorised and controlled by the Central Bank.

Short-term finance

When exporting to Brazil normal commercial rules should be followed. You should discuss the arrangements for security of payment with the international department of your UK bank, the UK offices of Brazilian banks or UK-based banks who have offices in Brazil.

Construction Site Guide

However, you should be aware that a Letter of Credit is a form of contract between two banks. A bank will make payment provided that the documents submitted to it are in strict compliance with the conditions of the Letter of Credit. This is regardless of the purchase contract. To prevent the possibility of a payment being made if the terms of the purchase contract are not met, the seller should check the Letter of Credit against the terms of the purchase contract and request amendments from the buyer if necessary. If you are a first-time exporter to Brazil, the standard method of receiving payment for your goods is by documentary Letter of Credit. The opening of the documentary Letter of Credit is based on the contract signed between the Brazilian buyer and the foreign seller. There are no problems regarding Letters of Credit opened by Brazilian banks being accepted by foreign banks. The Brazilian bank will make payment provided that the requirements of the Letter of Credit are met.

Open Account and Bills for Collection are other payment methods commonly used between UK exporters and Brazilian importers when a trustworthy relationship between the two parties has been developed. Major exports and those requiring long-term finance will require specialist payment and financing.

It can be beneficial for UK companies to offer financial support (i.e. credit) to importers of capital goods into Brazil. Such support is often offered as part of a deal by German or US suppliers which they have put together with support from banks in their own countries, with interest rates far below those available from banks in Brazil. Brazilian interest rates are generally significantly higher than those in the EU. This access to favourable payment terms can make a critical difference in negotiations between foreign suppliers and Brazilian importers.

The Brazilian currency is not freely negotiable and foreign currency can only be purchased for transactions that are authorised and controlled by the Central Bank. The appropriate documentary evidence must be presented to authorised brokers for the purchase of foreign currency. Since January 1999, the Brazilian currency has been allowed to float. There are no restrictions on the remittance of profits.

 

Contracts, Pricing and Insurance

Contracts

Brazilians usually have the same approach as Europeans, using a standard contract and altering it to fit different circumstances, and signing the revised version would seem straightforward. However, this will again depend on the organisation, size of the company and type of business involved. For some, to start a business relationship with a contract might be seen as overly formal, as for them a balanced relationship should begin based on trust, leaving lawyers to one side, at least until a later stage.

Brazilian importers tend to use a standard form of contract in their transactions. Foreign contracts are seldom accepted for fear of being trapped by unfamiliar contract stipulations. Adding special provisions to the standard contract form is normally acceptable.

Dispute resolution

For a contract or a copy of a document to be automatically recognised in court it usually has to be notarised. It is strongly recommended that you avoid having Brazilian courts decide any disputes between parties, as they can be slow and unfamiliar with crossborder disputes. A good alternative now available under Brazilian law is the use of arbitration, which allows the parties to choose any person or chamber (such as the International Chamber of Commerce or the London Court of International Arbitration) to arbitrate disputes.

Pricing

Pricing should be competitive and can usually be negotiated in US dollars or Brazilian Reais. Brazilian Portuguese should be used if possible and all costs should be included.

Brazilian exporters usually conduct transactions at Free On Board prices, whereas importers would search to find the most cost-effective alternative.

Insurance

Commercial insurance in Brazil usually covers transportation insurance, financial insurance, fire insurance and multi-risk insurance.

The private sector provides credit insurance for exports of consumer goods, raw materials and other similar goods. Speak to your banker or insurance broker for more information, or contact the British Insurance Brokers' Association for impartial advice. Its details are as follows:

British Insurance Brokers' Association
8th Floor John Stow House
18 Bevis Marks London EC3A 7JB
Tel: +44 (0)870 950 1790
Fax: +44 (0)20 7626 9676
Email:enquiries@biba.org.uk
Website: www.biba.org.uk

Private sector insurance has some limitations though, particularly for sales of capital goods, major services and construction projects that require longer credit packages or are in riskier markets.

Commercial risk insurance for capital goods and major projects

UK Export Finance is the UK's official export credit agency. Its aim is to help UK exporters of goods or services win business and complete contracts with confidence. UK Export Finance can support contracts valued as low as £20,000, and potentially up to hundreds of millions of pounds. The responsibility for providing insurance cover for consumer goods that are sold on credit of less than two years rests with private sector insurers.

UK Export Finance provides services such as:

  • Insuring UK exporters against non-payment by their overseas buyers

  • Helping overseas buyers to purchase goods and/or services from UK exporters by guaranteeing bank loans to finance those purchases

  • Sharing credit risks with banks in order to assist exporters in the raising of tender and contract bonds, in accessing pre- and post-shipment working capital finance and in securing confirmations of letters of credit

  • Insuring UK investors in overseas markets against political risks UK Export Finance works closely with exporters, sponsors, banks and buyers to put together the right package for each contract. The full range of UK Export Finance facilities are available to support exports to, and investments in, Brazil.

To help those customers relatively new to exporting, UK Export Finance has a customer service team dedicated to helping new customers through the process of credit insurance and export finance. For more detailed enquiries, please contact UK Export Finance's customer service team on:

Tel: +44 (0)20 7512 7887 or
Email: Customerservice@ecgd.gsi.gov.uk.


Bribery and Corruption

There can be problems with bribery and corruption in Brazil. If you believe what you see in the media, it pervades all sections of society - from the residents of shanty towns paying for protection, to business people wanting to get their goods into the country more quickly, to politicians who appear keen to make money from jumping allegiances at the drop of a hat. In 2010, Transparency International's Corruption Perceptions Index rated Brazil in 69th place out of 178 countries - but above fellow BRIC markets China, India and Russia. The Brazilian Government appears to be making some moves in the right direction, but many view these as insufficient to engender real change.

However, most international companies operating in Brazil and most of the large Brazilian companies and organisations now frown on any illegal practices. The majority of business deals are corruption free and, while you should be aware of the possibility of illegal practices, you should not indulge in the hope of getting business quickly.

The new UK Bribery Act will enter into force in July 2011 forcing companies to re-evaluate how they conduct their own business and partner with others. For more information  http://www.justice.gov.uk/downloads/legislation/bribery-act-2010-guidance.pdf

Source - UKTI

 

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