How to Export to Brazil - Sprint Lazio

Brazil – Ministry of External Relations
In Brazil, Trading Companies are commercial companies constituted pursuant to
Decree-Law no. 1,248, dated 29 November 1972, which requires that applying
companies acquire a special license from SECEX and from the Federal Revenue and
Customs Administration. They must be constituted as a stock company and they
possess a minimum capital set by the National Monetary Council.
The exporter needs to take into account that trading companies, by force of their
very activity and financial power, focus primarily on large import orders. Therefore,
the exporter must be capable of providing sizeable volumes of their product, often
for immediate or programmed shipment.
These companies are located across the country, mainly in the capital cities. Thus,
the exporter can expect to find this commercial channel in any state.
Commercial companies, in turn, are abundant in Brazil, as their constitution is simplified
and they can be limited liability companies with reduced capital. They are intermediary
companies between the foreign supplier and the final buyer or consumer. They are
importers, although the commercial activity they perform is the resale of products on
the national market.
From the South American exporter’s point of view, introducing their products through
these companies is in general a good business strategy, as the latter know the market
and have direct contacts to make the resale. Furthermore, expenses are reduced
since the commercial importers take charge of the entire trade and customs procedures
for the entry of the merchandise, in addition to being in close contact with the buying
market, thus facilitating the marketing of the product in the regions they operate.
When the volume of business becomes considerable, signing a contract of exclusivity
may be necessary. In this case, the exporter is advised to do it while taking into
account the commercial and financial capacity of the intermediary company. It would
not be convenient, for instance, to give national exclusivity rights to a company
whose activity is limited to some states of the Brazilian federation, unless it is willing
to make investments that will enable its commercial horizons to be broadened to the
other states.
Some exporters prefer to work with several import firms, located in different Brazilian
regions, thus avoiding wasting time with a single importer which often may not have
the business clout to cover the entire national territory.
Other suppliers prefer the strategy of negotiating only with intermediaries located in
the large capital cities, granting exclusivity to import companies that really show
potential in the capital where they are based.
IV.4.3. Sales Representative
Another way to reach the Brazilian market is through business representatives, who
may be freelancing professionals or companies which, for financial or commercial
reasons, opt to work on the basis of commissions on the volume of sales.
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