How to Export to Brazil - Sprint Lazio

Brazil – Ministry of External Relations
In this case, the intermediation does not involve an import operation on the part of
the representative, but aims to seek Brazilian clients willing to buy the products of the
South American exporter.
There are in Brazil a great number of professionals with vast experience in foreign
trade, especially in imports, who are willing to represent foreign companies wishing
to introduce their products into the Brazilian market. However, the exporter needs to
be meticulous when choosing a commercial agent to avoid unnecessary loss of time
and operational expenses.
As in any part of the world, there are representatives that accept to work with any
product “ being specialized in none “ and thus approach the market without the due
technical background, which may result in business outcomes that are below the
exporter’s expectations.
The export company should select properly their sales representative, restricting their
action to the local market where they operate “ be it a region, state or city “, thus,
taking into account the large dimension of the Brazilian market.
Normally, exclusivity is granted to a representative only after a certain period of
experience and provided they have achieved concrete sales results. National level
exclusivity contracts should be avoided, especially if the commercial agent is a natural
person or a small company.
As for the payment of commissions, the exporter can combine three modalities
practiced in Brazil:
• “Graphic account” (Conta Gráfica): the value of the commission to be paid to
the commercial agent is retained in the Brazilian bank which, after paying the
exporter, arranges for the commission to be paid to the representative. Normally
this is the preferred option by commercial agents, as the bank handles the money
of both parties separately, so the agent does not have to settle directly with the
exporter.
• By Remittal: the Brazilian bank pays the exporter the sum of the invoice and the
commission is paid directly to the representative by the exporter. This case requires
a relationship of trust between the parties.
• Deductible from the Invoice: in this case, the importer retains the commission
value and arranges payment to the representative, which also requires a relationship
of trust between the parties.
In regard to value of the commissions, the parties can agree on a percentage to be
calculated over the FOB value of the operation. At the time of registering the Import
Declaration in Siscomex, the chosen form of payment and percentage of the
commissions must be stated.
82 How to export to Brazil