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IMPORT AND DISTRIBUTION IN BRAZIL NOVEMBER 2011. Page 2 Import on Behalf of and to Order of Third Parties Page 2 YOUR LOGO DISTRIBUTIONINTRODUCTION Page.

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Presentation on theme: "IMPORT AND DISTRIBUTION IN BRAZIL NOVEMBER 2011. Page 2 Import on Behalf of and to Order of Third Parties Page 2 YOUR LOGO DISTRIBUTIONINTRODUCTION Page."— Presentation transcript:

1 IMPORT AND DISTRIBUTION IN BRAZIL NOVEMBER 2011

2 Page 2 Import on Behalf of and to Order of Third Parties Page 2 YOUR LOGO DISTRIBUTIONINTRODUCTION Page 2 This document presents an overview of the Import and Distribution in Brazil. The following slides shows the different types of Import Regimes, as well as tools to increase the competitiveness and excellence of the import and distribution in our country. We also present some facts and figures regarding the trade balance between Brazil and Germany.

3 Page 3 Import on Behalf of and to Order of Third Parties Page 3 YOUR LOGO DISTRIBUTIONIMPORT FROM GERMANY Page 3 Source: Brazilian Ministry for Development, Industry and Foreign Commerce

4 Page 4 Import on Behalf of and to Order of Third Parties Page 4 YOUR LOGO DISTRIBUTIONIMPORT FROM GERMANY Page 4 Source: Brazilian Ministry for Development, Industry and Foreign Commerce

5 Page 5 Import on Behalf of and to Order of Third Parties Page 5 YOUR LOGO DISTRIBUTIONIMPORT FROM GERMANY Page 5 Source: ABIMAQ – Brazilian Association for Machinery and Equipment BRAZILIAN IMPORT OF CAPITAL GOODS Description January - September Var. % TotalPart. %TotalPart. % TOTAL ,7 01 st United States , ,2125,6 02 nd Germany , ,1143,7% 03 rd China , ,6333,6 04 th Japan , ,1733,9 05 th Italy , ,0935,6 06 th South Korea , ,4810,2 07 th France , ,492,4 08 th Switzerland , ,42-28,5 09 th United Kingdom , ,1818,5 10 th Spain , ,0646,8 11 th Sweden , ,9314,6 12 th Argentina , ,538,9 13 th Taywan , ,3013,2 14 th India , ,23-1,4 15 th Austria , ,23-48,1 Values US$ FOB

6 Page 6 Import on Behalf of and to Order of Third Parties Page 6 YOUR LOGO DISTRIBUTIONIMPORT BARRIERS Page 6 Many are the difficulties to import goods into Brazil. We will present two types: tarifary and non-tarifary barriers: TARIFARY BARRIERS: Complexity of taxes (Import Duty, Excise Tax, Social Contribution on Imports, State Vat); Elevated rates; Anti dumping; Tax calculation: cascade.

7 Page 7 Import on Behalf of and to Order of Third Parties Page 7 YOUR LOGO DISTRIBUTIONIMPORT BARRIERS Page 7 NON-TARIFARY BARRIERS: Radar (company import license); Product Import Licenses: automatically and non-automatically (sometimes prior to the shipment); Registry at specific bodies such as ANVISA (Agency for Sanitary Vigilance), MAPA (Ministry of Agriculture and Food Supply) and others; Anticipated tax; Quotas for importation of specific products; Constant changes in regulation.

8 Page 8 Import on Behalf of and to Order of Third Parties Page 8 YOUR LOGO DISTRIBUTIONCOMPANIES IN BRAZIL Page 8 In order to establish a sister company in Brazil and import goods from abroad it is mandatory to obtain: CNPJ: National Register for Legal Entities; Inscrição Estadual: State Register for Legal Entities; Inscrição Municipal: Metropolitan Register for Legal Entities; Radar: company import license issued by Federal Revenue Services (Receita Federal).

9 Page 9 Import on Behalf of and to Order of Third Parties Page 9 YOUR LOGO DISTRIBUTIONCOMPANIES IN BRAZIL Page 9 NATIONAL REGISTER CNPJ STATE REGISTER METROPOLITAN REGISTER ORDINARY RADAR SIMPLIFIED RADAR 30 DAYS 90 DAYS 150 DAYS Average time depending on presentation of documents and analysis of the involved entities

10 Page 10 Import on Behalf of and to Order of Third Parties Page 10 YOUR LOGO DISTRIBUTIONRADAR Page 10 There are two types of RADAR: Simplified and Ordinary SIMPLIFIED: the simplified Radar can be obtained in a period of up to 30 days from the presentation of the documents. This type of license can be used for: 1.Small amount of importations: up to US$ 150 thousand FOB every semester. 2.Import as orderer through a trading company 3.Import of fixed asset ORDINARY: the ordinary Radar can be obtained in an average period of 3 months. The financial limit for the imports is settled by the RF according to the financial capability of the company.

11 Page 11 Import on Behalf of and to Order of Third Parties Page 11 YOUR LOGO DISTRIBUTIONIMPORT REGIMES Page 11 IMPORT ON OWN ACCOUNT IMPORT ON OWN ACCOUNT BY ORDER IMPORT ON ACCOUNT OF AND BY ORDER OF THIRD PARTIES DOCUMENTS Commercial Invoice in the name of the Importer Commercial Invoice in the name of the Trading Company (Importer and Buyer), the Client in Brazil figures as Orderer Commercial Invoice containing the Trading Company as Importer and the Client as Buyer FINANCIAL The Importer is responsible for all payments The Trading Company must pay all the expenses regarding the nationalization without previous downpayment from the Orderer The Client can advance financial resources to the Trading Company to nationalize the goods PAYMENT TO THE EXPORTER The Importer is responsible for the settlement of the exchange The Trading Company is responsible for the settlement of the exchange Both Importer and Client can settle the exchange RADAR TYPEOrdinary or simplified Ordinary TRANSFER PRICING Importer responsibilityOrderer responsibilityClient responsibility

12 Page 12 Import on Behalf of and to Order of Third Parties Page 12 YOUR LOGO DISTRIBUTIONTRADING COMPANIES Page 12 For many years the trading companies have appeared as a secure and economic alternative for the International Commerce in Brazil. Counting with expertise in logistic, tributary and operational fields, with structure to attend all the peculiarities and constant changes in the legislation. The trading companies are an important tool to achieve competitiveness in the Brazilian market. The German sister company can work with lower local investments and small headcount, being able to attend any size of operation supported by the Trading Company structure.

13 Page 13 Import on Behalf of and to Order of Third Parties Page 13 YOUR LOGO DISTRIBUTIONTRADING COMPANIES Page 13 EXPORTER CLIENT IN BRAZIL REGULATORY ORGANS CUSTOMS INSURANCE CO. BROKER PORT AIRPORT WHAREHOUSE BANKS LOGISTIC PROVIDER

14 Page 14 Import on Behalf of and to Order of Third Parties Page 14 YOUR LOGO DISTRIBUTIONREGIONAL INCENTIVES Page 14 Most of the trading companies work through financial incentives over the state vat. This is the best way for the company to remunerate its work and reduce the final cost of the goods after nationalization, giving the client competitive prices and professional services. The states offering incentives provide good facilities and infrastructure destined to the international commerce. In the following pages we will present two of the major incentives for importation offered in Brazil.

15 Page 15 Import on Behalf of and to Order of Third Parties Page 15 YOUR LOGO DISTRIBUTIONREGIONAL INCENTIVES Page Km 500 Km 1000 Km 500 Km The states Espirito Santo and Santa Catarina have good infrastructure of ports, dry ports and warehouses. The states are strategically located close to the most important Brazilian markets: São Paulo, Rio de Janeiro, Minas Gerais, etc.

16 Page 16 YOUR LOGO LOGISTIC INFRASTRUCTURE Vitória Ports Peiú – Cars and regular cargo Capuaba – Cars and bulk cargo TVV – Containers Vitória – All types of cargo Vitória Port (TVV): CNTRs / year

17 Page 17 Total area m² Bonded warehouse area m² Covered area m² Page 17 YOUR LOGO LOGISTIC INFRASTRUCTURE Vitória: Dry Ports CLI Total area m² Bonded warehouse area m² Covered area m² TERCA

18 Page 18 YOUR LOGO Santa Catarina Ports Itajaí – Regular cargo Navegantes – regular cargo São Francisco do Sul – Roll on / Roll off and Regular cargo Imbituba – Regular cargo and bulk Itajaí port – CTNRs / year LOGISTIC INFRASTRUCTURE

19 Page 19 YOUR LOGO Santa Catarina S. Fco. do Sul Port – CTNRs / year Imbituba Port – CTNRs and 1,2 million ton bulk / year LOGISTIC INFRASTRUCTURE

20 Page 20 Operational details Clearence Estimated flow – Hamburg x Vitoria Page 20 CLEARENCE FLOW 19 days Maritime Transit Time Inland – Depend on the origin Hamburg x Vitoria (MSC or Grimaldi) x days 3 days 1 day 5 days DI + CI (import certificate) depending on the parametrization 1 day Invoicing Up to 2 days Transport to São Paulo

21 Page 21 Import on Behalf of and to Order of Third Parties Page 21 YOUR LOGO DISTRIBUTION Page 21 In 2009, observing the need of distribution channels for foreign companies in Brazil, Savixx established VERIXX, a distribution company located in São Paulo State. Verixx works as a distribution channel for German companies to insert their products into the Brazilian market without having a sister company established in Brazil. The German company can determine the strategy and sales channels, while Savixx and Verixx takes care of all the nationalization, logistic and financial procedures, client financial analysis and national distribution.

22 Page 22 Import on Behalf of and to Order of Third Parties Page 22 YOUR LOGO DISTRIBUTIONDISTRIBUTION FLOW Page 22 EXPORTER CLIENT 1 CLIENT 2 CLIENT 3 COORDINATION OFFICE – STRATEGY, SALES

23 Page 23 Import on Behalf of and to Order of Third Parties Page 23 YOUR LOGO DISTRIBUTIONCORPORATE PROFILE Savixx Comércio Internacional S/A was founded in 1984, as the import company of the group, and in 2001 the company was restructured in order to provide import process outsourcing to the market, offering cost reduction combined with operational improvements. The shareholders have been working for 3 generations on International Commerce granting 70 years of experience. Net Equity: 2,5 Million. Revenue in 2010: 185 Million. 60 employees. Offices in São Paulo, Rio de Janeiro, Vitória, Itajaí and Londrina. Page 23

24 Page 24 Any question? Page 24 YOUR LOGO Dont hesitate to contact us Fernando Berzoini Smith Commercial Director Stephanie Cerci Trader Av. Ibirapuera, – Torre II – Cj 51 Moema - São Paulo – SP - Brasil Tel.: Fax: 55 –


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