1. IMPORT AND DISTRIBUTION IN BRAZIL
NOVEMBER 2011 1

2. DISTRIBUTION INTRODUCTION
Import on Behalf of and to Order of Third Parties
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.
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3. DISTRIBUTION IMPORT FROM GERMANY
Import on Behalf of and to Order of Third Parties
Source: Brazilian Ministry for Development, Industry and Foreign Commerce
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4. DISTRIBUTION IMPORT FROM GERMANY
Import on Behalf of and to Order of Third Parties
Source: Brazilian Ministry for Development, Industry and Foreign Commerce
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5. Source: ABIMAQ – Brazilian Association for Machinery and Equipment
DISTRIBUTION
IMPORT FROM GERMANY
Import on Behalf of and to Order of Third Parties
BRAZILIAN IMPORT OF CAPITAL GOODS
Description
 January - September
2010
2011
Var. %
Total
Part. %
TOTAL
100
20,7
01st United States
24,22
25,21
25,6
02nd Germany
11,85
14,11
43,7%
03rd China
12,32
13,63
33,6
04th Japan
7,37
8,17
33,9
05th Italy
7,20
8,09
35,6
06th South Korea
3,81
3,48
10,2
07th France
2,94
2,49
2,4
08th Switzerland
4,09
2,42
-28,5
09th United Kingdom
2,22
2,18
18,5
10th Spain
1,69
2,06
46,8
11th Sweden
2,03
1,93
14,6
12th Argentina
1,70
1,53
8,9
13th Taywan
1,38
1,30
13,2
14th India
1,51
1,23
-1,4
15th Austria
2,86
-48,1
Values US$ FOB
Source: ABIMAQ – Brazilian Association for Machinery and Equipment
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6. DISTRIBUTION IMPORT BARRIERS
Import on Behalf of and to Order of Third Parties
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.
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7. DISTRIBUTION IMPORT BARRIERS NON-TARIFARY BARRIERS:
Import on Behalf of and to Order of Third Parties
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.
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8. DISTRIBUTION COMPANIES IN BRAZIL
Import on Behalf of and to Order of Third Parties
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).
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9. METROPOLITAN REGISTER
DISTRIBUTION
COMPANIES IN BRAZIL
Import on Behalf of and to Order of Third Parties
150 DAYS
30 DAYS
90 DAYS
30 DAYS
STATE REGISTER
SIMPLIFIED RADAR
METROPOLITAN REGISTER
NATIONAL REGISTER
CNPJ
ORDINARY RADAR
Average time depending on presentation of documents and analysis of the involved entities
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10. DISTRIBUTION
RADAR
Import on Behalf of and to Order of Third Parties
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:
Small amount of importations: up to US$ 150 thousand FOB every semester.
Import as orderer through a trading company
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.
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11. DISTRIBUTION IMPORT REGIMES
Import on Behalf of and to Order of Third Parties
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 TYPE
Ordinary or simplified
Ordinary
TRANSFER PRICING
Importer responsibility
Orderer responsibility
Client responsibility
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12. DISTRIBUTION TRADING COMPANIES
Import on Behalf of and to Order of Third Parties
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.
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13. DISTRIBUTION TRADING COMPANIES EXPORTER
Import on Behalf of and to Order of Third Parties
REGULATORY ORGANS
EXPORTER
INSURANCE CO.
CUSTOMS
WHAREHOUSE
BROKER
BANKS
PORT
AIRPORT
LOGISTIC
PROVIDER
CLIENT IN BRAZIL
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14. DISTRIBUTION REGIONAL INCENTIVES
Import on Behalf of and to Order of Third Parties
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.
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15. DISTRIBUTION REGIONAL INCENTIVES
Import on Behalf of and to Order of Third Parties
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.
500 Km
1000 Km
500 Km
1000 Km
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16. 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
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17. LOGISTIC INFRASTRUCTURE
Vitória: Dry Ports
CLI
TERCA
Total area m²
Bonded warehouse area m²
Covered area m²
Total area m²
Bonded warehouse area m²
Covered area m²
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18. Itajaí port – 600.000 CTNRs / year
LOGISTIC INFRASTRUCTURE
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
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19. LOGISTIC INFRASTRUCTURE
Santa Catarina
Imbituba Port – CTNRs and 1,2 million ton bulk / year
S. Fco. do Sul Port – CTNRs / year
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20. CLEARENCE FLOW Operational details
Clearence Estimated flow – Hamburg x Vitoria
Transport to São Paulo
1 day
Invoicing
x days
19 days
3 days
1 day
Up to 2 days
Inland – Depend on the origin
Maritime Transit Time
5 days
Hamburg x Vitoria (MSC or Grimaldi)
DI + CI (import certificate) depending on the parametrization
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21. DISTRIBUTION DISTRIBUTION
Import on Behalf of and to Order of Third Parties
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.
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22. COORDINATION OFFICE – STRATEGY, SALES
DISTRIBUTION
DISTRIBUTION FLOW
Import on Behalf of and to Order of Third Parties
EXPORTER
COORDINATION OFFICE – STRATEGY, SALES
CLIENT 1
CLIENT 3
CLIENT 2
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23. DISTRIBUTION CORPORATE PROFILE
Import on Behalf of and to Order of Third Parties
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.
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24. Any question? ? ? ? Fernando Berzoini Smith Stephanie Cerci YOUR LOGO
Don’t 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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