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- See Who Are Brazil's Top Five Trading Partners
Have you ever stopped to think about the origin of the products in your daily life? It is estimated that an average person consumes goods from at least ten different countries in a single day, which highlights the importance of international trade in our lives. International trade can be understood as a result of a globalized world , which is related to the 'multiplication and intensification of the relationships established between economic agents located in different parts of the global space' (Martins, 1996). In other words, it is a process that, to achieve satisfactory results, requires the opening of national markets and the reduction of barriers that separate countries from one another. In this context, various international trade theories, from Adam Smith to the theories of the CEPAL school, state that these trade operations involve tax, financial, administrative, commercial, and customs issues, which promote benefits among countries, including access to raw materials, increased production and efficiency, and especially entry into new markets. For this purpose, countries build a special type of relationship: the trade partnership . The Brazilian Context Brazil is a country with one of the largest economies in the world, ranking eighth among the most significant global economies . The country meets a diverse demand in today's trade, being a leader in the export of products such as soybeans, oil, iron ore, cellulose, corn, and beef and chicken meat. According to Trading Economics, Brazil's main export consumers include countries such as China, the United States, Argentina, the Netherlands, Canada, Japan, Germany, among others. Below, check out more specific data on Brazil's top five trading partners : 01 - CHINA The Asian country leads the ranking with 27% of total exports . Exports to China, predominantly soybeans, totaled USD 104.3 billion , while imports, mainly valves, tubes, and technological equipment, amounted to USD 53.2 billion. Despite this, exports to China, Hong Kong, and Macau in September 2024 decreased by 20.4%. 02 - UNITED STATES The United States, which for a long time was Brazil's main trading partner, is now ranked second, accounting for 11% of Brazil's total exports . The country recorded a trade flow of USD 74.9 billion, with a negative balance of USD 1.04 billion. According to Brazil's trade balance, from January to September 2024, compared to the same period of the previous year, exports to the United States grew by 10.3% and reached USD 29.44 billion. 03 - ARGENTINA Accounting for 5% of Brazil's total exports, Argentina has become the third-largest trading partner, with a trade volume of US$ 28.7 billion and a surplus of US$ 4.7 billion for Brazil . According to Brazil's trade balance, from January to September 2024, compared to the same period in the previous year, exports to China, Hong Kong, and Macau decreased by 0.9%, totaling US$ 77.84 billion. Imports increased by 17.3%, reaching US$ 47.08 billion. Consequently, during this period, the trade balance showed a surplus of US$ 30.76 billion, and the trade volume expanded by 5.3%, totaling US$ 124.92 billion. 04 - NETHERLANDS The Netherlands, with 4% of Brazil's total exports, is the fourth-largest buyer of Brazilian products . The main items traded between the two countries are iron ore, soybeans, and steel. Trade with the European Union, including the Netherlands, grew by 5.5%, reaching US$ 4.08 billion. Imports increased by 17.0%, totaling US$ 4.01 billion. 05 - CANADA Canada ranks as the fifth-largest trading partner of Brazil, accounting for 3% of the country's total exports . In 2023, total transactions amounted to US$ 9.1 billion, with Brazil setting a record for exports to Canada, totaling US$ 5.7 billion of that amount. However, despite Canada being one of the most open economies to international trade, it still does not have a Free Trade Agreement with Brazil , which makes it harder for Brazilian products and services to enter this market. Interested in exporting? We are an international consulting firm, and our goal is to provide our clients with better export strategies and solutions for overcoming obstacles in the process , as well as assisting them in entering the international market. Schedule a completely free consultation with our team today! Sources: Associação de Comércio Exterior do Brasil; Migalhas; Suno; "Da Globalização da Economia à Falência da Democracia" (Carlos Estevam Martins); Balança Econômica Mensal; Sapientia; CNN Brasil; Koetz; Sebrae; ComplianceTotal; Tecnicon. Written by: Júlia Almeida, Marketing Consultant Reviewed by: Eduarda Teixeira, Marketing Consultant
- Unveiling Foreign Trade: The Terms You Need to Know
With the constant expansion of national markets, foreign trade is a practice that has been gaining increasing prominence on the global stage . The importance attributed to this activity arises from various factors. Among these aspects, the ability of transnational trade to help expand a country's market beyond its borders stands out, facilitating access to new products, services, and technologies, as well as enabling greater demand for domestic goods. In this context, statistical data from the World Trade Organization (WTO) indicates that the United States and China together imported and exported more than $5 trillion in goods in 2023. Additionally, Brazil also made a significant contribution to international trade , exporting $340 billion and importing $253 billion in the same year. These figures quantitatively represent part of the flow of goods generated by international trade. Given the importance of foreign trade to the global market, we have listed the main terms that are essential to understanding international negotiations , aiming to promote better knowledge of these practices. Check them out: Ad Valorem This refers to a way of applying insurance and tariffs proportionally to the value stated on the invoice. Ad Valorem tariffs are usually applied to high-value goods and large quantities, such as commodities. Certificate of Origin This is a document required to prove the origin of a certain product, issued by official bodies like consulates and Chambers of Commerce. DUIMP Also known as the Single Import Declaration, it is an electronic certification that centralizes all information and data related to a product import. International Commercial Terms (INCOTERMS) These are clauses set by the International Chamber of Commerce that standardize the responsibilities of the importer and exporter during trade. The terms simplify agreements between traders. Examples of Incoterms include: CFR : Cost and Freight CIF : Cost, Insurance and Freight FOB : Free on Board Mode of Transport This refers to the method of transporting goods in international trade, which can be by sea, air, road, rail, pipeline, or waterway. Mercosur Common Nomenclature (MCN) This is an ordered system based on the Harmonized System to standardize and regulate goods within Mercosur. It also serves as a basis for trade defense, being used for statistical data, specific health inspections, taxation, among other functions. Packing List An international document that details the specifications and technical details of the goods, such as weight and volume. Radar A tracking tool used by the Brazilian Federal Revenue Service to monitor and inspect foreign trade movements. It is mandatory for those wishing to import or export. Harmonized System (HS) An international classification system for goods proposed by the World Customs Organization (WCO). The HS nomenclature standardizes products and facilitates trade and customs inspection worldwide. Integrated Foreign Trade System (Siscomex) The Brazilian federal government platform that manages the operational control of merchandise transactions. Exchange Rate This represents the price comparison between two currencies in foreign trade. The US dollar is commonly used as a conversion reference. TEC (Common External Tariff) This is a common tariff used within Mercosur. Countries like Argentina and Uruguay also use the TEC. FOB Value The FOB value is the price of the merchandise plus transportation costs to the place of origin's dispatch. It does not include international freight or other expenses, as these are the importer's responsibility. It is worth noting that there are numerous other general and specific terms in foreign trade. We have highlighted the most common and significant ones to simplify the understanding of international merchandise transactions and to assist entrepreneurs in entering the foreign trade market . Are you interested in exporting your products? We are a company committed to assisting our clients in entering the international market through consulting and providing strategic solutions to overcome obstacles that may arise during this process. Now that you are familiar with the main terms related to international trade processes, how about scheduling a completely free consultation with Líderi? Sources: World Trade Organization; Receita Federal; Fazcomex; Remessa Online. Written by: Nicolas Rocha, Project Consultant Reviewed by: Eduarda Teixeira, Marketing Consultant
- See which products PARAÍBA EXPORTS the most
Written by: Gabriel de Lima, Marketing Consultant The trend in the commercial world, over the decades, is the existence of an increasingly connected market, opening up opportunities and business beyond borders, whether national or even municipal. Although there is a large Brazilian domestic market, expanding horizons to the international sector is increasingly seen as a strategic decision by traders for the development of their businesses. Given the structural economic changes, it is necessary to know the most traded products within our own state of Paraíba, understanding the trends and preferences that are part of local exports. According to surveys conducted by Comex Stat, in 2023, the main Brazilian products exported from Paraíba are: Posição Produto Valor FOB US$ 1° Various Works 21.229.410 2° Manufactured Articles Classified Mainly by Material 8.420.031 3° Food Products and Live Animals 6.671.461 4° Raw Materials, Non-Edible, Except Fuels 2.794.642 5° Goods and Transactions Not Specified in Other Parts of the SITC 1.909.936 Source: Comex Stat — Data from the Year 2023. In this sense, the chart reveals the five most exported products by Paraíba, highlighting the state's economic diversity and rich cultural tapestry. In the first place, "Various Works" generate $21,229,410 , including ivory, bone, turtle shell, horn, coral, mother-of-pearl, and other animal materials for carving, worked, and their products (including works obtained by molding). "Manufactured Articles Classified Mainly by Material" occupy the second position with $8,420,031 , demonstrating the state's skill in transforming raw materials. Next, we have "Food Products and Live Animals" with $6,671,461 , emphasizing the importance of agriculture and livestock, fundamental sectors in the local economy. In fourth place are "Raw Materials, Non-Edible, Except Fuels" with $2,794,642 , highlighting the export of natural resources, such as minerals and wood, vital for the rural economy. Finally, "Goods and Transactions Not Specified in Other Parts of the SITC" that is, goods that are not specifically classified in the Standard International Trade Classification, account for $1,909,936 in exports . These fifth-place products may include all those not involving manufactured goods, food products, beverages, oils, chemical products, and general consumer goods. Thus, the export market in Paraíba is strong, with a total of more than $41 million in the value of the five most exported products, which is approximately 231 million reais. This table also elucidates the state's wealth in production, which includes both manufacturing and primary materials, for consumable use, from food to fuels. In short, the variety of production in Paraíba deserves recognition, as well as the existing opportunities for new traders who wish to participate in this market, aiming for a more integrated and valuable economy. Are you interested in exporting? We are a consultancy, and our goal is to offer our clients the best export strategies and solutions for obstacles during the process, as well as assisting them in entering the international market. Schedule a completely free consultation with our team! References : BUENO, S. Produtos mais exportados de Paraíba . Disponível em: < https://www.fazcomex.com.br/comexstat/exportacao-paraiba-pb/ >. DA ECONOMIA, C.-G. DE E. S. DE I. E. E. DE C. E. S. DE C. E. S. E. DE C. E. E. A. I. M. Manual de utilização dos dados estatísticos do comércio exterior brasileiro . Disponível em: < https://balanca.economia.gov.br/balanca/manual/Manual.pdf >. NCM 96 - Obras diversas . Disponível em: < https://www.systax.com.br/classificacaofiscal/ncm/96-obras-diversas >.
- International Business Rounds - What are they and how to prepare?
By Paola Arruda What are international business rounds? If you are thinking or have thought about internationalizing your business, you must have wondered about the existence of opportunities to exchange knowledge and access to international buyers. Well, the so-called international business rounds are an important mechanism to assist in the search for buyers willing to negotiate the sale of products in other territories. That is, an international business round works as a facilitator channel for the meeting between suppliers, investors and distributors from different countries, in order to promote the sale and, consequently, the export of services and products. Through international business rounds, participants are not only able to negotiate to export to new markets, but also find networking opportunities to expand their operations in other countries. Why yake part in international business rounds? The business rounds are one of the main tools for the internationalization of goods and services. They provide direct contact with large companies and local networks, increasing the efficiency and speed in doing business with foreign companies, besides enabling the acquisition of know-how about new markets and foreign trade. Through the rounds, it is easier to create qualified contacts with foreign companies, considered as potential buyers for the goods and services that are intended to be commercialized, which provides the maximization of the exchange opportunities and the increase of the sales volume. Furthermore, the international rounds allow companies a greater integration with the global business marketing - either as suppliers or as buyers - and broaden the vision of entrepreneurs who, based on feedbacks from buyers about their products, have the opportunity to adjust their sales strategies for the target markets that interest them. Where to find these events? The main international business rounds are organized and supported by Brazilian foreign trade promotion agencies and programs, such as APEX, PEIEX, CAMEX, SEBRAE, and even by Embassies and industry federations and state foreign trade promotion agencies. The information about each round, with dates and schedules, is available on the websites of the respective programs and takes place every year. How to prepare for the international business rounds? The business rounds consist of quick moments of individual conversation between buyers and sellers of a certain product, with duration time that varies between 10 to 20 minutes. Therefore, having in mind the information about the company and the products to be sold, as well as the negotiation strategies that will be used, is essential to optimize the conversation time and maximize the opportunities to close a deal. In addition, having support material to present the company and its services is essential. In other words, business cards, advertising materials, website, and power points translated into English or other languages of interest, as well as support utensils such as glasses, cups, plates, and cutlery, in case of a possible tasting, are crucial to establish a better contact, gain authority, and create affinity with potential buyers. The ideal is that, during the dialogue, each customer feels valued and inserted in your company's history, so that interests can be aligned and materialized. Sources: https://portal.apexbrasil.com.br/rodadas-de-negocios/ http://www.investexportbrasil.gov.br/rodadas-de-negocios-e-participacao-em-feiras-internacionais https://connectamericas.com/pt/content/checklist-de-como-se-preparar-para-uma-rodada-de-neg%C3%B3cios#:~:text=Uma%20rodada%20de%20neg%C3%B3cios%20internacional,a%20compradores%20e%20investidores%20estrangeiros.
- International Logistics: refrigerated cargo freight
Have you ever wondered how products such as meat, fruit, ice cream, and even medicines are transported over long distances? In this post, we will seek to present the International Freight of refrigerated cargo, in addition to some important information that must be kept in mind for the prospect of exporting products that require this special treatment. In this sense, refrigerated cargo are basically those products that, due to their perishability characteristics - that is, their low expiration date under various conditions - require temperature control during transportation over long distances. The importance of this control is noticeable to the extent that, according to the Food and Agriculture Organization of the United Nations (FAO), of the entire amount of food lost annually, corresponding to 1.3 billion tons, the logistical process of production, storage and transport is responsible for 54%. Such losses, besides generating negative socio-environmental impacts, also impact companies, resulting in losses and reducing the profit margin of exports. Once the importance of this category is understood, one can think about the main modes and devices used in the transportation of refrigerated cargo: First, there is the refrigerated road freight, which can be carried out by trucks with specific bodywork that can meet the specific temperature requirements of a given product. The refrigerated trunk type, which works as a mobile cold chamber, is the most used and recommended, able to reach temperatures between 0 and -20 degrees Celsius, depending on the model. In the refrigerated maritime freight modal, in turn, it also counts on technologies such as refrigerated containers, which allow greater control of the temperature during transport, with the possibility of prior adjustment of the conditions even before the goods arrive in the containers, ensuring rigorous handling of those products that require it. This transport is used, in general, for large quantities of cargo to be transported, because due to its large storage capacity, it favors the cost-benefit ratio. Lastly, we have the refrigerated air transport, which is faster, being the advisable means for the export of more delicate or perishable products. Not only the flight time, but also the waiting times during transshipment, stock audits, dispatch, and other stages of handling the goods must be taken into consideration. Thus, there are several solutions for maintaining the cold chain in air freight. One of these solutions is isothermal packs, which can be of different capacities and are more effective in direct flights, but generally require some complementary cooling material, such as dry ice or gel packs. Dry ice, however, for the purposes of air freight, is considered a dangerous commodity and is a limiting factor in the quantity transported. Another solution for refrigerated air freight are the AcuTemps, loading units (ULD) equipped with compressor and batteries that allow the maintenance of controlled temperature up to 100h. This medium does not carry dry ice, unlike Envirotainers, ULDs with a compartment for this material and which maintain the temperature for up to 72 hours. Because of this, the AcuTemps can board any type of aircraft. Therefore, the choice of the transportation modal involves several variables, such as estimated freight time, risk rates, cost-benefits, and the most appropriate storage, among other factors that comprise the logistics chain. Thus, it is a customized path for each type of merchandise and export contract, demanding a complete and individual analysis. By: Victória Rodrigues Sources: https://www.tibagroup.com/pt/transporte-aereo-refrigerado (acess in 11/10/22) https://br.kuehne-nagel.com/-/servicos/transporte-maritimo/carga-refrigerada (acess in 11/10/22) https://www.cobli.co/blog/carga-refrigerada/ (acess in 10/10/22)
- RADAR SISCOMEX: Stage of the internationalization process
The Integrated Foreign Trade System, better known as SISCOMEX, is a fundamental portal for both professionals in the area and for the company that wants to import or export. As in a previous post (First Steps to Export), today's topic is about one of the first steps in the exporting or importing process. This initial step is the SISCOMEX Radar Registration, which will allow the entrepreneur a simple and less bureaucratic way to qualify before conducting international transactions and negotiations. The Radar, Registration and Tracking of the Actions of Customs Agents, has undergone updates and reformulations in recent years that have facilitated the qualification of companies without major complications, because previously the process was far too bureaucratic and extensive. What is the need and importance of this registration? This step of the internationalization of your business is essential, and a requirement made by the brazilian Federal Revenue Service for legal entity and individual regardless of whether the process is an export or import, to be operated and registered in Siscomex. According to comexblog, the Radar aims to unify information from all parties involved in foreign trade, whether importers or exporters, in order to monitor the behavior and limits of action. In other words, it is a form of prior control to prevent the practice of defrauding the tax authorities through smuggling or embezzlement. There are 4 modalities: 1. Radar Expresso: restricted to corporations constituted in the form of a publicly traded company, with shares traded on the stock exchange or over-the-counter market, and its wholly-owned subsidiaries and public company or mixed economy company. Unlimited exports and imports. 2. Radar Limited 50 thousand dollars/Semester: financial capacity of the corporation to perform import operations is estimated at equal or less than U$50,000.00 (fifty thousand U.S. dollars). Exporting is still unlimited. 3. Radar Limited 150 thousand dollars/Semester: financial capacity of the corporation to perform import operations is estimated at equal or less than U$150,000.00 (one hundred and fifty thousand U.S. dollars) 4. Radar Ilimitado: estimated financial capacity to perform import operations, in each consecutive 6-month period is greater than US$ 150,000.00 (one hundred and fifty thousand U.S. dollars) and will not be subject to operation limits, whether for import or export. For the registration in the limited and unlimited modalities, the system performs an analysis of the company according to the information registered with the Brazilian Federal Revenue Service. What you need to do to register? Learn more about the Digital Certificate (corporate entity) - learn more and go to the Portal Único, then Enable Company, Register of Interveners, Enable, and finally Request Enable. According to the Brazilian Federal Revenue's website, "only the declarant of goods that: has adhered to the Electronic Tax Domicile (DTE); has a CNPJ enrollment status equal to "active"; has an enrollment with the Individual Taxpayer Registry (CPF) of all individuals who are members of the QSA with qualification under the terms of Annex V of the Normative Instruction RFB No. 1863/20188, in a registration status equal to "regular" or "pending regularization"; has an e-CPF digital certificate (link on how to obtain the digital certificate: Como Obter — Português (Brasil) (www.gov.br)) has the operational, economic and financial capacity necessary to achieve its purpose and performance in foreign trade; is not disqualified due to the hypothesis foreseen in the fiscal procedure of ex-officio review; is not disabled due to suspension, cancellation or revocation of its qualification to operate in foreign trade." It is worth mentioning that Líderi helps you throughout this entire procedure, answering your main questions at the time of registration. Contact us and ask for a proposal! We also perform all the survey of documents, fees and requirements necessary for your product or service to be internationalized. By Letícia Nunes Source: FazComex Blog https://comexblog.com.br/despacho-aduaneiro/radar-siscomex-sem-burocracia/ Site do Governo, Receita Federal. https://www.gov.br/receitafederal/pt-br/assuntos/aduana-e-comercio-exterior/manuais/habilitacao