Procurement, sourcing and import from Brazil

Purchasing products or services seems easy, but this is not always the case. How do you know that you have the best deal, especially if you haven’t done much business before in Brazil?

It already helps if you have a structured approach for your procurement and to keep your options open. Working with a local consultant or agency may help to identify more potential suppliers and to get the products that you just bought accross the border to their destination.

Find the right suppliers in Brazil

Brazil, located in South America, exports a diverse array of products that showcase its natural resources and industrial capabilities. The country is renowned for exporting agricultural products such as soybeans, sugar, coffee, and beef, which are major contributors to its economy. Brazil also exports minerals like iron ore and precious metals, leveraging its rich reserves in these resources.

Brazil allows contracts to be in any language, as long as both parties can understand them and certain rules are followed. The pace of every negotiation depends on the place or city where it is held.

Wages in Brazil vary by region and industry. Generally, wages are lower compared to many developed countries, reflecting economic differences. The cost of living in major cities like São Paulo and Rio de Janeiro can vary widely, influencing disposable income levels.

Brazil is known for its industrial sector, particularly in automotive manufacturing and aircraft production. It also has a strong presence in the energy sector, with significant exports of oil and ethanol. Additionally, Brazil has a vibrant forestry sector, exporting wood products like pulp and paper.

Shipping your products

If you purchase tangible products, you have to ship them out of the country. Depending on the country where you want these goods, this may have implications.

First of all you may have to pay import duties or settle VAT. There are certain thresholds for both of these charges, e.g. while importing in the EU you don’t have to pay import duties on any shipment worth less than € 150.

There may also be non-financial barriers, like certifications or approvals to be obtained. Especially for food, cosmetics or medicine this may be the case. Check this in advance, even before you invest in your marketing.

VAlidate the HS-codes you use for shipping

Almost every country or trade block in the world has its own detailing on the international HS-code list. With our report you strongly reduce the risk on misclassifications, delays and higher custom duties than expected.

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A structured sourcing approach in Brazil

Step 1

Supplier search

Try to identify in total 6 to 10 possible suppliers and check their websites. Approach them with a general request to see whether they have the products or services you need.

Step 2

Supplier selection

Submit your requirements to a group of three to five selected suppliers and ensure you get the right comparable quotations to make a choice. Negotiate with one or two of them to get the best result.

Step 3

Supplier management

Now start collaborating, making sure you have an efficient ordering process and limited risks where it comes to quality control and shipping the products.