General Characteristics of Trade Practices
Brazilian importers generally conduct in-depth research on suppliers throughout the global market. Therefore, exporters should have a firm grasp of the competitive advantages of their products and clearly lay these out for potential clients.
After swapping detailed technical and business information on proposed transactions, importers will request issuance of a Pro Forma Invoice. While this does not indicate a formal product order, the invoice is required to meet internal company procedures to finalize transactions.
There are three critical steps in the preliminary negotiations between parties: unit price, delivery schedule, and payment form.
Determining unit price requires setting out the pertinent sales conditions, referred to by the abbreviation Incoterms currently applied in international commercial transactions.
The delivery schedule in Brazil is contingent not only on the means of transportation employed, but on the time required by Brazilian customs to nationalize the respective products.
The payment form should be determined in accordance with the existing modalities.
Use of Product Catalogues and Samples
Exporters are urged to present comprehensive productive catalogues, including in electronic format and over the Internet. In addition, in many cases providing product samples is equally important and can be carried out by the exporter’s representative in Brazil (as applicable) or directly by the exporter’s main office.
Pursuant to Brazilian law, while product samples are classified as imports they are subject to simplified customs procedures and exempt from import duties or other obligations applied to regular imports.