Brazil Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in brazil, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Selling Factors and Techniques
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Price and payment terms are extremely important sales factors.  Generally, U.S. goods are trusted for their high quality; however, goods produced locally or in China are often less expensive. To be competitive, U.S. companies should adapt their products to local technical requirements and culture. Foreign products must have identification, labeling, instructions, and software translated to Portuguese. In some sectors, competing with an increasing number of Chinese imports can be difficult because of their low prices. As such, emphasizing product quality, customer service, after-sale service, financing arrangements, and warranty terms are key for U.S. companies to succeed in the market.  

For some industries, partnering with local companies for assembling parts or ingredients in Brazil could reduce costs and make U.S. goods more competitive. U.S. firms often can find more opportunities in niche markets with innovative solutions rather than competing with well established brands meeting more generic demands. As Brazilian companies become more concerned with environmental stewardship, it is advisable to demonstrate commitment to sustainable development practices when introducing new products into Brazil.   

Brazil “Ex-tariff” system 

The Brazilian government can provide some tax exemptions for strategic products that have no similar manufacturing in the country. Brazil has an “Ex-tariff” system that allows importers to apply for import tax exemption. This system facilitates imports of some specific products, as Brazilian import taxes and fees are on average very high. 

Under this system, the import duty (II) which is usually 8 to 18% is reduced to zero. Until mid-2017 the minimum rate was 2%, but is now zero. This normally results in a saving of 15 to 20% of the total importation costs, because the many other local taxes and fees are calculated based on the price “CIF plus import tax” on a “cascade” basis. 

The necessary conditions to apply for the “Ex-tariff” system are: 

  • the product cannot compete with a Brazilian-made similar product; 

  • the product must be new (unused); 

  • the system applies only to capital goods and ICT products; 

  • the application must be made by a Brazilian company, or a foreign company that is duly established in Brazil; 

  • all technical material and information brochures must be translated into Portuguese. 

The interested companies may apply for this procedure at the Brazilian Ministry of Industry, Foreign Trade and Services (MDIC) and the whole procedure takes normally 4 to 6 months. The application must specify the product or equipment in minute details, such as capacity, size, power, materials used, models, use purpose, feed rate, output rate, range of works, speed, etc; along with corresponding tariff code. If the product is to be imported with any accessories, all of them must be mentioned in the Ex-tariff application. The Government of Brazil will then make the determination if there is an equivalent product produced in Brazil.  

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