Brazil Top import and export commodities.
Brazil, the vibrant home of colorful soccer, exotic locales, and gorgeous people, spans 16,145 square kilometers of lush woods, rolling plains, and breathtaking beaches. It is by far South America’s largest country.
It is bordered by practically all other South American countries, giving it a distinct Latin flavor. The country is divided into 26 states and one federal district.
Brazilians are descended from a diverse range of African and European groups, including the Portuguese, Spaniards, Italians, and Germans.
Despite the economic decline and rising crime rates, Brazil’s reputation as a desirable tourism destination and manufacturing hub remains untouched. Its trading industry, on the other hand, is severely restricted to the EU and demands development.
If you are new to Big Man Business Youtube Channel, please subscribe and turn on the notification bell for more business expert videos. Also, visit our website www.bigmanbusiness.com for more International Business news and updates.
What is Brazil’s Business Index
The Business Index is calculated out of 189 countries of which Brazil stands 120th in ‘ease of doing business.
Business opportunities in Brazil:
Brazil figures in the top 10 global markets as a leader in the areas of:
Iron and Steel, Cement, Television sets manufacturing, Refrigerators, Oil and petrochemical production.
The country is almost entirely self sufficient in oil and electricity with a 260,000 megawatt producing hydroelectric program. By the year 2020, Brazil aims to build 19 nuclear plants.
Brazil’s Top Export Commodities:
These include Transport Equipment, Iron Ore, Soy Beans, Footwear, Coffee, and Automobiles.
The country’s Top Trade Partners are: China with 16 percent of trade, Unites States with 15.4 percent of trade with the country, Argentina with 6.2 percent, Germany with 6 percent, and Nigeria with 4.2 percent of trade respectively.
The Brazilian Sporting Industry:
The Brazilians love their sports and everything about it . Stadium matches, retail and merchandising, and of course, playing host to world class sporting events such as The World Cup 2014. Sport is not only a passion in Brazil; it’s a progressing industry with an annual growth rate of 7.4 percent.
The Federative Republic of Brazil political framework is classified as a Federal Presidential Representative Democratic Republic system. Within this particular system, the President acts as Head of State and Leader of the Government. All the states of Brazil operate as autonomous sub national regions, with their own state level governments.Voting in Brazil is a right and a duty so all citizens between the ages of 18 and 70 are expected to register and vote. The first round of elections is held on the first Sunday in October while the last Sunday of October is kept for the runoff second round, if necessary.
Though Brazil is known for its premium sporting events in which it invests heavily, basic offerings such as infrastructure, public services are lacking, Issues related to local gangs, rising crime rates, and slow economic growth continue to plague the nation. Though the government has worked to improve their customs procedures, their biggest limitation in trade is their high tariff cost, making it tough for imports to enter.
The average Brazilian however, rates his or her life 7 out of 10 according to a recent survey, which is higher than the global average, portraying its typical a vida é boa or Life is good attitude.
Export to Brazil and what Brazil imports:
Business prospects in Brazil can vary quite a bit with the political situation. However, the Brazilian market still holds immense potential as the 8th largest economy in the world.
What to know about Brazilian customers:
Brazil contains 200 million people hailing from a diverse mix of ethnic backgrounds. Amongst this assortment, the wealthiest 10 percent are 38 times richer than the poorest 10 percent. Nearly 90 percent of Brazilians reside and work by the urbanized south east coastline.
Brazil’s rate of urbanization is 1.17 percent annually from 2010 till 2015, resulting in 85.7 percent of its population residing and working in the urban areas, mostly along the south east coastline.
What are Brazil’s most active business centers:
Rio de Janeiro: This is home to numerous corporate headquarters, many benefits due to the allowances as former capital.
São Paulo: Booming industrial and agricultural haven, responsible for approximately 60 percent of the nation’s industrial production.
Belo Horizonte: Rapidly expanding business destination with rich mineral deposits, manufacturing facilities for steel, automobiles, textiles, and agricultural distribution centers.
What kinds of import commodities are in demand in Brazil:
Brazil’s current import value is 241.9 billion dollars. Products being imported into Brazil include Machinery, Electrical, and transport equipment, Chemical products, Oil, Automotive Parts, and Electronics.
Brazil’s favorite import partners: Based on Percentage of total exports,
China imports 16.3 percent, the United States imports 15.4 percent, Argentina imports 6.2 percent, Germany imports 6 percent and Nigeria is responsible for 4.2 percent.
What is Brazil’s Top Shipping Port:
Porto de Santos or Port of Santos is Brazil’s busiest cargo port.
Other Major ports are Porto de Vitória and Porto de Paranaguá .
What are Brazil’s Top Cargo Airports: Brazil’s top cargo airports includes: São Paulo’s Guarulhos International Airport, Viracopos-Campinas International Airport, Eduardo Gomes International Airport, Galeão International Airport at Rio de Janeiro, and the Brasília International Airport
A Quick Look At Brazil’s import regulations:
The import process in Brazil is a complicated one involving strict regulation. This is essential to minimize the entry of illegal substances and products into the country. It is necessary to apply to the Registry of Exporters and Importers for any trade transaction. It is better to register prior to shipment to avoid delays in the process. This can be done online.
An Import Declaration containing the name, address, description, and classification of goods, unit price, total value, and origin is then required.
Brazil’s Import Tariff and Taxes:
This has to do with the customs clearance process during which tariffs and taxes are to be paid. These primarily include:
State Vat that varies according to each state, the average amount being 17 percent.
Federal VAT which is essentially charged on all finished goods being imported
Municipal Service Tax
Gross Receipt Contributions depend on the business activity and revenue gained.
Prohibited import products: These include, Used consumer goods, Beef from cattle injected with growth hormones, Colour prints for the theatre and television industry, Products harmful to the environment, national security, and personal health or sanity
Brazil’s Top 10 Exports:
The following export product groups categorize the highest dollar value in Brazilian global shipments during 2020. Also shown is the percentage share each export category represents in terms of overall exports from Brazil.
Oil seeds exports are valued at 29 billion dollars which accounts for 13.8 percent of total exports from the country.
Ores, slag, ash which is valued at 28.9 billion dollars accounts for 13.8 percent
Mineral fuels including oil valued at 24.7 billion accounts for 11.8 percent
Meat valued at 15.8 billion dollars accounts for 7.5 percent
Sugar, sugar confectionery valued at 8.9 billion dollars accounts for 4.2 percent
Iron, steel accounts for 8.7 billion dollars which is 4.1 percent of Brazil’s total exportation.
Machinery including computers valued at 8.7 billion accounts for 4.1 percent
Vehicles valued at 6.8 billion dollars accounts for 3.2 percent
Cereals valued at 6.5 billion dollars accounts for 3.1 percent
Food industry waste, animal fodder valued at 6.5 billion accounts for 3.1 percent.
Brazil’s top 10 exports accounted for over two thirds or 68.9 percent of the overall value of its global shipments.
Sugar plus sugar confectionery was the fastest grower among the top 10 export categories, up by 64.9 percent year over year since 2019. In second place for improving export sales was the ores, slag and ash category which rose 14.2 percent led by iron ores and concentrates. Brazil’s shipments of oil seeds posted the third fastest gain in value up by 9.8 percent year over year.
The leading decliner among Brazil’s top 10 export categories was machinery including computers via a minus 30.3 percent drop.