IMPORT ACTIVITIES GUIDE

1 - Verify if what should be imported is classified on the list of imports allowed by the DECEX (Foreign Trade Department, which is subordinated to the Secretariat of Foreign Trade - SECEX);

2 - Find and contact your potential external suppliers (always in writing!), explaining them in a concise and precise manner who you are and what you are looking for (this supplier might be a manufacturer, an exporting agent or a trading company);

3 - Request samples with no commercial value, if necessary, to analyze and test them for their suitability to your specific needs;

4 - If you have not done it so far, register your Company in the REI (Exporters and Importers Registry) from SECEX/MDIC and in the SISCOMEX - Integrated Foreign Trade System (micro-companies are not allowed to export);

5 - Request a price quotation from the chosen supplier, in writing, already specifying as many details as possible that you would like to see fulfilled in the business transaction (pay special attention to the terms of payment and to the types of sale, as defined in the INCOTERMS);

6 - Analyze carefully the answer you receive from the Exporter (in form of a fax or e-mail containing the prices or, preferably, a Proforma Invoice);

7 - Prepare pre-cost spreadsheets for the import process, forecasting as many incurred expenses as possible. (Note that the mode of transportation used makes a significant difference. Therefore, have at least one pre-calculation for air and sea transportation on hand);

8 - Adjust all observed discrepancies and negotiate them with the Exporter;

9 - Once both sides come to a full agreement, send a Purchase Order to the Exporter;

10 - Issue an appropriate Import License (IL), via SISCOMEX, if the NCM (Mercosouth Common Nomenclature) tariff code for the merchandise so requires;

11 - Get the temporary insurance declaration for international transport from a Brazilian insurer (it is not mandatory, but advisable to purchase this insurance);

12 - Contact a bank or other financial institution that is used to foreign trade operations to negotiate the transfer of funds owed due to the international business transaction. (If the payment conditions so require, take the appropriate measures to open a Letter of Credit). Note that advanced cash payments have to be made at least two days prior to the D.I. registry, presenting the following documents to the Banco Central (Brazilian Central Bank): invoice or proforma invoice and the Bill of Lading (note: photocopies of documents are accepted);

13 - Authorize the Exporter, in writing, to ship the negotiated merchandise under the corrected conditions and through the agreed upon mode of transportation;

14 - Make sure that the Exporter communicates you all the details of the international transit (place of origin and destination, contracted dates, average time of traffic, transhipments, multimodality use, etc.);

15 - Follow-up the international transit and merchandise arrival at the contracted destination;

16 - As agreed upon between importer and exporter, retrieve the originals of the documents used as instruments of the importation (packing list, invoice, Bill of Lading, remitted certificates, etc.) from the advising bank or forwarding agent;

17 - Proceed with the definitive insurance declaration for international transport;

18 - Pay the taxes for the infrastructure used at the merchandise’s place of arrival (expenses incurred due to traffic in the port, storage, truckage, handling, etc.), the international freight (if it is paid collect) and related taxes;

19 - Release the merchandise, providing the appropriate clearance through the different Customs offices and other inspection and control agencies. (Initialize the importation registry at SISCOMEX and finalize it with the issuance of the CI – Import Receipt. You will also need the original Bill of Lading, that is released upon the payment of the original invoice, proof of payment of incident taxes, including the ICMS, and other certificates that allow for fiscal benefits or that attest the quality/weight/quantity/analysis);

20 - Make payment at the bank where you negotiated your exchange operation, settling your Exchange Contract;    

21 - Confirm that the Exporter received the payment;

22 - File all documents used in the import process (and the studies that lead to it) for, at least, five years;

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