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HOW TO EXPORT TO BRAZIL

HOW TO EXPORT TO BRAZIL
21 de Fevereiro de 2019   |   Market

General recommendations to exporters


Dealing with Brazilian clients is not a complicated task. While meetings are
formal business events, in Brazil they tend to happen in a pleasant and relaxed atmosphere. However, the country’s business and cultural customs must be respected, so
as to avoid certain behaviors that may cause surprise or even embarrassment.


Business and cultural practices


Business meetings must be arranged in advance, so that clients can work
them into their schedules. In Brazil, business meetings are normally held in offices. A
client will hardly ever schedule a meeting in a hotel or their residence, as sometimes
happens in other countries.
Upon arriving in Brazil, reconfirming the date or time of a meeting is not
usually required. In a Brazilian company, a secretary will normally keep track of appointments and will inform all participants in a meeting about possible changes.
Punctuality is an issue, as the visitor needs to take into account the sometimes difficult traffic conditions in the large Brazilian cities.
Brazilian importers will appreciate receiving all the technical and commercial information on product and price, including the customs classification, as this
data will enable them to design an import spreadsheet containing items such as taxes,
fees, warehousing needs, and port expenses, so as to quickly arrive at a final decision
on the purchase. Therefore, exporters will be at an advantage if they have all the product information readily available.
However, clients should not be pressured in the hope of achieving a prompt
decision, as parallel routine consultations on potential customs procedures may delay
the decision-making process. What may happen in a meeting is that the exporter will
be requested to send the Pro Forma Invoice. Therefore, exporters must not forget to
have the company’s letterhead stationery with them or available on their notebook.
It is important to note that once the deal is officially closed, the price and the
payment terms must not be changed.
The schedule for shipment in the country of origin is another essential piece
of information, as it relates to the means of transportation, and the duration of the
journey is an important factor in the client’s plans to sell or use the product in the
internal market.

Extreme care must be given to the quantities offered. When dealing with
products for human consumption, for instance, the orders can be large given the size
of the Brazilian consumer market. Thus, it is important to make clear to the client if
the order can be met within the schedule and amounts requested.
Be prepared to take part in the meeting in an objective and direct manner,
and be clear and firm when dealing with prices, schedules and forms of payment.
Expect the secretary to interrupt the meeting or the client’s cell phone to ring on
occasion.
Usually the Brazilian entrepreneurs deal alone with one or two people who
are acquainted with subject within the company.
As far as possible, an effort must be made to provide catalogues and websites
in several languages, including Portuguese, so that technical information will not
have to be translated or explained during the meeting.
Moreover, no questions should be left without an answer, as this will delay
the client’s decision. The lack of data or information may also make the client uneasy
about closing the deal.
Warranties, after-sales service, replacements and servicing or any other after
sales commitments that may be required must be clearly explained, especially with
regards to finances.
For small or medium sales, it is not usual to sign commercial contracts, as the
Pro Forma Invoice meets that purpose. However, if the transaction involves goods
and sums which the exporter deems to merit greater formality, a contract may be
proposed, which will include all the procedures to be honored by the parties. This
contract can be registered with a Registry, and the court for the settlement of any
dispute is mutually agreed, and it can be either in Brazil or in the exporting country.
The contract must be written in both languages.
Some importers will usually discuss the key points in the contract during the
meeting and will submit the final text for approval by e-mail.
When the client is perceived as not being interested in the deal, the meeting
should be brought to an end, as Brazilian business people are rarely direct in the sense
of clearly stating they have no interest in the product. They will normally let negotiations stretch to a point of natural exhaustion, until the exporter realizes there is really
no possibility of making a deal.
With regard to cultural aspects in Brazil, the foreign exporter is advised to
take certain precautions. There is no behavior handbook or manual on how to deal
with Brazilian clients. It must be taken into account that they are of Latin origin, like
most of their South American neighbors, but have certain peculiarities. The widely-held idea that Brazilians are not punctual does not apply to the business environment, as Brazilian business people are punctual and will often use a cell phone to let
others know they will be late for a meeting due to some unforeseen event.
As for the dress code, formality is advised, and men should wear suit and tie
while sober clothing is recommended for women.
Another striking cultural aspect in the business world is the objectivity in
dealing with the agenda in a meeting. However, it is expected that before the meeting
starts, some light conversation will take place, usually involving news in the media
or even some teasing about the soccer team of those present. To Brazilians, these are
ways of “breaking the ice”. So, the visitor may be expected to make some comments
on their country or related event, but this should be brief and, if possible, the topic
should be approached in a light-hearted manner.
Never make comments about politics, the economic situation or, for that
matter, issues related to Brazilian foreign trade that you may not agree with, as this
may lead to inconvenient comparisons.
In the ice-breaking stage, the traditional cup of coffee is almost certainly offered together with water, which may be still or sparkling. Although served in a small
cup, the coffee is strong, differently from other Latin American countries, and may
be sweetened with sugar or sweetener. This whole ritual will take place in a cordial
atmosphere, while those present usually drink the coffee and then the water. At this
point, the exporter may seize the opportunity to hand out business cards and small
company gifts they may have brought along, such as key rings or pens.
You will also receive the client’s business card. Make sure you register the
name of your interlocutor and then start talking about your company and product.
It could be said that this is the meeting’s starting point. Your presentations should
be objective, brief and clear, and if a technical presentation is required do not be
patronizing, as it is assumed the client will also be knowledgeable about the product
they wish to purchase. Brazilians have christened this moment as “selling the fish”
(selling yourself). Thus, few questions will be made during your presentation, but in
the ensuing stage many will be raised related to all aspects of your product, including
prices.
At this time, do not be discomposed if someone enters the room or the cell
phone rings, as it is habitual for some of the present to leave the room for a while in
order to answer the phone. Make sure you resume your presentation as naturally as
possible.
Do not forget that you are the visitor. Therefore, pay close attention to the
client’s cues and when they hint that the meeting is over. In these occasions, all present normally stand up and if the mood is appropriate, further light conversation with
some humorous comments will ensue. Depending on the business mood established,
an invitation to lunch or even a business dinner to pursue negotiations is possible.
These initiatives should therefore not be treated as mere social events.
In such cases, the client will normally make some comments on the Brazilian
national cocktail, the caipirinha, but this does not necessarily mean you are being
invited to taste it. Participants will often just drink water or a soft drink. Avoid typical
dishes, especially feijoada, which Brazilians love but may cause serious stomach discomfort to a foreigner as it contains fatty ingredients.
Often, the topic of conversation will move from business to social matters,
such as soccer, carnival or Brazil’s natural wonders, but this is only a strategic pause
and business talk will soon be resumed.
The visitor will hardly ever be invited to visit the client’s family, unlike other
countries. However, if the business topic has been exhausted, Brazilians like to pursue
conversation on personal matters, informally and discretely.
When it is time to pay the bill, take the initiative to call the waiter and hand
him your credit card, even if the client insists on paying the bill, as your attitude will
be welcomed not because of your financial status, but your courtesy.
As you leave, the client may wish to take you to your hotel. Kindly accept it,
as Brazilians like to make sure you will arrive safely.
If, for any reason, you have to spend the weekend in the city, do not expect
to be invited to the client’s home. Yet, if this happens, make the visit strictly social
and avoid talking about your business with the client in front of their spouse and
children. If you accompany the couple to the theater, cinema or a concert, you will be
asked about your preferences, but politely suggest that the client’s wife should decide.
With respect to colors worn in Brazil, there are no cultural or religious taboos.



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