‍‍‍‍‍‍‍‍‍‍‍‍With a population of 212 million and over 149 million internet users, Brazil is certainly a promising market for cross-border sellers. However, its complex and rigorous logistics and customs clearance processes have made many sellers hesitant to enter the market.

1、The process is complicated and inefficient, with numerous strict policies, and Brazil's customs clearance faces multiple challenges.

It is not an exaggeration to say that more than 80% of the difficulties encountered by Chinese sellers in the Brazilian market are related to logistics and customs clearance. Brazil has always been a country with heavy taxes, and customs controls are becoming increasingly strict. For example, in order to combat corruption, customs personnel in various regions implement a rotation system. Once problematic goods are found, they need to wait for customs personnel from other places to come and inspect the goods. It is possible that after the inspection is completed, the customs personnel will return to their original work location and wait until the next rotation to sign and release the goods. Sellers have no choice but to wait. In addition to the strict customs operations during clearance, the entire clearance process in Brazil is actually quite complicated. For example, in the import delivery process of bulk goods through Brazilian customs, after the importer inputs the goods declaration form into the Brazilian customs system (SISCOMEX), the customs will automatically submit the declaration documents. The customs will allocate different clearance channels for classification inspection based on factors such as the importer's tax payment, trade behavior, nature, quantity and price of imported goods, taxation situation, origin and export location of goods, importer's operational capacity, and economic strength. This is to determine whether the goods can be directly released or need to be inspected. If the goods are inspected, the party concerned should be present. If the goods are sampled for inspection, the cost will be borne by the party concerned. If the goods are inspected again, all documents related to the cargo and whether the goods comply with regulations must be rechecked, and the clearance time will be relatively longer. If the declared information of the goods does not match the actual goods, such as the importer's name, invoice number, quantity of goods, brand, serial number, model, unit price (in US dollars), total price of goods, customs code (HS), gross weight and net weight, and total freight, the goods may be seized or fined during clearance.

2、Reducing profits, complying with regulations and declarations, and legitimate exports may be the only way out for sellers.

If a seller's goods are detained by Brazilian customs, it may be due to reasons related to the above documents, whether the goods infringe on intellectual property rights, whether they comply with Brazil's relevant import qualifications, whether the declared value is reasonable, or whether there are prohibited items from other sellers in the same batch of containers. Whether the goods can be cleared by reapplying for and paying the relevant qualifications and fees or whether they will be seized and confiscated depends on the specific problem. It is reported that Chinese sellers selling products in the Brazilian market are mostly targeting audiences with lower consumption levels. Therefore, the average unit price of the products is usually relatively low. If the seller complies with regulations and declares the goods legitimately, it will inevitably reduce the seller's profit margin. On the other hand, in the current strict customs clearance environment, if the seller does not comply with regulations and declare the goods legitimately, they will face even greater business risks.

1、Reasonable declaration

Using undervaluation as an example, if a seller's goods are classified by Brazilian customs as undervalued, not only will they face high fines, but they will also be suspended for several weeks for further customs clearance evaluation. It should be noted that the value re-evaluated by Brazilian customs is usually higher than the original price paid by the recipient.

If the goods are detained by customs and the customer does not come forward to handle it, they will also have to pay container detention fees if it exceeds the deadline, starting at around $120 per day and gradually increasing. This cost is quite daunting, and if the time period is reached where the rental cost of the destination port's warehouse has exceeded the value of the goods, the recipient may abandon the goods. In fact, even under the seller's formal customs declaration, the profit margin will be significantly reduced compared to before, but it is still profitable. It's just that everyone is used to the high-profit sales model in the Brazilian market, or they are not used to paying taxes. However, if the seller wants to go further in the Brazilian market, this mindset must be changed.

2、Complies with Brazilian import certification regulations.

Brazil has certification requirements for many categories of imported goods, such as INMETRO for home appliances and automotive bicycle parts, ANVISA for maternal and child toys and beauty products, and ANATEL for WIFI transmission products. Currently, the vast majority of Chinese sellers cannot provide the relevant certifications. On the one hand, this is because the Brazilian cross-border market is still in its early stages, and the current profits and sales volume cannot support the cost of certifying multiple models. On the other hand, Brazilian certifications require local companies or institutions to apply, and there are very few intermediaries or agencies in China that can assist with this process. There are various problems such as long sample delivery time and unprofessional logistics providers. With the continuous development of the Brazilian cross-border e-commerce industry, this problem is expected to gradually improve. It is recommended that sellers with certain strengths contact high-quality logistics providers to assist in obtaining relevant certifications as early as possible. Whoever complies with regulations early will have priority in occupying market share in the relevant categories.

3、Import header compliance and legality.

In addition to compliant declaration and legal certification, due to the complexity of the Brazilian customs procedures and policies, it is still necessary for sellers to find reliable and advantageous logistics providers to reduce unnecessary troubles during customs clearance operations. The most important part of customs clearance is the importer on the bill of lading, which is the importing company that needs to pay taxes on time and comply with regulations, and its past inspection records with Brazilian customs will affect the chances of getting a green light and the speed of release after the container arrives at the port. Currently, most logistics providers on the market use freight forwarding agency clearance models, and the importer used by the agent is unclear in terms of compliance. The Federal Revenue Service will inspect the tax issues of import companies every cycle, and once a problem is found, all containers imported under this importer in the past three years will be affected. Around 2021, a logistics provider in Shanghai caused a large number of containers to be seized due to this issue.

Of course, the Brazilian customs is a legitimate government agency under the management of the Federal Revenue Service, and generally follows standard operating procedures. In recent years, it has become increasingly formalized through reforms. Regardless of the situation encountered, it is clear that choosing a reliable logistics and customs clearance service provider who has a thorough understanding of local laws and regulations is particularly important.

Brappon Cross-Border Logistics（Shenzhen) Co.,ltd is a company that specializes in providing end-to-end logistics solutions and overseas value-added services for Chinese cross-border e-commerce enterprises in China and Brazil. The founder has been dedicated to Latin American logistics since 2008, and has import companies in several cities in Brazil to meet the traditional customs clearance and delivery needs of local Chinese. In 2019, seeing the prospects of the Brazilian cross-border e-commerce industry, BangBang began to lay out overseas warehouses and last-mile delivery services. To better serve cross-border e-commerce customers, BangBang established a Brazilian branch in Sao Paulo with a 5,000-square-meter overseas warehouse, and uses advanced logistics management systems to provide real-time and efficient solutions for customers during the customs clearance process. It also provides one-stop logistics solutions for all e-commerce platform sellers from China to Brazil.‍‍‍‍‍‍‍‍‍‍‍‍