Exporting old electronics to Brazil

Exchange of messages with a reader, published with his approval. 

Dear Adler,

I came across your blog and it is so informative but I still have something to ask you as I cannot find the info.

I want to find out what is involved with shipping broken and/or used electronics from the US (old iPhones, android phones, electronic musical instruments, etc.). 

Our plan is having them fixed/refurbished in Brazil and then wholesaling those to retailers and/or selling them directly via the retail market. 

I am also interested in finding out what the tax rates are for this and also how long it takes things to go through customs.

Best regards,

Reader

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Dear Reader,

Thanks for reading the blog.

Your plan is very hard to do, because importation of used good and/or trash is mostly prohibited in Brazil. You might try to import the equipment as parts, but they would have to be disassembled. 

Paraguay has less strict regulations. You might try to executed the plan there and sell to Brazil.

Please let me know if you would like further information about it.

May I post your questions in the blog, without mentioning your name?

Regards,

Adler 

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Dear Adler,

Thanks for quick response.  You may publish the questions in your blog.

I have few more questions and hope you can help me out:

If we need to establish this business in Paraguay, will you be helping us or do you have some one that can help us establishing the company, and other things?

Do you have any idea on total taxing rates? US to Paraguay and then to Brazil particularly for refurbished consumer electronic goods?

And also I am interested on knowing what will be the process involved in importing new consumer electronics into Brazil from US like restrictions, reporting requirements, licenses, taxes, tariffs, etc and how long it takes things to go through customs

Reader

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Dear Reader, 

I know some excellent law firms in Paraguay. They will be able to help you with taxes there.

Import taxes in Brazil are calculated based on the HS codes for the goods. They are usually very high, about 80% of the CIF value.  

Please see the specific post about it in this blog: http://brazilianlawblog.blogspot.com.br/2012/11/brazilian-import-costs.html

There is another good post about import procedures: http://brazilianlawblog.blogspot.com.br/2013/07/indirect-importation-import-by-order.html

I will also introduce you to some good customs brokers.

Let`s keep in touch.

Adler

Federal Program of Partnership in Investments

The new president has sponsored a Law that creates the Program of Partnership in Investments.



From what I see, it is no more than a reorganization of the process for granting subsidized loans and organizing public bidding for infrastructure.



However simple it may seem under a legal perspective, it is undoubtedly a clear sign for investors. The new government what things to move on, and the GDP to turn upwards.



The link for the text is here:    L13334:



'via Blog this'

8 biggest mistakes that Chinese companies make when doing business in Brazil

I just came across this presentation. I`m probably helping my competition by sharing it, but I must say it is very informative.



I haven`t checked the details and I`m not endorsing the tax calculation. But the overall content is very true.



8 biggest mistakes that Chinese companies commit doing business with …:



'via Blog this'

No more stamps - Consulates in the US already using the Apostille convention

An interesting exchange with a client:

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Hello Adler:

I am in the process of gathering the documents for CNPJ for my company.  I pretty much have them all in my hands now.  Question for you - I just went to the website of Brazilian Consultate in Washington DChttp://cgwashington.itamaraty.gov.br/en-us/general_information_from_august_14th_2016.xml and it states that it will NO LONGER legalize ANY DOCUMENTS issued in the US.  Instead, US documents must be accompanied by Apostille.  Please advise on what to do as I can no longer "legalize" the documents in the US.  Here is an abstract from the Brazilian Consultate website:

LEGALIZATION OF AMERICAN DOCUMENTS - FROM AUGUST 14TH 2016

American documents of all types (e.g. school, public and private) will NO LONGER need consular legalization. Documents will simply need to be accompanied by an “apostille” issued by the Secretary of State of the state where the document was issued.

From August 14th 2016 the Consulate General of Brazil will no longer legalize any documents issued in the United States, as the Convention Abolishing the requirement of Legalization for Foreign Public Documents (“Apostille Convention”) will be valid in Brazil from that date.

Consular legalization will no longer be required, since it will be replaced by the ‘Hague Apostille’. Such Apostille may be found in all US states at the Secretary of State’s office, or at any US Authority’s office listed on the Hague Conference on Private International Law webpage .

In reciprocity, Brazilian documents will no longer be required to be legalized at the Ministry of Foreign Affairs (Ministério das Relações Exteriores) in order to be valid in the United States. Some Notary Offices (Cartórios) in Brazil will be allowed to issue Hague Apostilles on behalf of the Brazilian State, in order to verify document authenticity. Further details on the regulation of the employment of the Apostille Convention in Brazil can be found in Decision 228/2016 of the National Justice Council (Conselho Nacional de Justiça – CNJ).

NOTE:  In accordance with CNJ Decision, foreign documents legalized before August 14th 2016 by Embassies and Consular Offices in Hague Party Countries will only be accepted in Brazil until February 14th 2017.

For information on the validity of the Apostille Convention by Brazil, please contact the CNJ Ombudsman Office (Ouvidoria):

Webpage: http://www.cnj.jus.br/ouvidoria-page

Phone : +55 (61) 2326-4607 / 2326-4608

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MY ANSWER

Dear Client, 

Thanks for sending this. 

Their information is right. Brazil did ratify the convention. But adoption by local public agencies in Brazil and even by some embassies abroad is being slow and irregular. 

If the US embassies are already fully able to adopt the Apostille, we have no choice but to use it and to explain to the Brazilian agencies in Brazil that this is how documents from the US must be accepted, from now on. 

May I post your message to my blog, without mentioning your name? It would make a perfect example for future readers. 

Thanks, 

Adler

Practical guide - incorporating in Brazil

This guide has been compiled by the Chilean firm Harris Gomez, with whom I work often, usually advising international investments involving Australia, Chile and Brazil.

They have based it on several reports drafted by me over the last couple years.  The final result is excellent.