Dropshipping models in Brazil

A reader has written me, asking if his dropshipping operation in the US would be able to serve Brazilian costumers.

The products would be paid for by credit card, and delivered to Brazil through Fedex.

I have actually given a lecture about this topic in London, during the Ecommerce Expo, a few years ago.

Here is my short reply to this complicated topic:

This project will face a lot of trouble. The most difficult one is that, in theory, Brazilians cannot import products through mail or Fedex without paying taxes. 

Because of that, all such packages are inspected by the Brazilian customs,  usually at Viracopos airport.  This process is unpredictable and may take 30 to 180 days. 

On top of that, total taxation over the goods may reach 100% of the value, and sometimes more (the goods may be evaluated as having a higher value than what is stated in the invoice). This tax is either paid upfront by Fedex and then charged from the final customer at the time of delivery, or must be paid by the final customer before the goods reach his hands. 

This is always a stressful process. 

A more reliable way to work would be to send the goods to a Brazilian importing company (trading company), who would import them through the more formal channels and deliver them in Brazil. 

I do this kind of corporate structuring often. Let`s discuss this in more detail.