Porto de Paranaguá registra recorde diário nos embarques

O Porto de Paranaguá, no estado do Paraná, é um dos maiores e mais movimentados, daí sua extrema importância para o escoamento de produtos da região sul do país. No dia 12 deste mês de abril, o terminal registrou o maior volume de embarque diário do ano. Ao todo, 117.798 toneladas de soja foram carregadas, número bastante expressivo e que tende a aumentar com a boa safra. Levando em consideração o total do primeiro semestre, pelos corredores de exportação Leste e Oeste do Porto de Paranaguá, foram carregadas 5.999.490 toneladas de granéis, 7% a mais que em 2022.

Cabotagem estimula logística na região norte do Brasil

A Cabotagem é o transporte realizado entre portos de um mesmo país. Por possuir uma extensa costa e muitas cidades importantes localizadas próximas ao mar, esse tipo de transporte se torna uma opção atraente para muitos setores, como o agrícola, o industrial e o de comércio.

Além de ser uma opção mais econômica e sustentável em relação ao transporte rodoviário, a cabotagem é uma alternativa significativa para reduzir o congestionamento nas estradas e melhorar a segurança no transporte de cargas.

Na última década esse tipo de transporte cresceu aproximadamente 8% ao ano, sendo que a região Norte do país tem sido bem explorada nesse sentido. A cidade de Manaus, que abriga a importantíssima Zona Franca de Manas, vem sendo beneficiada pelo aumento da cabotagem que, apesar de ainda enfrentar diversos desafios, tornou-se uma ótima alternativa para as empresas locais.

Brasil atinge novo recorde nas exportações do agronegócio

Durante o primeiro trimestre deste ano, as exportações brasileiras do agronegócio atingiram um recorde de US$ 36 bilhões, o que representa uma alta de 6,7% em relação a 2022. A soja foi o principal destaque em relação ao sucesso na nova safra que teve início em março. Já no mês de março, a receita obtida com as exportações do agronegócio bateu recorde para o período, pois totalizou US$16 bilhões

A soja, as carnes de frango e o açúcar foram os principais destaques com relação a embarques para exportação, e a China foi o principal destino desses produtos.

Continue acompanhando-nos e fique por dentro das principais atualizações!

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In this article, we promise to explore everything you need to know about the export of Brazilian cocoa, from production to the arrival at its final destination. You’ll learn about the two most commonly used varieties of cocoa, as well as about the export certifications and regulations procedures. In addition, we will show you how the cocoa industry has been a major source of income for the Brazilian economy.

Cocoa export has been a significant source of income for the Brazilian economy. In addition, the cocoa industry also generates direct and indirect jobs for thousands of people in the country. However, for cocoa exports to continue growing and remain competitive in the international market, it is substantial that producers and exporters know the details and nuances of the process.

In this article, we will explain everything you need to know about exporting Brazilian cocoa, ranging from the choice of cocoa varieties to the logistics of shipping the beans to their destination.

Cocoa production in Brazil

Cocoa production in Brazil began in the 17th century, when slaves were brought from Africa to work on the farms. Since then, the country has become one of the largest cocoa producers, with an annual harvest of more than 400,000 tons.

Most of the cocoa production in Brazil takes place in the Northeast region, especially in the states of Bahia, Pernambuco and Alagoas, where most of the producers are small farmers. The choice of those territories is due to the hot and humid climate, which is ideal for the cultivation of this product.

Brazilian cocoa’s quality is highly valued due to its unique characteristics, such as its distinct flavor and aroma. In addition, its local production is done in a sustainable way, which has become substantial for international buyers.

The Export Process

After the harvest, the cocoa is sent to the shelling factories where it is transformed into shelled beans, ready to be exported. During the shelling process, the cocoa is cleaned and separated from the husks to ensure its quality and prepare it for the next step: processing.

Brazil is the main exporter of cocoa in the planet, and its main destinations are some countries in Europe, North America and Asia. Before being exported, the cocoa is submitted to rigorous quality controls, including flavor, aroma and color analysis. Such control is carried out to ensure that the product meets international requirements standards and its safety for consumption.

In addition, the cocoa also undergoes government inspections to guarantee every regulatory requirement. Those are key inspections to ensure the goals for quality and safety, as well as to protect the interest of international buyers and Brazil itself.

After passing all the quality checks, the cocoa is packed and shipped to its destination. Cocoa exports are a considerable part of the Brazilian economy and play a key role in generating income and employment. With global demand for cocoa increasing, its export is an important opportunity for Brazil to take advantage of and increase its presence within the international market.

Destinations

Once the cocoa is packed and approved for export, it is sent to its destination, where it will be transformed into a final product, such as chocolate, and so on.

In Europe, France, Germany and Switzerland, are Brazilian cocoa’s main export destinations. The United States are also huge buyers, as well as Asian countries, such as Japan and South Korea.

Benefits of cocoa exports for the Brazilian economy

The cocoa industry has become a significant source of income for the Brazilian economy, providing a positive impact on both employment generation and the country’s economic growth, since Brazil is recognized as one of the largest producers of cocoa in the world.

The global demand for cocoa has increased considerably, thus making its export a great opportunity for the country to strengthen its presence in the international market and contribute even more to its economy. In addition, the cocoa industry is also responsible for providing jobs for a large amount of people, especially in the countryside regions, where most of the cocoa farms are located.

Certifications and regulations for cocoa exports

Before being exported, Brazilian cocoa must pass through a series of inspections and regulations that are usually established by the government and international organizations. They serve to ascertain the quality and safety of the product and also the international buyers’ demands.

Among the most common certifications for cocoa exports, an organic certification, to guarantee a non-agrochemical production and a fair-trade certification, to value ethical practices during the production and marketing process, need to be mentioned. In addition, there are sanitary and phytosanitary regulations that must be followed to ensure the safety of the food and prevent the spread of diseases.

The certifications and approvals of cocoa for export are made by various agencies, such as the Brazilian Agricultural Sanitary Defense Agency, which is responsible for verifying the compliance of agricultural products with the established sanitary and phytosanitary standards, including the export of cocoa. Besides, there is the National Health Surveillance Agency (Anvisa) and the Ministry of Agriculture, Livestock and Supply (MAPA), also responsible for monitoring the quality of agricultural products for export.

Cocoa varieties and their relevance regarding exportation

Along the industry, two main varieties of cocoa are usually considered: Forastero and Criollo. The Forastero is the most widely cultivated variety, known for its high yield and resistance to pests and diseases. Meanwhile, Criollo is considered the finest for its flavor and aroma complexity.

In Brazil, most of the cocoa production involves forastero cocoa, but the criollo can also be found, especially in the Northern region of the country. It is ideal to know the characteristics of each variety and choose the one that meets the demands of buyers along the international market.

Buyers look for specific cocoa varieties depending on the use, for example, the chocolate industry values the criollo species and the pharmaceutical industry looks for the forastero. The climatic and geographical conditions of the production region also influence the quality of the cocoa.

Cocoa production and processing

After the fruits are harvested, the cocoa beans undergo a fermentation and drying process before being packed and shipped for export.

The fermentation process is crucial to the final quality of the cocoa, since it is at this specific moment that the beans acquire their characteristic flavor and aroma. Therefore, it is important that the fermentation process is carried out correctly, and thus guarantee the quality of the cocoa beans that is destined for export.

Conclusion

For the reasons already mentioned, we may easily verify how fundamental to the Brazilian economy the export of cocoa is, since it provides an important source of income and contributes to the economic growth of the country. Moreover, with the growing global demand for cocoa, Brazil has the chance to expand its presence in the international market and stand out as a key player in the industry. With that, the cocoa industry also has a positive impact on society, by generating jobs and contributing to local development.

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The Port of Paranaguá, one of the most important terminals for Brazilian foreign trade, celebrated its 88th anniversary on the 17th.

With an eye on new opportunities anticipated by the port authority, private investments towards improvements and an increase in the port’s efficiency might reach R$3 billion in the coming years.

About the port, one thing to be highlighted is its flow of agricultural commodities, especially soybeans, with which the ports of Paraná have led exports earlier this year.

Cosco Shipping to offer a service from Yangpu to South America

The Chinese shipping giant, Cosco Shipping, has recently announced the inauguration of a service that will connect the Yangpu International Container Terminal in Hainan Province to South America, passing through some of Brazil’s major ports, such as Itaqui, Santos, Paranaguá, Itapoá, Navegantes and Itajaí.

The service connecting the Far East and South America is another important step by the company to promote international trade, along with developing new routes and making imports and exports more efficient.

Lufthansa to launch a new airline, City Airlines

Lufthansa, a German company with great transcendence in the international transport of cargo and passengers, has just announced the creation of a new airline in Munich, City Airlines, which will have short and medium-haul routes in order to expand the group’s network of European services.

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Carnival is one of the oldest festivals in history and has its roots in pagan celebrations dating back to the 3rd century B.C. in Ancient Greece. At the time, the feast of Dionysus (or Bacchus, as the Greeks called him), the god of agriculture and wine, was held with music, dancing, and the exhibition of masks to mark the end of winter and the arrival of spring.

With the expansion of the Roman Empire, the tradition was incorporated into the culture of the people they conquered and, over time, evolved into what we now know as Carnival.

Carnival in Brazil

When the Portuguese arrived in Brazil, in 1500, they brought their Carnival traditions with them, which, over the centuries, were adapted and ended up incorporating rich indigenous and African influences.

The first record of a Carnival held in Brazil occurred in 1641, in Rio de Janeiro. The party has been an integral part of Brazilian culture, since. Over the centuries, Carnival gained ever-increasing proportions and became a true expression of Brazilian creativity and joy.

Today, Carnival is one of the most anticipated parties of the year in Brazil and attracts millions of tourists from all over the world to the streets of the main local cities, such as Rio de Janeiro, Salvador and Recife.

How does Carnival impact Brazilian foreign trade?

Have you wondered why Carnival is important for Brazilian foreign trade? We will explore Carnival’s impact on foreign trade businesses through this article, examining which activities are affected during this festive period. It is common for people to associate Carnival with days of revelry; the truth is that the its consequences go beyond the streets and affect the country’s economy.

First, it is important to note that Carnival is not officially a long holiday, although many companies and public agencies close their doors during this time; thus, the impact of Carnival on foreign trade varies according to the type of commercial activity involved. 

With regard to ports, most continue to operate as usual during Carnival, although some ports may operate with reduced staff, which might lead to minor delays around some of the operations. This can particularly happen in ports located in cities with a strong Carnival culture.

In the case of airports, commercial flights should not be affected, nor should cargo flights be, since they continue to operate normally. It is important to note, however, that there might be a reduction in the number of flights during this specific time of the year, with the delays in some deliveries as a consequence.

Factories and foreign trade companies can also be affected by Carnival. Some companies may close their doors during the days of revelry, while others may operate with a reduced team, causing delays in production and in the delivering process.

In summary, although Carnival is not officially a long holiday in Brazil, it still has a significant impact on the country’s foreign trade. While many commercial activities will continue to operate normally during the Carnival period, it will be important to be aware of the possible delays and interruptions typical of this festive season.

Which ports will close during Carnival?

It is common for most Brazilian ports to maintain their normal operating activities during the Carnival period, due to the importance of foreign trade for the nation, which cannot be interrupted because of a long holiday. 

However, in some locations with a strong Carnival tradition, there may be a lack of employees working in the ports with its consequential delays in their operations, especially if the loading and unloading demands are extremely high at that moment. Such reduction in the number of employees can be justified by the fact that many people take advantage of the long holiday to travel and have fun, or, on the other hand, it could be that port workers participate in parades and Carnival blocks. However, please note that the port’s essential services, such as customer service, remain on duty during Carnival to ensure the continuity of activities.

Therefore, it is always good for companies that use port services to be aware of possible delays and unforeseen events during Carnival and carry out prior planning to minimize those impacts. In addition, if its urgent, you can always contact the Port Guard for information and support. It is worth remembering that, despite the possibility of delays in some locations, most Brazilian ports work normally during the Carnival period, maintaining their regular operational activities and contributing to the development of the country’s foreign trade. Anyway, it is recommended that foreign trade companies and professionals themselves contact ports and service providers to obtain updated information on operating conditions during the period. This can help them to avoid potential delays or disruptions to business operations.

We’ll now offer you some useful information about the largest port in Brazil, the port of Santos, but remember to check the operating conditions of the port of your interest, as there might be differences in relation to their working team and opening hours.

The Port Authority of Santos (SPA) informed – in a statement directed to users – that, due to the Carnival holiday, the Company’s administrative services will be suspended from February 20 to 22, corresponding to Monday, Tuesday, and Wednesday. However, essential user support services will operate on an on-call basis. So, it will be possible to guarantee the continuity of port operations, even during the extended holiday period. That means that the Port of Santos will function normally.

For emergencies, the Port Authority has provided a telephone number: (+55 13) 3202-6570.

Therefore, it is fundamental that companies and foreign trade professionals are aware of it, once more, to avoid possible delays or interruptions in commercial operations during the period of Carnival.

How about the airports? What about the IRS?

To meet demands during Carnival, the Customs Office of Guarulhos, located at the GRU Airport Cargo, will operate on duty, due to the optional point throughout federal public offices. Therefore, working hours and services will follow the same as on regular weekends, including customs transit and the release of green channel import declarations. Customs will return to normal operations on Wednesday, February 22, at 2 pm.

At the airport of Campinas, the Viracopos Customs will have specific parameterization schedules for Customs Transit Declarations (DTAs) as well as for Import Declarations (DIs). DTAs will be analyzed and received only on Saturday, on February 18.

The resumption of analysis and reception of DTAs activities will take place on Ash Wednesday, on February 22, at 2:00 p.m. Conversely, DIs will have manual analyses and releases on Saturday and Sunday, (February 18 and 19), until 9 p.m. DIs manual resumptions of analyses and releases will be on Ash Wednesday, on February 22, 2023, starting at 2 p.m.

Conclusion

If they’re willing to avoid any delays and operation disruptions, it is essential that foreign trade companies and professionals plan accordingly so they can be able to deal without major difficulties with the large volume of processes during the post-holiday period. This is why it seems important to be aware of the provided information and take the necessary measures to minimize any possible impacts.

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An International Freight Quote: Why do it?

The importance of having a good freight quote seems fundamental, since a wrong quotation can cause problems related to the delivery schedule – Can you imagine the mess if the exporter has already signed a contract with the importer on this matter? – plus, a wrong quotation can also burden the process costs, given the fact that the logistics price has a great weight on the products’ final value. 

The international freight cost can vary a lot, depending on the freight forwarders involved, the type of cargo to be transported, the countries where the process will take place in, the port of origin and destination, and even depending on the means of transport to be chosen. Thus, to really know laws and rules governing international freight, it’s essential to ensure that the products reach their destination safely, on time and with a fair transport cost. Once the freight service is complete, you need to check the tracking information to make sure the goods can arrive at the right place, within the deadline. 

When hiring an international freight service, to carefully review the terms of service and check the delivery guarantees is totally relevant. It is also vital to make sure that the company you hire has a good track record and, moreover, is known for offering a quality service. Finally, make sure that all the documents required for shipping the goods are properly filled out before the delivery.

International freight quotation: How to do it?

A good understanding of the details of the process is always fundamental, such as knowing what documentation is required, deadlines, rates, and fees. It is also necessary to check whether the goods are suitable to be exported or imported, if there is any export or import restrictions, and whether they are in accordance with international regulations.

Hence, here you have the prominent information that must be sent for the freight forwarder to structure a quotation: 

• Know the traded Incoterm – It is certainly a substantial information to have! Without it, the agent will not be able to make the quotation;
• Depending on the established Incoterm, it is necessary to inform specific addresses for both the cargo’s withdrawal as well as for its delivery. 
• Check the merchandise / determine the NCM (MERCOSUR Common Nomenclature) – once it’s done, the agent will know which type of freight he/she should consider and what kinds of documents are required;
• Check the commodity’s value – having its price, in addition to the freight quote’s calculation, the agent will be able to assist on the best way to ship the merchandise and negotiate the insurance values;
• Know the cargo’s origin and destination – this is always essential information;
• Determine the shipping form – whether it’s an ocean, road, or air transportation;
• Check the negotiation between delivery times – it becomes relevant for the best transit time search;
• Check the cargo size – its length, width, height, cubage, gross weight, the type of packaging and so on;

Let us give a suggestion for professionals in the area: setting up a standard e-mail with all required information and having it saved is a good idea to make sure you send all the information at once, if you wish to avoid so many e-mail exchanges or calls only because something was missing.

International freight rates: How to analyze them?

Beware of very low freight prices, it may be a trap! 

Once the freight forwarder has calculated the quote, he/she will send a complete quote with all the details included, then, importers or exporters should compare these values and study them carefully to avoid pitfalls.

For instance:

– Low freight value – might mean higher transit time;

– Low freight value – demurrage with high values;

– Low freight rates – very few days of free time to return the container;  

– Low freight value – higher port or deconsolidation fees. 

So, look for quality information such as average delivery time, returning rates, and kinds of provider’s support. If possible, ask for a sample of services before your hiring. It’s is also relevant to check whether the provider does good business and offers good quality guarantees.

Here are some of the fees and their acronyms to be observed and compared during quotations: 

• POL – Port of embarkation;
• POD – Port of disembarkation of the cargo;
• TT – Time of transit;
• Rate OFR – Ocean Freight Rate;
• Transhipment charges;
• Docs – Documentation fee;
• Storage at CFS – Storage fee; 
• BL fee – Fee to release the BL to the shipper;
• Deconsolidation – Deconsolidation fee;
• ISPS – Fee used for vessel and port facility security;
• ODF – Documentation Fee at origin;
• OHC – Terminal handling fee;
• Wharfage – Other fees calculated at the port. 

As you can see, all of them must be analyzed before closing an international freight deal!

International freight quotation: What precautions should importers or exporters take when hiring it?

Quality and Safety 

It is important that the carrier offers a quality and safety service. Check if the company has insurance and security both for the transported products as well as for the driver.

Speed 

Verify if the transporter can offer a fast, safe and efficient service.

Price 

Check if the offered price is affordable and if it has a good quality service.

Flexibility 

Check whether the carrier provides flexible and customized services to meet the customer’s specific needs.

Experience

It is good to verify if the transporter has experience in the area and has a good track record.

Contact us for more information. We have the right team to help you!

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What are INCOTERMS? How did they come about? What terms can we use in Brazilian imports? These are the main questions that agents constantly receive when assisting both the importers and exporters during international negotiations. The INCOTERMS, also known as International Commercial Terms, can be very confusing; this is why the help of a professional can clarify and even end up avoiding any possible error. 

INCOTERMS – What are they?

INCOTERMS are nothing more than acronyms that serve as a basis for international negotiations. Once they are used, the responsibilities assigned to the importer are defined, as well as what the exporter’s responsibilities are within the international process. Thus, the calculation of the product cost varies according to the INCOTERM negotiated, also the form of transport must be respected in the choice of an INCOTERM. Therefore, for each mode of transport there is an INCOTERM to be negotiated, causing the alteration of the costs involved in the process.

INCOTERMS – How did they come about?

Such terms seem new, but their use is not at all recent. In 1936, the International Chamber of Commerce (founded after World War I) instituted INCOTERMS due to conflicts of interpretation during international contracts negotiated between importers and exporters. The conflicts were about the expenses in the process, the responsibilities involving the goods, in addition to the losses and damages, if any, in the course of transport. 

At this first moment, the defined terms were solely about road and sea transportation. In 1953, the rail mode was added, and it was not until 1976 that there were terms concerning air transactions. In 1980 intermodal transport emerged, thus adding new INCOTERMS to the agenda. 

As the years went by, to accompany the implementation of new technologies, updates were made through additions and deletions of some of the terms and, in 1990, there was a complete review of INCOTERMS. Then, observing the free trade zones, in January 2000, the INCOTERMS 2000 came into force, offering a simplification in the view of the 13 existing INCOTERMS. The following update – which happened only in 2010 – caused major changes in the terms, with the withdrawal of a family of rules of some INCOTERMS and the enhancement of the obligations for importers and exporters. 

Finally, the last update took place in 2020, aligning different insurance coverage through minor changes in the terms, keeping in mind the future of international trade. 

INCOTERM – What are they?

Based on the 2020 update, the 11 INCOTERMS are shown below; they’re simplified for a clear and objective understanding of each one of them. We’ll focus on sellers and buyers, since they are the terms for international negotiation, added that origin and destination are not relevant – when specifying importer and exporter – then buyers and sellers are the focal point. 

– EXW – Ex Works 

o Multimodal transport;

o The seller provides the merchandise ready at the factory.

– FCA – Free Carrier 

o Multimodal transport;

o The seller delivers the goods to the place indicated by the buyer, or, if not indicated, to the place of the carrier.

– FAS – Free Alongside Ship 

o Waterborne transport;

o The seller delivers the goods alongside the transport designated in the negotiation (by a ship, for example).

– FOB – Free on Board 

o Waterborne transport; 

o The goods are delivered on board the ship.

– CPT – Carriage Paid To  

o Multimodal transport; 

o The seller delivers the goods at the place of destination.

– CIP – Carriage and Insurance Paid To  

o Multimodal transport; 

o The seller delivers the goods at the place of destination.

– CFR – Cost and Freight  

o Waterborne transport; 

o The seller delivers the goods with international freight paid at the place of negotiation.

– CIF – Cost Insurance and Freight  

o Waterborne transport; 

o The seller delivers the goods with international freight and insurance paid at the place of negotiation.

– DAP – Delivered at Place  

o Multimodal transport; 

o The seller delivers the goods at the place of destination.

– DPU – Delivered at Place Unloaded  

o Multimodal transport; 

o The seller delivers the goods at the place of destination.

– DDP – Delivered Duty Paid  

o Multimodal transport;

o The seller delivers the goods at the final destination.

It is already clear that INCOTERMS can be quite complex, mainly because, in order to decide which one to choose, the terms should be carefully and thoroughly analyzed, since they give the impression that they are similar, despite of the fact that they aren’t. In short, the assistance of an international agent is essential to avoid unnecessary errors and a possible wear and tear within the process as well as financial losses.

INCOTERMS – Which ones are prohibited in Brazil?

Finally, a last question would be: Are there any forbidden INCOTERMS in Brazil? Yes, there are! And they depend on the kind of shipment chosen.

The DDP – Delivered Duty Paid – is the INCOTERM that cannot be used in the formal process for Brazilian importation. According to the legislation, it is not possible for a foreign company to pay taxes and duties in the Brazilian territory, so there is no possibility that the exporter performs a formal shipment by air, land or sea with the cargo already cleared at the place of destination.

The only way to opt for this INCOTERM is importing via courier, performing an informal clearance. In other words, the exporter hires an air transport company that, then, issues the billing with all costs paid up to the arrival of the cargo at the importer’s premises, so the exporter pays the air billing, and the airline pays the taxes in Brazil once the goods arrive at customs. 

When opting for the DDP INCOTERM, a simplified modality of taxes payment will be applied, then the NCM (Mercosur Common Nomenclature) will not be considered, but the value of transport will be considered, with the insurance payment added to the value of the goods, which can significantly increase the cost of the product for the Brazilian importer. 

So, be careful with the INCOTERM choice. Surely no importer would like to have problems with their cargo due to negotiations that did not respect the international terms. 

Did you like the article? Share, comment and quote it. It will make a big difference for Brazilian importers and exporters.

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In cases where there is not enough cargo to use an entire container, that is, an FCL (Full Container Load) shipment, importers – and exporters – prefer to use the partial container modality, known as LCL (Less than a Container Load), when the container is shared between several importing companies.

To make this operation possible, the consolidators (known as co-loaders and NVOCCs) limit the loads per container so that it is feasible to place the maximum number of different importers in the same equipment, making the revenue from this operation sufficient to cover the costs and this text explains how this calculation is done.

What are the differences?

To calculate the freight, it is necessary to know the measurements in the format L x W x H (length, width, and height) and the gross weight of the cargo (net weight of the cargo itself plus its packaging weight) and confirm whether the charge it will be based on the gross weight or the cubage, as there is a big difference in the final cost, depending on which one is greater.

If the load is denser, the charge will be based on the gross weight (ton) and if the load is bulky, the values ​​will be based on the cube (m³ – cubic meters – CBM).

Gross weight

To reach the gross weight amount, just add up the net weight of the cargo and the weight of its packaging – which can be a pallet, a cardboard or wooden box, a raffia bag, a metallic structure, or anything that protects the product – and multiply this exact number (considering the numbers after the comma as well) by the cost of international shipping.

Local taxes at destination will also be charged considering weight in all cases where the charge factor is ton or meter (w/m). So, if a wharfage service charges 100 reais per ton or meter and the load is dense and 2.5 tons heavy, the total cost of wharfage will be 250 reais.

Chargeable weight 

Chargeable weight is the one considered on whichever is greater between the gross weight and the CBM weight. To assess the CBM of an LCL cargo, it is necessary to multiply the measures of width, height, and length of the packaged cargo, using meter as the unit of measurement, and the result will be the CBM weight (volume) in cubic meters (m³).

Still considering the example above, if this load has large dimensions, the probability that the charge will be made considering the CBM is high, because a load that is 2 meters long, 1.5 meters high and 2 meters wide (even though weighs 2.5 tons as the example above), its CBM to be considered is of 6m³. As international freight and other expenses are calculated considering the highest value (chargeable weight), the total for the wharfage services will then be 600 reais, instead of 250.

Conclusion

It is already known that in maritime operations the values ​​​​of international freight of the LCL will be charged based on weight or CBM, whichever is greater – which is the Chargeable weight. In addition, it is also clear that the difference between gross weight and CBM value is often significant.

Do you still have any doubts? Contact our team of experts or leave your comment here and we will respond as quickly as we can send you our LCL quotation.

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Importing requires fiscal, customs, commercial, financial, and legal care.

However, the aspect that usually involves the highest costs is international and internal logistics.

In today’s article, we are going to learns a little more about the most common problems of import operations and how freight forwarders can help to prevent them from happening.

LOSS OF DEADLINES

As we have already said, foreign trade itself involves many areas of activity and each of these has its particularities and requirements.

As a result, what you see daily are a series of deadlines to be met so that there is no blockage in the flow of the import operation.

Failure to meet deadlines is a problem that keeps many people awake at foreign trade, hence the need to find ways to avoid it.

The main tip for this is logistical planning and monitoring of deadlines.

A freight forwarder needs to know in real time what are the deadlines for boarding, sending documents, unloading, removing the cargo, etc.

When starting a new import, the first step needs to be to register the deadlines of that new process and create ways for the professionals involved to be proactively alerted about the proximity of such deadlines.

Technology can be an important ally in this regard through operations management platforms where deadlines are highlighted.

In summary, to avoid missing deadlines: planning and monitoring, okay?

PROBLEMS IN DOCUMENTATION

A very common headache when importing is the divergence of information filled in the required documents.

Most of the time, there is even good logistical planning, and everything goes well, however, due to an error in some documental record, the entire operation can be affected.

How can a freight forwarder avoid this?

The first point is that the documents related to import are mostly under the customs brokers of each process responsibility.

A way that helps to mitigate the risk of documental problems is the integration and efficient communication between the cargo agent and the customs broker.

Many problems are caused by the lack and/or noise in the communication between the parties, a joint force would certainly mitigate the risks.

With regard to the documents that are the agent’s liability, establishing a double-check procedure in foreign trade records is an example of an action taken to reduce risks.

SUITABLE VEHICLES AND EQUIPMENT

An important factor in logistical planning is knowing what equipment and types of vehicles are needed to carry out the operation.

It may sound like amateurism, but unfortunately this is a common problem seen in the course of international logistics operations, especially in the national transport phase.

The tip is to study the product, the route used and every unloading location so that the best possible decision can be made in choosing the vehicles and equipment used in the process.

Think about the situation: the entire import operation taking place normally and, when arriving in Brazil, the cargo agent collects the cargo and takes it to the destination hired by the importer, when arriving at the place of unloading, it notices that it is only possible to enter the unloading dock with a box truck, and the vehicle used was a trailer truck.

In this example, there is a whole inconvenience with rescheduling, volume movements, customer distress, not to mention the extra costs involved.

Therefore, keep in mind: particularities regarding the movement of the product, the route used and the loading and unloading locations need to be well studied in advance.

DEMURRAGE

Demurrage is the bogeyman of the costs involved in an import operation.

This happens because the values ​​of this type of charge are very high and charged in dollars by the shipowners.

This type of problem can make an import so expensive that the loss scenario is, in some cases, irreversible.

Remembering that demurrage is the cost charged for using the containers in addition to the contracted free time.

The tip is to actively monitor the deadlines that involve the free time of the container rented so that no surprises occur.

However, even with active monitoring, it is possible that unforeseen events may arise causing the deadline to be exceeded. In this case, the main tip is to keep the importer duly alerted of the events and the possibility of extra charges, these alerts help supporting so that the damage caused is not unduly directed to the cargo agent or other actor involved, for example.

MALFUNCTIONS AND LOSSES

The movement of loads from its origin to the defined destination demands specific care due to the possible damages that the volumes may suffer.

Sometimes, due to a lack of care at the airport, or by the unloading team, a whole well-executed international cargo operation ends up being ruined by customer dissatisfaction when facing the damage or loss of its product.

Therefore, it is important to keep in mind the risk mapping of this type of accident, knowing clearly at which stage and location the damage/loss may occur.

Usually, this type of problem occurs at the following points: loading the vehicle at origin, loading cargo, unloading cargo, handling at ports and airports, unloading the goods, and delivering.

There are at least two important tips so that this kind of headache does not arise during your import processes.

The first tip is to always choose to use terminals and warehouses of trust and recognized credibility.

Most cargo movements, where claims generally occur, take place in these specialized handling and storage locations.

In this way, freight forwarders who have well-established partnerships with trusted terminals and warehouses are usually the ones who suffer the least from this type of risk.

The second tip on how cargo agents can collaborate to resolve damages and losses is by contracting cargo insurance.

Even if all the necessary precautions are taken, there is still the possibility of eventual accidents in the cargo.

At this time, contracting international insurance over the cargo protects importers and agents from greater losses and liability for the damage caused.

It is scary how many importers and agents are still seen in the market carrying out imports without insurance coverage for their cargo. The risk is very high, and the damage can be very difficult to repair.

That’s why here’s a word of advice for cargo agents: convince your customers about the importance of insurance, in the end, you will be one of the main beneficiaries of it.

Did you like the tips?

In addition to these, there are many other precautions that can be taken to avoid problems when importing.

So, keep following us and our periodic content because we are certain the subjects will help you in your day to day.

If you want to know even more or need help with your operation, talk to one of our experts.

We will be delighted to help make your operation even safer and more prepared!

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Logistics fairs, such as the Intermodal South America that took place recently, as well as others around the world, are ways to find agents abroad, because the various exhibitors attending make it possible to meet many suppliers in a single day, at the same place. In addition, the mornings before the fair can be very productive to meet the agents and invite them to visit your company (since it is common for the fair to take place in the afternoon and evening).

Cargo agent registration catalogs, such as Marine Traffic, AZFreight and similar are also a way to find partners, not always reliable because they do not have security verification by the portals, but with precaution they can be a good source of research.

Agent networks such as WCA, MarcoPolo, CGLI and others are a safe and effective method, as they have a network of verified agents that have passed a security filter, which can vary according to the network category.

This is because, in addition to the networks themselves, they filter agents into sub-networks of specialists, as in the case of WCA, which classifies into WCA Pharma, WCA Time Critical, WCA Projects, WCA Perishable, WCA e-commerce, WCA Relocations and WCA Dangerous Goods, each of them with certified specialists in their areas of expertise.

As an additional protection method, your company can look for referrals among freight forwarders abroad with whom it already works, that is, ask known partners if they can recommend companies that are financially reliable and safe to work with, as an operation can be at risk if placed in unfamiliar hands.

What about you? Do you use any other method that we haven’t mentioned here? Comment below and let us know! 

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In addition, to send financial remittances to Brazil, it is important to be aware of the taxes that may affect the transaction, the main one is the Imposto sobre Operações Financeiras (Financial Transactions Tax), whose triggering event is exactly the closing of the exchange rate itself. Currently, the rate is 0.38% for remittances between different entities.

In cases of payment made from Brazil, attention must be paid to the destination, because the amount sent to those considered tax havens by the Brazilian Federal Revenue Service are subject to taxation of 33.33%. This happens to avoid evasion of national currency and expatriation of money without the declaration of the due Income Tax.

The most used methods are exchange brokers and banks authorized to make payments in dollars (and other currencies) abroad. The dollar considered for the closing is the commercial dollar, but there is also the tourism dollar, which has a different rate, and the parallel dollar, which is illegal.

It is common for Brazilian freight forwarders to pay the exchange rate to their partners abroad only on a monthly basis. This is to avoid dollar remittance costs and so that the exchange rate is diluted between the processes of the month, avoiding very large disparities between one process and another.

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There are two main agencies that inspect infrastructure and logistics by air, which have several specificities and processes that must be in accordance with the determinations of the National Civil Aviation Agency (ANAC) and the Brazilian Airport Infrastructure Company (Infraero).

To better understand the appropriate solution for the company’s logistics, it is important to know the options for this transport. According to INFRAERO, in Brazil there are more than 35 cargo and passenger airports, focused on national and international operations (Source: INFRAERO).

Due to the high cost involved in this modal, it makes the process onerous and often makes the operation unfeasible. Goods with low added value or that are bulky make the use of this modal a financially impractical option.

Another point that requires attention in this transport is the way in which the air freight is charged, as it is made by actual weight or cubed weight, whichever is greater. The cubed weight is nothing more than the ratio between the volume of the merchandise and the ideal weight for that volume.

Airport Operation

Knowing how airports work is necessary for the logistical management of foreign trade processes, given that some goods require special care, for example pharmaceuticals.

It seems simple, but there is a high level of complexity in the operation of an airport. Several precautions must be taken so that everything goes well and that the goods reach their destination according to specifications.

In both imports and exports, goods undergo some level of inspection to prevent illicit and dangerous materials from being shipped without due care.

In addition, depending on the type of material, there are restrictions on transport, as is the case with dangerous goods. Restricted cargo includes controlled use chemicals, explosives, flammables, and radioactive isotopes.

For one of these products to be transported by air, it is necessary to have prior authorization from the airline and the packaging must meet the safety standards of the International Air Transport Association (IATA).

Role of Airports in Exports

According to data from the Ministry of Industry, Foreign Trade and Services (MDIC), Exports via air transport represented approximately USD 14.7 billion, about 5.26% of the total USD 280.81 billion of exports in the year of 2021 (Source: ComexStat).

As it is an economy focused on the export of commodities (products with low added value and large volumes), the country’s air exports play a smaller role when compared to those made by the maritime modal, which total 88.44% of the volume in 2021 ( Source: Comex Stat).

Main Brazilian Airports

Among the more than 35 national airports, it is possible to list those that have a greater volume of cargo and people movement. The 5 busiest Brazilian airports in 2021 were (Source: AEROFLAP):

Guarulhos Airport (23.6 million passengers)

Brasília Airport (10.3 million passengers)

Campinas Airport (9.75 million passengers)

Congonhas Airport (9.43 million passengers)

Recife Airport (7.34 million passengers)

Major Airports in the World

As it is a safe and efficient means of transport, both for cargo and passengers, the main world economies control the busiest international airports.

List of the top 10 airports in the world (Source: SEGUROSPROMO):

Hartsfield-Jackson International Airport, Atlanta – USA

Beijing International Airport – China

Dubai International Airport – Dubai

Tokyo International Airport – Japan

Los Angeles International Airport – USA

O’Hare International Airport, Chicago – USA

Heathrow International Airport, London – England

Hong Kong International Airport – Hong Kong

Shanghai Pudong International Airport – China

Paris International Airport – France

Strategies for Using the Air Modal

Due to the high cost of this modal, it is advisable to use it for goods with high added value or that are urgently needed, as it has already been said: depending on the type of product, this means of transport makes the process unfeasible.

Despite this, there are some strategies that can benefit air shipments, such as courier shipping. This type of transport is more restricted, but costs less compared to formal shipping.

This modality can be used for small and light shipments and tends to be a great option for companies that have urgency or that are looking for a high safer alternative of transport.

Precautions to be Taken

As we said, cost can be a problem for the process, but this concern cannot be limited to the cost of freight, but also to the values ​​of storage and handling.

Another care to be observed is in terms of logistics: it is important to use adequate packaging and pay attention to the weight and volume that it will add to the shipment, as this can generate an extra cost since the air tax is per kilogram or per cubic weight.

It is important to know the nuances of air transport and having a specialized cargo agent qualified to operate can help in this process. This will help all problems in using this modal to be mitigated.

Conclusion

Due to technological advances, air transport has proved to be a more suitable alternative for certain cases, considering the problems faced by the global logistics crisis. The safety and agility of this means of transport are its main attractions when choosing an option.

Carrying out a critical analysis of the company’s needs becomes the best way to choose a modal. Checking points such as urgency, budget and logistics chain are also important when choosing air travel.

Among the advantages are speed, safety and cost reduction related to the storage of goods. However, air freight transport also has disadvantages, especially due to the high cost, the limitation of weight, volume and products that can be transported in this way.

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Led by the sector’s highest body, the Brazilian Foreign Trade reinvented itself following all the technological and administrative developments in the world.

Among the most diverse changes, the implementation of DUIMP has increasingly become a priority issue among Brazilian imports.

In today’s text we are going take a x-ray about DUIMP and let you know all the information on the subject.

Knowing the NPI

The first step in understanding the DUIMP is, above all, to understand the context in which it is inserted from a macro view. There is no way to understand what DUIMP is without knowing the NPI modules in which it is integrated.

The NPI, short for Novo Processo de Importação, meaning New Import Process, is a profound revolution in the way of importing in Brazil.

NPI seeks to simplify and optimize import procedures through standardization, systems integration, and reduction of bureaucracy in processes that had so far been inflexible.

The NPI is composed of some modules that work as steps for carrying out an import in Brazil.

Among the new modules that make up the NPI are the Catalog of Products, the DUIMP (as a Single Import Declaration), the PCCE (short for Pagamento Centralizado do Coméercio Exterior , meaning Centralized Payment for Foreign Trade), the LPCO (Licenses, Permissions, Certificates and Other Documents) and the CCT (Controle de Carga e Trânsito, meaning Cargo and Transit Control).

What is DUIMP?

The Single Import Declaration is the document that will replace the current Import Declaration used in Brazil.

Among its main features, DUIMP presents itself as a solution to speed up customs clearance procedures, since it allows the import to be declared even before the arrival of the goods in Brazil.

In addition, the DUIMP makes it possible to provide other Licenses related to importation in parallel with the act of clearance. Until now one procedure must wait for the conclusion of the other to occur.

What major changes?

The DUIMP already has a positive impact on a number of importers today, and in the very near future it will bring significant results for all Brazilian foreign trade players, especially with regard to the time for customs clearance and the possibility of centralizing information in a single place.

Let’s understand, in parts, some of the main changes generated by DUIMP.

Siscomex Web

One of the keywords when talking about DUIMP implementation is integration.

DUIMP makes it possible for the Single Foreign Trade Portal, Siscomex – where all import operations carried out in Brazil must be declared – to be integrated with other Foreign Trade management systems chosen by the importer.

This integration between systems is possible due to the dismemberment of the procedures required in the Import Declaration, breaking the cast, and making possible the tuning between different systems through the Application Programming Interface of Siscomex Web, suitable for promoting the “conversation” between different software.

Tax Collection

Another relevant change is the way in which taxes can be paid upon importation.

In general, importing companies will be able to collect taxes between customs clearance and the register of certification.

Companies that are certified as Authorized Economic Operator (AEO) Level 2 will also be able to collect their taxes with the PCCE module, once a month, upon a single payment, without the need for this type of control in each process carried out.

Customs clearance

With the possibility of Advance Clearance and Clearance over Water, mainly for Authorized Economic Operator (AEO) C Level 2, customs clearance can be done before the arrival of the cargo, and the necessary adjustments may be made after the goods are in transit.

This results in reduced release time and lower storage costs.

Primary Zones

Currently, the Primary and Secondary Zone bonded warehouses are used for the due nationalization procedures.

The movement of cargo to these areas is only allowed with the use of a Custom Transit Declaration.

The DUIMP makes it possible to distinguish the concepts of merchandise and cargo, being considered “merchandise” the part of the cargo already nationalized and that can be moved without the need for a Custom Transit Declaration for transit, for example.

What are the main improvements with DUIMP?

Among the main improvements promoted by DUIMP, the following stand out:

Ø  Agility – by the automation and untying of procedures, the time for nationalization of loads will drop drastically.

Ø  Less costs – with the automatic and anticipated releases of loads, the costs arising from storage in Primary Zones will be considerably reduced.

Ø  Compliance – with the centralization of information in intelligent databases, there is greater compliance of the information declared and executed in the operations performed.

Ø  Centralization – even with the possibility of using several other systems, the integration makes it possible for all the data managed in the foreign trade processes of a particular company to be centralized in a single database, facilitating the conference, and tracking of information.

DUIMP and AEO

The Authorized Economic Operator is a company that has a trust status from the Brazilian Federal Government.

Because of this credibility that the AEO Certification provides, some exclusive benefits are available to certified companies.

Some of the main benefits of DUIMP for AEO importers are:

Ø  Advance dispatch by sea, air, and road.

Ø  Payment of Taxes in a single monthly payment form.

Ø  Reduced incidence of yellow, gray, and red conference channels.

Ø  Automatic customs clearance.

Ø  Integration with systems of consenting bodies for LPCO procedures.

What is the Catalog of Products?

The Catalog of Products is a module that integrates the Brazilian NPI (the new import process).

In short, it is the database where all items imported by the company are duly registered following strict standardization criteria for description and tax classification.

It is important to emphasize that all information that will appear in the DUIMP will be extracted from the Catalog of Products of each Importer.

The Catalog of Products module can be accessed on the Web Siscomex for more information on the specific procedures for describing imported items.

Only products that are already included in the Catalog of Products of each company can be imported via DUIMP.

How to prepare for the DUIMP implementation in my company?

The first step is to pay attention to the need to update the Database of items imported by your company to create your own Catalog of Products on the Web Siscomex.

Another important aspect is to invest in technological updating, searching the market for specialized systems in Foreign Trade management that are adapted to the new reality of the DUIMP and the NPI.

Lastly and most importantly, it is important to seek advice of those that are familiar with the DUIMP and that demonstrates being able to help companies prepare for the arrival of the DUIMP.

Opt for advisors that have know-how with AEO, Foreign Trade Systems and Customs Compliance.

Did you like to know about DUIMP?

Click here to learn more about these and other relevant foreign trade topics.

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In addition to replacing inputs, imports are also useful as they open up the possibility of accessing products only found in other parts of the world.

But what about when the much-desired import happens, and you realize that the product didn’t arrive in the conditions you expected or is not the same thing that was negotiated?

Is it possible to return imported goods?

In today’s text we will see that it is possible, yes, but there are criteria and procedures for each of the applicable situations.

In what scenarios can a devolution occur?

As a rule, Brazilian legislation determines procedures for return in three (3) different situations.

Let’s go into the hypotheses and know what to do in each of them.

Defect perceived after nationalization.

In this case, after carrying out the formal import of the goods, your company carried out all the customs processing, collected the taxes and obtained an import declaration as well, thus nationalizing the goods after clearance.

However, after analyzing the product, it is noticed that it has a defect and it is necessary, then, to return it for replacement of a new one or repair.

What to do?

The first step is to notify the exporter about the defect and negotiate the return of the defective item and the shipment of a new one for replacement.

It is important to note that there will be costs to carry out the return export and the new import, make sure that the supplier will bear the costs arising from this defect.

Another important information is that, as the taxes have already been collected at the time of nationalization, new taxes will not be levied on the new importation to be carried out, for that it will be necessary to issue a specific Import License in this type of situation.

Legal proceeding

For the return of defective imported goods, the steps and customs requirements are as follows:

Ø  Presentation of a Technical Report issued by an approved institution attesting the material defect.

Ø  It is first necessary to complete the return of the defective merchandise and then import the item that will replace it.

Ø  The Import License number that will be used in the importation of the new merchandise must be linked to the Export Registration.

Ø  It is necessary to respect the limit period of 90 days from the date of import clearance for the return of the goods to be requested. This period may be extended in some specific situations; therefore, it is necessary to present a plausible justification and a contract of guarantee.

Defect perceived before nationalization.

After the arrival of the goods in Brazil, the importer realizes, even before the nationalization of the cargo and payment of all taxes, that the product sent is wrong or has a defect visibly clear, in which case it is possible to request the return of the goods.

What to do?

The first action is to contact the exporter again and inform him about the wrong shipment or defect on the product.

In addition, it is important to organize all documents referring to the product and the return justification to be presented.

Legal proceeding

After informing the exporter about the return, the procedure to be followed is as follows:

Ø  Submit the formal return request to the Brazilian Federal Revenue Service.

Ø  Arrange for documents relating to the importation of the product to be returned (Cargo Bill, Packing List, Commercial Invoice, Certificate of Origin etc.).

Ø  After analysis by the Federal Revenue, the return may be subject to partial or total verification of the goods.

Ø  Upon authorization, the return export must be carried out within 30 days, listing the export in “Return before DUIMP”.

Import via courier de-characterization

In the case of an import of a small or low value-added product that was dispatched to the destination via courier, there’s the possibility of Brazilian Federal Revenue Service understands that the product needs to be imported through the formal import procedures and demands its return to origin.

What to do?

In this specific case, the Federal Revenue is the one who usually decides about the destination of the cargo, including its return.

The big tip of what to do is, prior to the import to be carried out, study in details the parameters required by Customs to classify the import as express (via courier).

Legal proceeding

The Federal Revenue is entitled, in these cases of mischaracterization of express shipment, to decide destining the goods to:

Ø  Return to the exporter.

Ø  Be destructed.

Ø  Go through formal import clearance procedure.

If your company, or you as an individual, wishes to keep the cargo before returning it, it is necessary to present the intention to carry out the formal import, pay all taxes and fees involved, and then carry out the nationalization of the goods.

Legal Basis

All the procedures mentioned here are based in the legal texts listed below:

Defect perceived after nationalization:

Ministry of Finance Ordinance No. 150/1982

Defect perceived before nationalization:

Ministry of Finance Ordinance No. 306/95.

Import via courier de-characterization:

Brazilian Federal Revenue Service Normative Instruction No. 1475/2014, Article 37, item III.

So, did you manage to clarify your doubts or are there any left?

Comment here or contact one of our experts, we can help you right now.

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