CRISIS…IT´S
TIME TO EXPORT!!
The
construction industry is heating up in the United States with this is time for
Brazilian exporters turn their eyes to this important segment. Before the 2009
crisis, this market was overheated with massive exports of polished granite
plates, tables, counters and various pieces of granites worked tailored to US
importers.
The
shipment was through containers with great calling of containers ships from various lines such as
MSC, Maersk, CMA-CGM, Mitsui, Hamburg Sud, Cosco, etc. in Vitória / ES ports,
mainly in specialized container terminal TVV, current Login. For this year,
according to OCDE surveys, the US economy growth estimate should be around 2%
and global growth on average of 3%.
Therefore,
it is time for Brazilian exporters, resume their contacts abroad and take this chance,
as have experience in this segment. The exchange rate is favorable to exports
and ocean freight market is sluggish, given the excess supply of vessels for
the low volume of cargo transported(trade off). Although most sales are traded
on the "FOB terms" , however it favors the importer when negotiating
freight and exporter in the sale
contract of goods in relation to the final price.
On
the other hand, given the American market peculiarities, one of is the wood´s
certificate requirement and shoring pallets of granite plates inside the
container. Exporters must submit a certificate of Ibama (green label),
certifying that the wood was obtained legally, fumigation certificate,
confirming that the timber was fumigated, thus avoiding the existence of
insects and other harmful pests to the environment, besides the documents
already commonplace in the export process as a commercial invoice, certificate
of origin, Letter of credit, insurance and other documents dealt between
exporter and importer.
The
key to this business is that nobody knows where it is, and lies in the
so-called export credit insurance (SCE) which is linked to FGE - Guarantees
Fund of Export, linked to the Ministry of Finance (Law 9,818 / 99). Banks are
not financing exports nor BNDES. Private banks are reducing their risk margins
due to crisis and gloomy economic prospects for Brazil. BNDES that could be the
main player of this business is suppressed, due to recent investments not very
orthodox in the market, especially in companies today face serious financial
losses to be involved in corruption scandals.
Thus,
there is a gap in the market that can be filled by external funding. Majors
European banks are with full coffers, eager for large projects and external
financing depends on the guarantees to be agreed. This is variety of market
that the governments of most developed economies with countries meet through
calls ECAs - Export Credit Agencies (Credit Agencies Export).
These
agencies are organized in different ways. In common, they have funding and / or
government guarantees to support exports of goods and services long-term, but
still relying on short-term programs for micro and small businesses. On the
OECD website you can find several addresses of fomenting credit companies,
namely: http://www.oecd.org/tad/xcred/eca.htm
The
observance and respect the deadlines agreed in the contract is mandatory, under
penalty of fine, cancellation of contract disputes in courts claiming losses,
damages and lost profits. A good tip for those who are thinking of exporting is
to always be aware of the terms of the international sales contract and
maritime transport. In a sale in the form "FOB" in which the goods
have to be delivered alongside the vessel (ship) by the exporter, already
cleared by Customs and ready to be loaded.
Who
will appoint the vessel and pays the ocean freight and insurance of the goods
is the importer of the goods. The exporter has to calculate its costs of
internal land transport, stowage (place the goods inside containers), internal
transport insurance of goods, taxes (if any), expenses dispatcher and moving
containers in the port (handling) if there are physical verification of the
goods by the red channel derived from Customs assessment.
The
exporter should be exempt to book the freight, at the request of the importer
(in FOB condition – freight collect)) to avoid problems with
"demurrage" (fine for delay in delivery of containers) and subsequent
recovery of freight, if the importer does not honor the payment . There are
disputes in courts where the maritime carrier charged by the exporter to pay
the freight, insurance, and fines for the delay in delivery of containers
(demurrage) due to the importer's breach did not appear to receive the cargoes
and also did not pay the ocean freight . The maritime transport company filed a
charge of execution in detriment of the exporter, because it was exactly he who
hired the freight. We must be attentive to details.
Finally,
it is worth mentioning other important markets that are emerging, such as food
(meat and meat products) Russia, China and Eastern European countries. We can
not forget to mention Iran, which returned to the market after the sanctions
relief imposed by the European Union and the United States, becoming a great
player for imports of commodities and derivatives from Brazil. However one must
be aware of the letter of credit and check a bank first line and the guarantor
bank credit.
Last
but not least, get help on the sites of Banco do Brazil and SEBRAE always rely on the help of a good advice to
avoid unpleasant surprises.
Author details:
Paulo S.Silvano Oliveira
Lawyer – Export and import Consultant
Extension at maritime Law (maritime transport, oil & gás, damages,
etc)
“Expertise” at ports and logistic – Have been hired by 10 years at VALE. Trading companies, Greek Owners and
mangers, shipping repairs market, etc.
Linkedin: BR.linkedin.com/in/paulosilvano
WWW.abreuefranca.adv.br
