Attention!!!

Contact before the visit

Before leaving India for Brazil , the visitors could approach the Consulate for list of importers, suitability of dates for visit and other information. The exporters should give a complete profile of their companies such as size, manufacturing capacity, export experience, etc. They should also give specifications of products (indicate end users in the case of raw materials and intermediate products) and customs classification numbers of the products.

Exporters would find it worthwhile visiting the Consulate at the beginning and at the end of their visit to be briefed and for debriefing. While leaving Brazil ,   exporters may give the Consulate the list of their importers and agents. The Consulate can put their names in the invitation list for receptions and cultural programmes.

The Consulate has ‘on line’ access to Brazilian trade data-bases from which the following information could be obtained : total value of imports of the product, classification, import duties, requirement of import license, etc.

Indian business visitors can make use of facilities at the Consulate for their meetings. The Consulate is located in the most prestigious part of the city and is easily accessible. Computer and VCR are available for multimedia presentations.

Visitors can leave their catalogues at the Commercial Library of the Consulate which is being frequented by a growing number of importers.

Brazilian currency is “Real”. This is divided into 100 centavos.

US$ 1.00  =   R$ 2.10 (October 2008)

Currency could be exchanged at foreign exchange dealers besides banks.

São Paulo is 7-1/2 hours behind Indian Standard Time in the period November – February and 8-1/2 hours behind in the period March-October. There are four time zones in Brazil itself. 

Crime, mugging, assaults and robberies are major problems in the city. Rio , of course, warrants more precautions. These can happen in day time and even at traffic signals while one is sitting in the car. Following precautions are advisable:

          a) Do not display jewellery and expensive watches on your person.

          b) Avoid walking on the streets late at nights and on lonely streets, particularly in downtown areas.  

          c)In case of assault, do not resist, hand over valuables / cash rather than risk your life. Keep some ready cash separately for such emergencies.

          d)   While travelling in cars keep windows closed.

However, the problems mentioned above do not prevent people from pursuing their normal activities. In fact, São Paulo and Rio are vibrant cities with rich cultural agenda and nightlife. What is needed is just precaution.

Duty free allowance on arrival at the airport is US$ 500.00. If   visitors bring samples of large value, they should be declared. Penalties are heavy for violation.

A list of hotels located close to the Consulate and in the safer part of the city is given at the end of this note. Cheaper hotels are available but the areas in which they are located are risky.

Portuguese is spoken exclusively in Brazil . Businessmen are advised to have their correspondence with new Brazilian contacts translated, which always helps. While some importers speak English, the visitors might need to take an interpreter for meetings with those who speak only Portuguese. A list of interpreters is given at the end. The Consulate normally hires interpreters at the rate of US$ 50 per day, depending upon the nature of work and duration. Some of the interpreters are also willing to provide transport in their cars.

Besides São Paulo, visitors could consider meeting importers in other cities of Brazil . Generally,   importers in small cities are more open minded and easier to deal with. Some of the cities specialize in particular industries, e.g.

- AM = State of Amazonas
- SC = State of Santa Catarina
- SP = State of São Paulo
- MG = State of Mina Gerais
- RJ = State of Rio de Janeiro

Electricity is 110 volts in São Paulo State and most other States while it is 220 volts in Brasilia and few other places.

There are four Indian Restaurants in São Paulo :

Ganesh - 5181 4748
Gopala (vegetarian) - 3283 3867
Govinda - 5092 4816
Tandoor -3885 9470 (Delivery to hotel provided)

You can consider inviting your clients for Indian food, which is appreciated by many Brazilians.

Non-vegetarians should try a ‘Churrascaria Rodizio’ restaurant and ‘Feijoada’ which are typically Brazilian.   Tips are about 10 percent and are generally included in the bill.

International calls are expensive. For example, calls to India cost US$ 2.50 per minute. Cellular phones can be hired at the airport.

Codes

Holidays

During Christmas, New Year and Carnival, Brazilians tend to have extended holidays. Business visits should be avoided between December and February. Following is the list of Brazilian holidays:

January 01 - New Year’s Day
January 25 - São Paulo Founding Day
February /March - Carnival (variable)
March/April - Good Friday (variable)
April 21 - Tiradentes Day
May 01 - Labour Day
May 30 - Corpus Christi Day
July 09   - Revolution Day ( São Paulo State only)
September 07 - Independence Day
October 12 - Our Lady of Aparecida
November 02 - All Souls Day
November 15 - Proclamation of Republic
December 25 - Christmas

Shopping Centres

Visit to some of the “shopping centres” and supermarkets in São Paulo is recommended as this will give you a fair idea of the local prices, fashions and trends in consumption. The shopping centres are open, some even on Sundays, from 1000 hours to 2200 hours. Some of the big ones worth visiting are : Iguatemi Shopping Centre, Morumbi Shopping Centre, Ibirapuera Shopping Centre, Shopping Centre Norte, Eldorado Shopping Centre.

People

Brazilians are generally warm and friendly people and make you feel at home. You might come across a number of Brazilians interested in Indian culture, religions, yoga and gurus. These interests give an extra dimension to business relationship.

Shortest air connection is through South African Airways, via Johannesburg , twice a week. All major airlines arrive and take off from Sao Paulo and most also touch Rio de Janeiro. Details.

Air India connections are available to Paris , London and New York . Thereafter, there are several airlines, including Brazilian Airline Varig, which comes to Sao Paulo .

Campinas , a city 120 kms from Sao Paulo is emerging as a major air cargo center.

Local Transport

São Paulo is notorious for traffic congestions. Even a short distance of about a kilometer might take half an hour. Please give sufficient margin for travel time while fixing your appointments. If people get delayed in reaching you at the time fixed, please be patient.

Taxis are expensive. Minimum fare is R$ 3.20. Radio taxis are available for pick up from anywhere 24 hours but they charge 50% more. English-speaking taxi service is available from   “Hart Logistica S/C Ltda.” Tel. No.   7811-6036 at reasonable rates.

Distance between International Airport ( Guarulhos ) and the city is about 30 kms and taxi fare is around R$ 50.00. There is a domestic airport Congonhas for internal travel.

BUSINESS TIPS

Business Visas

The Ministry of External Affairs had successfully persuaded the Brazilian Government to issue five year multiple entry visas to Indian business visitors since October, 1997. Brazil has been the first and only country in Latin America to issue such five year visas. However, recently there has been a trend to issue short-term visas for even bona fide Indian businessmen, up to 90 days only. Businessmen requiring to make frequent visits over a long term can seek advice from the Consulate. Even a five-year visa only permits stay of   up to 180 days in a year. Overstay involves fine on departure.

Customs duty and other taxes on imports

Average customs duty is 14 percent and maximum duty is 40 percent. The following additional taxes have to be paid by importers   at the time of clearance of goods.

i)IPI   from 0 to 20% on CIF + import duty (Industrialization Tax)

ii)ICMS generally 18% on CIF price + import duty +IPI (State Sales Tax)   could be lower in some States.

iii)Foreign Exchange Tax   1.2% of FOB

iv)Freight Tax   25% of the cost of freight

v) Port charges & handling about 20%.

& clearance.

Import License

Import procedures have been simplified, computerized and clearances are given “on line” through the “SISCOMEX” system since January, 1997. Importers need license for all items, some of which are on automatic licensing. They have to   access “SISCOMEX” website at   www.siscomex.com.br   and give all information about their imports for online clearance. However, for some goods they need import license. If the prices are below minimum prices or if there are any complications, the importers would be asked by the system to contact the Foreign Trade Ministry for clearance.

Importers are required to use the Simplified Import Declaration (SID) for products to be used in exhibition and trade fairs, as samples from international companies, and for goods imported via regular   and express mail. The SID is also used when goods have to be   dispatched quickly from Customs, for instance in the case of perishables, goods imported in case of emergency, and goods imported in bulk. The SID is not processed   through the SISCOMEX.

Minimum Prices

In the case of a few products, such as garments and polyester films, Brazilian Foreign Trade Ministry has fixed minimum price to prevent under invoicing by importers. These minimum prices are not established with laws or decrees. It is normally an internal instruction and exporters should have a good relationship with the importers who would know the minimum prices of the products of their interest.  

Mercosul Market

Brazil is a founding member of the Southern Common Market (Mercosul), composed also of Argentina , Uruguay , and Paraguay . Mercosul was established in 1991 with the objective of creating a common market with free movement of goods, services, and persons by the end of 1994. Most tariffs applicable to intra-zone trade were removed   on 1 January 1995 , when the Common External Tariff (CET) came into force and some 85% of intra-trade became duty free. Regarding imports from third countries, at present each member is allowed a list of products that are exceptions   to the CET. The tariffs on these products will progressively converge to the CET; full implementation (all members, all items) should be achieved by 2006.      

Some of the Brazilian importers and agents operate in other countries of Mercosul as well as in other parts of South America . It would be useful to explore this possibility.

Brazilian market and   importers are sophisticated. The Brazilians tend to compare themselves with USA and Europe . They will therefore be impressed by your exports to developed countries than to Africa and Asia .

The best way of marketing of products in Brazil is through participation in the sectoral international trade fairs (every year there are over 50 of them) most of which are held in São Paulo. List of important Fairs.

The Consulate would be happy to provide more information on these Fairs and facilitate the participation of Indian companies in these fairs.

Visitors could time their visits to coincide with the International Trade Fairs which provide ideal opportunities for contacts and market survey.

EXIM Bank of India has concluded an agreement with   BRADESCO for extension of up to US$ 10 million line of credit for export to Brazil. Details.

Importers and businessmen in Brazil borrow from banks at high interest rates between 3 and 7 percent a month. The importers are, therefore, generally keen to get credit from foreign suppliers. Some of the small importers try to save the expenditure on opening LCs and prefer other forms of payment.

There are some shipping lines between India and Brazil . Most imports to Sao Paulo are serviced through the Port of Santos .   Shipping Companies:

1. In India

GAC Shipping India P. Ltd.
Tel. : 0091-22-2641943
E-mail: sanjeev.thilakan@gac.co.in

2. In Brazil

RMBulk Chartering & Shipping Ltd.
Rua Von Martius 325/904
Jardim Botânico
22460-040 - Rio de Janeiro
Phone: 55-21-2511 1352; tele/fax: 2294 6685
E-mail: roquehdmasc@yahoo.com.br

P&O Nedlloyd
Container Line Ltda.
Rua Alexandre Dumas 2100, 14º andar
Chácara Santo Antônio - CEP 04717-004
São Paulo - SP
Tel: 0055-11-5180 1000; fax: 5182 5882
E-mail: celso.garcia@ponl.com

Perseverance required

If you are an exporter of garments, hand tools or such general items, you may not get prompt and positive response from Brazilian importers to your letters and faxes. In these cases Brazilians are flooded with such enquiries from dozens of exporters from India , besides those from China , Korea , Taiwan etc. You need to persevere and work hard.

Even in the case of other items Brazilian importers take time in dealing with new suppliers from countries such as India . They have to be convinced about the credentials and reliability of Indian companies besides the quality of products. These are more important than prices since Brazilian importers take for granted that Indian prices should be competitive.

Commerce Ministry has launched this programme since November 1997 to stimulate and promote exports to Latin America . They have drawn up an elaborate programme of activities in collaboration with Export Promotion Councils and Chambers of Commerce. Under this programme, incentives and subsidies are given to exporters and EPCs to bring delegations to Latin America , to participate in Trade Fairs and to do market surveys.   Exporters might like to check this out with the Export Promotion Councils, ITPO etc. The Focus LAC Programme has been extended up to March 2004.

Indian businessmen might consider opening   marketing offices in São Paulo and also keep the option of investment and joint ventures. The strategic location of São Paulo , the Commercial Capital of South America, is ideal for covering the whole South American region, which has significant untapped potential for our exports. Exporters could also consider setting up regional warehouses at São Paulo to cater to the import needs of medium and small companies some of which prefer local purchases than to enter into the complicated world of imports.

Useful information and a legal guide for investors in Brazil can be obtained from Consulate´s website, at the section Information for Indian Exporters.

Brazilian Business Contacts

Commercial Association of São Paulo (ACSP)

Contact : Mr. Sidney Ducal (speaks English)
Rua Boa Vista 51, 10th Floor
CEP 01014-911 – São Paulo – Brazil
Tel : 00 55 11 3244 3997
Fax : 00 55 11 3239 4113

ACSP publishes trade enquiries in their daily newspapers. They can verify information about companies in São Paulo State for a fee.

Federation of Industries of São Paulo (FIESP)

Contact: Department of Foreign Trade,
Av. Paulista, 1313, 11th Floor, Room No. 1106
CEP 01311-923, São Paulo – Brazil
Tel   : 00 55 11 3252 4571
Fax : 00 55 11 3284 3611  

FIESP can answer trade enquiries (through “Trade Point São Paulo”, e-mail : tradepoint@fiesp.gov.br ) for a fee and also publish trade enquiries in their periodical.

There are a number of industry and trade associations dealing with specific groups of products. Their addresses could be obtained from the Consulate.

Useful Websites

Web Sites and E-mails of Missions and Posts in the Latin American Region

Embassy of India, Buenos Aires, Argentina e-mail: indemb@indembarg.org.ar

Embassy of India , Santiago, Chile e-mail: embindia@entelchile.net

Embassy of India, Bogota, Colombia e -mail: indembog@andinet.com

Embassy of India, Mexico City,   Mexico
Website: www.india-in-mexico.cx
e-mail: indembmx@prodigy.net.mx  

High Comission of India , Kingston ,   Jamaica e-mail: hicomindkin@cwjamaica.com  

Embassy of India , Paramaribo ,   Suriname E-mail: india@sr.net  

High Commission of India , Port of Spain ,   Trinidad and Tobago
website: www.hcipos.com
e-mail: info@hcipos.com  

Embassy of India, Caracas, Venezuela
w ebsite: www.embindia.org
e-mail: embindia@eldish.net  

Embassy of India, Lima, Peru
e-mail:   postmaster@indoperu.org.pe  

USEFUL ADDRESSES

Embassy of India in Brazil

Address:         SHIS QL 08, CONJ. 08, CASA 01, LAGO SUL - Cep: 71620-285 – Brasília – DF
Phone:           (55) 61-3248-4006
Fax:               (55) 61-3248-7849/5486
e-mail:           indemb@indianembassy.org.br - website: www.indianembassy.org.br

Mr. Marco Antonio Diniz Brandão
8, Aurangzeb Road ,
New Delhi   110011
Phone: 91-11-2301-7301
Fax:      91-11-2379-3684
E-mail: secomdel@nda.vsnl.net.in

Mr. Fausto Godoy
Free Press House, 11th floor, Unit Nos.113&114,
Free Press Journal Marg
400 021
Munbai
Índia
Phone:
+91-22-2283-4467
+91-22-2283-4469
+91-22-2283-4466
Fax:
+91-22-2283-4468

Avenida Paulista, 925 - 7th floor
Cep: 01311-100 - São Paulo - SP
Tel: 11 3171-0340/41 reception
Fax: 11 3171-0342
website: www.indiaconsulate.org.br