IS IT A GOOD TIME TO START EXPORTING?

Learning to Export

The current situation in Brazil is making it difficult for businessmen from various sectors of the economy to maintain profitability in their business activities. One solution that has been adopted by companies and that has been pleasing several entrepreneurs is to bet on the international market (export). Listed below are three pros and three cons on the subject:

Disadvantages

1. If the company does not have enough production to increase its market internationally, it may experience internal difficulties in your company. As the cost of production in Brazil is high, it may be that at first the company has difficulties in adapting the product to exports.

2. To export, the company goes through the difficulty of fiscal ignorance of the destination country. Before shipping any product, you should study to know the laws of the other country, as there are products that may have restrictions. This avoids any problem with local government.

3. The entrepreneur who wants to expand his market should invest in international fairs in order to present his product to the local market and look for possible partnerships. These fairs end up counting as expenses for the company in the short term.

Benefits

1. The internal market is less heated, which decreases corporate sales. Exporting is a way to increase the company’s profitability, as its consumer market will be expanded.

2. The exchange rate is very favorable to exports. As the real is devalued against the dollar, Brazilian products become more competitive in the international market.

3. The government gives tax incentives to companies that wish to start the export process, giving exemptions from taxes such as ICMS, IPI, PIS and CONFINS, among others.

The government also has an agency dedicated to export aid: APEX BRASIL – Brazilian Export and Investment Promotion Agency (http://www.apexbrasil.com.br/).

So we can conclude that this is a good time to implement this new sales model for the company. What the Brazilian entrepreneur should do at this moment is always to innovate and increase his range of possibilities in the consumer market, both internal and external. However, to export the entrepreneur must seek help to avoid problems. The help of a Trade (Company authorized by the government to export or import product to other companies) is essential for everything to go well with your export. The agency reduces the cost of international shipping without intermediaries, as well as handling door-to-door freight.

Thinking about importing but don’t know what the cost? Get a Free Quote or Call 031 3318-9100 and talk to one of our attendants.