202 Million *
Brazilian Real (R$)
*Source: The CIA World Factbook
GDP $2.2 Trillion (2015)
Latin America’s Largest Economy (2016)
U.S. is 2nd Largest Source of Imports (2015)
$26.4 Billion Worth of U.S. Goods Imported (2015)
World’s 8th Largest Economy
Top Prospects for U.S. Exports
Aircraft and Parts
Aerospace is one of Brazil’s most important industries and offers excellent opportunities for U.S. aircraft manufacturers and parts suppliers. In 2015 U.S. exports reached US$5.2 billion and Brazil continues to be one of the top destinations for U.S. aircraft, aircraft parts, and components. Excellent opportunities also exist in the general aviation segment. According to the Brazilian Association of General Aviation (ABAG), the Brazilian fleet of approximately 15,000 aircraft is the world’s second-largest general aviation fleet and the third-largest helicopter fleet.
Brazil has some of the highest quality hospitals in Latin America and attracts patients from neighboring countries mostly for plastic surgery, cancer and cardiovascular treatment. U.S. hospitals have been partnering with Brazilian hospitals for education, telemedicine and second opinion programs. U.S. companies may also consider joint ventures with local industries for assembling or manufacturing medical products in Brazil. This strategy may help to reduce duties and also use Brazil as a springboard to reach out other Mercosur countries. There is strong demand for eHealth solutions in Brazil, ranging from basic protocols for patient records to highly sophisticated modern analytics solutions.
Cosmetics, Toiletries and Fragrance
Brazil is the third largest market for Cosmetic, Toiletry and Fragrance (CT&F) products in the world. Brazil is home to some of the most beauty-savvy women around the world and has become a trendsetting market for the global industry, accounting for 9.4% of the worldwide consumption of CT&F products. Brazil ranks first in fragrances, sunscreen protection, and deodorants, second in haircare, men’s and children’s products, bath care, and depilatories and third in color cosmetics (makeup and nail care). The Brazilian market is ranked fourth in oral care.
Trade Regulations & Customs Information
Import Tariffs: Imports are subject to a number of taxes and fees in Brazil, which are usually paid during the customs clearance process. There are three taxes that account for the bulk of import costs: the Import Duty (II), the Industrialized Product tax (IPI) and the Merchandise and Service Circulation Tax (ICMS). Note that most taxes are calculated on a cumulative basis.
Import Requirements and Documentation: U.S. exporters and Brazilian importers must register with the Foreign Trade Secretariat (SECEX), a branch of the Ministry of Industrial Development and Commerce (MDIC). Depending on the product, Brazilian authorities may require more documentation.
Customs Regulation: It is essential to have all customs documents in complete order. Products can get delayed for various reasons, including minor errors or omissions in paperwork. Products held at customs in Brazil can be assessed high fees. Brazilian Customs frequently seizes shipments that appear to have inaccurate documentation. Customs has the right to apply fines and penalties at its discretion.
Prohibited Goods: The Brazilian Government has eliminated most import prohibitions with certain exceptions. In general, all used consumer goods are prohibited from being imported. Used capital goods are allowed only when there is no similar item produced locally. Aviation parts, for example, are one of the few used products allowed to enter Brazil. Remanufactured goods are still considered used goods. The country prohibits the imports of beef derived from cattle administered with growth hormones, fresh poultry meat and poultry products coming from the U.S., and color prints for the theatrical and television market.
U.S. Export Controls: At this time, the U.S. Government maintains no export controls specific to Brazil. Normal controls are maintained on military equipment, high-tech information systems, and equipment of a highly sensitive nature.
Source: The International Trade Administration (ITA), U.S. Department of Commerce www.export.gov