Trading Across Borders
Brazil
DB Workshop
Brasilia, Nov 30-Dec 2
Doing Business
Doing Business
• Table 9.2 Summary of export and import time and cost for trading across
borders in Brazil
SP
RJ
LAC
• Time to export: Border compliance (hours)
49
49
63
• Cost to export: Border compliance (USD)
959 959 527
• Time to export: Documentary compliance (hours) 18
18
56
• Cost to export: Documentary compliance (USD)
226 226 111
• Time to import: Border compliance (hours)
63
63
65
• Cost to import: Border compliance (USD)
970 970 685
• Time to import: Documentary compliance (hours) 120 120 83
• Cost to import: Documentary compliance (USD)
107 107 120
Other Assessments on Border
Management
• CATT
CATT
Last recognized reforms
• Table 9.1 How has Brazil made trading across borders easier—or not?
By Doing Business report year from DB2011 to DB2017 DB year
Reform
• DB2016 Brazil reduced the time for documentary and border
compliance for exporting by implementing the electronic SISCOMEX
Portal system. This reform applies to both Rio de Janeiro and São
Paulo.
• DB2017 Brazil made trading across borders easier by implementing
an electronic system for importing, which reduced the time required
for documentary compliance. This reform applies to both Rio de
Janeiro and São Paulo.
The Trade Transaction
Goods
S
INFORMATION
Payment
B
A simplified map of the international trade process
Pay Taxes
Clear Customs
Release Goods
Air, Sea, Land
International
Customs
Transport
DOMESTIC
SUPPLY CHAIN
Port
Ship’s
Documents
•Manifest
•Bills of Lading
•Sea/AW Bill
•Container Plans
Foreign
Chambers
Commerce
Overseas
Embassies
Storage
IMPORTER
•Quotations
•P.O.s
•Delivery Notes
•Con. Notes
•Invoices
•Statements
•Invoice
•Packing List
•Declaration
•Delivery Note
Certificates
Of Origin
“Legal
Invoices”
•Payments
•Remittance
Advice
MANUFACTURER
•P.O.
•Contract Terms
•Delivery
Instructions
•L.O.C.
Post/
Courier
Bank
Finance
Ministry
EXPORTER
Chamber of
Commerce
•L.O.C.
•Packing List
•Invoice
Book/Confirm Transport
Pay Taxes
Clear Customs
Release to Port
Customs
•Invoice
•Packing List
•Declaration
•Delivery Note
•Certificates
Of Origin
•Form A
•EUR.1
Port
Shipping
Documents
Port
Customs
Receive
Goods
FOREIGN
BUYER
Pay
Government
Departments
& PIAs
•Licenses
•Certificates
•Government
Approvals
Port Processes
•Internal Transport
•Storage
•Container Handling
•Loading
•Raw Materials
•Packaging
•Transport
•Storage
•Licenses
•Certificates
•Government
Approvals
LOC Approval
LOC Courier
Bank
The way forward
• Tracking
• Measuring
• Coordinated border management
Tracking merchandise
• GPS, RFID and related technologies provide affordable a efficient solutions,
including electronic seals, NAVIS or similar software for cargo
management.
• Uruguay has state of the art on electronic seals, GPS, ever for non
contenerized cargo. Argentina has invested in electronic seals and a central
monitoring, improving transport times and control
• Uruaguay has developed a database for transits within MERCOSUR
• El Salvador is starting RFID for ground borders, consolidating better release
times and control for cross borders plenty of “sacoleiros” equivalents
• WBG has helped to implement tracking systems in several countries and
regions (Balcans, Central Asia, EU accessing countries)
Measuring
• Receita (Alfandega) has made several studies on release time for Rio
and Santos. Studies contain detailled mapping. Use them!
• WTO Trade Facilitation Agreement makes mandatory to periodically
publishing reléase times.
• Logistic Observatory focused on corridors, ports Access and ground
borders
Coordinated Border Management
• Although good electronic processing trough SISCOMEX, several
procedures continue fragmented and several glitches need to be fixed
• Separate Inspections with low use of risk management for selection
• Low use of prior to arrival import declaration (Declaracao sobre
aguas). Chile has over 80% in advance declarations.
• Follow TFA agenda, focusing on import procedures, as main exporters
are main importers as well.