BRAZIL COUNTRY COMMERCIAL GUIDE

Fiscal Year 2004
Preparation Date: July 15, 2003

TABLE OF CONTENTS
1. 2. EXECUTIVE SUMMARY ……………………………………………………… ECONOMIC TRENDS AND OUTLOOK …………………………………….. Major Trends and Outlook …………………………………………………….. Principal Growth Sectors ………………………………………………………. Government Role in the Economy ……………………………………………. Balance of Payments Situation ……………………………………………….. Infrastructure ……………………………………………………………………. POLITICAL ENVIRONMENT …………………………………………………. Nature of Political Relationship with the United States …………………….. Major Political Issues Affecting Business Climate ………………………….. Brief Synopsis of Political System, Schedule for Elections and Orientation of Major Political Parties ……………………………………………………….. 005 006 006 007 007 008 008 010 010 010 011

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MARKETING U.S. PRODUCTS AND SERVICES …………………………. Distribution and Sales Channels ……………………………………………… Use of Agents/Distributors; Finding a Partner ………………………………. Franchising ……………………………………………………………………… Direct Marketing including E-Commerce.. …………………………………… Joint Ventures/Licensing ………………………………………………………. Steps to Establishing an Office ……………………………………………….. Selling Factors/Techniques …………………………………………………… Advertising and Trade Promotion …………………………………………….. Pricing a Product ……………………………………………………………….. Sales Service/Customer Support …………………………………………….. Selling to the Government …………………………………………………….. Protecting your Products from IPR Infringement …………………………… Need for a Local Attorney ……………………………………………………... Performing Due Diligence/Checking Bona Fides Of Banks Agents/Customer. ………………………………………………………………. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT ……… Best Prospects for Non-Agricultural Goods and Services …………………. Best Prospects for Agricultural Products …………………………………….. TRADE REGULATIONS, CUSTOMS AND STANDARDS ……………… Trade Barriers, Including Tariff and Non-Tariff Barriers ……………………. Tax and Fees Assessed on Imports ………………………………………….. State of Espírito Santo Tax-Exemption Incentive …………………………... Customs Regulations ………………………………………………………….. Import Licenses ………………………………………………………………… Automatic Licenses ……………………………………………………. Non-Automatic License ……………………………………………….. Prior to Customs Clearance ………………………………………. Prior to Shipment …………………………………………………... Export Controls …………………………………………………………………. Import/Export Documentation ………………………………………………… Temporary Goods Entry Requirements ……………………………………… Labeling, Marking Products …………………………………………………… Prohibited Imports ……………………………………………………………… Standards ……………………………………………………………………….. Free Trade Zones/Warehouse ………………………………………………... Membership in Free Trade Arrangements …………………………………... INVESTMENT CLIMATE ……………………………………………………… Openness to Foreign Investment …………………………………………….. Conversion and Transfer of Policies …………………………………………. Expropriation and Compensation …………………………………………….. Dispute Settlement …………………………………………………………….. Political Violence ……………………………………………………………….. Performance Requirements/Incentives ………………………………………. Right to Private Ownership and Establishment ……………………………... Protection of Property Rights …………………………………………………. Patents ………………………………………………………………….. Trademarks …………………………………………………………….. Copyrights ………………………………………………………………

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Integrated Circuit Layout Design …………………………………….. Regulatory System: Laws and Procedures (as they pertain to investments) …………………………………………………………………….. Bilateral Investment Agreements …………………………………………….. OPIC and Other Investment Insurance Programs ………………………….. Labor …………………………………………………………………………….. Capital Outflow Policy ………………………………………………………….. Major Foreign Investors in Brazil ……………………………………………... Efficient Capital Markets and Portofolio Investments ………………………. TRADE AND PROJECT FINANCING ……………………………………….. Brief Description of the Banking System …………………………………….. Foreign Exchange Controls Affecting Trade (As Opposed to Investment) . General Availability Financing ………………………………………………… How to Finance Exports/Methods of Payment ……………………………… U.S. Dept. of Agriculture Credit Assistance Program ………………………. Types of Available Export Financing and Insurance ……………………….. Export-Import Bank of the United States …………………………… Availability of Project Financing ………………………………………………. Overseas Private Investment Corporation ………………………….. Ex-Im Bank ……………………………………………………………... Multilateral Development Banks ……………………………………... List of Banks with Correspondent U.S. Banking ……………………………. BUSINESS TRAVEL ………………………………………………………… Business Customs ……………………………………………………………… Travel Advisory and Visas …………………………………………………….. Holidays …………………………………………………………………………. Business Infrastructure …..……………………………………………………. Air Travel ……………………………………………………………….. Local Transportation …………………………………………………... Time …………………………………………………………………….. ECONOMIC AND TRADE STATISTICS ……………………………………. APPENDIX A Country Data …………………………………………………………… APPENDIX B Domestic Economy …………………………………………………… APPENDIX C Trade ……………………………………………………………………. APPENDIX D Investment Statistics ………………………………………………….. U.S. AND COUNTRY CONTACTS Brazilian and Government Contacts ………………………………………… Country Trade Association/Chambers of Commerce ………………………. American Chambers of Commerce …………………………………………... Country Market Research Firms ……………………………………………… U.S. Mission in Brazil ………………………………………………………….. List of Attorneys in Brazil ……………………………………………………… U.S. Government Agencies …………………………………………………… MARKET RESEARCH AND TRADE EVENTS

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140 141 145 4 .. Industry Sector Analysis Report (ISA) ………………………………………. TRADE EVENTS SCHEDULE ……………………………………………….13. Guide to USCS Brazil Commercial Services ………………………………..

making it Brazil’s largest single trading partner. Most industrial economic activity is focused around the southeastern states of Rio de Janeiro. Brazil’s gross domestic product grew 1. telecommunications. companies face high tariff barriers. the U. For 2003. the Brazilian currency.FocusBrazil. mineral and industrial resources and offers a substantial market opportunity for U. estimated U. Rio de Janeiro. the complexities of the Brazilian business environment still create substantial obstacles for U. steel. Brazil has the 11th largest economy in the world. and a legal system that is overloaded and often incapable of enforcing business law or intellectual property rights effectively. He has also stated that he is committed to completing the Free Trade Area of the Americas (FTAA) negotiations by the set deadline of January 2005. aircraft. Despite partial liberalization in recent years.S. Minas Gerais. particularly in sectors such as computer hardware and software. territory. The Commercial Service has offices in Brasilia. a heavy and unpredictable tax burden. of the left-leaning Worker’s Party (PT). Overall relations between Brazil and the United States are strong. The President has promised to respect all contracts and maintain current payments on the external debt.br or www. However.gov 5 . Crime. a difficult customs system. Commercial Service can assist U. U.5 % in 2002 and is expected to grow a little over 1% in 2003. Government anti-inflation policies. You can also visit the website: www. and environmental degradation are major problems that are exacerbated by one of the most unequal distributions of wealth in the world. health epidemics. franchising.org. exporters.S. Brazil is also one of the top three locations for U. uncertainties about future economic plans. foreign direct investment (FDI). and economy. Doing business in Brazil requires intimate knowledge of the local environment. coffee. and orange juice.S. With its team of industry sector experts. has pursued moderate economic policies since taking office in January 2003. petroleum equipment and services. economic difficulties in neighboring Argentina.01. EXECUTIVE SUMMARY With a gross domestic product (GDP) of $457 billion. Successful negotiations could lead to a reduction in customs tariffs and increased market access for U. exporters. The Brazilian agricultural sector is well diversified and Brazilians are world leaders in production of sugarcane. and Sao Paulo and includes automobiles. computers. and aircraft.S.S. many companies find that the opportunities outweigh the risks. Belo Horizonte and Porto Alegre. exports are booming because of the weak real. exporters gain entry into the Brazilian market through market research reports. His administration has focused on tax and social security reforms and the fight against hunger and poverty. soybeans. Yet Brazilians remain an optimistic people and are leaders in Latin America in their calls for free trade and transparent governance. Sao Paulo. including explicit as well as hidden costs of doing business (referred to as the “Custo Brasil”). With over 170 million people.S. exports to Brazil will reach $10 billion and Brazilian exports to the United States will reach $16 billion. match-making services and advocacy programs.export. and safety and security equipment. drug abuse. Nevertheless. exporters. internet.S. it is rich in agricultural. President Luiz Inacio Lula da Silva. petrochemicals. Internal migration from the poor northeastern states continues to produce rapid urbanization in the southeast.S. Over one quarter of Brazil’s exports go to the United States. and represents about half of the South American population. and the continued sluggish world economy have put a damper on growth.

75% of GDP. By the second quarter of 2003 moderate international borrowing began.02. the Cardoso administration assured the IMF it would tighten fiscal discipline and strive for a primary budget surplus (excluding interest payments) of 3. The real’s depreciation increased inflationary pressure. inflation hit a 7-year peak of about 17% by May as the longer term impact of the real’s depreciation and backward-looking perspective of inflationary trends reached the broader economy. The plan also inaugurated one of the world’s largest privatization programs. Power generation recovered significantly from its 2001 crisis levels. 2003. Inflation will likely exceed official targets.5%. In its agreement. Brazil has undertaken a number of economic reforms that have helped it absorb these shocks. although economic activity showed no signs of picking up. From its inception. the government remained in compliance with the terms of the Stand-by. To reassure financial markets and halt the hemorrhaging of foreign reserves.5%. the Brazilian government reached agreement with the IMF in August 2002 on a $30 billion Stand-by Arrangement through the end of 2003. the Brazilian economy’s dependence on external financing and the government failure to control its finances left the economy vulnerable to external shocks. economic uncertainty remains high and growth will again be modest in 2003. ECONOMIC TRENDS AND OUTLOOK Major Trends and Outlook In 2002. In the past decade.25% of GDP. the government was forced to devalue and float the real in January 1999. In 1994. most notably uncertainties regarding presidential elections in October. However. The exchange rate of the real weakened appreciably during the third and fourth quarters (reaching its nadir of close to 4:1 to the dollar in mid-October between the first and second election rounds) before partially recovering at the end of the year to roughly 3. Soon after taking office January 1. Despite the Lula administration’s strict fiscal and monetary policies. total electricity consumption remained below its 2000 peak. In spite of a $42 billion assistance package negotiated with the IMF and other lenders. From October to December 2002 interest rates were raised from 18% to 25% (in nominal terms) in an effort to counter inflationary pressures. which reached 12. However.5% by December. the Lula administration stated it would raise the primary budget surplus level set under the IMF Stand-by to 4.5:1. However.6 billion in 2002 as investors feared that following the elections Brazil might default on its foreign debt service. The 2001 energy crisis and the resultant decline in economic activity devastated a number of ongoing power generation projects. the behavior of the Lula government assured markets that it would continue the orthodox economic and financial policies begun under Cardoso. the Brazilian economy entered into recession. 6 . which are currently set at around 8. the Brazilian economy registered its second straight year of lackluster growth due to several factors. GDP expanded by only 1. the same anemic level achieved in 2001. when growth slowed. both foreign and domestic companies correspondingly lost huge sums. Brazil’s country risk premium for international borrowing has fallen from a high of 24% in late 2002 to just 7% by mid-2003. probably no more than 1. which were a result of lack of rainfall to run hydroelectric facilities. The first half of 2003 witnessed the recovery of the exchange rate by about 20% against the dollar as markets became more comfortable with the reform-minded policies of the new Lula administration.5 billion in 2001 to $16.5% for the year. Brazil initiated an economic stabilization program known as the Real Plan which was highly successful in reducing longstanding inflation. Foreign direct investment levels dropped from $22. Following the Russian debt default in August 1998. Through the first half of 2003.

and removal of impediments to competition. public utility services increased 1. The Cardoso government broke up numerous federal monopolies in key areas. Manufacturing activity grew 1. Growth was led by agriculture. safety. essentially the same as in 2001. barely recovering from the effects of electricity rationing in response to the drought in 2001. the Lula government has advanced a program of economic reform founded on major changes in Brazil’s tax and pension systems. the communications subsector turned in the best performance by far with a 7. In telecommunications.5% in 2002. Commerce rose 0.4% expansion. but has exceeded the targets for 2001 and 2002. the majority of the private sector has so far been unable to prosper. compared to the same quarter in 2001. which set strict limits on government spending at the federal and sub-federal level. but also through wage. Its influence was felt not only directly through the day-to-day activities of government entities.0%. Most electricity distribution has been privatized.5%. Government Role in the Economy Under the development policies of Brazilian administrations since the 1960s.2% and transportation fell by 0.9%. In the energy sector. although oligopolies have sometimes emerged in their places. which expanded 5. Reflecting the difficulty of accommodating these shocks. In order to achieve more sustainable budgetary equilibrium. In the services sector. Within the industrial sector.9% expansion in industry. the government remained dedicated to fiscal discipline. and credit policies. the policies of the Cardoso administration in the mid to late 1990’s significantly reduced the public sector presence in economic activities and focused government efforts on areas such as public health. with a decline in the current account deficit and less costly foreign financing.During Cardoso’s second term. and subsidy and fiscal incentive programs. the government ended the state monopoly and established a National 7 . Agriculture grew by 8.8% in the quarter. The Cardoso government emphasized greater economic opportunities for the private sector through privatization. the government has established itself as the dominant force in shaping economic growth by means of planning and management. the Cardoso government opened offshore exploration to private companies. Inflation was on target for 2000. still dominates the sector.5%. however. highlighted by the passage in May 2000 of the Fiscal Responsibility Law.5% band around the central target. GDP grew 2. In the first quarter of 2003. While the central government retains an important economic role. The balance of payments. deregulation. In the petroleum and gas sectors. Principal Growth Sectors The Brazilian Statistical Institute (IBGE) estimated that the economy grew 1. The government also initiated an inflation targeting program as the basis for monetary policy. although PETROBRAS. a state-owned enterprise. and education. but a large share of generation and transmission capacity is still held by the government.5%. price.9% and construction fell by 2. the government has recently raised the inflation targets for 2003 and 2004. Despite these recent structural changes.8%. the government began privatizing state entities in 1995 and created the National Electrical Energy Agency (ANEEL) to regulate the sector in 1996. The proposed reforms were submitted to Congress in the second quarter 2003. is not a concern at present. with a 2. Industrial production and services increased by 1.6% (driven by grains such as soybeans) and services increased 0. keeping the same 2. in which the government sets a target and the Central Bank strives to keep inflation within a target band.

Department of Commerce statistics. The Lula administration has indicated it would continue this effort.7 billion current account deficit in 2002 (-1.5 billion in 1994 to sizeable deficits in 1995-98. exports of $12.1 billion trade surplus with the U. orange juice. The trade surplus could reach over $16 billion in 2003.S.6 billion. which has experienced explosive growth immediately following privatization. Brazil must make amortization payments of roughly $ 28 billion on external debt in 2003. and pentup public demand for capital and consumer goods. For the first six months of 2003. products. However.7% in 2002 while imports fell 15% as a result of the weakened real and lackluster consumer demand. Following the steep collapse in international lending to Brazil during 2002. was aircraft engines. and Brazilian trade figures differ for various reasons. including $21 billion in net new financing from the IMF. Based on U. the United States ran a $3. 8 . The 1999 devaluation helped reduce the trade deficit. show that Brazil ran a $5. footware. From a traditional surplus. and coffee to international markets. new funds are slowly being made available to Brazil in 2003. but both indicate slight growth in Brazilian exports and a steep decline in Brazilian imports of U. Net foreign direct investment.8 billion. include cell phones.S. Brazilian exports in 2002 to Argentina. following a surplus in 2001. Offloading costs are high and ship turnaround time is long. Bureaucracy and paperwork can be serious impediments at the ports. turbines. Brazil ran a record trade surplus of around $13 billion in 2002. Brazil ran a relatively small $ 7. Other leading Brazilian exports to the U. The capital account ran a net surplus of $8. shows no likelihood of reversal in 2003. which had been Brazil’s second largest market. Brazil’s net balance of payments surplus was $ 302 million.S. sugar. but not until a subsequent depreciation in 2001 did Brazil register another trade surplus. Port reform legislation. which declined throughout 2002 to $16 billion. Exports rose 3. In 2002. The United States remains Brazil’s largest trading partner with about 25% of its total international trade – roughly equal to Brazil’s trade with the European Union. Infrastructure Most products reach Brazil by sea and must pass through Brazil's inefficiently run and notoriously costly seaports. Brazil is also a leading exporter of iron ore. well below last year’s pace. largely because of an increased trade surplus and manageable interest payments on its foreign debt. Agricultural commodities remain competitive on world markets. its second leading import category from the U. Brazilian trade statistics.4 billion and imports from Brazil totaling $15.S. Brazil’s leading export to the U. was finished aircraft. gemstones. fell by over 50%. Brazil's trade position has undergone a radical transformation under the 1994 Real Plan.S. In the transportation sector.8 billion. U.Telecommunications Agency (Anatel) to regulate this sector. and components. the implementation of an overvalued exchange rate. The aviation sector figures prominently in the trading relationship. The structure of trade reveals a growing degree of production interdependence as U.S.S.S. with U. firms provide hi-tech inputs for final assembly in Brazil.S. the merchandise balance of trade dropped sharply from a surplus of $10. and autos.71 percent of GDP). on the other hand. particularly as Brazil registers bumper harvests in 2003. $2. the Cardoso government privatized all seven railway firms and has either privatized or turned over to the states most of the federal highway network. the current account deficit was $ 2 million. Meanwhile. soybeans. increased exports in 2002 to new markets such as China (up 32%) and Mexico (up 25%) offset this loss. Balance of Payments Situation Due to market opening policies.4 billion trade deficit with Brazil in 2002.

market prices for electricity collapsed creating huge losses for the investors. While the government was successful in privatizing most distribution companies. Costs are lower and turnaround time is shorter there. Even before the 2001 power crisis. The rationing program. Following in the footsteps of the Cardoso administration. such an effort is unlikely in the foreseeable future. the government has sought to convince Bolivia to reduce the offtake price for Bolivia’s natural gas exports. With the exception of the southeast coast. analysts had noted a decline in investment in the electrical sector at a time when the economy was growing rapidly. The highway network only reaches first-world standards in the state of São Paulo. In 2001 poor rainfall resulted in a serious production shortfall for the second half of the year. Brazil lacks an extensive rail network. Brazil derives over 90% of its electricity from its extensive hydroelectric capacity. The Cardoso government had promised to privatize the port system. was sufficient to avoid blackouts. geographic constraints and environmental concerns have limited river transport development. The entire rail system has been privatized. Brazil’s plans for economic growth are sensitive to repeat power generation problems. although the position of the Lula government towards privatizing the ports remains unclear. The government required business and residential users in most of the country to reduce consumption by 20 percent from 2000 levels. However. major generating companies remained in government hands. poorly maintained highway system. private sector investors had negotiated high price contracts with government generators. The Rio and Espírito Santo ports in the state of Rio are partially privatized. which ran from June to February. Fuel costs are high and add significantly to the cost of transportation. Adequate rainfall in 2002 and 2003 has alleviated this problem for the time being. 9 . However. At the same time that it seeks to expand the power grid with neighboring countries. During the power shortages. The Lula administration has suggested that the government would support augmentation of the country’s rail system. Almost all internal transportation is by truck on a grossly inadequate. As more hydropower generation came back on line in 2002. the Lula government announced plans to increase hydroelectric generating capacity. as well as upgrade transmission systems linking independent systems within Brazil and linking Brazil to its neighbors.enacted in 1993. Except for the Amazon Basin. has not yet significantly improved port conditions.

President Lula is one of Brazil’s most popular leaders in recent history with an approval rating significantly above that of his three predecessors at the same point in their terms. Lula emphasized a strong social agenda. During the presidential campaign. President Lula defied expectations. Some bumps in the road have occurred. Public expectations. important topics of discussion and cooperation include counter-terrorism. anti-capitalist past of the candidate and his Workers Party (PT). Prior to Lula’s inauguration. a program that became known as Fome Zero (Zero Hunger). U. and particularly possible default on Brazil’s foreign debt.S.from sending an expeditionary force to the Allied campaign in Italy during World War II to dispatching a battalion to Angola as UN Peacekeepers from 1995-1997 and coordinating the Military Observer Mission on the Peru-Ecuador border (MOMEP). Major Political Issues Affecting Business Climate Lula’s election in October 2002 was a watershed event in Brazilian history. remain 10 . It has played an important role in international collective security efforts -. however. Brazil did not support the efforts of the U.S. In May 2003. and gross economic product. Under Lula. however. counter-narcotics. as he is widely known. Brazil led the successful effort to invoke the Rio Treaty of mutual security following the events of September 11. President Bush invited the President-elect to the White House. he pledged that by the end of his term all Brazilians would have three meals a day. the real recovered about 25% of its value. fighting poverty. population. succeeding Fernando Henrique Cardoso who had served two four-year terms. In June 2003. an unusual courtesy extended to a non-head of state. Luiz Inacio Lula da Silva was sworn in as Brazil’s President. In a move that energized many impoverished Brazilians. firms in commercial space launches from Brazil’s Alcântara space facility. POLITICAL ENVIRONMENT Nature of Political Relationship with the United States The United States and Brazil have traditionally enjoyed friendly and active relations encompassing a broad political and economic agenda. each approaching 50 per cent of South America -Brazil is the continent’s dominant country.-Brazilian contact and cooperation have remained close. For the first time. Looking at the more radical. and environmental issues. 2003.03. the Lula Administration decided to withdraw from Congress a bilateral nonproliferation technology safeguards agreement that would have allowed participation of U. In a move that has both surprised and pleased financial markets. Once in office. many investors and creditors feared the prospect of a Lula victory.geographic size. Apart from trade and finance. the Lula administration continued and in some cases exceeded the economic stabilization and reform programs launched by President Cardoso. easing inflationary pressures and gaining Brazil new international credibility. resolution of regional problems.-led coalition in Iraq. It has also led political efforts for economic integration in the Southern Cone. From October 2002 to June 2003. President Bush hosted President Lula and the Brazilian cabinet for a bilateral Summit. 2001.S. Candidate Lula won the election by promising a government that would be more responsive to these poorer classes. Brazil’s president came not from the country’s wealthy elites or military but out of the working classes that make up the lion’s share of the country’s 170 million people. Markets reacted accordingly in a negative fashion as candidate Lula’s polling numbers rose. After six months in office. On January 1. although its opposition to the war was generally non-vitriolic. the first such cabinet-wide event between the two countries. By most measures -. human rights. peacekeeping efforts. in December 2002.

While most proponents agree there should be an evolution to a system of charging at “destination” and not “origin. Brazilians listed their three most pressing problems as unemployment.” governors of major producer states insist on federal compensation for revenue they would thereby lose. The Lula administration notched an important legislative victory in April 2003 when Congress voted to amend Constitutional Article 192. The system is governed by the 1988 Constitution. health. Lula has staked his administration’s reputation on passage of two major reforms in 2003 – the pension system and the tax code. The president’s personal popularity could also suffer if he is unable to move the country out of its current economic malaise. demanding two successive votes with sixty percent approval in each chamber of Congress. The core challenge to tax reform is to change the state-assessed ICMS (Tax on the Circulation of Merchandise and Services) to a VAT-like tax with just five. and Deputies are elected statewide. and do away with so-called “cascading” taxes. Meanwhile. As currently envisioned. The Congress consists of two houses. conversely. The President may be elected to two four-year terms and appoints his own cabinet which does not require Congressional confirmation. which grants broad powers to the federal government. 11 . the Senate and the Chamber of Deputies. It is worth noting here Brazil’s current political structure. Years of previous attempts to achieve these reforms have come to naught. and judicial branches. The federal government is comprised of the executive. The current fiscal crater was dug by Brazil’s public sector pensioners who receive an “integral” pension equal to their top lifetime salary. become eligible for retirement at an early age. hunger. state. Tackling the abysmal fiscal drain caused by the annual mismatch between the pension system’s receipts and outlays is critical for making available the financial resources to address other social needs such as education. and municipal taxes. Both require constitutional amendment. There are 81 Senators. Tax reform faces broad political resistance. particularly from Brazil’s governors and mayors who all have status quo interests to protect. nationally standardized rates. clearing the way for eventual Central Bank “operational autonomy. three for each state and the Federal District. and enjoy no ceiling on their pension benefits. the government agreed not to submit for now the follow-on law needed to change the Central Bank’s status. and limit all pensions to a common ceiling. and security. and public security. Chamber terms are for four years. governors of Brazil’s impoverished northeast states. Each state is eligible for a minimum of 8 seats. State representation in the Chamber is only loosely proportional. So far. Of the two. In recent surveys. it would streamline the dozens of different federal. and 513 Deputies.exceedingly high. prefer to tinker with ICMS rates or exemptions as their sole tool for attracting/poaching new investment. eliminate the most egregious components of the public sector pension system. President Lula’s proposed reforms would unify the public and private sector pension systems for future entrants into the workforce. Senate terms are for eight years (with elections staggered so that two-thirds of the upper house is up for election at one time and onethird four years later). the Lula administration’s tax proposal would not lower the overall tax burden. Meanwhile. for the moment avoiding more serious ideological clashes with leftists in Lula’s PT. the largest state delegation (Sao Paulo's) is capped at 70 seats. Instead. private sector workers typically receive just a small fraction of their salaries as pension and max out at a very low level. legislative.” To do so. the Lula administration has not been able to distinguish itself in dealing with any of these problems. A key stumbling block is the question of whether to collect the new ICMS at the point of production or sale. Brazil is a federal republic with 26 states and a Federal District. pension reform is the most vital. The net result is a system heavily weighted in favor of the less populated states.

Congress is characterized by a large number of political parties. In the Senate. Schedule for elections. and Orientation of Major Political Parties All deputies were up for election in October 2002. Although it lost badly at the federal level in October 2002.Partido da Frente Liberal (center-right) PMDB . Sixteen governors are part of the PT coalition. the order of delegation size is: PMDB. and party switching is commonplace. with three branches of government. in order of the size of their delegations. Brazilian governors and mayors have exercised considerable power since 1989.Partido Trabalhista Brasileiro (center-right) PPB . the PSB (four). PT . the PPS (two). The following are Brazil's major political parties. Other governorships are held by the PMDB (five). PSB. a consequence of weak internal party discipline.In addition to geographic imbalance. in the Chamber of Deputies 2003 (since it is common for politicians to switch parties.Partido Democrático Trabalhista (left) PCdoB .Partido Progressista Brasileiro (center-right) PL .Partido Socialista Brasileiro (left) PPS .Partido dos Trabalhadores (left) PFL . Brief Synopsis of Political System. 12 . the PFL (three). States are organized like the federal government. the PSDB still holds eight governorships. the proportion of congressional seats held by particular parties changes regularly). Because of mandatory revenue allocation to states and municipalities provided for in the 1988 Constitution.Partido Comunista do Brasil (left) Two-thirds of the federal Senate seats were up for election in October 2002. and the PDT (one). and PL. the most of any party. Federal deputies and senators do not always vote with their parties. PTB.Partido Liberal (center-right) PSB .Partido da Social Democracia Brasileira (center-left) PTB . the PT fared less well in state and local elections. the PT holds just four governorships.Partido Popular Socialista (left) PDT . PT. PDT. PSDB. PFL.Partido do Movimento Democratico Brasileiro (center) PSDB . Following gubernatorial elections in all 27 states. Although PT presidential candidate Lula won national elections resoundingly in 2002.

companies seeking countrywide presence. we strongly suggest that U.S. This document must contain basic information regarding the economic and financial health of the franchisor. distributors. To take best advantage of this huge market. Local Brazilian Franchises dominate the market (90%). foreign groups.S. However. Recently. can define the type of warranty. due to the creation of additional bonded warehouses. subsidiaries and branches of foreign firms.S. Use of Agents and Distributors. trading companies.or their masterfranchisees . however. The apparent success of local franchise operations is primarily attributed to the speed of service and quality of products offered by these firms. as well as information on any pending legal disputes. This is partly due to high importation and storage costs..04. Under Brazilian law. Finding a Partner Although some companies import directly from foreign manufacturers without local representation. Franchising Franchising is one of the healthiest segments in the Brazilian economy and accounts for approximately 25% of gross revenue in the retail sector.” The Franchising Law requires close attention. protect his trademark and better ensure payments. invest in market research and test market receptivity thorough pilot projects. an agency agreement entitles an agent to receive a termination amount equivalent to at least 1/12 of all commissions received throughout the contract. in most cases the presence of a local agent or distributor can be very helpful. Smaller agents may have geographical limitations. Contract clauses are freely negotiated between the foreign and local firms. In Brazil franchise consultants call this process “the tropicalization of the franchise.S. Lawyers recommend that the exporter and representative have a written agreement. larger companies will have sales offices throughout Brazil.S. It states that franchisors . It is up to the foreign company and the local agent or distributor to negotiate the type of representation. particularly from the U. whether it is an exclusive representation and whether performance targets are included. industries that rely heavily on imported components and parts are maintaining larger inventories there. among others. The advantages of a written agreement are that the exporter can limit his liability in case of any product defects. As in other countries. companies consult with a Brazilian law firm before signing any type of agreement with local firms to avoid legal problems in the future. 13 . U. MARKETING U.should provide all their potential franchisees with a Franchise Offering Circular (Circular de Oferta de Franquia). are making their way into the market too. In general. the selection of an agent requires careful consideration. or raw materials. spare parts. franchisers must be prepared to adapt their product or service to the Brazilian market. PRODUCTS AND SERVICES Distribution and Sales Channels All of the customary import channels exist in Brazil: agents. which is key for U. import houses. Brazilian importers generally do not maintain inventory of capital equipment.

DRTV. Nevertheless. media. publishers.: Amazon. E-commerce and teleservice firms have had a significant presence and have successfully marketed their products and services in Brazil (e. databases. and the first in Latin America with the most advanced Internet and e-commerce industries. telemarketing.Direct Marketing. shipping. IT firms.com is the largest online bookseller in Brazil). and service suppliers to the direct marketing industry constantly look to Brazil as a growing market. With respect to sales to end users or consumers. Industry and Commerce (MDIC). different Brazilian customs rules apply to these types of transactions.S. direct marketing is a proven way to reach 35 million middle-class Brazilian consumers. E-commerce companies. U. in these cases. printing and mailing services. As far as shipments to distributors or Brazilian trading companies.All Shipments valued above US$500 must be imported by Brazilian companies that are registered with SECEX. approximately 20 million Brazilians are on-line on a regular basis and there are 35 million credit cards in circulation. U.Shipments under US$50 enter Brazil duty free. and other subjects vital to direct marketing.S. postal rates. financial services. Brazilians only receive 10 percent as much direct mail as U. Brazil is an important trading partner for U. On average. companies must track the latest information about direct mail.S. telemarketers. exporters may ship the goods directly to them.S. internet marketing. In 2001. The Brazilian Direct Marketing Association (ABEMD) has over 1. Brazil has the most advanced Internet and e-commerce industries in Latin America.S. citizens each year. regulations. The Internet is having a profound effect on Brazil. SECEX plays a central role in the implementation of directives on trade issues in general. U. and Argentina topped 11 billion dollars. Thus. Today. . U. U. the product specific import tariff rate will apply 14 .S.Merchandise imported under this mechanism cannot be resold locally.S. Ecommerce is on the increase and provides many additional marketing and business opportunities. .S. However. In Brazil. credit cards. exporters may sell directly to Brazilian consumers or distributors. and Brazilians have rapidly become the Latin American leaders in technological innovation and Internet applications.Shipments over US$50 up to US$500 are subject to a flat 60 percent import tariff rate (except for pharmaceutical drugs and books which enter duty free regardless of the value of the shipment). with a vast untapped interior. which is perfect for direct marketing. particularly for U. Although the Brazilian market differs from that of the United States in regards to telemarketing.000 members and reported that catalogers. financial service companies. Brazil is the ninth largest Internet market in the world. exports to Chile. leading catalog. exporters can only sell to Brazilian companies that are registered with the Secretariat of Foreign Trade (SECEX) of the Ministry of Development.g. tariffs. and . exporters do well in South America.S. including E-Commerce Brazil is a large country. mailing lists. Growth has been steady and the Brazilian e-commerce sector believes B2C ecommerce will top $2 billion and B2B revenues will reach $12 billion in 2003. U. business perspectives for the digital “e-conomy” are optimistic.S. Because of its excellent postal service. U. taxes. Brazil. In such cases the following regulations must be noted: . fulfillment. Also. companies.

RJ – Brazil Phone: 55/21) 2206-3000 Fax: 55/21 2263-2539 E-mail : patente@inpi. including trademark licenses.S. Acquisitions of existing companies are monitored by the Central Bank. Licensing agreements are common forms of accessing the Brazilian market. Other important aspects include financing. U. To be succes sful in Brazil. A major motivation for joint ventures is to pair foreign firms with Brazilian partners to compete in segments of the government procurement market or in other markets subject to government regulation.S. U. For further information please contact the Secretariat of Foreign Trade .rather than the flat 60 percent rate applied to shipments valued under US$500. capital repatriation. Selling Factors/Techniques Sales are typically price-driven.S. as described above.S. joint ventures are established through two main legal formats -. goods are perceived as high quality products. and profit remittance.Centro 20081-240 .br Steps for Establishing an Office Either setting up a company in Brazil or acquiring an existing entity is an option for investing in Brazil. and adapt their products accordingly.) and/or Brazil's Ministry of External Relations' homepage at http://www. 15 . Local law requires that foreign capital be registered with the Central Bank. Use of a competent local attorney in structuring such an arrangement is advised. delivery. All licensing and technical assistance agreements. Failure to do so may cause serious problems related to access to foreign exchange.mre. Due to Brazil’s vast territory and cultural differences.br. To be competitive in the market.S. companies should also take into consideration the local culture and technical requirements. (See Appendix E . but quality is also an important factor. standards are not acceptable in Brazil. (See Appendix E. U. In many cases.gov. after sales support and customer service. Contacts." which are legally similar to corporations and limited partnerships companies in the U. must be registered with the Brazilian Industrial Property Institute (INPI). products manufactured at U.) BRAZILIAN INDUSTRIAL PROPERTY INSTITUTE .SECEX or the Brazilian Consulate in New York City. companies must offer high quality products at competitive prices.Country Government Agencies.Rio de Janeiro .S.gov. Joint Ventures/Licensing Establishment of joint ventures is a common practice in Brazil. one must often develop different approaches for different parts of the country. Setting up new companies is relatively complex. Corporations (sociedades anonimas) and limited liability companies (limitadas) are relatively easy to form.INPI Praça Mauá nº 7 ."sociedades anônimas" or "limitadas. such as telecommunications and energy. Generally. Usually. but the opening of the market in the early nineties upgraded considerably the quality of locally produced products. although the Ministry of Development has signaled its desire to simplify this process. U.

534 from Tuesday through Saturday (www. Saatchi & Saatchi.adageglobal.S. companies willing to sell in the Brazilian market should not ignore advertising in these trade publications. Lowe & Partners. Duailibi Petit Zaragoza Propaganda (DPZ). The city of São Paulo hosts around 300 trade fairs per year. Brazil accounts for approximately 42% of publicity gross income in the region.com ). Talent Comunicação . culture. price negotiations are intimately related to the supplier's payment 16 .com.br).Advertising and Trade Promotion Advertising in specialized trade and technical publications is an important marketing tool in the Brazilian market. Monitor/IBOPE.terra. and public & social services. Interactive Media Association.uol. often the price of products sold in the domestic market reflects financing costs.br) with 650.uol. Grupo Interamericano de Comunicação. Ogilvy & Mather. According to Zenith Media and The Economist. leisure. sports & tourism. Y&R Advertising. published by the Abril Publishing Company (www.br) with 450. U. published by the Folha Group. consumer services. Publicis Worldwide.000 subscribers.com. With its well-established and diversified industrial sector. Grey Worldwide. Pricing a Product Due to high local interest rates. Cone & Belding. Walter Thompson Co. Meio & Mensagem (MMOnline). The biggest and most popular magazine in Brazil with a circulation of 1. Some of the top networks in Latin America in 2001 were: McCann-Erickson. media.br/veja) and the biggest daily circulation newspaper is Folha de São Paulo.9 billion and the sector has been growing steadily since then. Therefore. Fiat. The U.888 on Mondays and 451. These events attract a large number of visitors and exhibitors from Brazil and foreign countries.br/fsp). Department of Commerce assists U.12 million copies is a weekly publication called Veja. Brazil is home to many sophisticated advertising agencies. Participation in Brazilian trade fairs is another important marketing tool. TBWA.S. Foote. DDB Worldwide Communications. Brazil has a variety of specialized publications that serve the industrial and business communities. Fischer America Comunicação. TV advertising in Brazil is also highly developed and plays an important role in the promotion of consumer goods and food products. D'Arcy Masius Benton & Bowles. companies seeking to do outreach at several of them (www.uol. Zenith Media.focusbrazil. Unilever.S. Brazil’s total ad spending two years ago was US$ 6. Institute of Circulation Verification (IVC).. The Latin American ranking presents both foreign-owned agency networks and indigenous Brazilian agencies with multiple offices throughout Brazil.com. and Lopes Consultoria de Imoveis (real estate company) among others. and the top ad-funded web sites in Brazil include Universo OnLine (www. The Economist. The top ad categories per investment ($) are: trade & commerce. with a circulation of 592. Sources: Adage Global (www.000 subscribers and Terra/ZAZ (www. but can be listed as: Volkswagen. Ford Motor Co. Top advertisers vary from year to year. J.934 on Sundays.. 449.org.com. Leo Burnett. with first-world standards and a high level of creativity. Bates Worldwide. Euro RSCG.

etc. by entities directly and indirectly administered by the Federal Government. preference is given to goods produced or services supplied by Brazilian firms of national capital. Law 8666 establishes general norms regarding tenders and administrative contracts (for goods and services) to be followed at the Federal. Nevertheless.e. Selling to the Government The Brazilian Government procurement policies apply to purchases by government entities and by parastatal companies. To be competitive in the market. Most government procurement processes are open to international competition. and companies of joint public and private ownership that are controlled by the Brazilian Government. 6. Therefore. and as such does not necessarily use the same procedures as developed country signatories. according to IDB procurement guidelines. This kind of purchasing does often require an act of Congress. In the case of foreign suppliers. State. in the case of a tie in the tendering process.S. the importer or the distributor is responsible for such services. which can be difficult and time consuming. consortia or imports. and Municipal levels. The Brazilian executing agencies of IDB loans require international bidding above specific ceilings. For example. It is not unusual for a company to select a supplier whose prices are higher than the competition based solely on payment terms. i. price is to be the determining factor in selecting suppliers.. In the case of imported products. portions of major projects financed by IDB may not require bidding where local Brazilian counterpart funding is involved. the bid with the lowest price becomes the provisional winner. public enterprises. 17 . i. there is no distinction between Brazilian and foreign enterprises in the government procurement process. consultant contracts require international bidding above US$200. manufacturers appoint agents or distributors in Brazil that are qualified to provide such services. Government procurement regulations contained in Law 8666 of August 1993 establish an open competitive process for major government procurement. special funds. Brazil is not a signatory of the WTO multilateral Agreement on Government Procurement (GPA). In Brazil such costs are generally high. the Inter-American Development Bank. of 15 August 1995. After Sales Service/Customer Support The “Consumer Protection Law” of 1992 requires customer support and after-sales servicing. Under 8666.terms. The tax burden in Brazil on both imported and locally manufactured products is the heaviest in Latin America and higher than in the United States. which suppressed the difference between nationally owned and foreignowned companies. Following enactment of Constitutional Amendment No. either through direct bidding. it is important that U. it is important to calculate the import-related costs.000 and civil works above US$5 million. However. In some cases they are so high that a simple calculation may indicate that there is de facto no way the product can effectively compete with a locally made similar product. or produced by a Brazilian company. several companies are reducing profit margins and implementing efficient logistics systems to reduce costs.g. military purchases) become very political and are done through “sole sourcing” or “national security” arrangements that exclude competition. the World Bank. International bidding is required for all procurements with international development bank funding. However many of the larger bids (e.e. domestically produced in Brazil.

A Brazilian State enterprise is permitted to subcontract services to a foreign firm if domestic expertise is not available for the specific task. and beer sectors. The goal is to create a more efficient system using electronic purchase contracts and to allow small companies to have a better chance at competing with medium and large size companies. and equipment presentations. In the case of international bids to supply goods and services or specific government projects. This year the Ministry of Finance launched a “Portal da Concorrência” (Competitiveness Portal) a website for products in the surgery. 18 . Special requirements were established in 1993 and 1994 allowing locally manufactured telecommunications and informatics products to receive preferential treatment in government procurement. An U. A foreign firm may only bid for government contracts to provide technical services when no qualified Brazilian firms exist. medications. Advance descriptions of U. These early proposals can be effective even before the exact terms of an investment plan are defined or the project's specifications are completed. In practice. The goal for launching this site is to heighten transparency in these sectors to promote competitiveness.ComprasNet.e. supplier may find that inclusion of local purchases of Brazilian goods and services within its bid. Based on the comments provided at the ComprasNet homepage. is the expert on this topic. Renata Vilhana. "legal presence" in Brazil. it is difficult for foreign companies to operate in the public sector in Brazil unless they are associated with a local firm. the Brazilian Government is changing Law 8666 to modify electronic procurement. The proposed changes to the "Project of Law" and other relevant information is available on the Brazilian e-Procurement homepage .br (only in Portuguese). Due to the advance of internet technology and its successes with e-government trials. cement.S.Government procurement of telecommunications equipment and data processing (informatics) equipment is exempted from the above requirements. or significant subcontract association with a Brazilian firm. the Brazilian Ministry of Planing will work in order to have the project turned into law as soon as possible (it is considered as a priority issue in the Brazilian Congress). and to be eligible for tax and other fiscal benefits based on meeting local content and other requirements. it is advisable to have a partner resident in Brazil able to act on tenders as soon as they are announced. engineering. Since the open period for bidding is often as short as one month. suppliers' capabilities can often be influential in gaining a bid contract. 2002 anyone interested in providing comments and suggestions to the Project of Law was allowed to give feedback. Deputy Secretary of Logistics and Information Technology Department. To be considered Brazilian.i. Ms.http://www. as well as the basic food basket. Similarly. a financing proposal that includes credit for the purchase of local goods and services for the project will be more attractive.S.gov. Brazilian Ministry of Planning. Until May 17. successful bidders are required to have local representation -. will improve the chances for success. Such a proposal should include financing.. a firm must have majority Brazilian capital participation and decision-making authority ("operational control").

trade and service marks. Brazil is also a member of the World Intellectual Property Organization (WIPO). and Universal Copyright conventions on intellectual property rights (IPR) protection. The application will be kept secret for 18 months. and advertising slogans. 9279) features the granting of patents to medicines. including the contents of patents in Brazil and abroad before filing a patent application. Food. and will then be officially published. containing the inventor's claims. industrial designs and models.Protecting your Products from IPR Infringement Brazil is a signatory to the Paris. utility models. The Brazilian Institute of Industrial Property (INPI – www. medical. and the issuance of letters of patent. with the exception of cases where priority was previously applied for or a priority claim was made pursuant to the Paris Convention. As provided for in article 8 of the Industrial Property Law. Brazil is a member of the Paris Convention and thus U. A patent holder must use the patent commercially or the patent lapses. Proceedings for the issuance of a letter patent are lengthy and time-consuming.br) is the government entity in charge of industrial property rights. and inventive nature. An additional feature is the recognition given to well-known ("famous") brands. patent holders have an exclusive right to apply for patents during certain periods: 6 months for industrial designs. A patent is considered to be new when its subject is not included in the prior art concept. and registration of industrial designs. in the case of inventions. Letters patent may be issued for the protection of inventions. The protection granted by a patent extends for 20 years. for 15 years for patents on utility models. utility models. An application must be submitted to INPI. 1997. the requirements essential for the granting of a patent in Brazil are: absolute novelty. Granting of any patent application can be cancelled at any time by the courts. 19 . industrial nature. Law No. Foreign patent holders have expressed concern about INPI's slow processing of patent applications. always as from the date the request for protection is filed at INPI. Bern. a full description of the invention and its drawing (when applicable). and proof of compliance with all legal requirements. and the formal examination of applications for trademark and advertising slogan registration. chemical. Prior art constitutes everything that has become accessible to the public through a written or oral description or by use or any other means. and microorganisms are patentable. and a certificate of filing is issued. and 12 months for inventions and utility models (a new arrangement of known materials which improve a product). a preliminary formal examination takes place. Failure to request this formal examination will cause the application to be considered withdrawn. The inventor has 36 months to request a formal examination of the application.inpi. chemical-pharmaceutical products or preparations. Once the application has been presented.gov. Patents For an invention to be protected. Industrial Property The Industrial Property Law (May 15. the WTO Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS). and for 10 years for industrial design patents. and the Patent Cooperation Treaty (PCT).S. it must be patented in Brazil. pharmaceutical and food products. besides patents of invention.

A trademark will lapse if it is not used for five years from the date of registration. if the inventor fails to pay the required annuities to INPI. A foreign trademark is registered under the terms of the Paris Convention and thus establishes an exclusive priority. it will be considered a Brazilian trademark. The system for protection of trademarks in Brazil is based on ownership. To apply for registration of a trademark in Brazil. No protection whatsoever is accorded an unregistered owner even though it may have been using a trademark for years. which establishes that the signatory countries must deny applications for registration or cancel registrations of a trademark that reproduces a well-known trademark registered in another signatory country. Registration of a trademark in Brazil may be applied for either by a Brazilian or foreign company. This law determines that the manufacture of a product or use of any means or processes covered by a patent. if the foreign owner of an unregistered trademark is able to prove its trademark is wellknown worldwide. which is subject to penalties varying from three (3) months to one (1) year of imprisonment or a fine. Registering your trademark secures protection and enables the trademark to be licensed or transferred in return for a royalty payment. However. Extinguishment of a patent may also occur if its use is interrupted for a period of two or more consecutive years.Commercial use of the patent must be initiated within three years of the date of issue of the letter patent. under penalty of obligatory licensing or lapse. if the inventor expressly waives the privilege. the owner must apply for registration of its trademark in Brazil. Trademarks Application for a trademark may be either as a foreign or a Brazilian trademark. The use of a trademark is essential to its protection in Brazil. or if it is administratively cancelled or judicially annulled. and therefore the benefit of such Convention will not be granted. without authorization of the respective patent owner. However. and all rights stem from the registration of the trademark in Brazil. certification that the applicant is a company duly organized in accordance with the laws of its country to operate within its field of business is required. The Industrial Property Law provides for conducts that constitute patent infringement. it is possible to claim the international protection granted by article 6 bis of the Paris Convention. Technology Transfer Agreements and Trademark or Patent License Agreements 20 . Use can be proved by the owner of the trademark in Brazil or by the licensee that actually uses it. will constitute a patent infringement. in order to qualify for the benefit of article 6 bis of the Paris Convention. Brazilian law requires that the field of business of the trademark owner in Brazil be related to the goods or services covered by such trademark. A registration is valid for ten years and is renewable for successive ten-year periods. If a trademark registration is applied for in Brazil by a foreign company without the priority claim established in the Paris Convention. or if its use is interrupted for more than five consecutive years.

technology transfer agreements must clearly state their object and the industrial property rights involved. Trademark and patent license agreements will only entitle the owners to collect fees if the requirements mentioned above are met.Companies established in Brazil are now virtually free to negotiate technology transfer contracts. It is not mandatory to register a franchising agreement to be valid. the tax and exchange legislation. However. but to be executable against third parties it must be registered in accordance with Norm 115/93. Franchising agreements are not subject to the same statutory rules as trademarks. planning and programming methods. Generally. After approval of the Industrial Property Law. transfer of technology. their specialization and training programs. together with actual use by the licensee. and whether sublicensing is permitted. patents and transfer of technology. several requirements for approval of agreements of this kind were eliminated. Contracts for rendering of technical and scientific assistance services must state the time required to perform the specialized services. The term of the agreement must not exceed the validity of the trademark registration or patent. INPI approval of such agreements is not only essential for the registration at the Central Bank of Brazil that will allow remittance of the remuneration abroad. and describe in detail how the transfer will actually take place. studies and projects intended for execution or rendering of specialized services. but also for the deduction of fees paid by the licensee or recipient of the technology as operating expenses. INPI review of agreements that involve licensing of industrial property rights (trademarks and/or patents). Furthermore. However. and the obtainment of techniques. If the franchiser is a foreign party. simplifying the procedures for approval. Among other changes. and any characterization of antitrust or unfair competition practices. for instance) may also be submitted to INPI for approval. the list of mandatory clauses that the agreements should contain was eliminated. these contracts are subject to review and approval by INPI. the number of technicians required. thus permitting remittance of funds abroad and tax deduction of payments resulting from the transfer. INPI approval of patent license agreements is necessary. technical assistance services and similar agreements will be limited to examination of the aspects intrinsic to the documents submitted thereto. The license agreements must state the conditions for actual use of patents regularly applied for or granted in Brazil. it has to register with the Central Bank in order to remit payments. Trademark and patent license agreements must also state whether the license is exclusive and remunerated. the acquisition of know-how and technology not protected by industrial property rights. Technology transfer agreements in Brazil are subject to filing at INPI. research. 21 . the registered trademark in Brazil or application for registration. Other valid documents evidencing the transfer of technology and conditions governing such transfers (invoices. contracts still have to be registered with INPI. Currently. to evidence commercial use of the licensed patent and to avoid forfeiture. as well as to enforce them upon third parties. and respective remuneration.

establishing the principles. operation. Additionally. this was the start of the practice known as market reserve. the federal government used to monitor imports of computer goods and services. 8248 was enacted. and import of computer goods and services. 1999 with regard to products manufactured following certain criteria. and amending the Informatics Law. 22 . marketing. 1991. Informatics In October 1984. a percentage of the profits. although some incentives were left in effect until 1997 as a sop to domestic companies. Law 8248/91 also provides for certain benefits applicable to any company producing computer products. and no voting rights should be granted to any alien. On October 24. The new law defines a Brazilian company with domestic capital as a legal entity incorporated and headquartered in Brazil. as well as examine and decide on plans for development and production of such goods. a domestic company was defined as one incorporated according to the laws of Brazil. less taxes. 1992 no special monitoring of imports or approvals of manufacturing plans would be in force.exemption from the Tax on Manufactured Products (IPI) until October 29. This should mean the end of market reserve. Companies not considered domestic (or national) pursuant to article 12 of the Informatics Law could only manufacture computer goods and qualify for the benefits granted by the law if their plans were approved by the Brazilian Informatics and Automation Council (CONIN). and headquartered in this country. At least 70% of the total corporate capital should be held by Brazilians. fees and other charges agreed to by the parties. Law No. or by a state-owned company.deduction of al research and development expenditures up to the limit of 50% of the income tax owed by the company. On the other hand. Although the Informatics Law did not expressly establish the market reserve. or a percentage of the net sales price. in fact controlled--directly or indirectly--by individuals domiciled and resident in Brazil. objectives and guidelines for the Brazilian Informatics Policy. introducing several modifications in the regulation of the computer science field in Brazil. and .deduction of up to 1% of the income tax owed by legal entities investing in domestic informatics companies. such as: . Law 8248/91 clearly states that as from October 29. and empowering the federal government to establish restrictions on the manufacture. . Congress approved Law 7232 (the Informatics Law). Under article 12 of the Informatics Law.Remuneration of the technology to be transferred may be established at a fixed price. The first important modification introduced concerns about the definition of a domestic company for the purposes of manufacturing and marketing of computer goods in Brazil. to qualify as a domestic company. a fixed price per item sold. its decision-making as well as technological and capital control had to be exclusively in the hands of individuals resident and domiciled in Brazil.

This provides protection especially against large distributors of pirated software including producers of hardware and CDs. 9610 of February 19.at the School of Fine Arts of the Federal University of Rio de Janeiro.at the Brazilian Film Institute. Criminal and civil proceedings may be brought against infringers. Copyrights in Brazil are regulated by Law No. Nevertheless.at the Federal Council of Engineering. concern remains about the lack of effective copyright enforcement against pirated videocassettes. arrangement or edition of the same work unless the new version is derived from his/her own. Architecture & Agronomy. Registration of a work in Brazil is optional. sound recordings. Proceedings in the civil and criminal courts may be brought against anyone who infringes another's copyright. the person claiming to be the author or whose name is included in the registered work. In addition. However. trademarks and intellectual property under the terms of the Paris Convention. translates. registration is recommended. It addresses protection of software programs. or . besides a Court order to stop the piracy and search and seizure of the forgery goods (if required in Court). .at the School of Music of the Federal University of Rio de Janeiro. is treated by Brazilian law as owner of the copyright. translation. a corporation must hold such rights always at the author s approval. How does Brazilian Law avoid and punish the property’s copyright piracy? The Brazilian Law protects copyrights. but he/she cannot prevent the publication of another adaptation. Any other work that cannot be classified within any of the above categories may be registered at the Brazilian Copyright Information Center of the National Copyright Council. arranges or edits a work that is no longer under copyright may claim the copyright to the work. books and computer software entering the market. 1999. any person who adapts. Software 23 . . and not essential for its protection. Infringement of copyright can also be punished as an offense by the criminal courts. transmission. to secure the copyright the author may register his/her work with the following bodies. and distribution.Copyrights Copyrights are protected regardless of whether or not they are registered. Not only individuals. The copyright piracy is punished with payment of damages and loss of profits. The author of the work or. and modifies definitions of reproduction. in the absence of proof to the contrary. depending on its nature: . but also corporations are allowed to own the copyright to a work. Nevertheless. pursuant to which all creative works of inspiration howsoever expressed are protected as intellectual property.at the Brazilian National Library. The civil courts prohibit publication of a work which infringes copyright. However. Brazil’s new software law meets the TRIPS accord framework. and can also award damages to the owner of the copyright. . The registration of software prior to marketing is no longer required. publication.

investors might be subject to several liabilities. or which results from the nature of the work for which he/she was hired. software owners that reside outside Brazil are ensured protection.reproduction of a copy that has been legally acquired. causing eventual losses to the foreign company. Without the appropriate legal assistance. and the author need not register it. According to the Software Law. granting both Brazilian and aliens resident in Brazil protection equivalent in extent and time. the rights to any software developed during the life of any agreement or statutory relationship. provided that their country of origin offers reciprocal treatment. The protection of software does not depend on registration. for cases of infringement of software copyrights and certain rules for marketing. the rights to such software will belong to the employee. As with copyrights. or if not published. 1999. 9609 of February 19. 24 . and integration of software and its basic features into an application or operating system that is technically indispensable to the user's needs. (b) the rules for marketing software. Registration can be made at the Brazilian Institute of Industrial Property (INPI). or a limitation of alternative forms for their expression. civil servant or individual rendering the services. To operate in accordance with Brazilian laws. consolidating or expanding in the Brazilian market. partial quotation for educational purposes. from compliance with legal. and without the use of any resources. research or development. plus a fine. civil servant or individual hired to render services as expressly provided for in the respective agreements. in which such activity is carried out by the employee. if the software is developed independently of any agreement or statutory relationship. following its creation in each country. provided it is essential to the proper use of the program. regulatory precepts or technical standards. provided this similarity stems from functional features in their application. However. similarity of two copies. Software is protected for 50 years as from January 1st of the year following its publication. the following situations will not violate software copyright: . Unless the parties agree otherwise. and (c) penalties of a criminal nature. creating mechanisms for government agencies to monitor this marketing with a view to protecting Brazilian software. facilities or equipment belonging to the employer or service principal. provided it is used exclusively by whoever undertook this integration. which provides mainly for: (a) protection of the software itself as intellectual property. will belong to the employer or service principal. provided the author and the software quoted are mentioned. materials. which range from a denial of an appropriate authorization to operate in the Brazilian market to facing obstacles with a Brazilian partner. Infringement of software copyright is a criminal offense. qualified to act on behalf of the foreign company. know-how. it may be essential to hire a local lawyer.Protection of software in Brazil is regulated by Law No. which subjects the offender to detention from six months to two years. Source: 2000 Pinheiro Neto Advogados Need for a Local Attorney Local assistance can be very useful when entering. Understanding the legal aspects of the Brazilian market is extremely important.

the U. firms to conduct credit checks on potential customers or to obtain important legal advice before signing commercial agreements. It is advisable to check corporate compliance with Brazilian corporate tax laws. and antitrust laws.Local lawyers can assist with minimizing your company's tax burden by taking advantage of tax incentives provided by local. intellectual property.S. state or federal levels. relying only the public investigations regarding the legal and financial situation of the Brazilian company. the U. In the event that the relationship with the Brazilian company is strictly commercial. The Federal Taxpayer Registry Number of the company can help obtain information that attests to the firm's compliance with tax requirements and other public and third party interests. companies with lists of well-known and respected credit rating companies and law firms to assist U. In Brazil. labor. Company may not have access to the private and confidential documentation and information. 25 .S. Local legal council may also provide expertise in negotiating with local players. all of which can be complicated in Brazil.S.S. the Commercial Service can provide U. Commercial Service strongly encourages all U. Detailed due diligence on a target company based on all documentation provided by the Brazilian company and field investigation by a law firm is crucial when trying to avoid any negative surprises in the future.S. Lawyers can also explain aspects related to real estate. companies to conduct legal and financial due diligence before completing a commercial transaction or formalizing any agreement outside the United States. Performing Due Diligence/Checking Bona Fides Of Banks/Agents/Customer Because laws regulating commercial agreements and commercial transactions vary from country to country.

) RANK 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 N/A N/A Name of the Sector: Computer Hardware. (See Chapter 12. Rank: 01 B. Railroads and Highways Insurance A. In the second quarter of 2002. and Peripherals Computer Software Internet and e-Commerce Services Oil and Gasfield Machinery & Services Airport Equipment Franchising Safety and Security Equipment Telecommunications Equipment Print and Graphic Arts Equipment Iron & Steel Pollution Control Equipment & Services Mining Equipment Automotive Aftermarket Electrical Power Systems Medical Equipment & Devices Aircraft and Parts Drugs and Pharmaceuticals Transportation. The investments in 2002 were affected by the economic crisis in Argentina and the crisis in the Brazilian energy sector. for a list of trade specialists responsible for the following sectors.S. Electronics. ITA Code: CPT Comments: The computer hardware sector is one of the fastest growing sectors in Brazil. Guide to Commercial Services. LEADING SECTORS FOR U. 26 . but the general trend has been for Brazil’s spending to increase rapidly.5. According to the Electrical and Electronics Industry Association – ABINEE – the poor result in the IT sector in the last year was due to problems in investments in the energy and telecommunications sectors. Electronics and Peripherals C. the country suffered speculative attacks on the real. EXPORTS AND INVESTMENT Best Prospects for Non-Agricultural Goods and Services The following best prospects are ranked by estimated export growth in dollars over the coming year. This value corresponds to a 3% decrease from the previous year. Name of Sector: Computer Hardware. In 2002 the total revenue of this sector was $20 billion.

542 4. Transmission and Distribution Telecommunications TOTAL 2001 5. this expectation dropped to 0% in the beginning of the second semester of 2002.431 58.8 37.1 billion.088 5.000 to $ 798.3 billion.391 4. is that the country imports approximately 50 percent of all parts and components used in the Brazilian industry. the revenue of the electronic components sector grew 12%. from $4.6 58.472 7. compared to the year 2001.292 1. from a total amount of $ 1. The explanation for the growth of revenues in the electronic components segment. as previously mentioned. The hardware sector declined about 9%. The number of imports into Brazil declined 24%.548 11. Comparing the year 2002 with the previous one.3 1998 1999 2000 2001 2002 In the beginning of 2002.916 13.2 56. including hard drive assemblies and motherboards.875 1.1 billion and in the previous year the total amount was $13. The United States exported to Brazil in 2002 a total of $3.9 billion to $ 2.649 11.8 billion.592 9.185 2002 5. growth of 7% was expected in the IT sector. even though Brazil was facing economic difficulties.3 billion to $ 4.114 7.7 billion in 2001 to $4.202 6.Total Revenue (Billions of Reais) 80 1994 60 40 20 0 15. however. in reais: Revenues by Segment (R$ Millions) Components Computers Electrical Supplies Home Appliances Industrial Automation Industrial Equipment Power Generation.4 billion in 2002. Below.4 billion and in 2001 27 .263 14. from $ 5.4 50. the total amount of products exported overseas declined about 7%. the revenues by segment in 2001 and 2002. However.431 56.732 4. The total amount of imports of the IT sector in 2002 was $ 10.4 41.353 02/01(%) 12 -9 1 14 22 8 12 -35 -3 The export of IT products to the United States grew in 2002 from $ 745.200.

resulting in the purchase of new equipment/home supplies in order to reduce the consumption of electrical energy. The great number of Brazilian imports of computer hardware and peripherals reflects the fact that local production for such parts is not keeping up with local market demand. IDC. The computer hardware sector in Brazil is likely to continue expanding as industry and commerce continue important automation upgrades. This increase is related to the increase of competitiveness and reduction of the import tax (II) and exemption of the Industrialized Product Tax (IPI).USAtrade. supplies 57 percent of Brazilian imports of such products.10 $798. The hardware sector grew 22% in the first quarter of 2003. including IBM.S. Therefore. It is expected that by the end of 2003 the revenue of the IT sector will reach $22. and Argentinean economic situation. BNDES. Brazilian imports of the electronics sector grew 18%. The exports into Brazil are expected to grow 7%.gov).80 (July 2003) Source: SECEX. Electronic Components (52%) and Industrial Equipment (46%) were the sectors with the best performance.S. Compaq. exports Imports Imports from the U. there are excellent opportunities for US exporters of electronic hardware and peripherals. network products.405 2003(*) $22. 2001 $20. Currently.00 = R$ 2.6 billion (a decrease of 26%). compared to the same period in 2002. locally manufacture most PCs sold in Brazil. based on the improvement of the U. under the Provisory Messure 100/02 (please see related IMI report available at http://www.318 $4. UIS and Tropcom. Name of Sector: Computer Software C. Global players. Exchange Rate: US$ 1.357 $10. DVDs.125 $3.S. Best prospects for U. Companies manufacturing PCs locally receive fiscal benefits through the “Basic Productive Process” and through the “Informatics Law” which assures more competitive prices to local PC manufacturers. exports of computer hardware include laptops. Other major manufacturers are Itautec.5 $11 $5.3 $837 $4. The great increase is due to the energy crisis that affected Brazil in the first quarter of 2002. ABINEE A. representing an increase of 11%.S. storage devices and quickcams.the exports into Brazil reached $4. ABC Bull.2 $4. IT Sector Market Size Exports to the U.S. for the end of year 2003. In the first quarter of year 2003. ITA Code: CSV 28 . the U.3 billion. Microtec. Rank: 02 B.35 (Billions) (Thousands) (Millions) (Millions) (Millions) (*) Statistics are unofficial estimates. Brazilian exports are to increase 4%. handheld devices.664 $13. printers.619 2002 $20. scanners.78 $745 $4. Hewlett-Packard and Dell Computers. and the number of home users continues to grow.

suppliers as long as the Brazilian government and private sectors make meaningful progress toward reducing intellectual property rights violations.S.S.US$ 1.300 The above statistics are unofficial estimates. dollars .300 100 3. The software packages that will continue to be in the highest demand in Brazil are those for customer relationship management (CRM).S. (*) Source ABES . suppliers to introduce new products to this market. with sales of US$ 7.Massachusetts Institute of Technology The Brazilian packaged software market has enormous potential for U.200 100 3. Security is the number one solution sought by the financial and telecommunication institutions. 2001 7. As a result of the 2002 economic slowdown and the economic forecast for 2003. as well as the government sector.700 4. suppliers of IT products and services. US$ 3. technologies and will buy from U.500 3. Brazil has become the world's seventh biggest software market. Total Local Production F.S. as the primary source of software for Brazil paves the way for U.80 (June 2003) . electronic document management (EDM).2003 Estimated Exchange rates: values expressed in U.400 4. and increase profits through automation of their operations.000 4. and enterprise resources planning (ERP). China (sales of US$ 7.7 billion in 2001.2 billion). Software revenue in Brazil now equals almost 1% of GDP.S.200 2003 8. companies that can offer competitive prices. Total Market Size E.S. which indicates a high inflation rate and reduced economic growth. The Brazilian market for software represents one of the best opportunities for U. Of this amount.000 2002 8.S.9 billion) and India (US$ 8. Security software will be in high demand.S. Imports from the U.00 = R$ 2. Total Exports G. despite the budget constraints that companies continue to face in 2003.800 3. similar in size of the software markets of the world's most populous nations. Brazilian manufacturing and service corporations have a significant need for software solutions that will help them reduce costs. business intelligence (BI). Total Imports H. Brazilians have a high regard and strong preference for U. retain clients. 29 . database management. supply chain management (SCM).According to the Massachusetts Institute of Technology. Brazil offers significant opportunities for U. The role of the U.S. Industry experts predict total software sales in excess of US$ 8 billion in Brazil during 2002.5 billion will be sales of imported products.600 200 3.700 3. As the largest and most dynamic IT market in Latin America. of which almost 80% originated from the U.S. SOFTWARE/SERVICES REVENUES 2000/2001/2002 (In US$ million) D. exporters.

Brazil’s profile in the Internet is growing. (2) state-of-the-art banking equipment. This segment continues to receive significant investments. Globo. IT firms.” Other ISPs include Terra Lycos (owned by Spain’s Telefonica).S.S. (4) a wide array of Portuguese language content providers. thanks to the rapid expansion of the telecommunications sector in the past years. second and third places: UOL. 30 . TEL Brazil is Latin America’s largest Information Technology (IT) market and the Brazilian ecommerce sector continues to grow with B2C e-commerce expected to top $2 billion and B2B revenues to reach $12 billion in 2003. At-home usage in Brazil is growing as fast as in more advanced countries. O Site. In 2002. CSV. from real-time news to state-of-the-art software solutions. The UOL group is ranked first. According to the Brazilian Association of Internet Service Providers (ABRANET). especially in the broadband segment. (3) large local retailers with strong brand recognition.000 ISPs in Brazil. Teenagers. executives and professionals are usually the heaviest web users. Thus. etc. Brazilian executives surfed the web at home almost the same amount of time as U.IT service providers will likely review service and product portfolios strategically repositioning their marketing plans towards small contracts. America Online (AOL Time Warner). it is a very important trading partner for U.com. Analysts expect that this will enhance price competition among service providers. counterparts. internet Gratis (iG). there was a growing use of the Internet in 2002. a figure that places Brazil among the global Internet elite. it is also the largest Brazilian portal and has attracted many business partners with its e-commerce site “Shopping UOL. CSF. The Brazilian e-market continues to grow at a steady pace. In addition. Some of the factors influencing such growth are: (1) large user base. but only five large companies hold 50 percent of the market share (in Internet users). more than the time they use to read newspapers or going to the movies. Brazilian teens have spent almost 14 hours a month on the web. e-banking and e-commerce. and the first in Latin America with the most advanced Internet and e-commerce industries. Brazil is the ninth largest Internet market in the world. Besides being the largest ISP. The Internet is having a profound effect on Brazil. when Brazilian users ranked even higher than European ones in time spent and relative usage of audio-visual content. Rank: 03 Name of Sector: Internet Services and E-Commerce ITA Code: ECC. The market leader for paid Internet access is Universo Online (UOL). A few large Internet Service Providers (ISPs) dominate the Brazilian market. BOL (Brazil Online) and ZipNet. despite the economic downturn of last year. Matrix. There are approximately 20 million Internet users in Brazil. and (5) the Brazilian Government’s new project to extend Internet access to all citizens. From e-gov to e-business. there are currently more than 1. companies.S. particularly for U. and Brazilians have rapidly become the Latin American leaders in technological innovation and Internet applications. with over 1 million subscribers.

the market penetration is still low. household items. there are other reasons for the popularization of the Internet among lower-income users: initiatives to make computers available in schools and public places. cosmetics. In contrast. vitamins. Broadband access is still expensive in Brazil and only a few Brazilian families or corporations can afford it.g. Most local Brazilian sites are dedicated to books. car accessories.5 million Brazilian consumers had accessed their banks via direct dial-up or the Internet. While books. of which “Bradesco” (the largest private Brazilian retail bank) was the pioneer. highly sophisticated.com” (books and CDs). Arremate. the second largest Brazilian supermarket chain). In the “Consumer to Consumer” segment (C2C). Brazilian companies know they must rush to do their homework. up from just 5 percent three years ago. approximately 1. CDs. airlines. in the state of São Paulo. Nevertheless.S. Bad income distribution limits the number of domestic users. music. electronics. and software are still the most frequently purchased items. based computer hardware company. a number of local on-line auction sites continue to offer their services.com” (a major retail chain). Brazil has developed one of the most advanced home-banking systems in the world. 31 . numbers point to a different reality. making transfers. The penetration rate is limited due to the relatively small portion of the population in the upper and middle classes. brokerages. It is estimated that one fifth of Brazilian Internet users have made on-line purchases. E-Commerce & E-Business: The “Business to Business” (B2B) segment is still timid in Brazil and is concentrated in a few large companies. e.com. Brazilian consumers have begun to buy items such as computer peripherals and accessories. Internet Banking: Thanks to Brazilian banks.Fierce competition among Internet Service Providers has caused access costs to fall. clothes. Through an early focus on PC banking and Internet-based offerings. In 1999. They hope to dramatically increase sales through on-line channels. computer software and hardware. Among the main “Business to Consumer” (B2C) players are diverse retail companies such as “Amelia. toys. Although a large number of Brazilian and Multinational companies made significant investments to develop e-business. “Livraria Saraiva” (a bookstore chain).com” (Grupo Pão de Açúcar. banks. but the web reaches more than 80 percent of the upper-middle and upper classes. “Webmotors” (used-car sales) and “Submarino. etc. performing various transactions such as obtaining checking balances. groceries.. Mercado Livre. Besides the decreasing of Internet subscription costs and the availability of free Internet providers. only 5% of the industry is currently utilizing B2B tools to perform sales (Source: The Industries Federation of the State of SP-FIESP). Dell Computers is a good example of a U. “Americanas. which opened a plant in Brazil in 1999 (Rio Grande do Sul) and has been fully operating in the Brazilian e-business scenario. and increased availability of credit lines for the acquisition of the first family computer. and others (including auction sites and virtual automobile dealerships). and applying for loans on-line. For example. used to shopping internationally and is becoming more and more used to on-line shopping. there has been a significant growth in Internet use by lower income individuals. The average Brazilian on-line consumer is well educated. the country is on the cutting edge in the development of secure e-commerce technology. However. who have access to computers and other necessary hardware to access the Internet. who now represent 17 percent of Brazilian net surfers. and Lokau.

Sao Paulo’s telecommunications operator. In addition. 2001 5. The federal government has pledged to invest about $1.000 schools are expected to be connected over that period. However.4 billion over the next five years to connect public schools. the potential for e-commerce transactions will grow as well. 7 million students in 13. According to the federal government. alone. museums and libraries.200 3.Brasil. following its revised strategic plan announced in May 2003. In 2002 Petrobras produced about 1. 12 million people filed their taxes over the Internet last year (95 percent of filers).2 million barrels of oil a day (bopd). industry due to the investment plans of over 30 international petroleum firms led primarily by Petrobras.300 Exchange Rate: R$ 3.900 3. the national post office system is preparing to install 5. Brazilians have been filing their federal tax returns via the Internet since 1996. Petrobras’ goal is to reach self-sufficiency by 2007 by increasing capacity to 2.S. it plans to make about 20 percent of its acquisitions – for about $1billion – via the Internet. local telephone charges remain high as calls are still billed on a per minute/per pulse basis. Petrobras plans to invest US$34.3 billion from 2003 to 2007.5 million bopd and exported around 32 .S.e-Gov: The most visible impact of the Internet revolution in Brazil has been the presence of the Government of Brazil on-line. High Speed Internet Access: High Speed Internet Access is already a reality in certain regions of Brazil. Future Challenges: Economic and technological issues that have impeded the growth of the Internet and e-commerce in Brazil are gradually being resolved. the “@jato” service.200 2003 (*) 14. In schools. Telefonica offers high speed services through the Asymmetric Digital Subscriber Line (ADSL) and TVA cable television offers high speed Internet access through cable modem technology. ITA Code: OGM/OGS The Brazilian oil and gas sector is considered one of the most attractive markets for U. Name of the sector: Oil and Gasfield Machinery and Services C. These companies were awarded nearly 90 oil blocks during the four rounds of oil concessions offered to date in Brazil.20 = $1 (June 2002) (*) The above statistics are unofficial estimates Sources: IDC Brasil. According to Brazil’s version of the IRS.000 2002 9. more than two thirds of all federal services are available over the Internet through the portal www. Additionally.300 3. the postal and delivery systems that service Brazil are still inadequate in light of the high volume of small packages that characterizes business to consumer e-commerce. and all corporate returns were filed electronically this year.500 public access terminals over the next two years. PC ownership is increasing as prices decline with the introduction of cheaper models. despite improvements. through the federal acquisitions site Comprasnet. As these issues are resolved. Rank: 04 B.gov. and the public health system to the Internet. The federal government announced that next year. the largest Brazilian company. ( in US$ Millions) Total Market Size (B2B+B2C) Imports from the U. Forrester Research & Boston Consulting Group A.br.

it will need to build a 130 Km-long gas pipeline. in which it has an 80% share as the operator in the Bijupirá-Salema project. drill pipes. oil companies have ordered over 400. Should these companies succeed in finding “commercial oil”. the commercial success rate in exploration activities has decreased in recent years when compared with the Gulf of Mexico. These four new discoveries. considering that Brazil already has a long-term gas contract with Bolivia. may translate into a total of 2. Additionally. This amount of investment is primarily for exploratory activities. suppliers of offshore and onshore equipment and services. the average percentage of local source commitment was 34%.S. Shell will be the first foreign company to start production in Brazil as of 2003 through a partnership agreement with Petrobras. there are currently 50 onshore and offshore drilling rigs with ongoing activities in Brazil.br . companies interested in supplying equipment or services to Petrobras must register at the Petrobras website (www. Other companies including Shell/Enterprise Oil. Petrobras is currently the only oil and gas producer in Brazil. In the June 2002 round. pumps. added to the 2001 Jubarte and Cachalote findings. To develop this field. oilwell completion systems. In the last few years. Chrevon-Texaco. their investments in Brazil may triple. Petrobras will invest about US$1 billion. in May and in June 2003.1 billion in 2002. More recently. Nigeria or Angola. Brazil refined a total of 1. down from 47% in the 2000 oil round. However.) Petrobras’ net revenues in 2002 reached US$22. and the outlook for 2003 is positive despite a stronger emphasis on local content in future Petrobras purchases and in new oil concession contracts.6 million bopd (1. Oil exploration and production (E&P) is expected to account for 70% of Petrobras’ annual investments. oil and gas equipment/services in 2002 is estimated to have surpassed US$ 1. Exxon-Mobil. In the third oil round held in June 2001. Overall. In 2002.1 billion barrels of oil in reserves. most of which have Petrobras as the operator. The total Brazilian market for oil and gas equipment and services was projected at US$ 10. The fifth oil round 33 .000 bopd. Petrobras found a total of four new fields in the same promising BC-60 Block (one containing reserves estimated at 630 million barrels and three with estimated 500 million barrels).petrobras. Opportunities will obviously abound for U.6 billion. of which around US$ 3. and Phillips Petroleum (many of which are already Petrobras partners) are expected to invest a total of $4 billion a year to fulfill their contractual obligations as a result of having won oil concession rights. commitment averaged at 40% for the exploration phase and 55% for the oil development stage. for example flexible pipes.000 kilometers of seismic lines and drilled about 200 offshore wells. This oilfield will produce 70. This amount corresponds to about 30% of Brazil’s proven gas reserves which currently stand at 231 billion m 3. The Brazilian import market for U.com. any decision to develop the field will depend on the market potential for this gas.250. However. subsea services and others.9 billion.S. The only exception was in 2001 when Petrobras discovered the giant Jubarte/Cachalote fields (970 million barrels of oil) in the BC-60 Block located in northern Campos Basin along the southern coast of the State of Espírito Santo. A total of five new oil production platforms should be built over the coming years to add to the 96 Petrobras currently has in its portfolio.2 million barrels of domestic oil and 360.“ABC of Registration/Vendors’s List Registration Guide” available in English).000 barrels.S. ElPaso/Coastal. U.12 billion is represented by imports. valves.000 of imported oil. Petrobras has also recently discovered a giant non-associated gas field with 70 billion m 3 estimated reserves capable of producing 10 million m 3/day.

2 million barrels/day over the next years. Petrobras also plans to build a new refinery in Brazil by 2005 to increase Brazil’s refining capacity to 2. In an attempt to attract foreign investors to the oil and gas sector.) The increase of oil production in the giant Campos Basin in the State of Rio de Janeiro will require the construction of 1. installed oil bearing detection and soil movement monitoring systems. foreign suppliers have benefited the most as they were exempted from ICMS state sales tax as well. These projects will demand investments of over US$1. as long as they remain in the country for less than 24 months. the Brazilian Government (GOB) created a special federal tax exemption regime (Repetro) in 1999 to last until 2007. although the Repetro philosophy was for “temporary” admission of products. Although foreign suppliers tend to be more price competitive and offer advanced technology not yet available in Brazil. the most relevant criteria in previous oil rounds. 2001 2002* 2003* 34 . Although domestic suppliers are also eligible for Repetro.8 billion by 2005 in selected refineries. as well as to other types of equipment installed at depths of 1500 meters.3 billion to include the installation of a fixed pumping station platform to drain about 630. In the downstream area.scheduled for August 2003 will place heavier weight on domestic purchases as an evaluation factor to award oil concessions. will decrease from 85% to 30%. contracted risk analyses and subsurface hydrologic studies. As part of its environmental programs. Petrobras plans to disburse a total of $4. Oil companies see such taxation changes as a deterrent to further investments in Brazil. the environmental area has merited further attention from Petrobras after the company experienced major oil accidents in recent years and in view of more stringent environmental legislation. although it excluded oil rigs and other equipment for exploration activities.8 million barrels/day. Petrobras has installed automated supervision at main pipelines. however. Specifically. (Note: Brazil’s current refining capacity is about 1. This strategy is particularly advisable in view of the current exchange rate volatility and due to the aforementioned increased local content commitment. whereas the weight on bid bonuses. They argue that the trend in Brazil is to find heavy oil in ultra-deep water. companies are encouraged to seek partnerships with local suppliers. Additionally. the State of Rio de Janeiro abolished such ICMS exemption on the imports of oil and gas equipment. and upgraded oil spill detection systems in deep water. U. Part of these investments will be allocated to operational safety and environmental upgrades.000 kilometers (620 miles) of new oil and gas pipelines over the next three years. They lobby for an extension of the Repetro regime while they also urge the Brazilian Government to reconsider current fiscal terms as a whole for E&P activities.000 barrels of oil and 26 million cubic meters of gas a day. which increases the risk and costs and reduces the rewards.S. Petrobras also has significant investments in progress to improve the quality of its oil products (mainly diesel and gasoline) to face the recent opening of this market to imported products. Recently. in practice it applied to items such as production platforms which end up staying in Brazil for up to 20 years.

It is therefore up to the contracted company to decide whether it will use foreign or domestic partners. A.S. All airport construction projects are contracted by INFRAERO through a public auction.590 1. The following products in the airport sector have the best potential in Brazil during 2003-2004: passenger bridges.145 7. INFRAERO plans to invest around $1. Total Imports from U. metal detectors. Most equipment is imported from the United States. Exchange Rate: US$ 1. and São Paulo. Recife. sniffers. 2000 $3. There are no official statistics regarding local production for airport and ground support equipment. Name of Sector: Airport Equipment C. and parts for radar maintenance.00 = R$ 2.375 10.3 m $7k 2002 $20. These investments will be made in conjunction with state governments as well as with private sector corporations.8 m 35 .870 5. telecommunications services. ITA Code: APG To increase the quality and integration of Brazil’s airport system – previously comprised primarily of ex-military base landing strips . *The above statistics are unofficial estimates. Total Exports D.65 billion through 2006 to upgrade and expand its airport network.5 m $1.9 m $129k $109k $3. Local Production C. and Germany. Maceio.460 90 2.S. Total Imports E. Recife. Brasilia. building. INFRAERO is responsible for designing. operating and managing 65 airports and 82 navigation support stations that carry air traffic control. and Rio de Janeiro downtown airport (Santos Dumont). firefighter trucks. Portugal.095 75 3. The company headquarters are in Brasília and there are seven regional business centers located in Belém. The largest investments will be made at Sao Paulo International Airport (Guarulhos). radars. Salvador.875 12. baggage X-ray inspectors.975 Sources: Petrobras/Brazilian trade associations and industry analysts A.9 m $207k $176k $20.860 65 3. who estimate very small growth in the next three years.88 (June 2003) * Statistical data are unofficial estimates 7. Brasilia.385 8. Estimated figures for local production were obtained through industry experts.S. The project has been offering good long term market prospects for U. Porto Alegre.Empresa Brasileira de Infra-Estrutura Aeroportuária (INFRAERO) has been working on airport modernization projects since 2000. Rank: 05 B.5 m $148k $126k $4. manufacturers.500 1.125 1. Total Market B. Manaus.7 m $244k 2001 $4. Rio de Janeiro.(US$ millions) Total market Local production Exports Imports Imports from the U. Spain. and flight protection.

companies should register their trademarks in the Brazilian market as soon as possible to avoid problems in the future. Foreign franchises are now allowed to remit royalties to their countries of origin. and Rio Grande do Sul. divided into approximately 30 business segments. However. franchise consultants refer to this process as the “tropicalization” of the franchise. Minas Gerais. U. According to a recent survey conducted by ABF. the reform of the Franchising Law in 1994 has granted greater investing opportunities to foreign franchises. the continued success of the Brazilian franchising system is in part due to the increase in participation of already consolidated businesses exploring alternative avenues of expansion. Rank: 06 B. generating over 350. invest in market research. Most of the franchises are already established in the state of Sao Paulo. test market receptivity through pilot projects and adjust their concepts to Brazilian business practices and consumer tastes. particularly from the U.030 2002 8.00 = R$ 3.875 2003* 9. U.662 - 36 .750 7. Sports. According to ABF.S. the franchising system continues to boom.625 8. Strict regulations preventing foreign franchises from remitting royalties to their headquarters contributed to the dominance of Brazilian franchises over their foreign counterparts. Market statistics for franchising (US$ millions) Total Market Size Total Local Production Total Exports 2001 7.S. followed by the States of Rio de Janeiro.S. franchise concepts suitable for the Brazilian market. franchisors must adapt to meet required market norms and standards. the continued growth of franchising in this market has strengthened Brazil’s franchising system to such that it is now one the world’s third strongest. foreign groups. Recent figures for 2001-2002 show an additional growth of 12% in the Brazilian franchising industry.S. and Education and Professional Training (+14%). As of 2002 it accounted for 25% of the gross revenue in the retail segment with around 800 franchise chains and 56. franchises are often advised to find a suitable local partner to adapt and develop U. Between 2001 and 2002 the Brazilian franchising system boasted more than eight billion dollars in sales.Secretaria de Comércio Exterior/ INFRAERO/ SATA – Ground handling equipment/ IMAM Exchange Rate: US$ 1. the segments that yielded the most impressive results in terms of financial growth and unit expansion are Personal Accessories (+33%). however. ITA Code: FRA After nearly two decades of success in Brazil.20 A. are making their way into the market too.000 franchise units. Sector: Franchising C.812 7. outranked only by the United States and Japan.S. According to local sources. Local Brazilian companies form the vast majority of franchises in Brazil (about 90%). Parana. U.000 jobs.Source: SECEX .. In Brazil. However. Health and Beauty (+16%).

According to the Brazilian Association of Electronic Security Companies (ABESE). products retain about 50% of the import market share. There are opportunities in almost all segments. Name of Sector: Safety and Security Equipment ITA Code: SEC According to local trade contacts.Total Imports Imports From the U. Kidnappers usually carry guns and drive the victim around to make withdrawals from ATM cash machines. a security industry publication. someone is murdered every hour in the State of Sao Paulo. In view of such a dramatic situation. federal. that together are responsible for 63% of the market. especially ones that use biometric technology. According to ABESE.S. Espírito Santo and Minas Gerais.20 Source: ABF – Associação Brasileira do Franchising (Brazilian Association of Franchising) * The above statistics are unofficial estimates. A. electronic security equipment is not limited only to banks. Today. Best prospects in this segment include: access control equipment. commercial or industrial buildings. the safety and security sector has constantly registered an average growth of 15-20% per year. Rank: 07 B. Several cities have installed video cameras on the streets to inhibit criminal activities. CCTVs.S. Foreign products supply about 75% of the market and U. Brazil is currently facing serious social problems due to high unemployment rates and drug consumption. The market for electronic security equipment is heavily concentrated in the States of São Paulo. and kidnapped every few hours. Brazil invests approximately US$ 20 billion per year in safety and security equipment and services. that makes it mandatory to install cameras or other security devices in residential and commercial buildings with more than four floors. there are 4. each one responsible for about 20% of market share. or are in the process of approving a law. but only 7% have a more sophisticated access control system. Rio de Janeiro. but it is in the electronic security segment that U. According to “Proteger”. home security equipment. 37 . and vehicle monitoring systems. 781 546 875 612 962 673 Exchange Rate: US$ 1. state and municipal governments are implementing new security measures to protect the population. They do not hesitate to kill if the victims resist. firms will find excellent opportunities. alarm systems. The increase of security monitoring services and security devices in residences is and will continue contributing to the fast expansion of the market. These factors have contributed to the increase of crime in large cities.S. As the violence level grows.00 = R$ 3. Others have passed a law. Major competitors are Israel and Japan. Despite the ups and downs of Brazil’s economic performance in the last few years.5 million properties in the State of Sao Paulo with potential to be equipped with electronic security equipment. the market for electronic security equipment is estimated at US$ 900 million. the market for safety and security equipment also grows.

Brazil’s Telecommunications Body.0 percent of all telecommunications imports. publications and industry contacts In the law enforcement segment. Moreover. E. The United States makes the lion´s share of Brazilian imports with 58. 2001 750 208 18 560 280 2002 825 235 30 620 310 2003 900 261 36 675 338 Sources: ABESE – Brazilian Association of Electronic Security Companies. night vision goggles. Southeast Asian countries (mostly South Korea and China) increased exports to Brazil in 2002 by 22. Most of these items are manufactured domestically. ITA Code: Tel/Tes Brazil has the largest telecommunications sector in the region. or find a joint venture or technology transfer partner in Brazil.6 billion. The Brazilian import market for telecommunications equipment and components in 2002 surpassed USD 596 million and is expected to increase 7 percent in 2003. Germany and Sweden with 13. G. The privatization process has brought Brazil unprecedented investments of over USD27 billion.4 billion in 2002. mainly from carriers committed to introducing GSM services in the country. Since Brazil has high import-related costs it is difficult for foreign suppliers to compete successfully in the market unless they consider local production.2 percent) are principal U. The injection of new investments slowed to approximately USD3.4 percent and European countries (mostly Norway. cuffs. companies interested in this market segment will find excellent opportunities if they establish themselves in Brazil.3 billion. competitors. (In US$ million) Total Market Size Total Local Production Total Exports Total Imports Imports from U.2 billion). A.2 billion. The Brazilian legislation for government tenders provides that the lowest bidder wins the contract. but in the last two years the sector has been affected by the global downturn faced by the telecommunications industry. However. mainly due to prior large investments made by companies in the fixed and wireless segments to comply with standards established by Anatel. Net revenue for telecommunications equipment and services in 2002 was approximately USD 16. X-ray equipment to detect narcotics. anti-trauma equipment.There are no official statistics. for 2003/2004 the industry expects an injection of an additional USD 4. batons.9 billion of net revenue.S. accounted for USD 13. Services. super machine guns. For 2003 the sector predicts an average growth of 11 percent. but several police officials have indicated recently that the quality is not up to the level of the ones produced in the United States. H. By 38 . while product suppliers (hardware & software) have generated USD 2. Name of Sector: Telecommunications Market C. including carriers. but local industry contacts estimate the market for electronic security equipment is divided as follows: D.S. and cellular call blockers. the turbulence of the economy and uncertainty about the plans of the newly elected president also contributed to the slower pace. U. shotguns. F. ballistic shields and helmets. non-lethal arms. there is a huge need for bulletproof vests. a significant decrease se as compared to 2001 (USD 26. Rank: 08 B.S.

2005 Anatel predicts that total investments in the telecommunications sector in Brazil will reach USD 53 billion.133 596 344 2003* 2. According to Anatel. and CDMA 1xRTT technologies. to maximize the benefits derived from investments and efficient operations.178 638 368 Exchange Rate: USD 1. has also increased significantly. that is.S. companies will be found mostly in the wireless market since a significant increase of wireless data applications is expected with the deployment of GSM. Trends continue to be toward convergence. in November 2002 Brazil had over 81 million telephones.577 3. increasing jobs in the sector by over 40 percent.3 in December 2002. generate new revenues. These figures demonstrate an extraordinary growth compared to the mere 13.3 million fixed lines existing in 1994. adding telecommunications services. and 32.975 Total Import from U. 467 2002 2. Telecommunications Equipment (USD millions) 2001 Total Market Size 3. For each group of 100 inhabitants. Many multinational players established domestic manufacturing plants to provide products and services to major new operators.322 2.00 = R$ 3. i.. Special attention should be devoted to small to medium enterprises (SMEs) as they account for 98 percent of the registered companies in Brazil and compose 48 percent of the country’s GDP.e. Telephone density. carriers will have to find new ways to retain their existing customers. Sources: ABINEE.572 Total Local Production 2.6 million wireless.20 *The above statistics are unofficial estimates. the number of telephone terminals installed went from 8. Most of these companies still do not have good internet connections and will need customized services. SECEX – Secretaria de Comércio Exterior and other industry sources Good opportunities for U. the number of lines installed compared to the country's population.174 1.6 in 1994 to 29. Associação Brasileira da Indústria Elétrica e Eletrônica. In the evolution toward 2. 47 percent of this amount will be for fixed services and 19 percent for mass communications services. and keep operational and capital expenditures low. Best prospects for the sector include: • • • • New Generation Networks (NGNs) Corporate and Virtual Private Network Services (VPNs) New revenue generating mobile services (preferably based on the existing network) Broadband multiple services – evolving from plain old telephony services such as 39 . Furthermore. local cellular operators are considering taking different routes in terms of standards. Of this total there were approximately 49 million fixed lines – 39 million effectively in service.5G and 3G.575 Total Exports 977 Total Imports 1.S. Most operators that adopted the TDMA platform (approximately 80 percent in Band B) are still studying or conducting tests to define what standard to follow: GSM or WCDMA.859 1. to survive and remain financially healthy.

S. which seeks to modernize Brazilian production lines and. bookbinding machines. Print and Graphic Arts Equipment (US$ millions) Total Market Local Production Total Exports Total Imports Total Import from U. Code: PGA The Brazilian printing and graphic arts equipment sector was estimated at US$ 370 million in 2002. Sector: Print and Graphic Arts Equipment C. Germany has the competitive advantage in the offset printers segment. auxiliary machines. which represented 40% of the total import market in this sector. Rank: 09 B.S. offset printers. Best U. consequently. with US$ 149 million in local production. this sector is sensitive to exchange rate fluctuations and is suffering from the current unfavorable Real-Dollar rate. mostly equipment and machinery with high technology. The United States exported approximately US$ 124 million in printing and graphic arts equipment to Brazil in 2002. While the United States is the leading supplier for digital processing units and plotters to Brazil. 2001 450 149 121 422 170 2002 370 171 113 312 124 2003* 390 180 125 335 134 40 . image and sounds Telemedicine equipment Security telecom equipment (alarm receivers and transmitters) E-Learning Services (to fill the geographic and income gaps between the populations at the lowest income levels and those in the middle) System Integration Services A. automated devices and new technology. data. and usually with no similar product manufactured locally. flexographic printing machines. export prospects for printing and graphic arts equipment include machinery with higher efficiency levels. machines for photographic procedures and serigraphy printing machines. Fortunately. automated. The extariff list includes 600 items. exporters include digital processing units and plotters.S. by 2005 22 percent of Brazilian voice traffic will be VoIP) Intelligent services network New services merging voice.• • • • • • ⇒ Integrated Services Digital Network (ISDN) ⇒ Circuit Data ⇒ Voice Over Internet Protocol (VoIP) (According to IDC data. granting import duty reductions up to 4%. obtain higher quality products capable of competing in foreign markets. Segments presenting good prospects for U. Because imported printing and graphic arts equipment account for 85% of the total market for these products in Brazil. a large quantity of the printing and graphic arts equipment imported from the United States are on a tariff reduction list published by the Brazilian Federal Government. US$ 121 million in exports and US$ 422 million in imports.

Includes HS 8440/8441/8442/8443/9009 The above statistics are unofficial estimates Source: Secex, MDIC-Abimaq-Decon, Abigraf and Industry Specialists. Rank: 10 B. Name of Sector: Iron & Steel ITA Code: IRS Total Brazilian crude steel production in 2002 was 29.6 million metric tons. Brazilian imports of steel products in 2002 were $465 million or 672,346 metric tons and total exports by Brazilian manufacturers were $2,928 million or 11,686,000 metric tons. Brazil is the eighth largest steel manufacturer, with approximately 50% of the steel production of Latin America and 3.2% of the world. Approximately 85% of Brazilian crude steel production is made in integrated steelworks, whereas 15% is made in non-integrated mills; 92% is made in continuous casting process and 8% is made in conventional casting; 80% is made in oxygen (BOF) process, 20% is made using electric process. Nearly 60% of the total output of the country is flat product and 40% is long product. Brazilian manufacturers are concentrated in the states of Minas Gerais (41% of total production), Rio de Janeiro (20%), Espirito Santo (19%) and São Paulo 13%. The largest manufacturers are Usiminas / Cosipa with a combined output of 8.4 million metric tons in 2002, Gerdau with 3.6 Mtons, and CSN with 5.1 Mtons. Brazilian imports of steel products from the U.S. during 2002 were 16,110 metric tons, or $40.5 million (FOB). During 2001 imports were 22,657 metric tons or $66 million. The most exported products from the U.S. to Brazil have been seamless tubes and pipes, with 42% of the total value exported in 2002. (US$ millions) D. Total Market Size E. Total Local Production F. Total Exports G. Total Imports H. Imports from the U.S. 2001 $6,860 $8,500 $2,317 $677 $66 2002 $6,437 $8,900 $2,928 $465 $40 2003* $6,800 $9,300 $3000 $500 $50

Source: IBS - Brazilian Steel Institute. * Estimate A. Rank: 11 B. Sector: Pollution Control Equipment and Services C. ITA Code: POL Environmental experts estimate that Brazil’s environmental technologies market equaled US$ 2.8 billion in 2002, including equipment, engineering and consulting services and instrumentation associated with pollution control and cleanup projects. The market for air pollution control products is projected at US $ 200 million, for water and wastewater treatment at

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US $1.6 billion and the market for solid waste treatment at US $1.0 billion. The market is growing at a rate of 5 to 8% per year. Some of the driving forces affecting this market are: stricter environmental legislation, pressure from the community and clients; introduction of environmental management practices by a growing number of industries and increased number of industries with ISO 14001 certificates. This certificate foresees continuing improvement in production processes and adoption of pollution prevention measures. In 2003, the number of ISO 14,001 certified companies in Brazil reached 900. Basic sanitation services in Brazil are provided by 27 state owned companies that serve 3,800 municipalities under concession contracts, whereas municipal sanitation companies serve 1,700 municipalities. There are 5,507 municipalities in Brazil. The concession law of 1995 allows private sector participation in this market, through concession contracts. The presence of international companies in this market is small, however some international leaders such as Lyonnais des Eaux, Vivendi, Aguas de Portugal and the U.S. companies Earth Tech, Montgomerry Watson and CH2M Hill are active in Brazil. Water distribution services cover 98% of Brazilian municipalities, but only 64% of the residences in Brazil. The sewage situation is much poorer: sewage collection systems are available in 52% of municipalities but only 33% of residences. About 76% of the residences in Brazil throw their untreated sewage in water bodies. According to the Urban Development Secretariat, water distribution and sewage collection for 100% of the Brazilian residences would require investments of US$ 35 billion within the next 10 years. Although smaller than the sanitation market, the industrial sector is an important market for effluent treatment systems. Investments in effluent and industrial waste treatment in Latin America for 2002-2005 are estimated at US$ 2.2 billion, of which US $ 1.1 billion will be invested in Brazil. The Brazilian market for solid waste equipment and services was established with participation by several Brazilian and foreign companies. Engineering and consulting companies, distributors of foreign equipment and locally established equipment manufacturers supply this market. According to the Brazilian Institute of Geography and Statistics, daily collection of solid waste in Brazil reaches 224,413 metric tons, 125,258 metric tons of which is residential waste. Statistics indicate that 74% of the residential waste ends up in garbage dumps, 24% in landfills, and only 2% is recycled. The Brazil-German Chamber of Commerce and ABETRE (Brazilian Association of Special Waste Treatment, Recovery and Disposal) estimate that industries in Brazil generate 2.7 million metric tons of industrial hazardous waste per year, of which only 600,000 metric tons are adequately treated and disposed of. Best prospects for U.S. environmental products and services include: water reuse and saving technologies, sophisticated filtration methods (ultra filtration and reverse osmosis), compact sewage treatment stations. Suppliers of water treatment stations incorporate specific imported equipment such as automatic valves, oil separators, and ultra-violet systems. Laboratory and analytical instruments are usually imported.

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Best prospects for U.S. companies in the solid waste sector include: special small vehicles for city cleaning services, automatic street wipers; high pressure water trucks; machines and tractors for beach cleaning; heavy machines for mechanical street wiping; equipment for rubber, paper and debris recycling, odor control products, soil clean up technologies and waste-toenergy projects. (US$ millions) Total Market Local Production Total Exports Total Imports Total Import from U.S. 2001* 2,660 2,035 133 758 152 2002* 2,800 2,142 140 798 160 2003* 2,940 2,249 147 838 168

* Statistics are unofficial estimates. Exchange Rate: US$ 1.00 = R$ 3.20 Source: environmental consulting companies. A. Rank: 12 B. Name of Sector: Mining Equipment C. ITA Code: MIN The Brazilian market for mining equipment is one of the largest in the world. Brazil is a major producer of several minerals, especially iron ore, gold, bauxite, kaolin, manganese, phosphate rock and niobium. It is the fifth largest mineral producer in the world. The mineral potential of the country has not been fully assessed and ongoing geological surveys may still find significant deposits. There are also many well-known deposits, especially of copper and gold, that are not being currently exploited, but that could be developed in the future if world market prices increase. Most of the mining activities in Brazil are open pit. The local market for underground mining equipment is relatively small when compared to the market for open pit mining. In the long term (three to seven years), however, there will be a trend to increase the number of underground mines. The largest installed mining operations are for iron ore, with total output of more than 200 million metric tons of processed ore in 2002. CVRD, Companhia Vale do Rio Doce, the largest Brazilian mining company, is responsible for more than one third of the mineral output of this country, in terms of value. CVRD was privatized in May 1997, and there are no longer any state-owned mining operations in Brazil. The largest investments planned for the next three years in Brazil are three copper projects of CVRD, calling for a combined total investment of more tan US$600 million. Expansion of the existing gold mines is the second most promising area for the near future. (US$ millions) D. Total Market Size E. Total Local Production F. Total Exports G. Total Imports 2001* 2,900 3,050 350 200 2002* 2,950 3,100 370 220 2003* 3,150 3,300 380 230

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The market is primarily driven by growing exports of automobiles and auto parts from Brazil.000 56 17 20 7 4. 90 95 98 Sources: Brazilian Ministry for Industry. The automotive-aftermarket exports are expected to grow 7. The Brazilian currency devaluation and the internal market drop in consumption during last year have reduced the chances of Brazilian companies in importing new machinery and rawmaterials to accomplish the local content components. ball axles and rollers .2 billion and the sector will continue to employ 170 thousand people in Brazil. Brazilian Market for Automotive Parts (In US $ Millions) Total Market Size Market Distribution % : Assemblers OEM’s Aftermarket Exports Inter-Sectorial Total Exports Total Imports Imports from the U.979 0.gearings and friction wheels. while exports represent 19% of it.748 Est.7% reaching US$ 4.199 0. Name of Sector: Automotive Parts C. modest growth compared to last year’s figures.750 Main items imported .S 2001 11.785 2002 10.667 4. Imports from the U.ignition key for vehicles engines . Rank: 13 B. The assemblers are responsible for 57% of the total market size of auto parts in Brazil.2002 .subassemblies and accessories for tractors and automotive vehicles . pipes and hoses of vulcanized rubber 44 .parts and accessories of stamping .900 3.2003 11.gear boxes . Statistics are unofficial estimates A.903 57 18 19 6 3.roller bearings .200 4.H.spark ignition and internal combustion engines .S. a substantial growth when compared to 2002.joint gaskets and alike of soft vulcanized rubber . New investments reached US$500 million in 2003. Trade and Tourism and the Brazilian Mining Institute.tubes. ITA Code: APS The automotive aftermarket in Brazil for 2003 is expected to reach US$11 billion.subassemblies and parts for explosion engines .000 0.920 57 18 19 6 3.

up from about US$ 3. Reduction of these deadlines is also under evaluation as the new Brazilian Administration is extremely socially-oriented. total power consumption in Brazil dropped back to 1999 levels.) Power consumption habits have gradually begun to recover as of the first semester of 2003. Rank: 14 B. (Note: Aneel has recently installed online monitoring systems to track down the frequency and duration of electricity interruptions. are expected to prioritize investments in 2003 focusing mostly on reducing technical and commercial power losses. have delayed implementation of planned projects. ITA Code: ELP The total Brazilian market for electrical power equipment. dollar. or 290 TWh. A new Ministry of Mines and Energy program has established deadlines on a case-by-case basis. A new model is under evaluation and is likely to be sent to the Brazilian Congress by mid-2003. Some power concessionaires will need to conclude the power expansion as early as 2006. Name of the Sector: Electrical Power Systems C. As a consequence. The Brazilian government is also proposing a new public-private partnership legislation to attract private sector investment in infrastructure projects in general. Additionally. To this end. mainly due to uncertainties in the power regulatory framework which. Net revenues of the electrical power generation. which saw their revenues shrink in the last two years because of reduced power consumption and high debts contracted in dollars. The power distribution segment is expected to show a slight recovery in 2003 compared to 2002 as a result of the five-year tariff review that started in April 2003 and of higher power consumption levels. after having reached 306 TWh in 2000. they should continue energy delivery quality programs by installing supervision and control systems to avoid penalties from the Brazilian power regulator (Aneel). is estimated to have reached US$ 4. transmission and distribution service companies amounted to about US$12 billion in 2002. (Note: In 2002. including generation. 45 .- injection pumps parts for liquids A. this market dropped about 17% as a result of the devaluation of the Brazilian real against the U. Translated into dollars. the power distribution companies (DISCOs). The new Brazilian Minister of Mines and Energy who took office in January 2003 has proposed changes to the power regulatory framework. but trade sources still do not expect substantial power consumption growth due to the current slowdown of the Brazilian economy. The power generation and transmission subsectors are expected to grow only modestly in 2003.) Another area the DISCOs will need to invest to meet contractual obligations is in the expansion of their distribution networks to reach outer rural communities. along with complex environmental permit processes.2 billion in 2002. and the latest will be in 2015. down from US$23 billion in 2001. Such low consumption in 2002 was a direct reflection of the power rationing from June 2001 to February 2002. they are expected to invest in effective electricity measurement controls and in client database management. and distribution segments (GTD). transmission.6 billion in the previous year in terms of local Brazilian currency levels.S.

.S. generating just over 2. The Priority Thermal Power Program (PTPP) which the Brazilian Government launched at the end of 1999. called for the construction of nearly 50 plants by 2003. GTD Equipment Market (US$ millions) Total Market Total Local Production Total Exports Total Imports U.most of which are operating at partial capacity.785 300 1. These TLs are expected to generate investments of about US$700 million over 2003/2004. However.235 3. only 11 such plants totaling 4. The thermal power segment was the most affected. Industry specialists predict that Brazil may face further power rationing if new power generation and transmission projects do not come on line by 2005 to meet demand that is anticipated to result from a recovery of the Brazilian economy.615 2.875 3.130 670 2002 4.238 MW of new energy to be added to the Brazilian interconnected power system in 2003. although imports of gas turbines. coupled with the fact that 2002 was an election year in Brazil. The remainder presents serious environmental and/or legal obstacles that prevent operations. benefiting U.060 280 1.400 MW. The volatile exchange rate has also greatly contributed to an unstable investment climate in Brazil.441 MW have been concluded . About ten are under construction.015 255 GTD Service Revenues 23. suppliers.797 Km. The governmentowned power transmission companies are expected to be the primary players to secure needed investments in an area considered crucial to avoid future power rationings. practically stalled investments in power generation. during the power rationing. Seventeen projects are pending definition of new rules.S. Aneel plans to accelerate this program by opening tenders in 2003 for the construction and operation of seven TLs totaling 1.850 MW are expected to operate commercially by then.455 580 2003* 3.150 290 1. Moreover. which had grown substantially in 2001.605 46 .005 12. In order to make up for the delays in the construction of power transmission lines (TLs) as well. continued strong up to mid-2002. the Brazilian Government implemented an emergency diesel-fueled set of power plants to serve as back-up in the event of prolonged rationing. gas supply contracts with take-or-pay and ship-or-pay clauses are considered a serious deterrent to these projects. but schedules are delayed. Aneel was counting on 15. Imports of diesel generators greatly increased during that period. Beginning 2002.The absence of clear rules. The gas-fired power projects are directly influenced by the exchange rate value as they depend on the natural gas imported mostly from Bolivia.260 12. however only about 6. ranging from 235 Kv to 525 Kv. Imports 2001 3.

opportunities exist in the northeastern states of Bahia. including standards for health professionals. radiology and image diagnostic equipment and laboratory equipment. Brazilian medical equipment revenues in 2002 reached US$ 1. and use Brazil as a "spring board" for export into the region. dental equipment and products. which moved approximately US$40 to 70 million in 2002. 44% were to the public sector and 8% were exported. There are few high-quality Brazilian manufacturers of advanced medical products so reliance on imports will generally continue. Paraíba and Rio Grande do Norte. Rank: 15 B. Sector: Medical Equipment and Devices C. Brazil now has approximately 150 of these types of care providers.S. In addition to the attractive size of the Brazilian medical market. These organizations are viewed as a good way to cut hospitalization costs. The United States accounts for 50% of the import market.00 = R$ 2. with solid local production and a sizeable import market. U. approximately 48% were to the private health sector. equipment and training/management services suppliers. Financing often becomes the differentiating criteria in making the sale. exporters should consider the opportunities offered by Mercosul. exporters should consult a local lawyer/consultant before signing a contract with any agent/distributor.S. Brazil's 47 . Ceará.88 (June 2003) Source: Brazilian Association of Electrical/Electronic Industries (ABINEE) and Brazilian Association of Power Distribution Companies (ABRADEE) A. virtually all distributors are regional rather than national. The total market for medical equipment in Brazil should continue to expand through 2003.440 in the United States.S. Currently.S.5 billion. Local buyers view U. distributors and importers who sell to hospitals and clinics. Nowadays.* Statistics are unofficial estimates from trade sources. U. There are some 3. An interesting trend in Brazil is the growing market for the Home Health Care. compared to approximately 1.S. which represents an increase of 53% compared to 1999. Santa Catarina and Rio Grande do Sul. Of Brazil’s total medical equipment sales valued at US$1. Interested U. suppliers should look for opportunities beyond the larger communities of São Paulo and Rio de Janeiro (both in Southeast Brazil). Code: MED Brazil is the largest medical market in Latin America. Excluding the direct sales networks of individual multinational manufacturers. and the southern states of Paraná. Pernambuco. but only 3. and other foreign products (mainly Canadian and European) as having equally good quality and reliability. U.3 % of these firms can be classified as large companies. health insurance companies are responsible for 99% of the costs with home care treatment. Exchange Rate: US$ 1. while offering better services to patients. This market comprises medical equipment and devices. In particular. Since compulsory product registration before sale is required in the entire region. local manufacturing can supply approximately 95% of a hospital needs. the central western states of Goiás and Mato Grosso do Sul. sales have traditionally been made through Brazilian agents. The Nursing Regional Council is developing procedures on how to regulate this market.000 equipment and supply distributors in Brazil.S. the southeastern states of Minas Gerais and Espirito Santo. Private entities such as universities and even religious organizations around the country offer new opportunities for both U.5 billion in 2002.

implants and components. commercial aircraft and parts manufacturers have good market prospects in Brazil. Brazil holds the world’s third largest business aviation fleet. Imports 420* 530* * The above statistics are unofficial estimates. 3923. Source: SECEX Rank: 16 Name of Sector: Aircraft and Parts ITA Code: AIR Air transportation is a critical link in Brazil’s infrastructure. 9019. 3919. 3702. 9022. Total imports in 2001 were $807 million.S.303 41.06 U. 3917.039 2003 1.070 19. According to Brazil’s Department of Civil Aviation (DAC). 3822. 9023: Medical Products Market (US$ millions) 2001 2002 Total Market 1. diagnostic devices. 4015.517 Total Exports 160 171 Total Imports 981 1.055 32. The country is vitally dependent upon its civil aviation system to link the sparsely inhabited areas with the country’s major economic centers. In 2002 the Brazilian market for aircraft and parts was approximately $675 million. 8421. 9021.670 13.008 2002 US$ FOB 38. 8419.S. particularly HMO's (private health care plans). 9018. disposables. surpassed only by the US and Mexico. The tables below are based on the following Harmonized System Codes: 3701.146 16.984 8. However. In 2002.610* 188* 918* 460* Echography with Doppler analysis Computer Aided Tomography Pacemaker (except accessories) Artificial Kidneys X-Ray tubes X-Ray Angiography Ophthalmic Instruments * The above statistics are unofficial estimates. 8540.433 1.Brazilian Government Statistics and ABIMO Best Prospects for Medical Equipment and Devices: 2001 US$ FOB 52. 3926. U. 9011.286 16.476 18. and $1 billion in 2000.S.451 21. particularly for more advanced medical equipment. Source: SECEX .economic difficulties slowed government investment plans for public hospitals. 4014. 9020.043 19.854 13.385 2003* US$ FOB 19. Combining this dependence on air transport with the national policy to establish a modern market economy. the continued expansion of the Brazilian private health care sector. exporters.355 15.288 27. The Brazilian total fleet is approximately 9 million aircraft including airplanes and civil and military helicopters.779 25.816 1. Spain exported to Brazil $219 million (32%) 48 .501 3. 3821. was the good news the market needed and should create new opportunities for U.251 35.138 9.

Multinational companies are responsible for supplying 70% of the internal market. 359 280 185 *The above statistics are unofficial estimates.S.6 billion packages of pharmaceuticals.553 2.144 4. This market is the 10th largest in the world and the second largest in Latin America after Mexico. Embraer leads a group with widely diversified interests in the aerospace field. and aviation-related mechanical and hydraulic systems. Embraer is a major buyer of equipment and parts for its own production line. Despite stagnating pharmaceutical sales over the past three years. Taxes applied on medicines in Brazil are among of the highest in the world.379 1. Total Imports 1. aircraft engines.S. aircraft control systems. Embraer is Brazil’s largest aircraft manufacturer. The United States is its largest customer and largest supplier of parts. in the state of Sao Paulo. has a percentage of 65% on Embraer purchases.574 3. Rank: 17 Name of Sector: Drugs/Pharmaceuticals ITA CODE: DRG The Brazilian pharmaceutical industry is comprised of 370 companies. turboprop aircraft for general aviation. The world airlines crisis has affected the Brazilian aircraft and parts market. The Government collects over US$1 billion in taxes from the pharmaceutical sector. The cascading tax method applied on manufactured goods in Brazil affects several industries. civilian aircraft parts. The Brazilian aircraft parts industry is not well developed. air speed instrumentation.073 807 675 E. Local Production* 2. turbojet aircraft engines. Total Exports 3. Total Imports from U. Embraer’s headquarters is located in Sao Jose dos Campos. Brazil sold 1. as well as a major international supplier for the aviation market.50 billion. However the industry is able to supply around 20-25% of the market since most engine manufacturers have a local presence. The following products in the aircraft and parts sector are expected to have the best potential in Brazil during 2002-2003: civilian aircraft.784 1.338 C. U. which is expected to have very slight growth in 2003. development.799 D. There are no official statistics regarding local production for airport and ground support equipment. Source: SECEX . In 2002. civilian helicopters. representing a total market value of US$5. Total Market 7. Among the pharmaceutical companies. (US$ Millions) 2000 2001 2002 A.812 B. corporate and agricultural utilization. aircraft propeller parts and aircraft accessories.026 6. 80% are domestic and foreigners are mostly from the United States and Europe. production and marketing of a range of turboprop and jet aircraft for regional airline and military use.followed by United States with $185 million (27%). and is one of the most 49 . not including direct sales to the Government.Secretaria de Comércio Exterior/ EMBRAER/ Brazilian Association of Aerospace Industry. Brazil still remains among the 5 largest sellers of units. The group's activities include the design.

one of the most problematic areas of the pharmaceutical sector in Brazil is the lack of access to essential drugs by a large portion of the country’s population due to financial constraints. total Brazilian imports of pharmaceutical products in 2002 were approximately US$1.20 Health Scenario Most Brazilian health insurance companies do not reimburse patients for prescription drugs. According to Brazilian legislation. Market In 2002. According to the Syndicate of the Pharmaceutical Industry (SINDUSFARMA).ANVS. but currency fluctuations make this drop more dramatic. Pharmaceutical Market – Statistical Data: Net Values (in US$ millions) Total Market Size Imports Exports Imports from the U.758 1.important topics that private industry has raised with the Government.Brazilian Association of Pharmaceutical Industries and Sindusfarma – Pharmaceutical Industries Syndicate of Sao Paulo. Sources : ABIFARMA.S. which corresponds an increase of 47% for the same period in 2002. Similar to most countries in Latin America.53 253 800 2003* 3. The market has softened somewhat. in 1999. In June 2003. Generic Pharmaceutical Drugs The introduction of generic drugs in the Brazilian market. but various sources suggest that 40% to 50% of the population have limited or no access to needed pharmaceuticals. The process aimed at reducing these taxes on pharmaceutical production is slow and bureaucratic. This reflects a 0. according to data from the Pan American Health Organization. Estimates vary. in comparison to US$ 5. Certainly. Moreover. pharmaceutical or cosmetic must be processed through authorized companies only. considering sales for the past 12 months. Food and Drug Administration. exportation and sale of any medical product. all products must be registered with the National Agency for Sanitary Health .7 billion in 2001.9 billion.521 241 700 2002 5. the income from this sector reached US$224 million.965 1. Imports from the United States account for about 50% of Brazil’s imports of pharmaceutical products. The public health care systems in most Brazilian states purchase 50 . the production. manufacturing. Brazil's pharmaceutical net sales reached US$ 3. This is the Brazilian counterpart of the U.34 261 600 *The above statistics are unofficial estimates. over 80% of drug expenses in Brazil are paid by one’s own resources.4% increase over the previous year's level. Imports still represent a large share of the market. Average Exchange Rate in June 2003 : R$ 1.5 billion.550 1.S.00 = US$ 3. The average annual per capita consumption of pharmaceuticals in Brazil is approximately US$ 61. created a dynamic investment process in the pharmaceutical market. an agency of the Brazilian Ministry of Health. importation. 2001 5.

ITA Code: TRN We expect to see an increased focus on expansion and modernization of the railroad infrastructure in Brazil in the coming years.Railroad C. Brazil’s private railroad operators were reluctant to release investment figures for 2003. in the state of Mato Grosso.5 billion in the concessions. equipment.S. and Vitória (ES) and Rio de Janeiro (RJ).S. an increase of 56% over the previous year's budget. the major investor for 2001. integration and improvement of regional systems is the primary focus of investment. Opportunities for Investment and Exports in the Rail Sector A number of business opportunities are open for international companies interested in supplying the growing demand of the railroad sector. These funds were dedicated to finance the second stage of the Alto Taquaril project. technology and products. This expectation can be substantiated by the investments published by the railroad companies which estimated that over $416 million was invested in 2001. Private consortia. the nature of agricultural products and commodities best served by rail. the Brazilian Government is investing in campaigns to stimulate the population to request generics during the visit to physicians. as there is a local preference for U. Tubarão. According to sector analysts. The concessions require that the concessionaires provide maintenance services as part of the agreement. The generic market represents today approximately 6. A. both in new and reconditioned equipment. investment in the railroad industry will remain heated in the next few years. invested $2. U. from São Paulo and Campinas. In the North and Northeast. suppliers are expected to capture 25% of the market. Name of Sector: Transportation . its determination to develop the interior. The total needed investment is estimated at $5 billion over the next thirty years. groups participating in the Brazilian concessions. Currently. Rank: N/A B. and the political impediments faced in improving roads all bode well for increased investment in this sector. Manufactured goods. and logistics services. We see opportunities for both direct exports to Brazil. In the Midwest grains for export are being shipped to the ports of Santos (SP). Railtex International Holding. eventually beginning to export generic drugs. Ralph Partners. In addition to that. Railroad companies are increasing their investments to serve important export corridors.5% of the total market. and for foreign direct investment in railroads. approximately 85% of the raw materials used in the production of generic drugs in Brazil are imported. and BankBoston are some of the U. but said they planned to invest millions of dollars in the following activities: refurbishing and buying 51 . Noel Group. It is expected that in 2008 this market will reach sales of US$ 1 billion.S. including U. are being transported mainly to the port of Santos (SP). While Brazil has traditionally relied less on railroads for the transport of freight and passengers than other countries. and may make Brazil a generic drug nexus.almost the entire production of generic drugs as part of the government’s program to distribute medicines to the poorest. had a $98 million loan approved by the Brazilian Development Bank (BNDES). Ferronorte. Sales of generic drugs should also be further boosted by the fact that 75 important medicine patents on best selling drugs will expire by 2004. participants. This expiration of patents and the new demand may stimulate an increase in the scale of production. And there is an increase in freight movement to Mercosul with neighboring countries.S. Brazil Rail Partners.

linking Cumbica Airport in Guarulhos (SP) to the Barra Funda station to the city São Paulo. concrete sleepers. purchase and installation of cargo 27 million terminal equipment. partnerships in railroad expansion. Supplying railroad equipment. recovery and acquisition of locomotives and cars 15 to 20 million Purchase of 2. with 21 km and 16 stations 343.2004 MRS and Votorantim FCA Companhia Vale do Rio Doce São Paulo Subway 2003 . duplicating and electrifying 3. between the cities of Balsa e Estreito. 1. signaling equipment. replacing rails and ties. Business Opportunities. railroad tracks and fixtures.300 km of railroad tracks. locomotive spare parts. Purchase of new cars new and refurbished locomotives 7. 168 million Construction of the North-south Railroad.3 million Construction of surface subway with 13 Km 300 million Construction of the Airport Express. communication systems. signaling systems. building and/or operating silos and other warehouse facilities. new technology. EFC and FCA). Also building and/or operating multimodal transshipment terminals. container operations. couplings. and freight handling for agricultural products.26 billion Construction of the branch 4 linking the districts of Vila Sônia and Light with 12.refurbished locomotives. modernization.S. remodeling. Selection of Investment Forecasted Companies MRS Logistica Investment/US$ Project 33 million Infrastructure improvement. and maintenance equipment. 646 million Construction of the branch 5. growing and processing soy beans and corn. Top U.300 cargo cars for their railroads (EFVM. telecommunication equipment. grinding machines.4 km. linking Capao Redondo to the Klabin. diesel engine parts. especially soybean. to facilitate the flow of agricultural products. such as refurbished locomotives. and enlarging and remodeling maintenance facilities.2004 Up to 2006 Up to 2006 Up to 2006 2006 Curitiba Subway Government of the State of São Paulo Government of the Estado do Maranhão N/A 52 . Period 2003 2003 2003 2000 . braking systems. railroad cars. track maintenance equipment and services. railroad ties of concrete and wood.7 million Reactivation of the railroad branch between Jacareí (SP) and Campinas (SP) 130 million Restructuring of the rail network.

comprised of the Ministry of Finance.Source: Ministerio do TransportesN THE TEXT A. In 1994. The remainder is made through banks. Rank: N/A B. establishes operational risk limits. and setting general accounting and statistical standards. an independent agency subject to the Ministry of Finance via the CNSP.S. It also regulates insurance brokers. It monitors the insurance and private pension market through the solvency index. which are the main distribution channel for insurance in Brazil. compared to 65% now held by Brazilian firms. ITA Code : INS Insurance in Brazil is a market of US$ 14 billion. health. the Brazilian Central Bank. (II) SUSEP. 49% privately owned insurance companies. representatives of the Ministries of Justice and of Planning. In addition to life insurance. and four private insurance companies. insurance sales should increase 51%. a 51% state-owned company. organization. The sector's trade association is the Federation of National Private Insurance and Capitalization Firms (FENASEG). activities and supervision. pending the outcome of a recent court injunction. The state-owned segment is scheduled to be privatized. according to industry sector professionals. and regulates open pension funds (which are equivalent to the U. The Brazilian federal government formulates policy for the private insurance system. the Brazil Reinsurance Institute (IRB). U. is currently the sole Brazilian reinsurer at this time. establishing guidelines of insurance contracts. regulating private insurance firm creation.2% of the Brazilian GNP. and does so through the following organizations: (I) The National Council of Private Insurance (CNSP). or around 3. The Superintendence of Private Insurance (SUSEP). supervises technical reserves. In 2003. establishing reinsurance rules.S companies’ share of the total market is 21%. Main insurance types in Brazil include: Cars: Life: Health: Fire: Personal Accidents: Residential: Property: Risks: 27% 24% 21% 7% 3% 3% 3% 2% 53 . In fact. The Brazilian insurance industry has been growing for the last seven years at rates higher than that of the GNP. The CNSP’s responsibilities include setting insurance policy guidelines and rules. accounting for 70% of the sales. Sector : Insurance C. it has doubled since 1994. This equates to almost 50% of South America’s insurance market. (III) IRB. car. and retirement insurance were the fastest growing sectors. KOLC). about 95% of the sector was controlled by Brazilian groups. led by growth in the life insurance segment. The market potential is attracting foreign companies.

and acted as a monopoly for over 50 years. c) The free life benefit generator ( Vida Gerador de Benefícios Livres. b) The tax free benefits generation plan (Plano Gerador de Benefícios Livres. 401(k) plans: a) The individual programmed retirement fund (Fundo de Aposentadoria Programada Individual.S. the privatization process may be completed by the end of 2003. While the prerequisites for IRB's privatization already exist. and open funds are. and. Those funds operate as an insurance product. similar to the U. The public social security is deducted from salaries. In 1996. The latter is for employees of specific companies and institutions (the largest being linked to governmental entities such as Banco do Brasil. Hartford. offered through insurance companies. the Congress passed a law to open this market to competition. It allows small and medium-sized companies to supplement its employees’ social security. FAPI). If the court decides against these congressmen and in favor of the privatization. as per its name. AIG. 54 . the IRB – now IRB Re Brasil – is owned 51% by the Brazilian government. All the steps were adopted in order to complete IRB’s privatization. open to all. is very popular due to the tax incentives (earnings are tax-free). Several foreign companies have established branches in Brazil to strengthen their bids for the IRB' s auction. and others. a court injunction has interrupted the process. and administered through the National Social Security Institute (INSS). paying a wage as soon as the client is retired. In July 2000. Otherwise. which functions as an alternative to social security. Other funds have been offered. these repeated court injunctions and delays may discourage foreign companies from maintaining their market presence. as of 1997. However. PGBL): this product. The Brazilian pension funds system is composed of public social security and private complimentary plans. In this plan. though it still runs a deficit. The private system consists of two categories: open and closed funds. contributors make monthly deposits and can withdraw assets upon retirement or before. Reinsurance The IRB was founded in 1939. VGBL).Other: (Source : Fenaseg) Retirement Insurance 10% This insurance subsector has been undergoing rapid growth. The timing of the court ruling is uncertain. They are usually offered by insurance companies and insurance subsidiaries of banks such as Banco Bradesco (main provider). This system has recently been reformed by the government. a revised law shall be issued. and Petrobras). which is a long-term saving and retirement fund for individuals operated by financial institutions. some Brazilian congressmen stopped the IRB's privatization. stating that a "specific legislation on reinsurance should be created".

AMERICAN HOME.000 250 0 (Marketing Years) (*) Statistics are unofficial estimates.S. and USDA Foreign Agricultural Service Name of Sector: Wheat HTS 1001 Comments: Brazil relies on imports for the majority of its wheat consumption. Argentina enjoys many advantages in the Brazilian market. MARSH & MCLENNAN.S.99 Traditionally a net coarse grain importer. 2001. Even in years of surplus production. Northeastern Brazil continues to import due to the high internal freight costs. with Argentina as its primary supplier.000 1. AON. among others.S. Brazil blocked U. Corn (Thousand Metric Tons) Consumption Local Production Exports Imports Imports from the U.S. CIGNA. such as proximity. PRUDENTIAL. Exports of these wheat varieties must come with an addition declaration in the phytosanitary certificate that "the wheat comes from an area free of 55 .S. AIG.500 600 32 2002 36. HARTFORD.000 2. which is the Brazilian equivalent of the U. the Ministry of Agriculture lifted the ban on U. On March 15. Securities and Exchange Commission. cereal stripe and flag smut. shorter delivery times. lower transportation costs. CHUBB. Best Prospects for Agricultural and Food Products (SP FAS) Name of Sector: Coarse Grains HTS: 1001 – 1008. NATIONWIDE. and the Comissão de Valores Mobiliários (CVM). Brazil emerged as a corn exporter in 2001. Japan. However. wheat imports due to several phytosanitary issues related to wheat.700 250 0 2003* 37. and protection from the 9.NEW REGULATORY AGENCY The creation of a regulatory agency for the insurance sector in Brazil is under study. and the Scandinavian countries.S.000 3. MONY. and Hard Red Winter wheat. Source: Secretaria de Comércio Exterior (SECEX) . MUTUAL. Hard Red Spring. the Secretariat of Complementary Pension of the Ministry of Finance. which enjoyed $17 million in sales from the United States to Brazil in CY 2002. METLIFE. Ministry of Finance. CHASE. grains.600 39. LINCOLN CONTINENTAL. 2001 36.5 percent MERCOSUL duty and 25 percent merchant marine tax. Soft Red Winter. a smaller and weather-damaged crop in 2002/3 will necessitate increased imports to meet consumption needs.300 36.MICT. Similar agencies exist in Canada. In Brazil. U. a new office would bring together institutions such as SUSEP.200 41. insurance companies currently operating in Brazil include: AETNA. there are opportunities for U. including TCK smut. LIBERTY. Despite Argentina’s advantages. For the past several years. particularly in feeds and fodder.

MICT.S. The paddy rice tariff was reduced from 14 percent to 11. The United States is likely to be the primary supplier for non-Mercosul product. (Thousand Metric Tons) 2001 2002 2003* Consumption 10. In 1996. the Brazilian Chamber of Foreign Trade (Camex) reduced the rice import tariffs from non-Mercosul nations as of January 1. before Brazil imposed import restrictions on U. 2002. lower transportation costs.S.S.100 10.194 2.950 6. Furthermore. US exports are unlikely from March through June due to the Brazilian harvest.200 6. shorter delivery times. Camex also removed rice from the Brazil’s Mercosul List of Exceptions.S.S. wheat. worth $6.990 7.956 7.703 tons of US rice exports to Brazil in CY 2002. and Arizona remains prohibited due to phytosanitary concerns. and importers will prefer paddy rice to supply Brazilian mills. Brazil will require imports from non-Mercosul sources to meet its rice demand.S. wheat worth $174 million. however." and cannot be shipped out of west coast ports. given its superior quality. tight Mercosul supplies indicate a strong possibility for US rice sales in the second half of 2003. 110 500 500 (Marketing Years) (*) Statistics are unofficial estimates.100 10. wheat from the states of Washington. In 2002. On December 19. Access to U. and protection from the 10 percent MERCOSUL duty and 25 percent merchant marine tax. wheat. in order to fight inflation due to the rice shortage in Brazil and the inability of Mercosul suppliers to meet Brazilian demand.5 percent. it purchased roughly 760. US customs data indicates 56.S. there are significant opportunities for U. California. Ministry of Finance.500 Imports from the U.476 50 56 .000 tons of U. importers and millers have stated a willingness to pay a premium for U.250 136 2002 7. Importation of U. Argentina enjoys many advantages in the Brazilian market.5 percent. and USDA Foreign Agricultural Service Name of Sector: Rice HTS 1006 Comments: Due to tight rice supplies in Brazil and its neighbors. wheat exports became the number one agricultural export item to Brazil. US rice sales continued through early 2003.S. Oregon. with sales of nearly $96 million. wheat classes will benefit Brazilian millers and consumers. wheat.800 Exports 0 0 0 Imports 7. (Thousand Metric Tons) Consumption Local Production Exports 2001 7. Despite Argentina’s advantages.200 Local Production 3. particularly from May through September preceding the Brazilian harvest. Source: Secretaria de Comércio Exterior (SECEX) . and are likely to resume later in the year.58 million dollars.anguina tritici. Nevada. Brazil is one of the world’s largest wheat importers.250 50 2003* 7.956 7. Idaho. such as proximity. 2003. comprised almost entirely of paddy rice.914 3. and the milled rice tariff was lowered from 18 percent to 13. U.

imports are ongoing. marketing programs. The EU is the major competitor for this product. but the market is still an opportunity because of the increasing use of whey in dairy-based drinks (yogurt). Ministry of Finance. Consumer knowledge of U. is expanding. the dominant suppliers of pears and apples to Brazil. all imports and consumption level were reduced. nevertheless. Marketing Years) (*) Statistics are unofficial estimates. 1702 Although Brazil produces a small amount of whey derived from its cheese production. This offers an opportunity for U. U. allowing for a marketing window. As result of the economical crisis in 2002. benefit from preferential tariff treatment. product characteristics and quality. whey is considered a residue and is seldom used as a food ingredient. Most of the whey used by the dairy and beverage industry in Brazil is imported.MICT. Source: Secretaria de Comércio Exterior (SECEX) .MICT. and USDA/Foreign Agricultural Service. exports have interesting opportunities in this market.S.10 Brazil has virtually no commercial pear production. particularly for pears. (Thousand Metric Tons) Consumption Local Production Exports Imports Imports from the U. While Brazilian apple production continues to increase. and USDA Foreign Agricultural Service Name of Sector: Pears and Apples HTS 0808.S.S. Ministry of Finance. as well as for animal feed purposes.10 and 0808. 0 57 500 (Milled Basis. 2001 750 706 36 198 3 2002 845 857 66 143 2 2003 (*) 809 825 73 150 3 (*) Statistics are unofficial estimates.20. and active U. European suppliers are also active in the market. Name of Sector: Whey and Lactose HTS 0404.S.S.Imports 618 600 1. 2001 65 30 0 37 12 2002 70 36 0 36 11 2003 (*) 60 36 0 30 13 57 .S.S. exporters because local production does not meet demand. (Thousand Metric Tons) Consumption Local Production Exports Imports Imports from the U. Argentina and Chile. production also benefits from having an opposite harvest season from that of Argentina and Chile.000 Imports from the U.S. Source: Secretaria de Comércio Exterior (SECEX) . U.

from 2000.0807 & 0809 .S. Source: Secretaria de Comércio Exterior (SECEX). Source: Secretaria de Comércio Exterior (SECEX) . Other factors also impacted U. up 20. lint cotton. based on updated information from SECEX. According to SECEX.400 MT.000 MT. Apples & Pears) HTS: 0804 . Total MY 2003/04 cotton imports are projected at 70. down 101. The situation shifted. as noted when comparing per capita fresh fruit consumption with that of more economically developed countries. lint cotton.S. assuming that Brazilian macroeconomic variables improve in the near future. and USDA Foreign Agricultural Service Name of Sector: Fresh Fruit (Excl. the highest level since the 1970's.S. 2001/02 830 764 147 55 9 2002/03 780 806 120 120 45 2003/04 (*) 800 885 160 70 40 (*) Statistics are unofficial estimates. Ministry of Finance. Ministry of Finance. The tables below show cotton imports by country of destination for MY 2001/02 and 2002/03. domestic cotton consumption for calendar year (CY) 2001 is 872. down 41 percent from MY 2002/03. fresh fruit imports. A year after the maxi devaluation. cotton imports during the August 2002 . Cotton imports for MY 2002/03 are estimated at 120. Brazil imported US$21.4 million of U. increased phytosanitary restrictions. with the 1999 maxi currency devaluation. the Brazilian economy showed significant recovery. however. In 1996. greater local production. lint cotton. There are market segments 58 .April 2003 period are 84.* Statistics are unofficial estimates. cotton consumption is forecast at 800. Major factors causing a reduction in consumption include the significant retraction in the retail market due to decreased purchasing power of Brazilian consumers and high unemployment rates. and USDA Foreign Agricultural Service.567 MT lint cotton. the market showed an unprecedented opportunity for imported fruit.0810 With an over-valued currency during the first years of the Real Plan (1994-97). (Thousand Metric Tons) Consumption Local Production Exports Imports Imports from the U. respectively. Name of Sector: Cotton HTS: 5201 Domestic cotton consumption for MY 2002/03 has been revised downward to 780.MICT. and. assuming the expected increase in domestic production. including: increased competition from MERCOSUL countries and Chile. as reported by SECEX.800 MT.000 MT from MY 2001/02. down 50.000 MT.000 MT. Brazil has enormous growth potential.000 .000 MT from current season. which enjoy duty-free entry and preferential tariffs. For the domestic MY 2003/04. According to ABIT. fruit. however.

l Importers believe there is a great potential for the U.to be developed. 2001 23. opportunities exist for imported cherries.34 2003 (*) 27.S. and highly competitive. peaches and strawberries. and USDA Foreign Agricultural Service. Avg Price per lt.000 380 66 1 (*) Statistics are unofficial estimates. It is the top grower of oranges.173 356 2. which favors imported wine.50 2002 25. bananas and papayas.922 439 62 1 2002 23. Ministry of Finance. Source: Secretaria de Comércio Exterior (SECEX) .S. Even though domestic wine production has increased. product in Brazil. plums. Concurrently. (**) Import FOB price Source: Secretaria de Comércio Exterior (SECEX) . kiwi. and is among the larger producers of pineapple. which are not as sensitive to economic fluctuations.035 38. Center-South and South regions. Production is concentrated in the southernmost part of the country. The sector is promising for imported wines. mangoes and grapes.S. In the Southwest. sector specialists indicate that the wine segment will be one of the least affected as wine.180 40.S. dollar. particularly imported product. quality wines. Italy.637 23. (US$) (**) 2001 29. vis-avis the U. and USDA Foreign Agricultural Service Name of Sector: Wine HTS: 2204 Trade sources indicate that Brazilian wine consumption has grown on average from 1.3 liters per capita to 3 liters in the last decade. still tends to be consumed by higher economic classes. Chile and Argentina. (Thousand Metric Tons) Consumption Local Production Exports Imports Imports from the U.S. grapes.545 137 2. While Brazilian consumers generally ack awareness of U.MICT. Despite the decline of the Real. Today. 59 . it is not enough to supply the expanded demand. (Thousand Liters) Imports Imports from the U. the average rose to approximately 10 liters. Portugal. Brazil ranks among the major fruit producers. The main suppliers of imported wine are France. Ministry of Finance. These last two countries also enjoy MERCOSUL tariff rate advantages.000 150 2.MICT. they show great interest in learning more.50 (*) Statistics are unofficial estimates.125 362 63 1 2003 (*) 24. notably the state of Rio Grande do Sul. with time and product choices consumers learned more about wine quality and characteristics.

To fight increasing under-invoicing. Paraguay and Uruguay. and broadened the list of such products. in general. Other Mercosul members have also unilaterally adjusted their tariffs in response to economic crises. including a minimum capital requirement. Brazil’s average applied tariff is 11. Brazil implemented an across-the-board threepercentage point increase on all tariffs (inside and outside the CET). but it has not codified these changes in a public document. the United States actively participated as an interested third party in European WTO consultations on the issue. While the Government is now in the process of phasing these out and moving most products to the automatic license category. by contrast. A primary concern has been the use of minimum reference prices both as a requirement to obtain import licenses and/or as a base requirement for import. Customs will focus its efforts on under-invoicing. these requirements still present a barrier.S. and should be eliminated in 2003. with rates between 0-35%. Senior Brazilian officials have stated to embassy officers since late 1999 that such requirements currently do not exist. Beginning in October 1998.06. non-tariff barriers and import taxes. The average tariff in 1990. value of the import. the Secretariat of Foreign Trade (SECEX) implemented a computerized trade documentation system (SISCOMEX) to handle import licensing. In January 1997. are the primary instrument in Brazil for regulating imports. etc. Brazil issued a series of measures that required additional approvals for products subject to non-automatic licensing. Brazil also maintains a higher average tariff on processed items than on semi-processed goods and raw materials. even though tariff rates in many areas are still high. firms. raising the ceiling from 20 to 23%. 60 . and given these developments. The United States continues to encourage tariff reductions on products of interest to U. including tariffs. Brazil has made substantial progress in reducing traditional border trade barriers (tariffs. This would raise questions about whether Brazil's regime is consistent with its obligations under the WTO. and importers must comply with onerous registration guidelines. and in July 2000 the United States held its own WTO consultations with Brazil. Argentina. and are authorized to hold up imports until the goods are valued. All tariffs are ad valorem. Tariffs. import licensing. Complete information on requirements for importing into Brazil is available only through SISCOMEX. Brazil and its Southern Common Market (Mercosul) partners. with the exception of some telecommunication goods.i. levied on the c. In November 1997. Under Brazil’s new Customs Valuation regulations. 1995. TRADE REGULATIONS AN D STANDARDS Trade Barriers. the CET is currently full of exceptions. after consulting with its Mercosul partners.). implemented the Mercosul Common External Tariff (CET) on January 1. In November 1999. It appears that the Government of Brazil has required some products to meet minimum prices for the issuance of import licenses and/or in order to receive normal customs processing. and a wide variety of products were subject to non-automatic licensing. There are fees assessed per import statement submitted through SISCOMEX. Brazil issued a series of administrative measures that required additional sanitary/phytosanitary (SPS). Since 1990. quality and safety approvals from various government entities for products subject to non-automatic licenses. to register with SECEX (the Foreign Trade Secretariat). was 32%.8% in 2002. which is only available to registered importers. The Brazilian Government reportedly has modified its customs regime somewhat.f. The surcharge is being gradually phased out (over a longer period than initially anticipated).

such costs are discussed below. In most cases. since the value is credited to the importer. import tariff rates.. including tariffs and the creation of a customs union that is open and consistent with the WTO. product registrations from the Ministry of Health are required for imported processed food products and food supplement products effective March 1. exports. the tax is charged on the product's c. and (3) the Merchandise and Service Circulation tax (known in Brazil as the "ICMS").S. Implementation of such import measures continues to be poorly coordinated and not well publicized. The United States will continue to encourage the reduction of barriers to trade and investment. Tax and Fees Assessed on Imports Imports are subject to a number of taxes and fees in Brazil. the IPI tax rate ranges from 0 to 15 %. • Import Duty Import duty is a federally mandated product specific tax.S. 61 .S. Please note that most taxes are calculated on a cumulative basis. and at the point of customs clearance in the case of imports. they are still high in comparison to U.i. magnifying the negative impact on U. Brazilian import duty rates range from 10 . when the product is sold to the end user.In addition. with a reduced term of validity for registrations. Argentina. specifically GATT Article XXIV. Government also has received complaints relating to Brazil's "law of similars. the four member countries -. It is assessed at the point of sale by the manufacturer or processor in the case of domestically produced goods. In the case of imports. Conversely. (2) the Industrialized Product tax (known in Brazil as the "IPI"). as well as for medical and pharmaceutical products. IPI taxes on products that pass through several stages of processing can be adjusted to compensate for IPI taxes paid at each stage. The Government of Brazil levies the IPI rate by determining how essential the product may be for the Brazilian end-user. Registration fees for these imports." including that it leads to non-transparent preferences for Brazilian products in procurement bids for government and non-profit hospitals and prejudices against the import of refurbished medical equipment when domestically-produced "similars" exist. In addition to these three taxes.adopted a single import tariff structure known as the "common external tariff" (known in Brazil as the "TEC"). Often one can note that usually a relatively low import tariff rate carries a lower IPI rate. Paraguay and Uruguay -. a relatively high import tariff rate carries a correspondingly higher IPI rate. The IPI tax is not considered a cost for the importer. also increased significantly over the course of 1999. which are usually paid during the customs clearance process. The United States signed a trade and investment framework agreement with Mercosul in 1991. The U. several other taxes and fees apply to imports. Brazilian exports are exempt from the IPI tax. After the creation of the MERCOSUR customs union. • Industrialized Product Tax (IPI) The IPI is a federal tax levied on most domestic and imported manufactured products. the importer debits the IPI cost.f.i. Brazil. Generally.(1) Import Duty itself (known in Brazil as the "II"). As with valueadded taxes in Europe.e. While after the adoption of the TEC. Brazilian import tariff rates were reduced. There are three main taxes that account for the bulk of importing costs -. 2000. value plus import duty.20 %. Specifically.

Although importers have to pay the ICMS to clear the imported product through Customs. because the paid value represents a credit to the importer. shipped from Miami to the port of Santos illustrates how taxes and fees are calculated. value. the tax is paid only on the value-added. It also illustrates the impact of importing costs on the landed price of the product in the Brazilian market.f. plus import duty. the tax will be assessed at the rate applicable in the state of destination. plus IPI.2% of CIF with a minimum contribution of US$71 and a ceiling set at US$160 SISCOMEX usage fee: US$30 Typical Cargo Transportation Fee: US$35 The hypothetical cost buildup for an imported machine.) • - Additional Miscellaneous Taxes and Fees Warehouse Tax: 0. minus the taxes paid in purchasing raw materials and intermediate goods. shipped in a 20 foot container. it is not necessarily a cost item for the importer. electrical energy. liquid and gaseous fuels are exempt from the ICMS tax. The ICMS tax on imports is assessed ad valorem on the c. On interstate movements. Most Brazilian exports are exempt. which is included in the final price of the product and is paid by the enduser.• Merchandise and Service Circulation Tax (ICMS) The ICMS is a state government value-added tax applicable to both imports and domestic products. such as construction services. When the product is sold to the end-user. (Some sectors of the economy. The rate varies among states. the rate is 18 percent. 62 . The ICMS tax due to the state government by companies is based on taxes collected on sales by the company. The ICMS tax is levied on both intrastate and interstate transactions and is assessed on every transfer or movement of merchandise. Effectively.65% of CIF for a 15 day period Typical Terminal Handling Charges at Santos' port: US$100 per container Merchant Marine Tax: 25% of ocean freight charges (does not apply to air freight) Mandatory Contribution to Custom Broker's union: 2. the importer debits the ICMS.i. in the State of Sao Paulo. mining. since the cost of the tax is generally passed on to the buyer in the price charged for the merchandise.

. . . . . . . . Warehouse: 0. . . . . . . . . .65% of CIF. . . . . . . . . . . . Briefly. . . . . . . . . . . . . . . . . . . . . . . . .000 2. . . .S. . . . . . . . . . . . . . During this entry phase. . . . .applied to CIF + import duty + IPI . . . The FUNDAP program also applies to imports by air transport. . . . . . . . . . . . . . . . . Terminal Handling Charges: average US$ 100 per container . . . . . . .S. . . . . . . . . . . . . . . . . . . . . . . . . the goods are retained in a tax/duty free status. . . . . . IPI: 5% -. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Custom Brokerage Fee: average 0. . . . . . . . . . or min of US$ 71. . . . . . . . . . . . . . . . or min. . . . . . . . .applied to CIF + import duty. . . .65% of CIF or min US$ 170.400 19. . . . . . . . reducing the time and cost of clearing imported goods. . . . . . . . . . . and improving the final operational efficiency of the import process. . . . . . . . . . Specifically. . .152 23. . Import cost is here defined as the total CIF + Import duty + Industrial Federal tax. . . Import Dury Rate: 19% -. . . . . . . . . . . . . . . . .applied to CIF. . .256 600 235 100 160 450 30 35 2. . . . . . thus improving the exporter’s cash flow and competitive position. . . . Contribution to Custom Broker's union 2. . . . . . . . . . either an importer of record or simply a consignee located in the City of Vitoria is exempt from this tax. . . . . . . . . . . . . . . . . . . . . The FUNDAP program has been instrumental in developing in the State of Espirito Santo an efficient and economical port structure (seven ports). . . . . . . The ICMS rate is 18% of the total import cost. . . . . . . Insurance (1%) . . . . . . . . .FOB price of Product . . *Freight . . . .646 6. . . . . . . . . . . . Merchant Marine Tax: 25% of ocean freight cost . . . . . . . . . . . FINAL COST . . CIF Price of Product. . . . . . . . . . . . . . . . . . .064 The State of Espirito Santo has established an import-friendly system entitled FUNDAP to defer payment of ICMS (value-added tax charged by all Brazilian States) to the State. payable upon Customs clearance of the imported goods. . . . . . . . . max US$ 235. in the State of Espirito Santo. . . . . .000 156. . . . . . . . ./foreign exporter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .000 103. . . . ICMS: 18% -. . . . . . . . the main advantages to Brazilian importers using the FUNDAP system are: Exemption of the "import" ICMS tax during customs clearance. . max US$ 160 . . . .] 63 . . . ./foreign exporter is ready to ship to its customer(s). . . . . . . . . . . . . . Typical Bank Costs: 2% of FOB . . . . The FUNDAP regulation permits the importer of record or consignee to transfer some financial benefits to the U. . . . . as well as sea. . . . . . . . . . . The goods can be held at the Customs Interior facilities (EADI) for up to 6 months. . max US$ 450 . . . . . . Vitoria. . . . . . . . . . . . . . . . . . . . . Under the new Customs regime imported goods in bond (or out of bond) may be held until the U. .400 1. . . . . . US$ 170. . . . . . . . . . . . . . . The FUNDAP program allows for payment of ICMS up to 60 days after the product is sold to the final Brazilian customer. . . . . . .2% CIF. . . . . . State of Espírito Santo Tax Exemption Incentive 100. . . . . . . . . . . . . SISCOMEX Fee . . . . . . . . . Deferred payment of the "Sales" ICMS for approximately 60 days after consignee invoices the goods to the final customer ["Sales" ICMS is 12% of the sales amount in inter-state sales and is otherwise due within several days of the sale. . claims to have the largest privatized port complex of Latin America. . . . . Typical Cargo Transportation charge . . . . . . . . . . . . . . . . . . . . . .

shipping costs. fruits. pharmaceutical products. milk and milk derivatives. The SISCOMEX has a graphic interface for the composition of electronic import documents and transmits information to a central computer. Subsequently. which. Company and/or product registration may be required for imports of numbers for asbestos. value of the shipment. In FTAA negotiations. Brazil and the U. - Non-Automatic License (LI) 64 . loading and unloading as well as customs clearance need increased efficiency. eggs and honey. The Brazilians recognize that many of its ports. including description of the product as well as the harmonized tariff classification number. Products can get “caught up” in customs because of minor errors of emissions in paperwork. which should also be completed prior to the customs clearance process. the average customs clearance time in Brazil was the slowest in the Hemisphere (150 hours). etc. This information will be used for purposes of preparing the "Import Declaration" (locally known as the DI). sea food products. The Brazilian Foreign Trade Secretariat (SECEX) is the government agency responsible for granting import licenses. Approval by Brazil's Agricultural Ministry for imports of meat and food products. and several other animal or vegetal products. however. To this end. quantity. similar to other countries in the region. all information is fed into Brazil’s customs computer system known as the SISCOMEX. Import Licenses Automatic License As a general rule. are working on measures to allow more rapid customs clearance. Below is an illustrative list of special requirements. In a report issued by ICEX (Instituto de Estudos das Operações de Comércio Exterior). perfumes and cosmetics and medical related products. agricultural chemicals. Certain products and import operations are subject to special requirements. However. Customs Clearance in Brazil can be a time consuming and frustrating process. Brazilian imports are subject to the "automatic import license" process. The SISCOMEX has facilitated and reduced the amount of paperwork previously required for importing into Brazil. can still be burdensome. they are also working on a “green line” expedited method of clearance. This procedure requires that the Brazilian importer submits information concerning each import. Brazilian importers must be registered in the Foreign Trade Secretariat .Wordata – GB – Procedures – FUNDAP CCG 2003 Customs Regulations In 1997 the Brazilian Government established a computerized information system to monitor imports and to facilitate customs clearance known as the Foreign Trade Integrated System (SISCOMEX). The Brazilian Environmental Protection Agency may need to issue a determination concerning imports of natural.S. you should be prepared for the fact that unloading and clearance may take substantially longer than expected.SECEX’s Export and Import Registry and receive a password given by Customs to operate the SISCOMEX. synthetic or artificial rubber.

Temporary Goods Entry Requirements On December 20. weapons and related products.. Pharmaceuticals. Government maintains no export controls specific to Brazil. value of the shipment. as well as imports destined to the free trade zones and the National Council for Scientific and Technological Development. However.g. Trade Information Center at 1800-USA-TRADE. donations. high-tech information systems.The foreign company appoints a Brazilian distributor who is authorized by the Brazilian authorities to import and distribute medical products.S. Pre-shipment Inspection). quantity. Such products can only be imported and sold in Brazil if: . medications with plasma and human blood. Items on the Munitions Control list are also a controlled export to Brazil requiring a special license from the State Department or Commerce Department depending on the item.. Prior to Shipment Clearance: Products subject to special controls from SECEX or which require approvals from other Brazilian government agencies. such products must be registered with the Brazilian Ministry of Health. products for human or veterinary research. Brazilian Customs issued regulation 150 (Instrução Normativa 150) establishing new procedures for imports under Temporary Admission Program.The foreign company establishes a local Brazilian manufacturing unit or local office. the importer must provide information concerning each shipment to Brazilian customs authority either prior to shipment or prior to customs clearance. Shortly after feeding the SISCOMEX system information concerning a specific shipment. 1999. The required information includes a description of the product as well as the harmonized tariff classification number. etc. CFC. the U. airplanes. shipping costs. Such products may include: used products in general. vitamins. radioactive products and rare earth metal compounds. products that may be harmful to the environment -. For Additional information.g. anti-hemophilic serum. the SISCOMEX system will indicate whether or not a "non-automatic import license" is required. crude oil. stamp selling machines.S. mailing machines. Prior to Customs Clearance: Products imported under the drawback regime. oil derivatives or other petroleum derivatives. imports that do not involve payment from importer to the exporter -. or . products that enjoy import tariff reductions.e.e. samples. including pharmaceuticals. Export Controls At this time. The Program 65 . and equipment of a highly sensitive nature. psychotherapeutic drugs. temporary admission. cosmetics and medical equipment/devices. etc. please contact the U. Any product that comes in contact with the human body is controlled by the Ministry of Health. Normal controls are maintained on military equipment.Whenever imports are subject to the Non-Automatic License (LI) regime. Import/Export Documentation (Health.

1990. The life span of this hypothetical machine is 5 years. price.000 (5% over CIF Price + Import Tax) US$ 31.000 20.2 V = 6200 V = US$ 6200 Labeling. and risks to the consumer’s health and safety. guarantee.000 machine into Brazil. import tax and the Federal tax (IPI) are only charged on products that will be used in the production of other products and involves payment of rental or lease from the local importer to the international exporter. with 10% import tariff and 5% tax over industrial product (IPI). Marking Requirements The Brazilian Customer Protection code. Imported products should bear a Portuguese 66 . and easily readable information about the product’s quality. matrices. Under the program. In a regular operation the due taxes would be as follows: CIF Price: Import Tax: IPI: Payable taxes: 200.000 Under the temporary admission program payable taxes would be as follows: V= 31000 x [ 1-{12 x 5 – 12}] 12 x 5 V = 31000 x [1 – 0.according to Normative Instruction # 162. clear.000 11. composition. in effect since September 12. sheets and industrial tools.allows for imports of goods for a pre-determined time frame and a clear objective. Taxes due are proportional to the time frame the imported product will remain in Brazil.8] V = 31000 x 0. shelf life. precise. The import tax applicable on products imported under temporary admission program is calculated according to the following formula: V = the tax to be paid I = Federal Taxes in the normal import process P = number of months in which the product will remain in Brazil U = the life span of the product . This includes products such as dies. dated December 31. requires that product labeling provide the consumer with correct. 1998) An example is a leasing operation for 12 months of a US$ 200. quantity. origin.

SP Phonefax: 55/11/3257-7611 Website: www. are allowed only when there is no similar produced locally. The general rule prohibits the importation of all used consumer goods. in some sectors. industry groups hold the secretariat and run the technical committees that develop standards. national security interest.sp. Since metric units are the official measuring system. although. products should be labeled in metric units or show a metric equivalent. The labeling requirement for genetically modified organism (GMO) must follow the same procedures as mentioned above. the national committee that oversees the work of SINMETRO. 1953. In some areas.gov. in1973. 99 – Centro Cep: 01046-001 São Paulo. 67 . ABNT.S. SINMETRO.ipem. Imports of used machinery and equipment to the Manaus Free Trade Zone are subject to more liberal treatment Standards Legal framework.br Prohibited Imports (SP) The Brazilian Government has eliminated most import prohibitions. 1922 – Vila Gumercindo Cep: 04122-002 . Standardization and Industrial Quality. The United States Senate Concurrent Resolution nº 40 adopted July 30.br E-mail: informacao@cvs. exporters to inscribe. Standards committees are under the umbrella of ABNT but.S. There is also specific legislation that prohibits the importation of products that the Brazilian regulatory agencies consider harmful to health/sanity. the National System of Metrology. it places special controls on certain imports and prohibits the importation of others.São Paulo. on external shipping containers in indelible print of a suitable size.br CVS – Centro de Vigilância Sanitária Av. SP Phonefax: 55/11/ 5085-2600 Website: www.sp. a government agency.saude. Although such marking is not compulsory under law. shippers are urged to follow this procedure in publicizing American-made goods. U. GMO is currently being debated in Brazil.gov. and to the environment.translation of this information.cvs.sp. “United States of America”. However.gov. Brazilian Federal law established. São Luiz. INMETRO is also the operating arm of CONMETRO. Used capital goods. the Brazilian Association for Technical Standards (Associaçao Brasilera de Normas Técnicas). with participation from public and private organizations. Voluntary Standards. is the national accreditation body and is responsible for all aspects of metrology. INMETRO. Information sources: IPEM – Instituto de Pesos e Medidas do Estado de São Paulo Rua Santa Cruz. is the recognized standards organization. invited U.saude. Under this system. National voluntary standards in all sectors are developed by ABNT.

but not exclusively. Products that are not under the jurisdiction of a specific ministry may be regulated by INMETRO. some U. However.S. organizations party to the ILAC MRA. For non-regulated products. Products conforming to U.S.ABNT bases its standards on those of ISO and IEC and on occasion on U. many standards are voluntary. Future trends. Given the growing importance of standards and conformity assessment in expanding U.S. This preference may be expressed in procurement specifications or in customary design and construction practices. products that meet European requirements may be preferred. ranging from registration of products and laboratories to mandatory certification with the 3rd party testing done in-country. It is expected that. 68 .S. laboratories that are accredited by U. In Brazil. In regulated sectors. Market forces and preferences however may sometimes lead to the need for a specific certification. This could provide recognition of existing certifications. Mandatory Testing and Mandatory Product Certification. and Mines and Energy issue technical regulations for products under their jurisdiction. any certification that may be required in non-regulated sectors is a contractual matter to be decided between the buyer and the seller. at the U. To facilitate the acceptance of U. As with standards. Also. the appropriate agencies may impose their own requirements. For regulated products. exports. and local certifiers and testing houses are encouraged. Agriculture. a standards expert is assigned to work in the Commercial Service. Brazil (INMETRO) is a signatory to the mutual recognition arrangement of the International Laboratory Accreditation Cooperation that may facilitate acceptance of test results from U. The buyer and seller share responsibility in determining what product standard is applicable. Non-Mandatory Testing and Product Certification. agreements between U. marks and product certification may be accepted. there is no impediment for U.S. with regional responsibilities for South American countries. enforcement will increase. Most recent rules mandate compliance to safety requirements with evidence of compliance often.S. Some of the regulations managed by INMETRO and currently in place are being strengthened and new ones are being studied. Technical Regulations.S. There is no legal mandate to date to retest non-regulated products that have been approved in their country of origin.S.S. products in the Brazilian market. Brazil develops and issues national planning documents for standards and certification activities that indicate general tendencies and the sectors where activities will be focused. standards may be fully acceptable. ABNT is also a certification organization for both products and systems. certification organizations to be established and accredited in Brazil. Embassy in Brasilia. through mandatory product certification. Some ministries such as Health. standards. Testing must generally be performed in-country unless the needed capability does not exist in Brazil. in general.S. the relevant government agency generally requires that entities that engage in product testing and mandatory certification must be accredited by INMETRO.

Associação Brasileira de Normas Técnicas Av. The Brazilian inquiry point is in INMETRO in Rio de Janeiro. To be applicable. also focus on mandatory technical requirements for their particular sectors. toys. pre-measured products and others. Several hundred additional standards are at different stages of preparation or in the work plan. Brazil. Bela Vista 01310-910 São Paulo. metrology. Brazil. harmonized Mercosul regulations must be adopted by each country. contact: INMETRO – Instituto Nacional de Metrologia. Most of the voluntary standards published deal with steel products.org. Responsibilities under the TBT agreement include the establishment of a national inquiry point to serve as a central location for information on standards-related issues.Standards and Regulations in Mercosul. Brazil. electrical products safety. SP Brazil Phone: (55-11) 3016-7040 Fax: (55-11) 3016-7049 Website: http://www. signed the Agreement on Technical Barriers to Trade. AMN (previously known as the Mercosul Standards Committee) is composed of the standards institutes of Argentina. International Agreements. The Mercosul Standards Association. Paraguay and Uruguay and develops and harmonizes voluntary standards. participates in the development of both Mercosul standards and regulations. Information Sources ABNT . Asociacion Mercosul de Normalizacion Av. located at NIST (see Information Sources below). Separate working groups.abnt. Rio Comprido 20261-232 Rio de Janeiro – RJ 69 . Regional technical regulations are developed and/or harmonized within the Mercosul Sub Working Group 3 in the following fields: automotive. Paraguay and Uruguay.org. as an active Mercosul member. The AMN Executive Secretariat is located in Sao Paulo. such as those for telecommunications and health issues. Adoption and Application of Standards. affirming its WTO obligations relative to technical regulations and conformity assessment procedures.br Web site: http://amn. Auro Soares de Moura Andrade 664 01156-001 Sao Paulo – SP Brazil Phone: (55-11) 3823-4603/02 Fax: (55-11) 3826-3724 E-mail: secretaria@amn. foods. ABNT has signed the WTO TBT Code of Good Practice for the Preparation. The US inquiry point is the NCSCI. Brazil. Normalização e Qualidade Industrial Contact: Annalina Camboim de Azevedo Rua Santa Alexandrina 416. a member of the World Trade Organization (WTO). The four countries generally adopt all Mercosul regulations though at different speeds. Mercosul countries are Argentina.br AMN. cement and concrete and electrical safety.org. including proposed mandatory regulations. Paulista 726 – 10o andar.br For information on the WTO-TBT inquiry point.

State or local import taxes.gov/ncsci American National Standards Institute (ANSI) 11 West 42nd Street New York. contact: National Center for Standards and Certification Information (NCSCI) National Institute of Standards and Technology (NIST) Gaithersburg. which includes the city of Manaus. and Guajará-Mirim. 288 of February 1967 established special incentives for a period of 30 years with the aim of creating an industrial. as a Brazilian acronym for Merchandise Circulation Tax) on most items are not applied.Brazil Phone: (55-21) 563-2816/24 Fax: (55-21) 502-6542 Website: http://www. in the State of Amapá. which borders with Peru. MD 20899 Phone: (301) 975-4038 Fax: (301) 926-1559 E-mail: ncsci@nist. Manaus. which are subsequently shipped to other parts of Brazil.000 square kilometer area. and benefits an area that corresponds to 25% of the national territory.S.br For information in the U. With very few exceptions. is located in the State of Amazonas.inmetro. Tabatinga. which has special incentives for the establishment of industries. 70 . The Brazilian Federal Constitution of 1988 endorsed the fiscal benefits of the Manaus Free Trade Zone and extended their applicability to the year of 2013. in the state of Amazonas.ansi. the capital of the State of Amazonas in the north region of Brazil. Bonfim and Paracaíma in the state of Roraima. in the State of Rondônia. NY 10036 Phone: (212) 642-4900 Fax: (212) 398-0023 Web Site: http://www.org Free Trade Zones/Warehouses There are eight Free Trade Zones in Brazil.. the Brazilian tax for industrialized products (which has the Brazilian acronym IPI) on certain commodities and the tax for in-country sales (called ICMS.gov. The Decree No.nist. The Manaus Free Trade Zone is the most extensively developed.gov Web site: http://www. in the State of Acre. the other zones are only free ports for import and export of goods. which has the most important Free Trade Zone. commercial and agricultural center in the heart of the Brazilian Amazon. In addition. The Free Trade Zone status implies that goods of foreign origin may enter into the Manaus free port without the payment of customs duties or other Federal. Brasiléia-Epitacilândia and Cruzeiro do Sul. The ICMS sales tax is imposed on items produced in the free port whenever they are shipped out of the Free Trade Zone into other areas of Brazil. bordering with Bolivia. re-export or transshipment. Unlike Manaus. are also qualified for these tax exemptions. The Manaus Free Trade Zone has a 10. The other seven Free Trade Zones are located in Amazon’s frontier regions: Macapá-Santana. imported products to be used for processing.

may be permitted to import circuit boards which use only surface mounted devices. The Brazilian Foreign Trade Secretariat – SECEX – is responsible for import licenses. modifies the regulations for the Manaus Free Trade Zone by eliminating the previously existing import quota and requiring only that prior notification is made to the Superintendent of the Manaus Free Trade Zone (SUFRAMA) which is the Manaus Free Trade Zone Authority. 71 .com (private owned homepage). reduced tariffs on products shipped from Manaus to the rest of Brazil. are subjected to all duties assessed under normal importation. To protect Manaus industries. televisions. Detailed information can be obtained at the Internet under: www. which are either imported or produced in Brazil but outside the zone. and environmental protection remain in effect. 1991. 8387 of December 30. Each industry had to perform certain basic assembly steps in the zone in order to qualify for the fiscal incentives. In addition to the free trade zones.The Brazilian Law No. However. Computers and peripherals were not on the list. issued through the electronic system called SISCOMEX.br (Brazilian Government Official homepage) and www. The import licenses must be issued prior to shipment of goods destined for the Brazilian marketplace. there is the advantage that the ICMS is reduced to only 4 percent. which are heavily concentrated in the zone. national security interests. A license and an authorization requirement for health/sanitary controls.ig. The Ministry of Development. On the other hand. 50% of reducing from 2004 to 2008. there is a program that reduces the income tax as following: 75% of reducing until 2003. the IPI Tax was raised by ten percent on competing products. those are not produced outside the Free Trade Zone in Brazil. such as consumer electronics. In July 1992 the Brazilian Government announced a serial number of measures in order to help the Manaus Free Trade Zone. The Manaus Free Trade Zone importers are allowed to supply foreign goods from their stock in Manaus to other parts of the country regardless of quantity. however. reduced state tax (ICMS) on products imported from or exported to the rest of Brazil. 25% of reducing from 2009 to 2013) and an exemption from import license fees. and one of the following statements: "Zona Franca de Manaus para Consumo" (Manaus Free Zone for Consumption) or "Zona Franca de Manaus para Reexportação" (Manaus Free Zone for Reexport). 19 export processing zones have been authorized. These licenses are additionally subject to authorization at SUFRAMA. (Actually. Industry and Foreign Trade administers them. Brazilian restrictions on the informatics sector no longer apply to the Manaus Trade Zone. The 1992 regulations allowed computer firms to benefit from both fiscal benefits and the change in local content requirements. although required to perform much basic assembly in the zone. These goods. With special government permission. in May 1995 the Brazilian Government returned to the import quota system and nowadays only imports of wheat and petroleum are not subject to quotas. Fiscal incentives for Manaus include exemption from the IPI tax and from tariffs on imported components. up to ten years exemption from federal income tax. The general lowering of tariff and non-tariff barriers seriously hit the Manaus Free Trade Zone.hpg. The initial list included stereos. It is important to notice that Commercial invoices and bills of lading must have a letterhead mentioning "Free Zone of Manaus" that must be typed on them. computer firms.estudosfiscais.suframa. and VCRs.gov.

and is subject to a duty of 75 percent ad valorem on the final price. 1995 (see discussion under tariffs for further details on the Mercosul CET). Goiás: Comex Produzir: Importations processed at the state have reduction of 85% on the ICMS. DF Brasília: Importations processed at the Distrito Federal have 30 years of term to pay the ICMS. took effect in 2000. and a participant in negotiations that would establish a Free Trade Area of the Americas by December 2005. Foreign investors have been permitted to invest in the Brazilian stock market since 1991. Mercosul members Brazil. The official Brazilian exchange rate must be used to convert dollar accounts for local purchases. and environmental protection. a member of the World Trade Organization. 72 . there are currently no ZPE’s in Brazil. Although the federal government is trying it’s not easy to combat these kind of “fiscal politics” once it involves big amount of money and local political power. Firms operating in the zones will be exempted from foreign exchange regulations and will maintain dollar and local currency accounts. the Southern Common Market. Normal corporate income taxes apply to profits generated in the zones. The 1962 Foreign Capital law and subsequent amendments govern most foreign investment.Legislation regarding Export Processing Zones (which has the Brazilian acronyms ZPEs) requires that firms operating in the zone export at least 90 percent of their production. minus the cost of the imported inputs. Foreign firms established in the zones may use their own hard-currency resources for tax-free imports of machinery and raw materials from abroad. provides a reduction of ICMS and larger period of time for paying it. INVESTMENT CLIMATE Openness to Foreign Investment Brazil welcomes foreign investment and has lifted many restrictions in the past several years to encourage foreign investors. An imperfect customs union. national security interests. New rules considerably liberalizing foreign investment in equities. Up to 10 percent of production can be sold in the domestic market. The Brazilian Congress approved constitutional amendments in 1995 to eliminate the distinction between foreign and national capital. Paraguay. However. License and authorization requirements remain in effect in ZPEs for health/sanitary controls. Argentina. 07. which essentially put foreign investors on an equal footing with Brazilians. See above samples of the facilities that transform some states into ¨fiscal paradises¨: Espírito Santo: FUNDAP. Chile and Bolivia joined Mercosul as associate members in 1996. Membership in Free Trade Arrangements Brazil is a founding member of Mercosul. Firms in the ZPE may not produce goods subject to export quotas. With 15 years of free time. (To have these facilities the importer needs to be on the state and in the program) Mato Grosso: 21 years to pay the ICMS for imported goods to industrial projects of interest to the state. and Uruguay implemented a Common External Tariff (CET) on January 1.

this has also delayed the country’s plan to open the reinsurance market to foreign and domestic competition. Brazil’s average MFN tariff was 11. foreign investors may freely convert Brazilian currency in the unified foreign exchange market wherein buy-sell rates are mainly determined by market forces. rural property. power generation. the vast majority of requests for entry or expansion have been granted.Constitutional amendments passed in 1995 opened formerly closed sectors.S. 48% of the total. but some loans may be subject to review by the Central Bank. Through 2002. In 2002. Foreign exchange transactions on the current account have been fully liberalized in practice. Investments involving royalties and technology transfer must be registered with the patent office (INPI) as well. At this time. In 2002. such as petroleum. including identifying data. mining. reflecting both investor uncertainty in Brazil and a global decline in investment. In most cases. New or expanded foreign investment in the banking sector is technically forbidden by the Constitution of 1988. The government plans to privatize the state monopoly.3% in 2003. Registration is done electronically. However. since 1995 entry or expansion has been approved on a caseby-case basis.5 billion in FDI. telecommunications. Investors must have a representative in Brazil and register with the Brazilian securities 73 .6 billion in 2002. media. health services. and in 2000 the Central Bank greatly simplified requirements for capital account transactions.8% versus 32% percent in 1990. All foreign investment must be registered with the Central Bank. Foreigners investing in Brazil must register their investment with the Central Bank within 30 days of the inflow of resources to Brazil. All foreign exchange transactions.1 billion in debt transfer as a result of its decade-long privatization program that began in 1991. Conversion and Transfer Policies There are few restrictions on converting or transferring funds associated with an investment. One third of the foreign investment was from the United States ($14 billion). Foreign direct investment dropped to $16. The certificate of registration permits remittances of profits and repatriation of capital without additional Central Bank authorization. have been delayed by a court decision. Brazil realized $87 billion in sales revenue and another $18. Central Bank authorities say that they intend to proceed with a general capital account liberalization in the medium term. Congress approved a constitutional amendment permitting foreign investors to own up to 30% of media companies. aviation and aerospace. Since 1996. In 2001. Brazil has witnessed a significant reduction in trade barriers in recent years. mail and telegraph. and average tariff should fall to 10. the insurance sector has been open to foreign investors and most major U. registration is a pro forma matter. Brazil received a $22. must be reported to the Central Bank. and internal transport to foreign investors. mainly via joint venture arrangements. There are restrictions on foreign investment in a limited number of sectors: nuclear energy. Usually this is done automatically. which runs sizeable current account deficits. Foreign loans must be registered with the Central Bank. the Brazil Reinsurance Institute. Brazil looks to foreign direct investment (FDI) as an important source of financing for its balance of payments. Foreign investment accounted for $42 billion in sales revenue. firms are already represented. Foreign banks currently account for 20% of total banking system assets and 38% of private bank assets. fishing.

38%. citizens' favor. Foreign loans obtained abroad no longer require advance approval by Central Bank. the registration is considered complete. while those of longer maturity do not. In 2002 Brazil eliminated the application of the financial transaction tax (CPMF). Upon concluding the transaction. which is currently 0. are able to remit dividends. Expropriation and Compensation There have been no expropriatory actions in Brazil in the recent past nor any signs suggesting that the Government is contemplating such actions. Foreign investors.” In such instances.commission (CVM). In 1999 a state government sought and obtained a court ruling canceling contractual obligations. and. the loan must be registered electronically with the Central Bank. Subsequent transactions. If the contract does not have such a provision. if the Central Bank does not respond within five working days. this requirement is to ensure accurate records of Brazil’s stock of debt. if applicable. 74 . investors. the loan is reviewed by the Central Bank. such as reinvested profits. there are other approved procedures for transferring funds abroad that in practice can be used for a wide range of purposes. lease payments were assessed a 25 percent withholding tax. upon registering their investment with the Central Bank. on stock market transactions. Interest and amortization payments specified in the loan contract can be made without additional approval from the Central Bank. Automatic registration is not issued when the costs of the operation are “not compatible with normal market conditions and practices. Remittances must also be registered with the Central Bank. the parties involved continue to negotiate these contract disputes. associated with the partial privatization of a state electricity company. Loans of 90 days or less must pay the IOF. According to Central Bank officials. Beginning in 2000. There remain individuals who have not yet been compensated because the states have appealed these decisions. the registration is completed automatically. but does have such treaties with a number of other countries. Repatriation of an initial investment is exempt from income tax.S. In most instances. Taxes— Dividend and capital gain remittances are subject to a 15 percent income withholding tax. In addition to payments associated with registered loans and investments.S. That also applies to early payments. if there is a provision in the contract for early payment. Remittances related to technology transfers are subject to the tax on credit. and all requests have been approved since the new guidelines were issued in 2000. The court ruling is being appealed by the U. Brazil has no double taxation treaty with the United States. may also have to be registered with the Central Bank. a newly inaugurated government in another state refused to honor a number of contracts the previous state government had signed with a range of Brazilian and foreign investors. The remittance transaction may be carried out at any bank by documenting the source of the transaction (evidence of profit or sale of assets) and showing that applicable taxes have been paid. early payment requires prior approval of the Central Bank. In 2003. provided the recipient is not a government entity (loans to government entities still require prior approval). royalties. Some claims regarding land expropriations by state agencies many years ago have been judged by courts in U. foreign exchange. signed by the prior state government. Dividends cannot exceed corporate profits. capital (including capital gains). and insurance (IOF).

Binding arbitration between foreign investors and state entities is apparently prohibited on the grounds that it infringes the sovereign rights of the state. Congress is considering legislation that would streamline the assertion of lender rights in the case of default on a loan. may use violence to settle land disputes and influence the local judiciary. Some municipalities provide land on favorable terms for industrial development. Political Violence (as it may affect investments) Significant human rights violations occur throughout Brazil. although those rights are sometimes difficult to enforce. Foreign specialists in fields where Brazilians are unavailable are not counted in calculating the one-third permitted for nonBrazilians. it is worth noting that the Landless Workers’ Movement (MST) political action group has recently been invading a variety of agricultural interests. Bankruptcy laws provide for creditor rights. often aided by police serving as their private security agents. with equal application to foreign and domestic investors. most foreign investment remains concentrated in the more industrialized southern part of Brazil. which are governed by the civil code. Brazil has a functional commercial code that governs most aspects of commercial association. both domestic and foreign. They are rarely charged and convicted. Arbitration clauses in contracts are not enforceable as such. Brazil ratified the 1975 Interamerican Convention on International Commercial Arbitration. In August 1995. the police are sometimes implicated in killings. In rural areas. such as the Northeast and the Amazon. except for corporations formed for the provision of professional services. These benefits have had limited impact on most foreign investment decisions. or another government entity. None of the agreements has been ratified. powerful landowners.Dispute Settlement Brazil is not a member of the International Center for the Settlement of Investment Disputes (ICSID . Finally. 75 . In urban areas. Legal experts doubt that such arbitration provisions would apply if the Government of Brazil. In firms employing three or more persons. Individual states have sought to attract investment by offering ad hoc tax benefits and infrastructure support to specific companies. Brazil has signed Bilateral Investment Agreements with about fourteen countries (but not the United States) that permit arbitration by either ICSID or a panel set up under the United Nations Rules for International Commercial Law. as well as other criminal activities and abuse of prisoners.also known as the Washington Convention) nor of the New York Convention of 1958 on the recognition and enforcement of foreign arbitration awards. An overburdened court system is available for enforcing property rights but decisions can take years. as well as the 1979 Interamerican Convention on Extraterritorial Validity of Foreign Judgements and Arbitral Awards. Performance Requirements/Incentives Geographic preferences consist of tax benefits for investment in less developed parts of the country. Foreign arbitration awards require confirmation by a court of the country in which rendered and the Brazilian Supreme Court. was one of the parties to the dispute. Brazilian nationals must constitute at least two-thirds of all employees and receive at least two-thirds of total payroll.

it has not used this provision). particularly by special IPR task-forces in Sao Paulo and Rio de Janeiro.The fraudulent use of internationally "famous" marks has been a problem in Brazil. sound recordings and musical compositions. However. the patented invention in Brazil within three years of issuance. books and computer software were over $770 million in 2002. An export program known as PROEX was established in 1991 to equalize domestic and international interest rates for export financing and to directly finance production of tradeable goods. its software copyright protection law contains provisions that would introduce a rental right and an increase in the term of protection to 50 years.Brazil's copyright law generally conforms to world-class standards. Brazil removed its reservations and fully accepted the Stockholm revision of the Paris Convention. Some foreign firms have been successful in court actions against trademark infringement. and the Paris Convention on Protection of Intellectual Property. widespread piracy of copyright and trademark material remains a problem. principally in enforcement. Copyrights -. Brazil has not yet ratified the WIPO Treaties on Copyright and Performances and Phonograms. including better protection for internationally known trademarks. Brazil’s 1996 Industrial Property law brings its patent and trademark regime up to the international standards specified in the TRIPS Agreement. the failure to register licensing agreements will no longer result in cancellation of trademark registration for non-use.The Special Agency for Industrial Financing (FINAME) of the National Bank for Economic and Social Development (BNDES) provides financing for purchases by Brazilian firms of Brazilianmade machinery and equipment -. locally manufacture. Trademark licensing agreements must be registered with the National Institute of Industrial Property (INPI) to be enforceable. Brazil is a member of the World Intellectual Property Organization (WIPO) and a signatory of the Bern Convention on artistic property. In May 2001. As a result of continuing problems regarding protection of intellectual property rights. In August 1992.capital goods with a high level of domestic content. Protection of Property Rights Brazil is a signatory to the GATT Uruguay Round Accords. Likewise. However. Trademarks -. A sting 76 . Patents – In most respects. Government efforts to stem the flow of pirated goods through its ports and across the border with Paraguay have been largely unsuccessful. the Washington Patent Cooperation Treaty.e. private sector estimates that trade losses from piracy of videocassettes. own. but a national strategy for combating piracy on a comprehensive scale has yet to emerge. Right to Private Ownership and Establishment Foreign and domestic private entities may establish. Nonetheless.S. the Industrial Property Law has provided significant improvements in Brazil's trademark regime. i. however. the Government created an inter-ministerial committee to address copyright piracy. The government also has a series of smaller programs designed to assist small and medium sized businesses export. the law includes compulsory licensing and local working requirements which may be TRIPSinconsistent. including the Trade Related Aspects of Intellectual Property (TRIPS) Agreement. Brazil remains on the Special 301 priority watch list following the early 2003 review. and dispose of business enterprises. signed in April 1994. Despite passage of these copyright laws in 1998. Brazil has agreed to consult with the United States before invoking the local working requirement (to date. The law would theoretically permit the grant of a compulsory license if a patent owner has failed to work. The U. significant anti-piracy raids have been made.

handles the licensing and assigning of bandwidth. In 2002. which led to extensive financial losses for a number of companies. the Brazilian Congress passed a law in July 2003 that establishes prison terms of two to four years for copyright violations. State courts in particular are subject to political influence. In 2003 the administration presented tax reform legislation to congress that would simplify the valueadded tax collected by the states and convert another invoice tax to a value-added tax. not only for those selling pirated products. but have not been ratifified. Bilateral Investment Agreements Brazil has signed Bilateral Investment Agreements (BITs) with fourteen countries and completed negotiations on two regional Mercosul agreements since 1994. Taxes on commercial and financial transactions are particularly burdensome. although in a few instances there have been complaints that the value-added tax collected by individual states (ICMS) is set to favor local companies. Integrated Circuit Layout Designs -. To enhance enforcement efforts. The bureaucracy has broad discretionary authority. This prompted the government to review the regulatory framework for the electricity sector.operation at a border crossing in Foz do Iquacu in early 2003 also resulted in the arrest of a number of government officials involved with smuggling operations. Taxes are numerous and burdensome. The National Petroleum Agency (ANP) is commended by the industry for its fair handling of auctions of oil exploration blocks and its willingness to assist industry in seeking to simplify regulatory procedures such as environmental licensing. There are two Mercosul investment-related agreements: the Buenos Aires Protocol ("extrabloc") and the Colonia Protocol ("intrabloc"). energy and transportation are a relatively new phenomenon in Brazil. Brazil suffered a energy crisis in 2001 when lack of rainfall triggered an electricity supply shortage in the heavily hydro-dependent country. hiding or acquiring counterfeit copyright products. The new law also establishes procedures for making arrests and destroying confiscated products. a number of companies have complained about the high level of regulatory risk in the sector. and also imposes several invoice taxes that are cumulative. The central government has historically exercised considerable control over private business through extensive and frequently changing regulations.A government-drafted bill to provide protection for the layout design of integrated circuits (computer mask works) was introduced in the Brazilian Congress in April 1996. the latter has not been signed by Brazil. Seven of the bilateral investment treaties have been sent to the Brazilian Congress. but also for those convicted of renting. They cite the tariff review process and the lack of medium-term to long-term energy policy. However. Brazil has separate value-added tax systems run by the federal and state governments. Regulatory agencies for sectors such as telecommunications. the Brazilian legal and procedural system is complex and overburdened. the country’s telecommunication agency. The draft law was still under discussion in 2002. ANATEL. in the electric power sector. and businesses complain that these taxes hinder international competitiveness of Brazilian products. smuggling. one of the invoice taxes was converted to a value-added tax. The United 77 . a process that is ongoing as of June 2003. Regulatory System: Laws and Procedures (as they pertain to investments) Although some improvements have been made. but do not discriminate between foreign and domestic firms.

The participation of women. Earnings also vary significantly by region and industry. 78 . Labor The Brazilian labor force comprises nearly 80 million workers in a wide range of occupations and industries. two-thirds of the population studied fewer than 8 years. According to a 1999 survey by IBGE. Labor unions.2 percent. with 7 percent illiteracy in the Southeast and 26 percent in the Northeast. continues to grow. The Brazilian Institute of Geography and Statistics (IBGE) calculates an average unemployment rate for the country based on data collected monthly in Brazil’s six largest metropolitan areas. OPIC and Other Investment Insurance Programs Programs of the Overseas Private Investment Corporation (OPIC) are fully available and activity has increased in recent years. which are funded largely by a mandatory tax equivalent to one day’s wages per year. The average monthly wage in Brazil’s six largest cities was approximately 770 reals (approximately $300) in January 2002. Illiteracy rates also exhibit regional disparities. In more remote areas with smaller local unions.1 percent in 2000. and the retail and manufacturing sectors combine to employ another quarter of all workers. following two consecutive years of lower real wages for most workers. are obliged to represent all formal sector workers in a professional category and geographical area. most sources estimate that nearly half of all workers are not formally registered. Brazil became a member of the Multilateral Investment Guarantee Agency in 1992. pay no income taxes. however. Real wages declined by nearly four percent in 2001. The United States and Brazil currently have no plans to discuss a BIT. The labor market has a high rate of informal sector employment. especially in the most skilled sectors such as metalworking and banking. however. as the wealthiest half of Brazilians earn nearly 90 percent of the total income. In more recent years. and the minimum monthly salary was raised from 180 reals ($70) to 200 reals ($78) in April 2002. Nearly half of the labor force is employed in the service sector. down from 7. earns about three times as much as the average retail worker in the northeastern state of Bahia. Differences in earnings are caused in part by the regional disparity in educational attainment and in the availability of skilled workers. for example. roughly a quarter in agriculture. with this number reaching 60 percent in the Southeast (including Rio and Sao Paulo) and 77 percent in the Northeast (including Recife and Salvador). Union members account for approximately 16 percent of the workforce. regardless of membership status. and do not enjoy full protection under the law. According to this survey. but unions represent more than twice this number in collective bargaining. significantly higher unemployment numbers have been registered in such urban areas as Sao Paulo. The IBGE reports that about 13 percent of the population is illiterate. The size of OPIC's exposure in Brazil may occasionally limit its capacity for new coverage. unions tend to be less effective. These figures hide stark wage inequalities. The typical industrial worker in Sao Paulo. About a quarter of all workers are self-employed. tend to be well-organized and aggressive in defending wages and working conditions. Unions. the unemployment rate in 2001 averaged 6.States signed an Investment Warranty Treaty with Brazil in 1965. who now account for over 40 percent of the labor force.

DIEESE reports that most strikes were motivated by salary demands in the early 1990s. where they may remain unresolved for four or five years. eliminated a number of requirements (but not all) concerning technology transfer agreements. the Union Force (Forca Sindical . the Workers' General Confederation (CGT). but that strikes are increasingly are undertaken to protest a perceived failure by management to comply with negotiated agreements. No royalties or other fees may be transferred between related companies for the use of software. Brazil also has a system of labor courts that are charged with resolving routine cases involving unfair dismissal. others are viewed as closely associated with such parties as the PT and the PDT. foreign investors may freely convert Brazilian currency at the "commercial" rate.FS). In addition. According to the Interunion Department of Socioeconomic Studies and Statistics (DIEESE). however. which in the past has created problems for foreign investors. The labor code is highly detailed and relatively generous. While some labor organizations and their leadership operate independently of the government and of political parties. and represent workers in many governmental and tripartite councils. However. This approach is changing.5 million complaints are languishing in the labor court system.) There has been a relaxation since 1991 of the restrictions on the remittances of royalty payments for patent and trademark use between subsidiaries established in Brazil and the parent office headquartered overseas and on remittances of franchise contract royalties. At this time.Royalties Section for further information. the number of strikes each month has declined from 111 in 1996 to roughly 46 in 1999. (Refer to Chapter VII.000 labor unions in Brazil. but Ministry officials note that these figures are inexact. over 2.) 79 . Labor federations channel much of the political activity of the labor movement. and the Social Democratic Union (SDS). Local unions often associate with state federations and national confederations in their professional category. formal sector workers are guaranteed 30 days of annual leave. Conversion and Transfer Policies Section for further details. labor courts routinely are called upon to determine wages and working conditions in industries across the country. four major labor centrals have emerged: the Workers' Unitary Central (CUT). A 1992 INPI resolution simplified procedures and. in particular. as labor and management have become more flexible and collective bargaining has assumed greater relevance. This has led labor relations in Brazil to be characterized by a conflict approach in which both sides typically take extreme positions. (Refer to Chapter VII . working conditions. Capital Outflow Policy There are few restrictions on converting or transferring funds associated with an investment. the Central Bank has broad administrative discretion in regulating remittances. The Brazilian government is attempting to reduce this backlog and increase the efficiency of the labor courts through recent initiatives to expedite legal procedures and increase the number of claims that are resolved before reaching the courts. Currently. an annual bonus equal to one month’s salary. and severance pay in the case of dismissal without cause.The Ministry of Labor estimates that there are over 11. organize strikes and salary campaigns involving multiple professional categories. As a result. Labor courts have the power to impose an agreement on employers and unions if negotiations break down and either side appeals to the court system. and other grievances. salary disputes.

3 30. General Motors. to a lesser extent.7 -41.1 14.8 -33. Ford Motor Co.5 billion.0 Source: Central Bank of Brazil.1 35. Motorola and Ford-. the stock of direct foreign investment in Brazil stood at $103 billion as of December 2000.are among the top twenty domestic firms. According to the Central Bank foreign capital census.2 47.5 -36. Bunge and Halliburton.2 -4.8 18.8 19.5 16. In 2000.4 10. Despite current 80 .0 36.0 28. Nokia.6 59.3 3.8 57.4 18.S.6 32.7 38.0 26.8 44.3 32.represented foreign investment.. Six of the top ten exporters -.2 41.0 8.1 11.3 29.0 22.8 42.Bunge.9 29. Netherlands.GM. Portfolio Investment includes equity and bonds Major Foreign Investors As of December 1998.8 -30.7 0. Of this.2 billion and Netherlands 10.9 10.5 -7.4 12.5 38.7 -47. investment activity by other national groups.6 6.1 -37.0 45.8 22.9% of the total or $12. companies -.5 -23. Efficient Capital Markets and Portfolio Investment Brazil opened its market to foreign portfolio investment in 1991.5 32.2 -3. France.9 -35.7 10.0 -1.7 -7.9 -28. Three U.5 -28. balance of payments data.7% or $11.3 59. in part a legacy of the high inflation period when good financial management was critical for a firm’s survival.3 40.4 36. Cargill. The Brazilian financial sector is large and sophisticated. Cisa Trading.9 82.1 -6. Volkswagen.5 -26. Spain had 11. the government further liberalized portfolio investment by granting foreign investors greater flexibility in reallocating domestic assets without passing through the foreign exchange market.6 23. Texaco.6 -24. and Exxon -.4 -2.0 billion.9 60.1 75. the United States was the largest single foreign investor in Brazil followed by Spain.4 -23. Investment from the Cayman Islands began growing rapidly in 1995 and is thought to represent mainly repatriation of Brazilian capital entering the country as foreign investment and.2 -49. Germany and Portugal.1 -7. Investment from Spain and Portugal surged in 1998 due to involvement in telecom privatizations and greatly increased investment in the banking sector by Spain.1 -43.1 22. the United States had the largest share at about 24% or about $24.9 28.BRAZIL’S CAPITAL FLOWS 1995-2002 (US$ billions) Net FDI Inflow Outflow Net Portfolio Investment Inflow Outflow Net Total Inflow Outflow 1995 1996 1997 1998 1999 2000 2001 2002 4.6 -9.3 -52.4 79. Volkswagen. Seven of the top ten importing firms in 2002 were foreign: Motorola.4 94.

many the result of the banks undertaking loss-making “social” lending. Banks owned by state governments in particular were burdened with large amounts of unserviced debts.3 31. It also established loan classification and provisioning requirements. and tightened its capital adequacy rules to better reflect risk. In 2001 four new issues in the primary market raised only $366. and acquisitions. the government announced plans to recapitalize the banks and clean up their balance sheets. and Safra are Brazilian-owned private banks. and the disappearance of so-called "float income" due to high inflation. liquidated. billions) (March 2003) BANK Banco do Brasil BNDES Federal Savings Bank Bradesco Itau Unibanco Santander Banespa ABN Amro Nossa Caixa Safra Assets 60.7 18. Santander and ABN Amro are foreignowned banks (Spanish.S. With the elimination of high inflation in the mid-1990s. The total number of companies listed on the 81 . high mandatory reserve requirements and administrative overhead.4 7. the Federal Savings Bank (Caixa Economica Federal).5 million. BRAZIL'S TEN LARGEST BANKS Public and private (U. Unibanco. the banking sector entered a period of consolidation in 1995. Three of the country's ten largest banks failed and were taken over by other banks. mergers. and some 20 smaller banks were liquidated.S.9 Source: Central Bank Notes. Banco do Brasil. Itau. or transformed into development agencies. Domestic banks began to experience liquidity problems. In June 2001.1 15. risk. Most state banks were taken over by the federal government.0 12.moderate inflation rates.) Few corporations raise capital through the Brazilian stock exchanges. At the same time it is undertaking measures to prevent the banks from undertaking loss-making social programs without government budget support to subsidize the programs.3 33. Bradesco. and the National Bank for Economic and Social Development (BNDES) are owned by the federal government. the Central Bank strengthened its bank audits. privatized. These measures are applied to private and publicly-owned banks alike. As a result of these failures.1 45. Nossa Caixa is owned by the state government of Sao Paulo.9 7. implemented more stringent internal control requirements. and 1996 and 1997 were marked by a series of failures. bank lending spreads remain extremely high due to taxation.0 38. Dutch and U. dollars. The federally owned banks were also undercapitalized and carrying poorly performing loans.

in some cases. The failure of major banks and large businesses during 1995. raised doubts about the credibility of these financial statements. new legislation granted the CVM independence and established stronger penalties against insider trading. the Congress approved a law that limits preferred shares for new issuances to 50 percent. the numerous regional stock markets agreed to consolidate.S. known as PROEX. The same proposal strengthens rights for minority shareholders. rather than stock exchange activities. The firm was scheduled to be privatized in 2000. PROEX receives funds from the National Treasury to offer assistance in the areas of interest rate equalization. BNDES. but the sale has been delayed by a court decision. which finances capital good exports for both foreign and domestic companies. As a result. Brazilian law recognizes mergers. FINAME (Special Agency for Industrial Financing) provides foreign and domestic companies operating in Brazil financing for the manufacturing and marketing of capital goods. Some Brazilian firms are also listing on the NYSE via American Depository Receipts (ADR's). The government legally ended the reinsurance monopoly in late 1996. This is mainly due to the high cost-benefit relation of keeping a company listed at the stock exchange for some companies. and leasing companies. Sales of Brazilian companies usually result from private negotiations. FINAMEX (Export Financing) is a part of FINAME. Brazilian regulators removed a number of remaining restrictions on foreign portfolio investment. but opening the reinsurance market to domestic and foreign competition has been help up pending the privatization of the Brazil Reinsurance Institute (IRB).” in which the listed companies would comply with strict corporate governance requirements.3 billion. up to two-thirds of a corporation's capital may be preferred (non-voting) shares. by holding only 17 percent of total capital. and service exports. mutual funds. notwithstanding positive financial statements prepared by the major accounting firms. pension funds. with the top 10 stocks accounting for 56 percent of turnover. so it is possible to achieve majority control of voting shares. was established in 1991. in which the pre-existing companies are extinguished and a new entity emerges. All stock trading is done in Sao Paulo stock market. Total turnover in the secondary market was $49. are present in Brazil. Historically. firms. capital and other goods exports. the government national development bank. The procedures for both are essentially the same. The Sao Paulo stock market also launched a “New Market. Wholly owned subsidiaries of multinational accounting firms. compared to 399 in 2002 and 439 in 2001. An export credit program for capital and some consumer durable goods. with the intent of promoting the stock market and improving liquidity. 82 . while trading of public securities is conducting on the Rio de Janeiro market. brokers. in which one company loses its separate identity by being merged into another. The foreign investors are required to trade derivatives and stocks of publicly held companies on established markets. In January 2000. The Brazilian Securities Exchange Commission (CVM) directly regulates the stock exchanges. foreign investors – both institutions and individuals – can directly invest in equities. is the primary Brazilian source of longerterm credit. Beginning in 1996. and consolidations. including the major U. auditors have been personally liable for the accuracy of accounting statements prepared for banks. and also provides export credits. In 2001. securities and derivatives. distributors.stock market fell to 388 as of May 2003. In 2001. Trading is highly concentrated. In 2000.

see Trade and Project Financing. and the Investment Climate Statement. The number of such state-level banking institutions has fallen in recent years due to the central government's financial and banking reform efforts. Brazil's banking system is highly developed.Finances both public and private sector projects. Chapter VII. TRADE AND PROJECT FINANCING Brief Description of Banking System The largest in South America. registers foreign investment. Central Bank -.Executes monetary policy. Brazil's Central Bank regulates banking and financial services.Provides long-term financing and administers the privatization program. and Piauí. efficient. manages exchange transactions. Individuals may import items via catalogs or phone/mail order. With the reduction of the financial operations tax (IOF) on overseas credit card purchases to less than 2 % in February 2000. the government instituted new rules that forbade normal financing of outstanding balances arising from international credit card purchases.Acquisitions resulting in market concentration in excess of 20 percent are subject to review by the Administrative Council for Economic Defense (CADE) under Brazil's 1994 Anti-trust Law. for the low-income citizens.Sets financial and monetary policy. 08. primary lender to the agricultural sector.e. National Economic and Social Development Bank (BNDES) -. and maintains strict accounting and operational supervision.. Private sector banks are often organized as financial conglomerates offering a full range of financial services through subsidiaries and associated companies. Bank of Brazil -. The following are key governmental financial institutions: National Monetary Council -. Santa Catarina. paying with an international credit card. and offers a wide range of financial services. i. including housing and educational programs. In May 1997. 83 . Four of Brazil's states still have state-owned or state-controlled banks offering public and private banking services: The States of Maranhão. Brazil removed the last obstacle to full liberalization of the current account. Caixa Econômica Federal – Finances social programs. regulates banking and financial institutions. For more information on Brazil's banking system. sets interest rates within inflation-targeting policy framework via the Monetary Policy Committee (COPOM). Ended in October 1999 were import financing restrictions imposed in April 1997 that had required importers to purchase foreign exchange for financing purposes at least 180 days in advance of the due date for short-term supplier credit. Ceará. It is the principal governmental entity responsible for financing urban development and sanitation. of less than 360 days in duration. Foreign Exchange Controls Affecting Trade (As Opposed to Investment) Obtaining an import license gives importers access to foreign exchange to pay for imports at the commercial rate through commercial banks.

S.BNDES The Brazilian Development Bank (BNDES). acquisition and leasing of machinery and equipment. Brazilian export of goods and services. BNDES changed its orientation. medium or large Brazilian companies investing in capital goods. ports. raw materials.Steel 1960’s : Basic inputs – Consumer goods – Small and medium-sized enterprises 1970’s : Import substitution of basic inputs – Capital goods 1980’s : Energy-Agribusiness 1990’s : Private Infrastructure and Brazilian Exports.000.General Availability of Financing Interest rates currently prevailing in Brazil for short term loans (60 to 90 days) range currently from 20 to 60% a year (with a 12-month inflation of 12. Technology projects (Biotechnology. nanotechnology). Financing infrastructure (energy. oil and gas. infrastructure. is the main source of medium and long-term financing in the Brazilian economy. Modernization and expansion of the productive structure (creation of micro. The key interest Selic rate (Brazil's counterpart to the U. Presently BNDES emphasizes: Social inclusion (employment. founded in 1952. The BNDES is one of the few sources of long term financing in the market. per company. energy or technology. Privatization (Management of the Brazilian Privatization Program -Total : $100 billion) With the new Brazilian government having taken office in January 2003.gov. The sovereign risk is 100% owned by the Brazilian Federal Government. disbursed in one year 84 .bndes. Web site: www. and Financing to Brazil-based exporters and buyers abroad.5% in 2002). small and medium companies). education). Brazilian National Development Bank . Continental integration (partnership with other South American financing agencies).000 is automatic.br Loan terms for FINAME (Special Agency for Industrial Financing) are: Maximum coverage is 90 % of transaction Maximum of US$ 7. Fed Funds) adopted by the Brazilian Central Bank monetary policy committee (Copom) is 26% a year. telecommunications and logistics). as well as the main Brazilian agent of multilateral credit organizations. water. Disbursements by sector in CY 2002 : Commerce and Services : 47% Infrastructure : 43% Agribusiness : 10% BNDES’s main credit activities are financing of fixed investment. BNDES focus has varied in the past: 1950’s : Infrastructure . The BNDES’ budget for 2002 was about US$ 10 billion for financing to small.

wine and brandy. total quality systems. Brazilian commercial banks. broccoli. distilled spirits (rum. cauliflower. and joint ventures.S. tomatoes 85 .25 % plus spread of 3 to 6 % representing BNDES spread and commercial bank fee Amortization period: six months to 5 years Maximum grace period: up to twelve months . sheep. As a result. Terms were increased to 18 months in March 1997. locally produced. including semen and embryos). potatoes and tomatoes). corn. fresh vegetables (asparagus. BNDES also provides export finance for capital goods and for services. celery.S. carrots. canned vegetables (asparagus. transportation.S. The program is currently authorized at US$ 250 million. The U. freight. Payment terms are available for up to three years for breeder livestock exports. Leasing. Eligible products under the GSM -102 Program include: Breeder livestock (cattle. vodka and whiskey). agricultural commodities to Brazil under the Commodity Credit Corporation's Supplier Credit Guarantee Program (SCGP) for Fiscal Year 1997. United States Department of Agriculture Credit Assistance Program A GSM-102 credit assistance program was extended to the Brazilian private sector for the first time in the Fiscal Year 1995 (October-September). However. FINEP . exporters may apply for credit guarantees on a first-come-first-serve basis to cover sales of any of food and agricultural products. import taxes. letters of credit and other trade finance can be expensive to open in Brazil. many suppliers extend open account privileges to established reliable clients in Brazil to avoid high financing costs. bank financing. agricultural exports. peas. U.Disbursal above that limit depends on the company in question Cost: currently 13. This is an adaptation of the GSM-102 program and is designed to assist exporters of U. lettuce.S.The Study and Projects Financing Agency of the Ministry of Science and Technology made available US$ 260 million in 2002 for long-term financing with a grace period of 2 years and repayment period of 5 years. carrots. garlic. This financing was for the development of new products. FINEP'S funds are made available to the public through some development banks. beans.86 % per annum (long term interest rate of 10. or it may mean the difference for the availability of U. and subsidiaries of international banks are active in trade finance. How to Finance Exports/Methods of Payment All the standard methods of export financing are available and used in Brazil. both for exports and imports. corn. goats. agricultural commodities who wish to provide relatively short-term credit to their importers These credit guarantee programs reduce the risk of nonpayment to U.55 to 16. swine. lease-back and leasing-import are widely used in Brazil. and all other taxes and fees involved in the importation. peppers. Department of Agriculture has authorized US$ 10 million in credit guarantees for sales of U. at the time Brazilian government instituted restrictions on short term import financing. beans. Leasing is available for both new and used. horses and donkeys. for research centers. onions. The reduction of risk may be reflected in lower interest rates on financing than would be the case without a USDA guarantee. and imported equipment. The leasing operation includes financing of installation.S.S.S. banks that extend credit to Brazilian banks to finance U.

granules). peas and lentils). fish food. commercially prepared dog and cat food. vegetable oils. wheat flour. dairy products (butter. frozen fruits. 9/36 at 24 months.S. etc). honey. hazelnut and pecan). nectarines. beer.tomato paste. These fee rates include a charge to provide adjustable interest coverage. No changes may be made to the promissory note form elected for use and no other form of promissory note may be used. applicable guarantee fee rates. frozen or chilled (beef. soy protein products. pulses(dry beans. 86 . whey powder. anhydrous milk fat. dry. fruit pure and fruit pulp. meat. 100% natural fruit juice. potatoes(cut and chilled or frozen.wheat. melons. animal feed ingredients. nutritional beverages preparations (for human consumption). Embassy in Brasilia.8 67. refrigerated of frozen). 100% cotton yarn. feed grains (barley. frozen vegetables (beans. Four additional credit options are also available for coverage of sales to Brazil. hops: hops extract. In order to obtain an updated list of the OAA Brazilian participating banks. Exporters are advised by CCC to review thoroughly the provisions of these promissory notes with the importer. soups and sauces. butter oil. canned fruits. semolina. tallow: grease. non-fat and whole milk powder. refrigerated. lecithin and cheese). please contact the Foreign Agricultural Office at the U. oranges. ghee. yellow corn. Two promissory note forms exist.S. one or the other of which must be used by the importer to evidence its obligation to pay for the U. blueberries. fresh fruits (apples. almonds ( walnuts. carrots.0 No interest coverage is offered. and/or printed). rice. turkey pouts and hatching eggs). barley malt. and 12/36 at 36 months Fee(cents/$100) 40. pistachios. kiwi. alfalfa. seafood (fresh and frozen). sorghum and oats). corn meal. expressed in cents per US$100 of coverage (based upon guaranteed value) are shown. grapes. cherries. skins. wood. grapefruit. flakes. pork and their products). white corn.and tomato paste). raspberries and tangerines). peanuts. whey protein concentrate. agricultural commodities exported under SCGP. lard. apricots. poultry breeder stock (baby chicks. peanut butter or peanut flour.5 43. pears. Length (Term) of Coverage 15 months 18 months Principal Repayment Intervals Full repayment at 15 months 5/6 repayment at 15 months and 1/6 at 18 months Full repayment at 18 months 15/36 repayment at 15 months.5 18 months 36 months (Livestock only) 48. eggs and egg products (fresh. popcorn and gluten). These new configuration are set forth below. corn products (flour. ready-to-eat meals. cotton. 100% cotton fabrics (woven and knit unbleached/bleached/dyed. Also. plums. starch. seeds for sowing. ice cream. non-sweetened condensed milk. frozen. lactose. dry fruits. including malting barley. avocados. broccoli. lemons. fluid milk. preparation for breads and pizzas (powder. corn and spinach). canned pickles. cereals. soft drinks and sodas. albumin. peaches.

S. Local Cost Policy: Ex-Im Bank provides up to 15% of the U. If the risk is with a non-bank company. goods and services. However Ex-Im Bank will now use an aggregate approach to calculating the foreign content of transactions.S. companies seeking to win foreign sales by making Ex-Im Bank programs easier to use.S. Ex-Im Bank has approved major procedural changes in applying its foreign content and local cost policies to finance U.S. and lease insurance policies. assuming the commercial and political risks of the loans. Ex-Im Bank will work with exporters to monitor and report on the impact of these procedural changes to ensure they achieve the desired result of maximizing U.Types of Available Export Financing and Insurance Export-Import Bank of the United States The Export-Import Bank of the United States (Eximbank) offers a range of loan. a Brazilian public sector entity may be the end-user.S. The changes will enhance the competitiveness of U. Engineering data are required for long-term transactions. The Ex-Im Bank requires information on proposed obligors and guarantors.S. The more flexible procedures.S.S. contract price of an export to support locally obtained products and services in the country of the foreign buyer. Foreign Content Policy: Ex-Im Bank will continue to support the lesser of: 85% of the U. its audited balance sheet and income statements must be very strong. bank loans to private Brazilian banks. exports and U.S. Most of the Bank's recent medium-term Brazilian business has been done under the Credit Guarantee Program. or 100% of the U. The Bank's short-term. including short-term and medium-term export insurance. export sales. multi-buyer insurance. Such information includes financial statements and credit references. The Brazilian bank becomes the obligor and assumes the commercial risk of the transaction. replacing the item-by-item procedure used until now. medium-term and long-term programs are available to support U. exports to Brazil when the obligor is a highly creditworthy private sector entity. supply contract. letter of credit insurance. The simplified procedures provide U. and the company must have a good commercial track record. Eximbank acts mainly as a guarantor of U. effective immediately. goods and services.S. content of an export transaction.S. Government lenders. Under the new procedures Ex-Im Bank has eased the eligibility criteria in three ways: 87 . exporters with a more efficient and predictable disbursement process.S. jobs. The resources guaranteed by the Bank are made available to privately-owned Brazilian companies importing U. or guarantor of financing provided with Export-Import Bank assistance. Following a relaxation of policy in late 1998 reflecting Brazil's progress in making up arrears payments to U. Other Eximbank guaranteed export credits are available from the Private Export Funding Corporation (PEFCO). which borrows in the commercial market and re-lends for exports. obligor.S. insurance and loan guarantee programs to facilitate exports of U. The Bank does not require that a private sector commercial bank be the obligor or guarantor on all transactions. will pave the way for co-financing projects with the export credit agencies (ECAs) of other countries. Ex-Im Bank works with the Foreign Credit Insurance Association (FICA) to offer various export insurance programs.

exim. (Note: CS Brazil Finance Team actively supported and participated in many of these promotional seminars. Short-term export credit insurance (repayment terms generally 180 days or less) is one of Ex-Im Bank's principal products to assist small business exporters because it protects against loss due to buyer default for commercial or political reasons. As of February 1.959. Additional information on Ex-Im Bank. and an increase in the eligibility threshold of the small business policies from $3 million to $5 million in annual credit sales. When Ex-Im Bank is the follower ECA on a transaction. (Ex-Im Bank will continue to offer local cost support for all medium-and long-term environmental exports and for project finance transactions). Ex-Im Bank conducted joint marketing seminars with Banco do Brasil in five Brazilian cities to encourage more small and medium-sized Brazilian companies to purchase U. These principles allow U. exports to Brazil. For limited recourse project finance transactions.S. In Brazil. 20571 (202) 565-3946 Web site : www. D. Senior Business Development Officer Phone : (202) 565-3939 88 . small business to access short-term export credit insurance for their foreign sales : a new short-term pricing system that will reduce premium rates on short-term policies for lower-risk transactions. 2. 2001.C. exporter's responsibilities in carrying out his contract. Now all long-term cases can obtain local cost support when the costs are connected to the U.S. Co-financing Procedures: The foreign content and local cost changes pave the way for another important initiative -. Ex-Im Bank has established principles for co-financing transactions with other ECAs.gov Contact : Mr. Ex-Im Bank is eliminating certain documentary requirements for local cost financing to avoid unintended expenses for U. exporters to offer foreign buyers the convenience of a "one-stop-shop" approach. exporters. O’Connor. Ex-Im Bank may now support any local costs that benefit the project as a whole and contribute to the U.S. When Ex-Im Bank is the lead ECA on an export transaction.S. export. FICA and PEFCO programs can be obtained from: Export-Import Bank of the United States 811 Vermont Avenue. and 3.1.) In FY 2002. Using the flexibility created by these changes. the Export-Import Bank of the United States (Ex-Im Bank) implemented two changes that will enable more U. Ex-Im Bank authorized US$ 73. goods and services with Ex-Im Bank and Banco do Brazil financing.co-financing. which involve exports from each of the respective countries.S. It also enables companies to obtain export financing more easily because the proceeds of the policy can be assigned to a financial institution. Ex-Im Bank will continue to ensure that it meets all of its policy and legislative responsibilities. the new local cost and foreign content procedures will make Ex-Im Bank's ways of doing business more consistent with the co-financing model used by other ECAs.590 to support U.S.S. NW Washington. Craig S.

and US$ 20 billion in the petroleum sector. US$ 5 billion in transportation. Ave Suite 3M2 Miami. of which US$ 12 billion is needed in electric power.W. CA 90831 Phone: (562) 980-4580 Fax: (562) 980-4590 Availability of Project Financing Overseas Private Investment Corporation (OPIC) There is a huge potential for project finance operations in Brazil because of the lack of public funds for infrastructure investment. NY 10048 Phone: (212) 466-2950 Fax: (212) 466-2959 Southeast 777 N. Since February 1995. Market estimates are that US$ 44 billion needs to be invested in the next two years. TX 77077 Phone: (281) 721-0465 Fax: (281) 679-0156 Midwest 55 W. almost all project finance is raised in the international market. road repair). US$ 7 billion in telecommunications. the Brazilian Government has granted concessions to private companies to explore commercially some of the activities formerly reserved to state-owned companies (electricity distribution and generation. Exporting companies typically securitize future export earnings not only for implementing restructuring projects but also for working capital. IL 60603 Phone: (312) 353-8081 Fax: (312) 353-8098 West USEAC – One World Trade Center Suite 1670 Long Beach.Eximbank Regional Offices: Northeast 6 World Trade Center Suite 635 New York. Monroe Street Suite 2440 Chicago. 72nd. FL 33126 Phone: (305) 526-7436 Fax: (305) 526-7435 Southwest Ashford Crossing II 1880 South Dairy Ashford II Suite 585 Houston. The concessions opened new business 89 . Due to high domestic interest rates.

Additional information on OPIC programs can be obtained from: Overseas Private Investment Corporation 1100 New York Avenue. namely the AES Corporation/Companhia de Geração de Energia Elétrica Tietê. Banco Bradesco. The Bank is capable of financing all creditworthy projects that request its support. Insurance Phone : (202) 336-8590 Andre Potasinski – Country Ofiicer. the Ex-Im Bank established a Project Finance Division. Project Finance Phone : (202) 336-8500 Mr. In 2002 the IDB approved ten loans totaling US$ 690 million. N. Currently in the IDB pipeline for Brazil.opic. Insurance Phone : (202) 408-6240 Ex-Im Bank In June 1994.opportunities for banks operating in Brazil. Investors typically seek guarantees from international institutions because the long-term nature of the operations presents high commercial. D. In 90 . Ex-Im has no minimum or maximum project size limitations and no specific country lending caps. with loans covering $266 million.W. Asia & Latin America Investment Development Phone : (202) 336-8616 Ruth Ann Nicastri – Regional Manager for Latin America and the Caribbean. by providing financial advisory services and raising funds. Nancy Rivera.C. Commercial Service Brazil was actively involved in several of those projects. Several banks are engaged in project finance for private investors.gov Contacts: Ms. Some of the projects that could be undertaken through project finance include the construction of 19 hydroelectric plants. Richard Greenberg. The U. and El Paso Energy Corp. Preliminary studies involved in project finance can take as long as four years. Manager. new gas pipelines and associated thermal power generation plants. and repair of several highways. Washington. OPIC provided insurance in Brazil for five projects. there are 22 projects./UTE Araucária. The cost of using Ex-Im Bank financing will be directly based on the risks associated with each project and will be designed so that the bank neither makes nor loses money. and political risk. Banco Itaú and Banco Unibanco are some of the banks in Brazil that have been involved in project finance.S. OPIC did not commit any projects in Brazil in FY2002. economic. which was halted in the past due to the lack of investment funds. Manager. Citibank. 20527 Web site : www. In CY 2001. Multilateral Development Banks/International Financial Institutions The Inter-American Development Bank (IDB) and the World Bank are also involved in supporting infrastructure projects in Latin American countries.

Web sites : www. and Banco GM were among the top 50 institutions in the country as of March 2000.A. In terms of asset size. in fiscal year 2002. American Express Bank Ltd. JP Morgan & Chase.S. Citibank.A. Inc.org List of Banks with Correspondent U.A. Bank Boston. creating infrastructure funds to finance private project companies. (São Paulo) 91 .worldbank. World Bank guarantees.org and www. (São Paulo) Union Bank of California N. Banking Arrangement Brazil has one of the most sophisticated financial systems in Latin America. rural development and water/sanitation. Citibank (12th) and Bank Boston (16th) are placed among the country's top 20 institutions on this basis. (São Paulo) Capital Bank (Rio de Janeiro) Chemical Bank (São Paulo) Citibank (São Paulo) Corestates Bank N. health. such as education. (São Paulo) Goldman Sachs (São Paulo) Harris Trust and Savings Bank (São Paulo) J. N. Banco Ford.Brazil. (São Paulo) UBS Securities Inc. the World Bank approved.Illinois (São Paulo) Bank of America International of Florida (São Paulo) Bank of America International of Texas (São Paulo) Bank of America National Trust and Savings Association (Rio de Janeiro and São Paulo) Bank Ford (São Paulo) Bank General Motors (São Paulo) Bank John Deere (Porto Alegre) Bank Merrill Lynch (São Paulo) Bankers Trust Company (São Paulo) Bear Stearns & Co. thirteen projects totaling US$ 1.25 billion. Morgan & Chase (São Paulo and Rio de Janeiro) M & T Bank (Rio de Janeiro and São Paulo) Manufacturers Hanover Trust Company (São Paulo) Mellon Bank (São Paulo) Merrill Lynch (São Paulo and Rio de Janeiro) Nations Bank (São Paulo) NCNB National Bank of North Carolina (São Paulo) Pinebank (São Paulo) Pittsburgh National Bank (São Paulo) Security Pacific National Bank (São Paulo) Texas Commerce Bank N. (São Paulo) BankBoston (São Paulo) Bank Audi (São Paulo) Bank of America .S.P.iadb.A. The Bank's activities include traditional co-financing. About 60% of the Bank’s resources in FY 2002 focus on targeted poverty reduction. (São Paulo) Delta National Bank and Trust Company of New York (São Paulo) First Interstate Bank of California (Rio de Janeiro) First Republicbank Dallas. and designing projects for future private sector participation. U. commercial and investment banks have been in Brazil since 1915.

specialists providing “technical assistance” to a firm located in Brazil related to the execution of a sale or contract of that firm with a U. even if they are not employed in Brazil and receive no remuneration from a Brazilian source. businessperson is encouraged to learn as much about the Brazilian economic and commercial environment as possible before doing business. a U. they may wish to conduct business in Portuguese. Business travelers attempting to enter on tourist visas risk being denied entry. Business visas are required for visitors intending to engage in business transactions such as meetings. Lunch is usually two hours.S. partners. The best times for calls on a Brazilian executive are between 10:00 a.S.The Bank of New York (São Paulo) Wachovia Bank (São Paulo) (Source : Brazilian Banking Association – FEBRABAN) 09. regardless of type or validity. discussions. although this is less the case for Sao Paulo where appointments are common throughout most of the day. are considered invalid if not used within 90 days of the issuance date.S. Many Brazilian executives do not react favorably to quick and infrequent visits by foreign sales representatives. which must be approved and transmitted to the appropriate Brazilian Embassy or Consulate 92 . U.m. and English is preferred as a substitute over Spanish. While office hours in Brazil are generally 8:00 a. Brazilian visas must be obtained in advance from the Brazilian Embassy or Consulate nearest the traveler’s place of residence.S. the pace of negotiation is slower and is based much more on personal contact.m. and noon. Specifications and other technical data should be in the metric system. one should be as prepared technically when making a call on a Sao Paulo firm as on a Chicago firm.m. There are no “airport visas. In fact. U.S.m.. The slower pace of business negotiations does not mean that Brazilians are less knowledgeable in terms of industrial technology or modern business practices. While many Brazilians may speak English. Commercial or Consular officers are unable to secure relief for anyone arriving without a valid visa. Business visa holders are prohibited from engaging in gainful employment. All Brazilian visas. and negotiations with subsidiaries. to 6:00 p. The non-Portuguese speaking U. Compared to the United States. They prefer a more continuous working relationship. Correspondence and product literature should be in Portuguese. and 3:00 to 5:00 p. BUSINESS TRAVEL Business Customs U.S. In addition. Travel Advisory and Visas A passport and visa are required for Americans traveling to Brazil for any purpose. or customers in Brazil. business visitors should become accustomed to several business conditions specific to Brazil. decision-makers begin work later in the morning and stay later in the evening. The Brazilian buyer is also concerned with after-sales service provided by the exporter. executive may need an interpreter on more than 50 percent of business calls. The Brazilian entity inviting a technical expert to Brazil must apply for and obtain a work permit from the Ministry of Labor in Brazil.. company always require work visas. It is rare for important business deals to be concluded by telephone or letter.” and immigration authorities will refuse entry to Brazil to anyone not possessing a valid visa.

Holidays The following holidays are designated by the Brazilian Government: New Year's Day Carnival* 4 nights/3 days preceding Ash Wed.W. phone numbers. Some of these include: San Sebastian Day (Rio de Janeiro only) Anniversary of the Founding of the City of Sao Paulo (Sao Paulo only) "Nossa Senhora dos Navegantes" (Porto Alegre) Evangelic’s Day (Brasília only) January 20 January 25 February 2 November 30 Avoid arriving during Carnival unless reservations have been confirmed in advance.brasilemb.gov. 20008. Travelers may also contact the Brazilian consulates in Boston. business travelers may wish to consult the Department of State consular information sheet. Los Angeles. Good Friday Easter Sunday Tiradentes Day Labor Day Corpus Christi Independence Day "Nossa Senhora Aparecida" (The Appearance of Our Lady) All Souls Day Proclamation of the Republic Immaculate Conception Christmas Day January 1 February 22-25 April 09 April 11 April 21 May 1 June 10 September 7 October 12 November 2 November 15 December 8 December 25 In addition. travelers may contact the Brazilian Embassy at 3009 Whitehaven St. telephone (202) 238-2818. New York. and medical and health information.org. Chicago.. Washington. While the U. and jurisdictions of these Consulates may be found at the Brazilian Embassy website above. located on Consular Affairs web site at www.before a work visa can be issued. For complete information on travel to Brazil. various state holidays and other religious and federal holidays are proclaimed throughout the year. Internet: http://www.state. Mission in Brazil is working with the Government of Brazil to find ways of simplifying and speeding up the process. 93 . at present delays of several months are frequently experienced in the approval of such work permits. email consular@brasilemb. For complete visa and customs requirements for Brazil. Houston.org. crime. or San Francisco.travel. including safety and security. web and e-mail addresses. traffic and road conditions. Miami. D. Addresses.S.C. N..

Varig and Vasp.e April to October. Brazil observes daylight savings from December to February. Business people.Brazil has four principal airlines: TAM. Petrobras. Time -. identified by roof lights. Note that for the newcomer driving can be confusing in large cities such as Sao Paulo and Rio. Brasilia.Local time in Brazil is two hours ahead of Eastern Standard Time. Eletrobras. are plentiful in urban areas. It is not necessary to tip. flights between Rio de Janeiro and Sao Paulo leave every 15 minutes from conveniently located downtown airports. Rio de Janeiro. in Sao Paulo call: 0800-106688. 94 . For weekend travel. Sao Paulo is Brazil's center for commerce and manufacturing. and Belo Horizonte is a major industrial/mining center. Fares are inexpensive and sometimes a table used to adjust fares is posted on the inside of the taxi's rear window.S.Sao Paulo. Gol. taxi fares are comparable to large U. travelers. in Sao Paulo and Rio. and Belo Horizonte. getting about in Sao Paulo and other large cities can still be a problem. especially at airports. Brazilian time is one hour ahead. Brasilia is the seat of government and location of foreign embassies.e November to March. When daylight savings is in effect in Brazil. They can be costly compared with other forms of transportation. It is not always possible to rely on taxis when making calls. with growing Protestant influence.3 percent Religion: Predominantly Roman Catholic. Brazilian time is three hours ahead. These companies provide efficient service throughout the country. and in Belo Horizonte call: 08003350550. several state companies.C. Rental cars are common. etc. During rush hours. Brazilian regional airlines provide service to their respective parts of the country. i. return reservations must be confirmed for Rio on Friday evening and for return to Sao Paulo or Brasilia on Monday morning.Business Infrastructure Air Travel -.Meter taxis. Local Transportation -. However. and residents spend a good deal of time among the four most important cities -. i. Radio taxis (cabs) are more expensive but convenient and reliable. In Rio call: 270-1442. Driving is not recommended. However. They are extremely difficult to find at certain hours of the day and in certain sections of the city. for oil/gas and service industries as well as hosting major national entities such as the Brazilian Development Bank. Rio de Janeiro is important for its service industries. in Brasilia call: 325-3030. cities such as Washington D. An excellent air shuttle services (or "ponte aérea") facilitates travel among those cities. 10 – ECONOMIC AND TRADE STATISTICS Appendix A Country Data Population: 175 million inhabitants Population Growth Rate: 1. When daylight savings is in effect in the United States. Private charter rentals are available at major airports in Brazil.

S.10 23. 2004 = projection /2 Inflation as measured by the Broad Consumer Price Index (IPCA) produced by the Brazilian Institute of Geography and Statistics (IBGE). Language: Portuguese Work week: 40– 44 hours Appendix B Domestic Economy 2002 451 1.0 N/A Nominal GDP (US$ bil) GDP Real Growth Rate (%) GDP Per Capita (Current US$) Nominal Govt.0 11.1 2004/1 490 3.5 7.5 10.0 8.0 2.0 52.0 2. U.2 15.0 16. Exhange Rate (R/US$1) Debt Service/Exports (%) US Econ/Mil Assist (US$ mil)/5 Notes: /1 2003 = estimate. Presidential system.0 6.700 4. and judicial branch.0 3.3 13.0 11. USAID figures only.0 3.5 21.2 37.FDI stock by country. Federative Republic.0 45. May 2002 estimate (USD billion) 95 . Chamber of Deputies). Fiscal Year Appendix C Trade In US$ Millions FOB Total Exports Total Imports US Exports US Imports 2002 60.25 25. Industry and Commerce (MDIC) Appendix D Investment Statistics Brazil . with executive branch agencies.5 13.93 24. deficit as a % of GDP Annual Inflation (%)/2 Unemployment Rate (%)/3 Foreign Exhange Reserves (US$ bil)/4 Avg.5 8. /3 Open unemployment as percent of economically active workforce /4 Gross reserves.580 4. including tranches from IMF agreement /5 No military assistance.6 12. two-house congress (Senate.0 55.730 4.8 2.0 17.5 Source: Ministry of Development.0 2004(E) 68.4 47.6 2003/1 480 1.5 2.Government System: Democratic.0 45.4 2003(P) 64.

5 9.3 2.2 4.7 3.3 1.1 7.5 3.5 0.6 9.4 16.0 32.4 25.0 3. Aruba. Bermuda.6 3.8 1.4 23.4 16.3 7.6% * Cayman Islands. BRAZIL – FDI INFLOW BY SECTOR.0 4.8 15. Virgin Islands. Bahrein Islands.9 2.8 3.0 3.2 22. 2001-May 2003 (USD billion) SECTOR Total Agriculture/Livestock/Minerals Industry Vehicles Chemicals Food Machinery/Equipment Other Services Telecom Commerce Banking Energy Business Services Other Total as PCT of GDP FLOW (E) 43.COUNTRY Total United States Fiscal Havens* Netherlands Spain France Portugal Germany Japan Canada Italy Other Total as PCT of GDP STOCK (E) 147.9 11.4 32.0 3. Netherlands Antilles Note: 2002 stock estimate equals to 2000 stock plus sum of inflows 2001-May 2003 Source: Central Bank of Brazil. Bahamas.7% Source: Central Bank of Brazil 96 .

cidades.br Ministry of Social Assistance MAS . DF Phone: 55/61/411-4694 Fax: 55/61/223-5243 http://www. DF Phone: 55/61/316-2172 Fax: 55/61/225-9162 97 . Pecuária e Abastecimento Esplanada dos Ministerios.gov.Ministério das Comunicações Esplanada dos Ministerios .br Ministry of Communications MC .gov. Bloco E 70067-900 Brasilia. U.Ministério da Ciência e Tecnologia Esplanada dos Ministérios.11.agricultura. Bloco D 70043-000 Brasilia. Bloco A 70050-901 Brasilia.br Ministry of the Cities Ministério das Cidades Esplanada dos Ministérios. and Country Contacts Brazilian Government Contacts Ministry of Agriculture MAPA – Ministério da Agricultura. DF Phone: 55/61/317-7508 Fax: 55/61/225-7496 http://www.mc.Ministério da Assistência Social Esplanada dos Ministérios.br Ministry of Science and Technology MCT .Bloco R 70044-900 Brasilia.gov. DF Phone: 55/61/313-1822 Fax: 55/61/224-4753 http://www.br Ministry of Culture MINC – Ministerio da Cultura Esplanada dos Ministerios.S.assistenciasocial. Bloco B 70068-900 Brasilia. DF Phone: 55/61/218-2800 Fax: 55/61/225-8091 http://www.gov. Bloco C 70054-900 Brasilia. DF Phone: 55/61/311-6201 Fax: 55/61/331-6731 http://www.gov.mct.

mec.gov.cultura.gov.Ministério do Desenvolvimento. DF Phone: 55/61/329-7002 Fax: 55/61/329-7230 http://www. Bloco L Cep: 70047-900 Brasilia – DF Phone: 55/61/410-9670 Fax: 55/61/410-9233 http://www.Ministério do Desenvolvimento Agrário Esplanada dos Ministérios.esporte.Ministério do Esporte Esplanada dos Ministerios.br Secretariat of Foreign Trade SECEX .Secretaria de Comercio Exterior Esplanada dos Ministérios.defesa.gov.br Ministry of Defense MD – Ministério da Defesa Esplanada dos Ministerios. Industry and Foreign Trade MDIC . Indústria e Comércio Exterior Esplanada dos Ministérios.mdic. Bloco A 70054-900 Brasilia.br Ministry of Agrarian Development MDA . Bloco A Cep: 70054-900 Brasilia – DF Phone: 55/61/217-1852 Fax: 55/61/217-1818 http://www.gov.br Ministry of Sports ME . DF Phone: 55/61/312-8520 Fax: 55/61/225-4151 http://www. DF Phone: 55/61/314-8002 Fax: 55/61/322-0492 http://www. Bloco J 70056-900 Brasilia. DF Phone: 55/61/329-7077/7080 Fax: 55/61/325-2075 http://www.br Ministry of Finance 98 .br Ministry of Education MEC – Ministério da Educação Esplanada dos Ministerios.mda.gov.http://www. Bloco Q 70049-900 Brasilia.gov.br Ministry of Development.gov.mdic. Bloco J 70053-900 Brasília.

Ministerio das Minas e Energia Esplanada dos Ministerios.br Ministry of Justice MJ .gov.gov.gov.Ministerio da Integracao Nacional Esplanada dos Ministerios.mj.br Ministry of National Integration MI .fazenda. Bloco P Cep: 70048-900 Brasilia – DF Phone: 55/61/223-4302 Fax: 55/61/321-0488 http://www.Ministerio do Meio Ambiente Esplanada dos Ministerios.integracao.gov.br Ministry of Mines and Energy MME .fazenda.gov.br Ministry Planning and Budget MP .Ministerio da Fazenda Esplanada dos Ministérios. Bloco B Cep: 70068-900 Brasilia – DF Phone: 55/61/322-7819 Fax: 55/61/322-8469 http://www.MF .receita. Bloco K Cep: 70040-906 Brasilia – DF Phone: 55/61/429-4102 99 .Ministerio do Planejamento. Bloco T Cep: 70064-900 Brasilia – DF Phone: 55/61/429-3101 Fax: 55/61/322-6817 http://www.mme. Orçamento e Gestao Esplanada dos Ministerios. Bloco P Cep: 70048-900 Brasilia – DF Phone: 55/61/412-2515 Fax: 55/61/412-1721 http://www.Secretaria da Receita Federal Esplanada dos Ministérios.br Ministry of Environment MMA . Bloco U Cep: 70065-900 Brasilia – DF Phone: 55/61/319-5042 Fax: 55/61/319-5074 http://www. Bloco E Cep: 70062-906 Brasilia – DF Phone: 55/61/414-5815 Fax: 55/61/321-9125 http://www.mma.br Secretariat of Internal Revenue Service SRF .gov.Ministerio da Justica Esplanada dos Ministerios.

gov.Fax: 55/61/225-7287 http://www. Entrada A 70200-000 Brasilia. Bloco G Cep: 70058-900 Brasilia – DF Phone: 55/61/315-2392 Fax: 55/61/224-8747 http://www. Bloco F 70059-900 Brasilia.gov. Bloco R 70044-900 Brasilia.br Ministry of Work and Employment MTE .gov.saude.mre.mte. DF Phone: 55/61/317-5189 Fax: 55/61/317-5407 http://www.turismo.br Ministry of Health MS . Bloco F 70059-900 Brasilia.transportes.br Ministry of Social Security (welfare) MPS .br Ministry of Transportation MT .Ministério do Trabalho e Emprego Esplanada dos Ministérios.gov.planejamento. DF Phone: 55/61/310-9491 Fax: 55/61/310-9499 http://www.mpas. DF Phone: 55/61/311-7001 Fax: 55/61/311-7876 http://www.br Ministry of Foreign Relations MRE .br 100 . 1°andar.Ministério da Previdência Social Esplanada dos Ministérios. DF Phone: 55/61/225-0041 Fax: 55/61/226-9004 http://www. 24.gov.gov.Ministerio das Relaçoes Exteriores Esplanada dos Ministerios Palacio do Itamaraty Cep: 70170-900 Brasilia – DF Phone: 55/61/411-6100 Fax: 55/61/411-6993 http://www. Lt.Ministério dos Transportes Esplanada dos Ministérios.gov.br Ministry of Turism Ministério do Turismo SCES Trecho 2.Ministerio da Saude Esplanada dos Ministerios.

Extraordinary Ministry of Hunger Safety Ministério Extraordinário de Segurança Alimentar e Combate a Fome Esplanada dos Ministérios. 1012 .br Brazilian Tourism Institute EMBRATUR – Instituto Brasileiro de Turismo SCN – Quadra 2 .br Brazilian Industrial Property Institute INPI .Centro 20179-900 Rio de Janeiro. RJ Phone: 55/21/2277-7001 Fax: 55/21/2533-1538 Contact: Mr.com. Carlos Francisco Theodoro Machado de Lessa. Av.bancobrasil.gov. Bloco A 70054-900 Brasilia.Bloco G .com.3 floor 70712-907 Brasilia.3.br Bank of Brazil BB . Bloco B . DF Phone: 55/61/321-3060 Fax: 55/61/310-2502 http://www.gov.embratel.Banco Central do Brasil SBS.gov. Presidente Vargas.bcb. Quadra 1. Edifício Sede I.Centro 101 . Qd. República do Chile.Banco Nacional de Desenvolvimento Av. DF Phone: 55/61/411-4710 Fax: 55/61/321-1077 Brazilian Central Bank BCB . DF Phone: 55/61/310-2000 Fax: 55/61/310-5476 http://www. Bloco A 70073-900 Brasilia.A.Instituto Nacional da Propriedade Industrial Praça Mauá 7 . President http://www.br National Bank of Economic Social Development BNDES . DF Phone: 55/61/429-7777 Fax: 55/61/429-7710 http://www.br Brazilian Long Distance Telephone Company (EMBRATEL) Empresa Brasileira de Telecomunicacoes S.embratur. RJ Phone: 55/21/2519-8182 Fax: 55/21/2519-8081 http://www. 100 – Centro 20031-917 Rio de Janeiro.Banco do Brasil S/A SBS.bndes.Edifício Sede 70074-900 Brasilia.

República do Chile. DF Phone: 55/61/329-9601 Fax: 55/61/223-0930 Navy Command Esplanada dos Ministérios. Bloco M.20081-180 Rio de Janeiro. 8 andar 70045-900 Brasília.gov.petrobras. Av. 50 12228-901 São José dos Campos.dac.com. SP Phone: 55/12/3941-3400 Fax: 55/12/3941-4033 www. DF Phone: 55/61/223-6058 Fax: 55/61/429-1006 Army Command SMU.A. 2 andar 70055-900 Brasília.cta. Bloco A.651. 65 – Centro 20031-912 Rio de Janeiro – RJ Phone: 55/21/2534-1000 Fax: 55/21/2534-3838 http://www.gov.br Aeronautics Command Esplanada dos Ministérios.br 102 . Bloco N.br Brazilian Petroleum Company PETROBRAS – Petróleo Brasileiro S.gov.br assecom@dac. DF Phone: 55/61/415-5200 Fax: 55/61/415-4379 Aerospace Technical Center – CTA Praça Marechal Eduardo Gomes. QG/EX.br Country Trade Associations/Chambers of Commerce Aerospace and Defense Departament of Civil Aviation DAC – Departamento de Aeronautica Civil Rua Santa Luzia.inpi.Cstelo Cep: 20040-030 Rio de Janeiro – RJ Phone: 55/21/3814-6700 Fax: 55/21/220-5727 http://www. 4 andar 70630-901 Brasília. RJ Phone: 55/21/2223-4182 Fax: 55/21/2263-2539 http://www.

br cenagri@agricultura.br Air Conditioning.com.Brazilian Association of Manufacturers of Refrigeration. RJ Phone: 55/21/2533-4568 Fax: 55/21/2533-5310 Sinaval@osite.abimde. Rio Branco. SP Phone: 55/11/221-5777 Fax: 55/11/222-4418 Contact: Mr. 795 6º andar Bom Retiro 01120-001 Sao Paulo.Brazilian Apparel Association Rua José Paulino. Heating.com.br Apparel Manufacturers ABRAVEST . abrava@abrava. Paulista. Heating.AIAB .com.com. Refrigeration. 799.agricultura. SP Phone: 55/11/3338-1477/ 3338-1471 103 .gov. Edifício Sede Cep: 70043-900 Brasilia – DF Phone: 55/61/218-2828 Fax: 55/61/225-2497 http://www.Associação das Indústrias Aerospaciais do Brasil Rua José Alves dos Santos.br Agricultural Machinery Ministry of Agriculture Secretariat of Agriculture & Livestock Defense Esplanada dos Ministerios. Foreign Trade Dept.br SINAVAL – Sindicato Naval das Indústrias da Construção Civil Rua Santa Luzia.abrava. 281-203 – Jardim Satélite 12230-081 São José dos Campos. Bloco D. 2644 11º andar 01310-300 Cerqueira Cesar São Paulo. sala 703 20030-040 Rio de Janeiro. Correia. Ventilation ABRAVA .com. 1492 01206-001 Sao Paulo.br abimde@abimde. SP Phone: 55/11/3159-0846 Fone/Fax: 55/11/3214-4860 www. Arnaldo O.com.br http://www.br ABIMDE – Associação Brasileira das Indústrias de Material de Defesa Av. General Manager.gov. Air Conditioning and Ventilation Equipment Av. SP Phone: 55/12/3931-2721 Fax: 55/12/3933-0657 Aiab@iconet.

br asbea@asbea.secovi-sp.br secovi@secovi-sp.Fax: 55/11/3331-2802 Contact: Mr.com.sindusconsp.479 – 6 Floor – Cj 62 04533-011 – Sao Paulo . Artur Quaresma Filho. SP Phone: 55/11/3816-6597 Fax: 55/11/3813-8717 Contact: Mr.Association of Building Contractors of the State of Sao Paulo Rua Dona Veridiana. Roberto Chadad. SP Phone: 55/11/3334-5600 Fax: 55/11/3224-8266 Contact: Mr.org.com. President sindusconsp@sindusconsp. Marcio Guimaraes.com. 1931 .com.com.9 Floor 01452-001 Sao Paulo.br SECOVI – State of Sao Paulo Real Estate Developers Association Rua Dr. Rio Branco.org.com. President abravest@uol.térreo .SP Phone:55/11/3168-4982 Fax:55/11/3078-2208 http://www.ibpinet.asbea.br Architecture/ Construction/ Engineering ABCE –Brazilian Association of Consulting Engineers Av. 213 .124 –13rd floor 20148-900 – Rio de Janeiro – RJ Phone : 55/21/2215-1401 Fax:55/21/2224-2693 http://www.br ABICEM .br http://www. Brig.br http://www. Executive Director abicem@abicem. Faria Lima. State of Rio de Janeiro Rua do Senado.abicem.Ditto.br ASBEA – Brazilian Association of Architectural Firms Rua Tabapuã.org.org.com.com.centro 104 .1043 04026-002-Sao Paulo – SP Phone: 55/11/5591-1300 Fax:55/11/5591-1301 http://www.br/ ibc@uol.Brazilian Association of Metallic Construction Contractors Av.com.br SINDUSCON .br SINDUSCON . 55 – Bairro Santa Cecilia 01238-010 Sao Paulo.br/abce abce@abceconsultoria.br http://www. Bacelar.abravest.

President sinduscon@sinduscon-pr.br Contact: Antonio Gaspar de Oliveira. Eliel Lopes Ferreira Jr. Indianopolis 496 04062-900 Sao Paulo.com. 175. Brazil Home Page: www.br Automotive and Autoparts ANFAVEA – National Association of Vehicle Manufacturers (Associação Nacional dos Fabricantes de Veiculos Automotores) Av. PR Phone: 55/41/352-2883 Fax: 55/41/253-5567 Contact: Mr. floor – Bairro Centro Civico 80030-060 Curitiba.com.org. Indianopolis 2357 04063-004 Sao Paulo. 222 Fax: 55/11/3884-0584 Internet: http://www. Consultant ANDAP – National Association of Autoparts Distributors (Associação Nacional de Distribuidores de Autopeças) Av. Brazil Phone: 55/11/5051-4044 Fax: 55/11/5051-4044 ext. RJ Phone: 55/21/2221-5225 Fax: 55/21/3852-8995/2221-8066(presidência) Contact: Mr. 101 01311-919 Sao Paulo.br Contact: Luiz Carlos Auler Pereira. SP. SP. President nucleo@sindusnet.com. 2o.com.br Tel/Fax: 55/11/3266-7700 105 .com. 225 Internet: http://www.br e-mail: info@andap. Paulista 1009 – 1 andar – conj. Roberto Kaulffmann. SP.sindipecas. Brazil Tel: 55/11/5066-7450 e-mail: abrive@nutecnet.br http://www. Foreign Trade Advisor SINDIREPA – Brazilian Association of Mechanical Shops (Associação Brasileira dos Reparadores Independentes de Veículos) Av.com.20231-020 Rio de Janeiro.andap. State of Paraná Rua da Glória. SP.org.org.anfavea.sindusnet..br SINDUSCON . Brazil Tel: 55/11/3884-4599 ext. Foreign Trade Division SINDIPECAS – National Association of Autoparts Manufacturers (Sindicato Nacional da Industria de Componentes para Veiculos Automotores) Rua Abilio Soares 1487 04005-005 Sao Paulo.Ditto.br http://www.br Contact: Ecilas Nazario.sinduscon-pr.

com. 111 / 21º andar 01050-904 Sao Paulo. President anamaco@anamaco.br http://www.org. SP Phone: 55/11/3151-5822 Fax: 55/11/3120-3611 Contact: Mr. SP Phone: 55/11/3078-9307 Fax: 55/11/3078-9307 Contact: Sra. Leila Loria . Executive Director Brazilian Federation of Banks FEBRABAN . Torres de Oliveira.br 106 .SP Phone: 55/11/3662-4159 Fax:55/11/3662-4159 http://www.br http://www. Paes de Araujo 29.abta. Wilson Antonio Salmeron Gutierrez. 404 Conjunto 401 Água Branca 05001-000 – Sao Paulo . 76 – Jaguare 05347-902 – Sao Paulo – SP Phone: 55/11/ 3760-5314 Fax: 55/11/3760-5388 http://www.br mercado@abcp.br http://www.org. Claudio Elias Conz.National Association of Building Materials Retailers R. conj.br Building Products ANAMACO . 181 04531-090 Sao Paulo.anamaco. President abta@abta.org.org. 18 floor.febraban.com. Major Quedinho.com. Superintendent febraban@febraban.abcp.br Cable TV ABTA .br sobratema@sobratema.org. SP Phone: 55/11/3244-9800 Fax: 55/11/3104-0641 Contact: Mr.com.br ABCP – Brazilian Portland Cement Association Av.sobratema.Brazilian Association of Cable TV R.org.Contact: Luiz Carlos Vieira.Brazilian Federation of Banks Rua Libero Badaro 425 / 17º floor / Centro 01009-905 Sao Paulo.br SOBRATEMA – Brazilian Association for Equipment and Maintenance Technology Rua Francisco Matarazzo.

649 conj.com.com.org.: 55/21/2220-1596 Contact: Mr.Centro 20031-000 Rio de Janeiro.Ditto.br ADIPEC – Brazilian Association of Perfume and Cosmetics Importers. Natalino Rabinovicht. 74 04533-012 Sao Paulo.Brazilian Association of Metallic Construction Contractors Av. 213 . 26o.br SIPATESP – Brazilian Association of Cosmetics Manufacturers Av. SP Phone: 55/11/816-6597 Fax: 55/11/813-8717 Contact: Mr. SP Phone: 55/11/251-1999 Fax: 55/11/287-9207 Contact: Mr.org. Paulista.adipec. 1931 . Rua Tabapuã. Manoel Teixeira Simões. Director geral@abihpecsipatesp. Marcos Rothenberg. RJ Phone. Executive Director SINDUSCON . State of Rio de Janeiro Rua do Senado. 1080 01311-923 Sao Paulo.Association of Building Contractors of the State of Sao Paulo (residential and commercial buildings. President http://www. only) Rua Dona Veridiana. RJ Phone: 55/21/221-5225 Fax: 55/21/221-5195 Contact: Mr. Marcio Guimaraes. Faria Lima.br Construction ABICEM . Perfume and Cosmetic Manufacturers ibp@ibp. Sergio Porto.1 floor . floor / Grupo 2602 . President SINDUSCON .br http://www. Secretary. 1313 / 10th floor – conj. Brig.Brazilian Petroleum Institute. Alvaro Teixeira. 55 – Bairro Santa Cecilia 01238-010 Sao Paulo.: 55/21/2532-1610 Fax. SP Phone: 55/11/3168-4518 Fax: 55/11/3168-4518 Contact: Mr.centro 20231-020 Rio de Janeiro. Av Almirante Barroso 52.Cosmetic and Toilettes IBP . President 107 . SP Phone: 55/11/3334-5600 Fax: 55/11/224-8266 Contact: Mr.9 Floor 01452-001 Sao Paulo.ibp.

SP Phone.br MINISTÉRIO DA SAÚDE – Ministry of Health Esplanada dos Ministérios – bloco G. Dental.br SINAEMO . Medical and Hospital Equipment ABIMO . Presidente http://www.org. President http://www. conj.br http://www.br abimo@abimo. Paulo Akio Takaoka.org. Paulista 1313. Sede e Anexos 70047-902 – Brasilia – DF Phone: 55/61/410-8484 Fax: 55/61/410-9233 108 . SP Phone.br ministro@saude. President Dental. Medical and Hospital Equipment Av.org. Paulista 1313. Paulo Akio Takaoka. 8º Floor. 806 01311-923 Sao Paulo. 8º Floor.com. 806 01311-923 Sao Paulo.br Educational Professional Training MEC – Ministerio da Educação Esplanada dos Ministérios – Bl L – Ed. PR Phone: 55/41/352-2883 Fax: 55/41/253-5567 Contact: Mr.: 55/11/3285-0155 Contact: Dr.org.br abimed@uol.Ditto.gov.: 55/11/3285-0155 Contact: Dr. Hospital and Laboratory Industries Av. conj.br ABIMED – Brazilian Association of Equipment. 2o.: 55/11/3285-0155 Fax.Syndicate of Medical.abimo. State of Paraná Rua da Glória.saude. 175.: 55/11/3285-0155 Fax.abimed. 203 Moema 04077-000. 5º andar (gabinete do Ministro) 70058-900. Presidente abimo@abimo.abimo.Brazilian Association of Dental. São Paulo Phone: 55/11/5052-2664 Fax: 55/11/5052-7074 Contact: José Manuel Laranjeira. Gustavo Daniel Berman.org.gov. floor – Bairro Centro Civico 80030-060 Curitiba. Brasília – DF Phone: 55/61/ 315-2425 Fax: 55/61/ 224-8747 http://www. Products and medical Supplies Importers Alameda dos Tupiniquins.SINDUSCON .

Fabián Yaksic Abinee@abinee.: 55/11/288-8524 Contact: Mr. Conj.gov. 298 – Brás 03008-000 – São Paulo – SP Phone: 55/11/3322-5000 Fax: 55/11/3322-5029 Contact: Alcindo Daniel Favero.abce. Paulista.com.senai101.: 55/61/327-2069 Contact: Mr.: 55/21/2528-3112 Fax.Contact: Osvaldo Russo de Azevedo – Chefe de Gabinete Web site: http://www. SP Phone.com.com.Brazilian Association of Electrical Energy Concessionaires Alameda Campinas. SP Phone: 55/11/251-1577 Fax: 55/11/285-0607 Contact: Mr. José Geraldo dos Santos.: 55/61/315-9182 Fax. RJ Phone. President abce@abce.mec. 703 01311-923 São Paulo. 1313m 7andar.br WORLD ENERGY COUNCIL Rua Real Grandeza.br SENAI – Roberto Simonsen School Rua Monsenhor Andrade.org.: 55/21/2528-5858 109 .: 55/11/288-1166 Fax.br apine@apine. DF Phone.Brazilian Association of Independent Electrical Energy Producers SCN Quadra 2 Edifício Centro EmpresarialEncol Torre A.com.org.org.Sao Paulo. 433 10º andar 01404-901 Jardim Paulista . room 626/8 70710-500 Brasilia.gov. 219 22283-900 Rio de Janeiro.br http://www. Technical Director rsimonsen@senai101.br Energy ABCE . Eric Westberg.br E-mail: osvaldorusso@mec.org.abinee.br http://www. President http://www.apine.br http://www.br Electronic Equipments ABINEE – 0Brazilian Association of the Electronic Industry Av.br APINE .

Contact: Mr. José Pedro Rodrigues Oliveira, President http://www.furnas.com.br presiden@furnas.com.br ANEEL – Brazilian Regulatory Agency of Electric Energy SGAN – 603, Módulo J / I (diretoria) 70830-030 Brasília – DF Phone: 55/61/ 223-4592 Fax: 55/61/ 426-5615 ou 426-5711 Contact: Rulemar Pessoa Silva, Superintendet/ Regulations http://www.aneel.gov.br tanure@aneel.gov.br Entertainment ADIBRA-Associação de Empresas de Parques de Diversão Alameda Santos, 1343, conj. 1502 01419-001, São Paulo, SP tel/fax: 11 3253-9354 Mr. Francisco Lopes, President Adibra@uol.com.br Associação Brasileira de Parques Rua Cabo Aylson Simões, 490 Cep 29100-320 Vila Velha, Espírito Santo tel/fax: 27 3200-4600 e-mail: azevedo.m@terra.com.br Mr. Marco Azevedo, Director Environment CETESB - Sao Paulo State Environmental Agency Avenida Professor frederico Hermann Jr., 345 05459-900 Sao Paulo, SP Phone: 55/11/3030-6000 Fax: 55/11/3030-6402 Contact: Ms. Fatima A. Carrara, Manager Int'l Affairs http://www.cetesb.sp.gov.br FEEMA - Rio de Janeiro State Environmental Agency Av Nossa Senhora de Copacabana, 493 10º andar Caixa Postal 23.011 22020-000 Rio de Janeiro, RJ Phone: 55/21/2255-9292 ramal 3299 Fax/tel: 55/21/2580-9229/2589-3773 Contact: Mr. Americo Fernando M. Lopes, Chief of the Industrial Control Division. Mr. José Alencar, Chief of Engineering Services, Liquid Effluent Dept. feema@proderj.rjgov.br http://www.feema.rj.gov.br

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SABESP - Sao Paulo State Sewage and Water Treatment Company Rua Costa Carvalho, 300 Pinheiros 05429-900 Sao Paulo, SP Phone: 55/11/3388-8000 Fax: 55/11/3813-3587 Contact: Mr. Sergio Pinto Parreira, Director of Environmental Department spparreira@sabesp.com.br http://www.sabesp.com.br FIESP - Federation of the Industries of the State of Sao Paulo Avenida Paulista, 1313 13º floor Room 1309 01311-923 Sao Paulo, SP Phone: 55/11/3549-4499 Fax: 55/11/284-6200 Contact: Dr. Angelo Albiero Filho, Director of the Environment Department kbugholi@fiesp.org.br http://www.fiesp.org.br SINDESAM - National Department of Sanitation Equipment Manufacturers Avenida Jabaquara, 2925 04045-902 Sao Paulo, SP Phone: 55/11/5582-6365 Fax: 55/11/5582-6379 Contact: Mr. Ubiraci Moreno Pires Correa, President – até maio de 2004 http://www.abimaq.org.br CONAMA - National Council of Environment Esplanada dos Ministérios - Bl B - 6º andar sala 637 70068-900 Brasilia, DF Phone: 55/61/317-1392 ou 317-1433 Fax: 55/61/226-4961 or 55/61/226-2837 Contact: Sra. Muriel Saragoussi – Director http://www.mma.gov.br conama@mma.gov.br FEPAM - Rio Grande do Sul State Environmental Agency Rua Carlos Chagas 55 90030-020 Porto Alegre, RS Phone: 55/51/3225-1588 Fax: 55/51/3212-4221 Contact: Dr. Lucia Coelho, Gerente de Programas http://www.fepam.rs.gov.br fepam@fepam.rs.gov.br Food ABIA - Brazilian Association of Food Industries Av. Brig. Faria Lima, 1478 - 11 floor 01451-913 Sao Paulo, SP Phone: 55/11/3030-1353 Fax: 55/11/3814-6688

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Contact: Mr. Edmundo Klotz, President http://www.abia.org.br abia@abia.org.br ABRABE - Brazilian Beverage Association Av. 9 de Julho, 5017 - 1 floor 01407-903 Sao Paulo, SP Phone: 55/11/3079-6144 Fax: 55/11/3167-6381 Contact: Mr. Fabrizio Fasano, President abrabe@abrabe.org.br Franchising ABF - Brazilian Franchising Association Av. Brigadeiro Faria Lima, 1739 – 3º andar São Paulo – SP CEP: 01452-001 Phone.: 55/11/ 3814-4200 Fax.: 55/11/ 3814-4200 – ext. 37 Contact: Mr. Gerson Keila, President http://www.abf.com.br abf@abf.com.br Furniture ABIMOVEL – Brazilian Furniture Industry Association Av. Brigadeiro Faria Lima, 1234 – 16o andar, sala 161 01452-904 São Paulo, SP Phone: 55/11/ 3813-7377 Fax: 55/11/3813-7377 Contact: Domingos Sávio Rigoni, President http://www.abimovel.org.br abimovel@abimovel.com PROMOVEL – Programa de Incremento à Exportações Rua Afonso Grosskopf, 352 São Bento do Sul – SC CEP: 89290-000 Phone: 55/47/ 635-1391 Fax: 55/47/ 635-1582 Contact: Pedro Paulo Pamplona, Executive Director promovel@creativenet.com.br http://www.abimovel.org.br Industrial Machinery ABIMAQ – Brazilian Association of Machinery and Equipment Av. Jabaquara, 2925 04045-902 São Paulo, SP Phone: 55/11/5582-6327 Fax: 55/11/5582-6239 Abimaq@abimaq.org.br

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Paulista.abinee.net 113 . President abinee@abinee.br Internet / E.gov. 1313 / 10º andar CEP: 01311-923 São Paulo – SP Phone: 55/11/3285-3866 Fax: 55/11/3285-3866 Contact: Mr.Brazil Phone : 55/61 312-2000 Fax : 55/61 312-2002 Contact: Mr. Gastão Mattos.br http://www. 221 / conj 42 CEP: 05428-000 São Paulo – SP Phone: 55/11/3026-9111 Fax: 55/11/3026-9110 Contact: Mr. 1313.br http://www.Teleporto CEP: 20210-030 Rio de janeiro . Sergio Motta 70070-940 . Paulista.br http://www. SP Phone: 55/11/251-1577 Fax: 55/11/285-0607 Contact: Mr.org.Commerce ABRANET(SP) Brazilian Association of Internet Service Providers Associação Brasileira de Provedores Internet Av.abranet.br CAMARA E-NET. 7o andar.abranet.org. President http://www.abimaq.org. Benjamim Funari Neto. President gerente@abranet. Cassio Vecchiatti.br ANATEL – Brazilian Telecommunications Agency SAUS Quadra 06 . Presidente Vargas.http://www. Ferreira Araujo.Brasilia .gov.Brazilian Chamber of Electronic Commerce Camara Brasileira de Comércio Eletrônico R.br ABRANET(RJ) Brazilian Association of Internet Service Providers Associação Brasileira de Provedores Internet Av. President murilo@abranetrj.anatel.br ABINEE – Brazilian Association of Electrical and Electronics Industry Association Av.Bloco H e E Ed. Murilo Marques. 703 01311-923 São Paulo. Luis Guilherme de Oliveira.org.RJ Phone: 55/21/524-8209 Fax: 55/21/524-8209 Contact: Mr.camara-e. 3131/1505 .DF .org. President anatel@anatel.org. conj.org.br http://www.

sp. SP Phone: 55/11/251-1577 Fax: 55/11/285-0607 Contact: Mr.br MINISTRY of COMMUNICATIONS Esplanada dos Ministérios Bloco R. TECNOLOGIA E DESENVOLVIMENTO ECONÔMICO (Governo do Estado de São Paulo) Av. 2925 04045-902 Sao Paulo. Assessor Especial http://www.sp.ciencia.12 Room 1005 20020-100 – Rio de Janeiro – RJ Phone: 55/21/2533-7632 Fax: 55/21/2533-7632 Contact: Luis Carlos Nunes ( president) 114 . Brazil Phone: 55/11/5582-6410 Fax: 55/11/5582-6239 Contact: Maria Cecilia Cortez.gov. President abinee@abinee.fontana@sctdesp.br http://www.br j.Sindicato Nacional da Industria de Maquinas Av. SP. Paulista.net SECRETARIA DA CIENCIA.gov. Executive Manager Comments: ABIMAQ/SINDIMAQ is the Brazilian Association of Machine and Equipment Manufacturers webmaster@abimaq.org.org. Carlos de Paiva Lopes.info@camara-e. Jabaquara. Nilo Peçanha.abimaq.br Hotel / Restaurant ABIH – Brazilian Association for Hotels Industry.br ABIMAQ .Associacao Brasileira da Industria de Maquinas e Equipamentos SINDIMAQ .Rio de Janeiro Av.org. 703 01311-923 São Paulo. 8º floor Brasília – DF CEP: 70044-900 Phone: 55/61/311-6201/311-6000 Fax: 55/61/226-3980 Contact: João Pimenta da Veiga Filho Hardware ABINEE – Brazilian Association of Electrical and Electronics Industry Association Av. 7o andar.abinee. 1269 01205-001 São Paulo – SP Phone: 55/11/3331-0033 Fax: 55/11/221-4927 Contact: José Zeno Fontana. conj.org. 1313. Rio Branco.br http://www.

com. B.br ABTS – Brazilian Association for Metal Surface Treatment Av.br guimaraes@aberc. cj. President ibs@ibs. Barra 40140-280 Salvador – BA Phone: 55/71/267-4566 Fax: 55/71/ 264-3640 . 515 – Bl. 913 São Paulo – SP / CEP: 01311-923 115 . 3rd. RJ Phone: 55/21/2544-3255 Fax: 55/21/2262-2234 Contact: José Armando Figueiredo Campos.com. 25 – 2o.abpr.br ABREDI – Associação de Bares e Restaurantes Diferenciados Rua Armando Penteado. President http://www. 75.org. President http://www.org.com.Brazilian Steel Institute Av.abredi.abihnacional@montreal.br abredi@uol. 62 04011-904 Sao Paulo – SP Phone: 55/11/5573-9835 Fax: 55/11/5571-5542 Contact: Antonio Guimaraes. Director http://www. Paulista.264-2631 Contact: Sergio Bezerra.br Abrasel Nacional Rua Dom Marcos Teixeira.com. 1313 – Cj.br ABERC – Associaçao Brasileira das Empresas de Refeiçoes Coletivas Rua Estela. andar.com.com. 291 01242-010 Sao Paulo – SP Phone: 55/11/3663-6391 Fax: 55/11/3663-1872 Contact: Horst Tassilo Siebert.br http://www.com.aberc. President abraselnac@e-net.28 Floor 20040-007 Rio de Janeiro.br Iron and Steel IBS . Rio Branco.net abprabraselrj@bol. floor Leblon 22450-230 Rio de Janeiro – RJ Phone: 55/21/2516-6293 or 55/21/2512-6522 Fax: 55/21/2512-6522 Contact: Gustavo Werneck.br ABPR – Associaçao Brasileira dos Proprietarios de Restaurantes Estrada do Vidigal. 181 .ibs.

São Paulo . José Aoad Raya. 9 de Julho.6840 Contact: Paulo Herminio Pennacchi. Paulista. 11 andar Phone:++55-11-3885. 205 .abml. Vice . President Ventura@abad. Machado Bittencourt.org. Director of Institutional Issues http://www.br Laboratory Equipment INMETRO – Instituto Nacional de Metrologia Av.Logistics Brazilian Association R.com. Nossa Senhora das Graças.9616 Fax: ++55-11-3885.org.gov.com.5084.org.abts. President Abml@uol.br Material Handling ABML.Brazilian Association of the Foundry Industry Av.org.br http://www. Roberto Della Manna. Waldemar Pires Ribeiro. Chief of Docummentary Service Mr.SP Phone:++55-11. Conselheiro Rodrigues Alves.Brazilian Association of Wholesalers and Distributors Av. President abifa@abifa. 1274 – 20º andar São Paulo – SP / CEP: 01310-926 Phone: 55/11/3266-7331 Fax: 55/11/3266-5659 Contact: Mr.Brazilian Associationo of Cargo Movement and Logistics Av.President Mr.com. 50 25250-020 Xerem – RJ Phone: 55/21/2679-9001 Contact: Tomaz Gonzalez.cj 96 04044-000 .Phone: 55/11/251-2744 Fax: 55/11/251-2558 Contact: Mr. 3147 . Luis Carlos Koch.br http://www.com.2287 Fax:++55-11-5084.br ABIFA .br ASLOG .abifa.inmetro.2267 / 5084.br Web-site: www.2294 Contact:Carlos Alberto Mira. President e-mail:aslog@aslog.br Web-site: www.br ABAD. President abts@abts.aslog.br 116 .org. 848 São Paulo/SP-04014-002 Phone: ++55-11-50823972 Contact: Pedro Francisco Moreira.

President abm@abmbrasil. José Eduardo Frascá Poyares Jardim.com. RJ Phone: 55/21/2240-7062 Fax: 55/21/2283-1542 Contact: Mr.br Oil & Gasfield Equipment ABRAPET . Edmundo Paes de Barros Mercer. President Abrapet@domain. Oscar Freire. 379 – 4º andar – Cj. Karl Heinz Pohlmann.abmbrasil. 156 room 1119 20043-900 Rio de Janeiro.br Packaging Equipment ABRE – Associação Brasileira de Embalagens R. 218 / Campo Belo 04605-030 Sao Paulo.org.abmbrasil.abad.com.br Metallurgy ABM . President http://www. SP Phone: 55/11/5536-4333 Fax: 55/11/240-4273 Contact: Mr.br Mining ABM . President 117 .com.com. President http://www.ibram.Brazilian Association of Metallurgy and Materials Rua Antonio Comparato.com.Web-site: www.br http://www.Karl Heinz Pohlmann.Brazilian Association of Oil Drillers Avenida Rio Branco. Fábio Mestriner. SP Phone: 55/11/5536-4333 Fax: 55/11/240-4273 Contact: Mr.Brazilian Association of Metallurgy and Materials Rua Antonio Comparato.com. 218 / Campo Belo 04605-030 Sao Paulo.br IBRAM – Brazilian Mining Institute SCS – Quadra 2 – Bloco D – Ed. Oscar Niemeier – Sala 1107 Brasília – DF CEP: 70316-900 Phone: 55/61/226-9367 Fax: 55/61/226-9580 Contact: Mr.com.br ibrambsb@uol. 41 São Paulo – SP / CEP: 01426-001 Phone: 55/11/ 3082-9722 Fax: 55/11/ 3081-9201 Contact: Mr.br abm@abmbrasil.

Associacao dos Revendedores de Produtos.org. Executive Director Rua Diogo Moreira.62.ABIQUIM Rua Santo Antonio 184 / 18 andar 01314-900 Sao Paulo. President of the Plastics Production Machinery Division ABIMAQ/SINDIMAQ is the Brazilian Association of Machine and Equipment Manufacturers http://www.ABIMAQ Sindicato Nacional da Industria de Maquinas . Carlos Mariani Bittencourt. SP.br webmaster@abimaq.org. 3814-8604 http://www.abimaq. Brazil Phone: 55/11/3232-1144 Fax: 55/11/3232-0919 http://www.com. João Regis.anfal.SINDIMAQ Av. President Rua dos Jamaris.br inp@inp.http://www.org.org.Associacao Nacional dos Fabricantes de Alimentos para Animais Contact: Mr. 132.br abiquim@abiquim. President ABIQUIM is the Brazilian Association of Chemical Industries Instituto Nacional do Plástico Av.abiquim.br ANFAL . Brazil Phone/Fax: 55/11/3814-8142.br Associação Brasileira da Indústria Química e Produtos Derivados . SP Phone: 5511-3031 3933 Web site: http://www.br abre@abre.São Paulo.br Contact: Mr. SP Phone: 5511-5051 3511 Fax: 5511-5051 0579 E-mail: alvorada@alvoradapetshop. Prestadores de Servicos e Defesa Destrinado ao Uso Animal.org. SP. João Prior. SP.org. Brigadeiro Faria Lima 1779 – cj.br Plastic Production Associacao Brasileira da Industria de Maquinas e Equipamentos . 6andar 01451-912 . 7andar 05423-010 . Jabaquara 2925 04045-902 Sao Paulo.PET . Director 118 .org. Maristela Simões Miranda.São Paulo.br Contact: Mr.São Paulo.abre. Brazil Phone: 55/11/5582-6377 Fax: 55/11/5582-6379 Contact: Ms. Contact: Mr.org.com.plastics. 884 04078 002 .br Pets Assofauna . Paulo da Colina.

627 Sao Paulo. SP CEP: 04153-001 119 . President Brazilian Association of the Plastics Industry Sindicato da Industria de Resinas Sinteticas no Estado de Sao Paulo Av.br Contact: Mr. SP.br Security and Safety ANIMASEG (National Association of Manufactures of Safety Products Rua Francisco Tapajós. President Sao Paulo Association of Manufacturers of Synthetic Resins Printing and Graphics Arts Equipment ABIGRAF – Associação Brasileira da Indústria Gráfica Rua Paraíso.abigraf. SP.Associação Brasileira da Indústria de Plástico Avenida Paulista. Jean Daniel Peter.br http://www. Francisco Braz Saliba. Director Mr.abiplast. Merheg Cachum. 533 São Paulo – SP / CEP: 04103-000 Phone: 55/11/5087-7777 Fax: 55/11/5087-7733 Contact: Mário Cezar Martins de Camargo.br Pulp & Paper BRACELPA – Associação Brasileira de Celulose e Papel Rua Afonso de Freitas.org. 2439 / 8º andar 01311-936 .org. resins and plastics machines manufacturers.br e-mail: siresp@siresp.org. ABIPLAST . 499 São Paulo – SP / CEP: 04006-900 Phone: 55/11/ 3885-1845 Fax: 55/11/3885-3689 Contact: Mr. 810 01311-923 Sao Paulo.org.siresp. Paulista 1313 .br saliba@bracelpa.com.National Plastics Institute is an association of plastics. Assesssor Diretoria Executiva http://www.br e-mail: abiplast@abiplast.org. that provides training courses. 287-9539 Fax: 55/11/3284-9812 http://www.Instituto Nacional do Plastico.com. Brazil Phone: 55/11/287-2619. President presi@abigraf.8 andar – cj.São Paulo.org. Brazil Phone: 55/11/3060-9688 Fax:L 55/11/3060-9686 Homepage: http://www.bracelpa.br Contact: Almir Abdala.

org.Brazilian Association of Data Processing Companies R.com. Executive Director npalhano@riosoft.br ABRASEG .. Treze de Maio 33.br ASSESPRO-RJ.org.assespro. Santos. Executive Director animaseg@animaseg.br http://www. President abes@abes.Brazilian Association of Data Processing Companies Av. SP Phone: 55/11/3816-1185 Fax: 55/11/3097-8288 Contact: Mr. Brig.org.br http://www. SP Phone: 55/11/3064-0003 Fax: 55/11/3064-0003 Contact: Mr. Newton Palhano.Brazilian Association of Agents.com.Brazilian Association of Commercial Automation. Faria Lima.animaseg.assespro-rj. 1713 .Cj. Ernesto Haberkorn. Teodoro Sampaio 417.org. 3 floor – Cj.br EAN/Brasil . Bloco A Gr.br http://www.org.org. Retailers and Distributors of Safety Products Address is the same as the above (ANIMASEG) Software ABES .Phone: 55/11/5058-5556 Fax: 55/11/5058-5556 Contact: Raul Casanova Jr.br http://www. 1661.br http://www. SP 120 . 2441 – 9º andar São Paulo – SP / CEP: 01419-002 Phone: 55/11/ 3064-8772 Fax: 55/11/3064-0821 atendean@eanbrasil.org.abes. 509 20031-000 Rio de Janeiro . 33 05405-000 Sao Paulo.RJ Phone: 55/21/2240-2005 Fax: 55/21/2532-5730/ 2533-1940 Contact: Mr.eanbrasil.br ASSESPRO-SP . President contato@assespro. José de Miranda Dias.softex.Brazilian Association of Software Companies Av. Al. 3o andar 04719-002 São Paulo. 33/34 .3 floor 01451-910 Sao Paulo.br Sporting Goods and Recreational Equipment ABIAE – Brazilian Association of Sporting Goods Industry Rua Verbo Divino.

Brazil Phone : 55/61 312-2578 Fax : 55/61 312-2367 Contact: Mr.br ABERIMEST – Brazilian Association of Telecom Companies and Professionals 121 .anatel. Santos. Morumbi. Roberto Estefano.ele.com.Phone: 55/11/5185-9400 Fax: 55/11/5185-9411 Contact: Mr.Urca 22290-240 Rio de Janeiro – RJ . Bonilha http://www.br anatel@anatel. M.Brazil Phone: 55/21/ 2295-4432 Fax: 55/21/2542-4092 Contact: Cleofas de Medeiros Uchoa.Brasilia .Cj. Lopes.com.gov.br telebrasil@telebrasil. 1502 São Paulo – SP / CEP: 01419-001 Phone: 55/11/ 253-9354 Fax: 55/11/ 284-0536 Contact: Francisco Carlos F.Brazilian Association of Telecommunications Av.Bicycle Association Av.org lbonilha@tia.telebrasil. Pasteur. Sergio Motta 70313-900 .Luis Guilherme Schymura de Oliveira. 1343 Cj. Luiz C.DF . president tel: 55/11/5041-0766 fax: 55/11/5041-0256 Telecommunications ANATEL – Brazilian Telecommunications Agency SAS Quadra 06 . President adibra@uol. 62 04703-002 . President marap@cambuci. President http://www.br Parts and Related Accessories ADIBRA – Associação das Empresas de Parques de Diversões do brasil Al.br TIA – Telecommunications Industry Association TEC-LA Contact: Mr.tiaonlinel.org.br ABRACICLO . 383 .Sao Paulo – SP Contact: Roberto Iouejiri.com.Bloco H Ed. 8390 .br http://www.gov.penalty. President http://www.org.org TELEBRASIL .

abta. Das Nações Unidas.4º andar .org.org.Brazil Phone: 55/11 3253-4633 .org.br wagner-aere@attglobal.org.br marcelo@abecortel.5874 Fax: 55/11 251-3899 Contact:Mr.Brazil Phone: 55/11 3825-6533 Fax.org.Brazil Phone: 55/11/3043-8832 Fax: 55/11/3043-8834 Contact: Renato Pazotto.Associação Brasileira das Empresas e Profissionais das Telecomunicações Rua Brigadeiro Galvão.com. 24º andar 04578-903 São Paulo – SP . 29 . 1º andar .SP . 4A .cj. President http://www. President http://www. President http://www.com. Paulista 01404-000 São Paulo . President http://www. President http://www.aberimest.br ABECORTEL – Brazilian Association of Telecommunications Engineering Services Companies Associação Brasileira Das Empresas De Serviços De Engenharia De Telecomunicações Rua Domingos de Moraes.Jd. 181 04531-090 Sao Paulo .br aberimest@aberimest.Brazil Phone/Fax: 55//11 3078-9307 Contact : José Augusto Moreira.abecortel.Sociedade Brasileira de Engenharia de TV e Telecomunicações Rua Jardim Botânico 700 sala 306 22461-000 Rio de Janeiro RJ 122 . 2243.br abta@abta. 12551.Brazilian Association of Pay TV .SP .br SET .: 55/11 3825-6460 Contact: Mr. Campinas.Brazil Phone: 55/11 5082-2902 Phone/Fax: 55/11 5579-8078 Contact: Gilberto Justen.org.Brazilian Society of Broadcast Engineering .abraforte. Flavio Castelli Chueri. 923 – 01151-000 . 463 . Harold Walter Weiss.br ABEPREST – Brazilian Association of Telecommunication Service Providers Associação Brasileira de Empresas Prestadoras de Serviços em Telecomunicações Al.abeprest.São Paulo .org.cj. 16 04035-000 .net ABRAFORTE – Brazilian Association of Telecommunication Multi-service Net Provider Associação Brasileira dos Fornecedores de Redes Multiserviços em Telecomunicação Av.Associação Brasileira das TVs por Assinatura Rua Paes de Araujo.br abraforte@abraforte.SP .São Paulo – SP .Conj.br ABTA .

abrafas.Syndicate of Textile and Yarn manufacturers of the State of Sao Paulo Rua Marques de Itu.br BRAZTOA-COBRAT . President abav@abav.br ABIT – Associação Brasileira da Industria Textil (Brazilian Association for Industrial Textiles) Rua Marquês de Itu.abit.:55/11/3231-3077 Fax.br set@set.br Textile and Yarn Industry SINDITEXTIL .org.Centro 01046-001 Sao Paulo.br Travel and Tourism ABAV . Paulo Skaf.br http://www.org.br abrafas@abrafas. SP 123 . Carlos Roberto de Castro.com. Paulo Skas. 968 01223-000 – São Paulo – SP Phone: 55/11/3666-0101 Fax:55/11/3667-8209 Contact: Mr.org.: 55/11/3259-8327 Contact: Mr.sinditextil. Tasso Gadzanis. President http://www.org.com.Brazilian Association of Travel Agents Av.set.abav. Sao Luiz. President abit@abit.com.br http://www.org. SP Phone: 55/11/3666-0101 Telex: 55/11/ 3667-8209 Contact: Mr.com. 968 01223-000 Sao Paulo.Brazilian Tour Operators Association Rua Marconi. SP Phone. President http://www.br ABRAFAS – Associação Brasileira de Produtores de Fibras Artificiais e Sinteticas (Brazilian Association of Artificial and Synthetic Fiber Producers) Rua Marquês de Itu.1 floor . 165 .1 floor 01047-000 Sao Paulo. 968 01223-000 – São Paulo – SP Phone: 55/11/3666-0101 Fax:55/11/3667-8209 Contact: Mr.org. President http://www.br secretariageral@abit. Olimpio José Franco.Phone: 55/21 2512-8747 Fax: 55/21 2294-2791 Contact: Mr. 34 .

de Noronha. Km 163 . bl A.SP Phone: 55-11-5505-0190 Fax: 55-11-5505-1640 Contact: Mr. 107/801 22230-000 Rio de Janeiro – RJ Phone: 55/21/2205-4819 or 55/11/5505-0190 Fax: 55/21/2558-9623 Contact: Gil Firmino .br http://www.com.Mineiro. Ilya Hirsch.org.: 55/11/3259-9500 Fax.Edif.com.org.braztoa.1626 01304-902 Sao Paulo .br antf@tba.: 55/11/3255-1226 Contact: Mr. room 504 70300-944 – Brasilia – DF Phone: 55/61/223-0844 Fax: 55/61/223-0844 http://www.br abcr@abcr. José Reis de O.antp.org.org.abcr. Lima DNER .com.br Em SP Rua Augusta.antf.P. Technical Coordinator http://www. President.br Transportation ANTF – Associação Nacional dos Transportes Ferroviários Setor de Autarquias Sul – Quadra 5 – Bl N – Edificio OAB – Room 509 70070-050 – Brasila – DF Phone: 55/61/226-5434 Fax: 55/61/321-0135 http://www.com.br ANTP – Associação Nacional de Transporte Público SCS Quadra 4.br antpsp@antp.Phone.SP Phone:55-11-283-2293 Fax: 55-11-3253-8095 ABCR – Associação Brasileira de Concessionárias de Rodovias Rua Senador Vergueiro. Presidente Dutra.br Em SPRua Geraldo Flausino Gomes. 2092 Fax: 55/21/2465-2795 Contact: Carlos Henrique L.org. 82 Brooklin 04575-060 Sao Paulo .br 124 . braztoa@braztoa. Higway Concessions Cordinator sdt7drt@openlink.Ministério dos Transportes Rod. de Lucas 21240-000 Rio de Janeiro – RJ Phone: 55/21/2473-7245 or 55/21/2471-6565 ext.42 cj.

Bloco G.com.br amchambsb@amcham. 570 80730-440.Savassi 30130-141 Belo Horizonte. s 451 13091-905 Campinas. PR Tel: 55/41/312-1657 Fax: 55/41/312-1699 Amchamctba@amcham. DF Tel: 55/61/321-0939 Fax: 55/61/321-0171 Roberto Villaça.com.com. Regional Manager robinsuz@amcham. President Ombudsman@amcham.br www.br 125 .br AMCHAM – Belo Horizonte Rua Paraíba. MG Tel: 55/31/3287-1012/1649 Fax: 55/31/3287-1977 Jorge Perutz. Curitiba.com. SP Tel: 55/11/5180-3804 Fax: 55/11/5180-3777 Álvaro de Souza. 201. sala 1502 .com.br AMCHAM – Campinas Av Selma Parada.br AMCHAM – Porto Alegre R Candido Hartmann. Baracat 70309-900 Brasília. s 451 80250-080 Curitiba.com. PR Tel/Fax: 55/51/325-0343 amchamrs@amcham. 1352.com.br AMCHAM – Brasília SCS Quadra 01.am cham.AMERICAN CHAMBERS OF COMMERCE AMCHAM – São Paulo Rua da Paz. salas 1206/7. 201. President Robinson Luz.com. 1431 04713-001 São Paulo.br AMCHAM – Curitiba Av Selma Parada. Ed. President Amchambh@amcham. SP Tel: 55/19/3207-4343 Fax: 55/19/3207-4440 Amchamcnas@amcham.

Salvador Rua Torquato Bahia. Cep: 01451-913 Sao Paulo – SP Phone: 55/11/3039-1000 Fax: 55/11/3039-1008 Contact: Jefferson Nascimento http://www. 5o andar 20040-020 Rio de Janeiro.com.br AMCHAM . 4andar. salas 809-811 29050-060 Vitória. Av.vix@zaz. Empr. Little S/C Ltda.adlittle.com BSR Projetos Empresariais S/C Ltda.Rio de Janeiro Praça Pio X.amcham. 14 78 – 21º and.com.sp@ablittle.br AMCHAM – Vitória Rua Abiail do Amaral Carneiro.br MARKET RESEARCH COMPANIES Sao Paulo Arthur D. 69 Edifício Raimundo Magalhães. Governador Agamenon Magalhães. Agamenon Magalhães Espinheiro 52020-000 Recife.com.com rh. PE Tel: 55/81/3426-9561 Fax: 55/81/3426-9561 recife@amcham. Faria Lima.AMCHAM – Recife Av. RJ Tel: 55//21/2203-2477 Fax: 55/21/3213-9200/9201 Joel Korn.br AMCHAM . Sala 705 40015-110 Salvador. cj 46 04552-060 – São Paulo –SP Phone: 55/11/3845-7422 126 .br www. BA Tel. Presidente www.Ed. Rua Pequetita 179. 2656 – sala 1004 . (071) 242-0077 Fax (071) 243-9986 Jorge Bonfim. ES Tel: 55/27/324-8681 Fax: 55/27/345-6907 Amcham.amchamrio.com. President Achambr@amchamrio.com. Brig. 191.

Fax: 55/11/3845-0720 Contact: Mr. Samuel Ribeiro http://www.bsr.com.br strategy@bsr.com.br Booz Allen & Hamilton do Brasil Consultores Ltda. Av. das Naçoes Unidas, 12901 – 18º and. Torre Norte Cep: 04578-000 Sao Paulo – SP Phone: 55/11/5501-6200 Fax: 55/11/5501-6300 Leticia Costa, Presidente http://www.bah.com Datamark Consultores S/C Ltda Av. Brig. Faria Lima, 1993 – cj.35 – 3º andar 01452-001 – São Paulo – SP Phone: 55/11/3819-1810 Fax: 55/11/3819-8008 Contact: William Graham Wallis datamark@datamark.com.br IDC Brasil Al. Ribeirão Preto, 130 – 5º andar 01331-000 – São Paulo – SP Phone: 55/11/3371-0000 Fax: 55/11/3371-0029 Contact: Ruy Mendes / Cristina Muniz, manager www.idcbrasil.com.br Rgois@idcresearch.com.br Duda mendonça e Associados LTDA Av. 9 de Julho, 5960 01406-200 – São Paulo –SP Phone/Fax: 55/11/3067-4400 Contact: Duda Mendonça amonteir@dmmt.com.br Lindsey Consultores S/C Ltda. Rua Bela Cintra, 1932 Cep: 01415-002 Sao Paulo – SP Phone: 55/11/3088-8122 Fax: 55/11/3085-7787 Contact: Mr. Richard Lindsey – Director M & L Magnus Landmann Consultores Empresariais. Av. Brig. Faria Lima, 1931 – 10º and. cj. 102 Cep: 01451-917 Sao Paulo – SP Phone: 55/11/3816-3144 Fax: 55/11/3819-9621 Contact: Mr. Jorge F. Landmann – President http://www.ml.com.br

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contact@ml.com.br Marketing Service Associates do Brasil S/C Rua Prof. Luciano Venere Decourt, 33 Cep: 04648-050 Sao Paulo – SP Phone: 55/11/5686-2322 Fax: 55/11/5686-7625 Contact: Mr. Andre Fay – Director http://www.marketing-service.com.br msa@marketing.com.br MarketPlace Assessoria e Consultoria Ltda Rua Gabriel dos Santos, 168 01231-010 São Paulo – SP Phone/Fax: 55/11/3666-2762 Contact: André Neufeld vedpbrazil@amcham.com.br MV Marketing and Consulting Services. Rua Morgado de Mateus 314, cj 32 Cep: 04015-050 - Sao Paulo – SP Phone: 55/11/5549-9430 Fax: 55/11/5083-0783 Contact: Ms. Magda Vollker – Director www.mvconsulting.com.br Pyramid Research Av. Pres. Juscelino Kubitschek, 1830 – 1º andar – torre 4 04543-900 – São Paulo –SP Contact: Meredith Persily pyramid@amcham.com.br Tecnology Parteners Rua Palacete da Aguias, 842 cj.132 04635-023 – São Paulo – SP Phone/Fax: 55/11/5565-6414 Contact: Norton Ribeiro de Freitas Jr. Simonsen Assoc iados S/C Ltda. Av. 9 de Julho, 5017 – 12º and. Cep: 01407-200 Sao Paulo – SP Phone: 55/11/3078-4733 Fax: 55/11/3079-4958 Contact: Mr. Harry Simonsen Jr. – President http://www.simonsen.com.br simonsen@simonsen.com.br Brasilia, Distrito Federal ETROS Consultoria Ltda. Centro Empresarial – SCN Quadra 2 Lote D Torre A Room 1001

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Brasilia – DF Zip: 70710-500 Phone: 55/61/327-4747 Fax: 55/61/327-4746 Contact: Sergio A. A. Moura – Director http://wwwetrosconsultoria.com.br etros@etrosconsultoria.com.br Minas Gerais BRANDT Meio Ambiente Rua Alameda da Serra, 322 – 6º and. – Vale do Sereno Cep: 34100-000 Belo Horizonte – MG Phone: 55/31/3281-2258 Fax: 55/31/3286-7999 Contact: Wilfred Brandt – President http://www.brandt.com.br bna@brandt.com.br EPC – Engenharia Projeto Consultoria Rua da Bahia, 504 – 10º and. Cep: 30160-010 Belo Horizonte – MG Phone: 55/31/2122-5500 Fax: 55/31/2122-5600 Contact: Mrs. Maria V. Schettino – Mr. Nunziato Schettino http://www.epc.com.br epc@epc.com.br STRATEGOS – Consultoria e Representaçoes Ltda. Rua Ouro Fino, 395 room 309 Cep: 30310-110 Belo Horizonte – MG Phone: 55/31/3227-2047/2575 Fax: 55/31/3227-8008 Contact: Mr. Celedonio Santos – Director strat00@attglobal.net Pollo Com. Exp. R. Guajajaras, 977 conj. 506 30180-100 Belo Horizonte – MG - Brazil Phone: 55/31/3222-4871 Fax: 55/31/3222-4432 Contact: Mr.Joao Fabino F. Neto – Director http://www.wbcexpo.com.br wbc@wbcexpo.com Rio de Janeiro Maxima Consultoria Av Atlantica, 1130, BL A, 7 andar 22021-000 – Rio de Janeiro, RJ

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Joao Nunes Ferreira Neto.br Country Commercial Banks Most banks in Brazil operate as multiple banks.fugita@unibanco. 20042-900 Rio de Janeiro. Paulo Jose Machado . SP Phone: 5511/3847-5553/5000 Fax: 3847-5167 Contact: Mr.unibanco.janeiro@ey. Av.de.Director www.bradesco. Rio Branco. 12995 – 25º and. 128 17and.com.com.com.Phone: 5521/3873-8662 Fax: 5521/3873-8669 Contact: Mr.com 4900. 282 – 10º and.com. 1 andar 01451-000 – Sao Paulo.hsbc. RJ Contact: Mr.br Ernst & Young Av.com.com. Ipiranga.br marcio. accumulating the functions of commercial and investment banks and are also active in the capital market.com.br lima@multistock. Av Brigadeiro faria Lima.A.br rio.br Banco Bradesco S.br Banco BMC Av.edesiosilva@bradesco. Eusebio Matoso 891 –9and 05423-901 – Sao Paulo. Luiz Eduardo Assis http://www. Cep: 01046-920 Sao Paulo – SP Phone: 55/11/3235-9449 Fax: 55/11/3235-9169 Contact: Edesio Depaula e Silva – Manager http://www. Banks in Brazil Which Operate with Eximbank Credit Lines Unibanco S. Superintedent – Global Financial Institution http://www.A.maximaconsultoria.br Banco HSBC Bamerindus S. Cep: 04578-000 Sao Paulo – SP Phone: 55/11/5503-7500/7780 Fax: 55/11/5503-7676 130 .A.ey.com. Av. das Naçoes Unidas. Marcio Fugita. 3064. Director http://www. SP Phone: 3097-1611 Fax: 3814-0528 Contact: Mr.

com. 101 – 11º and. Av. Regina Grinberg http://www. Finance Al.netplan.com. Sabadin – Director http://www. Brazil Corp.com. Faria Lima.bancosantos.br r.br asabadin@bmc.br M. 504/505 Cep: 01451-001 Sao Paulo – SP Phone: 55/11/3814-2218 Fax: 55/11/3815-5977 Contact: Joao Carlos Saldanha da Gama – Consult Email: lynx@uol.grinberg@bancosantos.com.S. Mission In Brazil Brasília .com. Paulista. Cep: 04534-010 Sao Paulo – SP Phone: 55/11/3168Fax: 55/11/3168-0382 Contact: Ronald Leal – President 0383 http://www. Phone: 55/11/3269-6000 Fax: 55/11/3269-1111 Cep: 01310-200 Sao Paulo – SP Contact: Mrs.BSB: Tel: Ambassador Deputy Chief of Mission Economic Counselor Deputy Senior Commercial Officer Agricultural Counselor 55/61/312-7000 Donna Hrinak Richard Virden Roman Wasilewski Janice Corbett William Westman 131 . Cep: 01403-901 Sao Paulo – SP Fax: 55/11/3141-0175 Contact: Mr.com.br Financial Companies and Consultants that facilitate access to Eximbank NetPlan Corporate Finance Ltda. Rua Joaquim Floriano. Joaquim Eugenio de Lima 680 – 4º and. 1842 – 8º and. Milton Tiago Santana (Agent of the FirstBank of New England in Brazil) U. Brig. 1651 cj.T.cc Guardian SC Ltda.Contact: Arthur Paulo R.br netplan@netplan.br Banco Santos Av.bmc.

br Dias Correa & Vaz R.dinisicampos.RJ: Tel: Principal Commercial Officer Belo Horizonte .Advogados R. 1431 1and Bairro dos Funcionarios 30150-311 – Belo Horizonte MG Phone: 5531/3273-1234 Fax: 5531/3273-1222 Contact: Ms.br atorneaporney@prime.org. Mo urao & Raso .american-embassy.com.br Sao Paulo . MG 132 .BH: Tel: Principal Commercial Officer 55/11/3081-6511 Patrick Duddy Milton Charlton 55/11/3082-3528 Ron Verdonk 55/11/3897-4000 John Harris Paul Kullman Brian Brisson 55/21/2292-7117 Jim Cunningham 55/31/3213-1571 Dan Crocker List of Attorneys in Brazil Minas Gerais A&A Advocacia & Administracao Rua Fernandes Dourinho. 907 30112-000 – Belo Horizonte. Ceará.Homepage: http://www. MG Phone: 5531/3284-8280 Fax: 5531/3284-8280 Contact: Mr. Randolfo Diniz Neto http://www. 353 – 7and 30130-150 – Belo Horizonte.SP: Tel: Consul/General Consul/Economic Affair Tel: Agricultural Officer Tel: Senior Commercial Officer Principal Commercial Officer Director of Commercial Officer Rio de Janeiro . Isabel Vaz Ovaz@horizontes.com. Pernabuco.net Grebler. 735 s. Pinheiro.

Stuber e Advogados Associados Alameda Campinas. 1070.com.araujopolicastro. Dr.azevedosette. Antonio Fernandez Guimaraes Pinheiro. Faria Lima.gpmr. Paulo F.br araujopolicastro@amcham.Phone: 5531/3261-1400 Fax: 5531/3261-8199 Contact: Mr.com www. Camila Araujo http://www. Brig.br gpmr@gpmr.com.com lawyers@amarostuber. 2894 – 11º and. Director http://www.br Sao Paulo Amaral Gurgel & Freire – Advogados R lepoldo Couto magalhães. Bekin / Mrs.com.br Azevedo Sette Advogados Sociedade Civil R. Ricardo Azevedo Sette – Phone: 5511/38455553 http://www. 8º e 9º andares 01404-001São Paulo Phone: 5511/3882-9911 Fax: 5511/3882-9983 Contacts: Abel Simão Amaro / Walter Douglas Stuber www.br asa@azevedosette. Cardoso de Mello .amarostuber.M.M.com Amaro. 1750 – 7º andar Cep: 04548-005 Sao Paulo – SP Fax: 55/11/3849-0039 Contacts: Mr. De Gennari 133 . Elisabeth V. 3th floor 04542-000 São Paulo Phone:5511/3043-7700 Fax:5511/3043-7701 Contacts: J. Cep: 01452-938 Sao Paulo – SP Phone: 55/11/3168-2566 Fax: 55/11/3078-6120 Contact: Mrs.com.com. do Amaral Gurgel amaralgurgel@amaralgurgel.com.amaralgurgel. MG Phone: 5531/3261-6656 Fax: 5531/3261-6797 Contact: Mr Ordelio Azevedo Setti São Paulo: Mr. Paraiba.com Araujo e Policastro e Portugal Advogados Av. 1000 – 14and 30130-141 – Belo Horizonte.br Bekin e Gennari Advogados Av. 110.

Marques e Kanamaru R Frei Caneca.carvalhodefreitaseferreira. 1380 cj 32 01307-002. 400 – 14º andar Cep. 9 de Julho.SP Phone: 5511/3064-0364 Fax: 5511/3284-0259 Contact: Ricardo Thomazinho da Cunha www.Bekin. 341 – suite131 04559-000 – São Paulo – SP Phone: 55/11/5532-1055 Fax: 55/11/5533-2086 Cunha.com.br Felsberg e Associados Advogados e Consultores Legais Av.com. 807 – 2ºfloor – Cj. Paulista.com.br www.: 01454-902 – São Paulo – SP Phone: 55/11/3846-2416 Fax: 55/11/3814-4903 Contacts: Fábio Monteiro de Barros / Sérgio Soares Soral Filho Carvalho de Freitas e Ferreira Advogados e Associados Av. Av. 9 de Julho. 1294.com. 5593 – 9º andar 01407-200 – São Paulo – SP Phone: 55/11/3078-6600 Fax: 55/11/3167-4735 Contact: Fabio Ferreira Kuhawski Kujawski@cff. 2/3th flor 01310-915 – São Paulo – SP Phone: 55/11/3141-9100 Fax: 55/11/283141-9150 134 .São Paulo.br Escritório de Assessoria Juridica Jamil Michel Haddad S/C Ltda.com. Paulista.C.gennari@bekingennari.cmpk.br Escritorio Vi llemor Amaral Av. Barros e Sobral Advogados S. 4413 Cep: 01407-100 Sao Paulo – SP Phone: 55/11/3887-0977 Fax: 55/11/3887-0217 Contact: Hermano de Villemor Amaral / Claudio Mauricio Boschi Pigatti villemor@villemor. Cidade Jardim. Portugal. Av. 221-225 01311-100 – São Paulo – SP Phone: 55/11/3285-2511 – 251-1323 Contact: Jamil Michel Haddad Jamilhaddad@jamilhaddad.com Castro.br Cesar Montalvão Fernandes Av.

1355 – 3º andar 01451-903 – São Paulo – SP Phone: 55/11/3038-8090 Fax: 55/11/3812-2495 Contacts: Durval de Noronha Goys Jr.macedoadvocacia.pinheironeto. / José Paulo Alves Pequeno / Ruben Fonseca e Silva / Eliana Filippozzi.8º andar 01411-001 – São Paulo – SP Phone: 55/11/3068-8373 Fax: 55/11/3068-8379 Contact: Cristiano Diogo de Faria Lacazmartins@lacazmartins.com. Brigadeiro Faria Lima.com. Meyer http://www. noadsao@noronhaadvogados.br www.br Lacaz Martinz.br pna@pinheironeto. 12 floor. Gurevich & Schoueri Rua Padre João Manoel.com.com. 254 – 8º and. 296.com. Cep: 01301-903 Sao Paulo – SP Phone: 55/11/3150-7000 Fax: 55/11/3150-7071 Contact: Antonio de Souza C. Sendacz e Opice Advogados Rua da Consolaçao. Dr.felsberg. Pereira Neto.br mmso@mmso. 1750 – 8º andar 04548-005 – São Paulo – SP Phone: 55/11/3846-9050 Fax: 55/11/3846-9054 135 .br Machado.com.Contacts: Thomas Benes Felsberg / Gilda Machado www. Cep: 01014-907 Sao Paulo – SP Phone: 55/11/3247-8400 Fax: 55/11/3247-8600 Contact: Fernando Pinheiro http://www.org. 923 .com. Remor e Furriela Advogados Av.br Pinheiro Neto Advogados Rua Boa Vista. Meyer. conj 122 01044-000 – São Paulo – SP Phone/Fax: 55/11/3257-1445/9619 macedoadvocacia@aasp. Cardoso de Melo.br www.machadomeyer.com.br Noronha Advogados Av.adv.br Mello & Macedo Advocacia R Sete de Abril.noronhaadvogados. Halembeck.br Santos. 247 – 4º à 6º e 8º and.

Chucri Zaidan. dos Santos / Fernando Nabai da Furriela Office@srflaw. Rio Branco. 21 – 19and 20031-010 Rio de Janeiro.tozzini. Cep: 01009-907 Sao Paulo – SP Phone: 55/11/3291-1000 Fax: 55/11/3291-1111 Contact: Syllas Tozzini – Partner http://www.br Garcia & Keener Advogados Av.com.Contacts: Manuel joaquim R. 119.com.br Tozzini e Freire Advogados Rua Libero Badaro. Director Custodio@custodio.com.br mail@tozzini.com. 99 – 15and 20040-004 – Rio de Janeiro.com www. RJ Phone: 5521/2203-2466 Fax: 5521/2233-3184 Contact: Dr. 1296 Cep: 04043-150 Sao Paulo – SP Phone: 55/11/5584-0933 Fax: 55/11/5581-3858 Contact: Luis Armando Lippi Braga – Director marketing@sulamericamarcas. R.com Luiz Antonio D’Arace Vergueiro – luiz.com.vergueiro@bakernet. Alvaro Alvim.com.custodio. RJ 136 . Jose Geraldo Garcia de Souza jggarcia@garciaciakeener.br Sul America Marcas e Patentes S/C Ltda. Custodio Cabral.trenchrossiewatanabe. 920 – 13º andar 04583-904 – São Paulo – SP Phone: 55/11/3048-6800 Fax: 55/11/5506-3455 Contacts: Sérgio Paula Souza Caiuby – sergio. Rossi e Watanabe Av. RJ Phone: 5521/2240-2341 Fax: 5521/2240-2491 Contact: Dr. room 909 20017-900 – Rio de Janeiro.com.br Rio de Janeiro Custodio de Almeida & Cia.br www.br Zairo Lara Filho & Advogados Associados Rua Mexico.com.br Trench.caiuby@bakernet. Rua Luiz Goes. 293 – 21º and.

Zairo Lara Zairolara@outelink.(USDA) Patricia Sheikh. Outward Investment Tel: (202) 606-9867 Greg Fouch. GOVERNMENT AGENCIES AGRICULTURE .S.Phone: 5524/2220-8019 Fax: 5521/2220-8019 Contact: Dr. Brazil Desk Tel: (202) 482-3872 137 . Foreign Trade-Latin America Countries Tel: (301) 457-3041 Import Administration Steve Green. Trade Promotion Tel: (202) 690-0159 Richard Blabey. Latin American Industry Specialist Tel: (202) 482-4466 ITA – International Trade Administration John Andersen.com.br U. U. Demographer Tel: (202) 457-1358 Trade Figures. Director of the Latin America and Caribbean Division Tel: (202) 482-2437 Tyler Shields.S. Import Policies and Program Division Tel: (202) 720-2916 AID – Assistance for International Development Dyane Barnes Tel: (202) 647-4359 COMMERCE BEA – Bureau of Economic Affairs Ray Malaloni. Trade Policy Tel: (202) 720-6887 Dan Birman.Population John Reed. Inward Investment Tel: (202) 606-9831 COMMERCE BIS – Bureau of Industry and Security Addi Apiricio Tel: (202) 482-3984 Fax: (202) 482-5650 COMMERCE CENSUS .

NCSCI/NIST Tel: (301) 975-4037 Mary H. Latin America Tel: (202) 586-5904 EPA – Environmental Protection Agency Michael Young. Physical Scientist / Brazil Specialist Tel: (703) 648-7745 MARINE FISHERIES Dean Swanson. Brazil Desk Tel: (703)-6952520 ENERGY Moustafa Soliman. International Affairs Tel: (202) 927-0400 DEFENSE Randy Pearson. Senior Business Officer Tel: (202) 565-3913 HHS-FDA – Health and Human Services – Food and Drugs Administration Minna Golden.Import Bank Greg O’Connor. Deputy Director Tel: (301) 975-4010 John Rumble. Regional Director Tel: (202) 482-2736 CUSTOMS Edward Logan. Chief. International Business Development Officer Tel: (202) 565-3939 Cristin Wood.USCS – United States Commercial Service Daniel DeVito. Latin America Program Tel: (202) 260-6009 EXIMBANK – Export. Brazil Tel: (301) 975-2396 Walter G. Saunders. Associate Director for the Americas Tel: (301) 827-1043 INTERIOR (Mineral Management Service) Alfredo Gurmendi. Brazil Tel: (202) 482-1087 138 . Overman. Leight. Calibration Program Tel: (301) 975-2203 NTIA – National Telecommunications & Information Administration Judy Kilpatrick. Latin America Tel: (301) 713-2276 NIST – National Institute for Standards & Technology Joanne R.

Administrator for External Affairs Tel: (703) 305-9300 STATE/BWHA – Bureau for Western Hemisphere Affairs Gerald Gallucci.OPIC – Overseas Private Investment Corporation Bruce Camerun. Trade Development Agency Albert Angulo.* World Bank (IBRD) • • • Agriculture & Enviroment Country Operations Infrastructure Division William Crawford. D. Political Officer Tel: (202) 647-0443 STATE/EPS – Regional Economic Policy and Summit Coordination Russel Fraisbie. Country Manager for Latin America & the Caribbean Tel: 703-875-7056 TRANSPORTATION Coni Hunter. Deputy Assistant USTR for Western Hemisphere Tel: (202) 395-5114 INTERNATIONAL FINANCIAL INSTITUTIONS. MARKET RESEARCH Industry Sector Analysis Report (ISA) FY 2003 139 . Regional Director for the Latin America & the Caribbean Tel: 703-875-4357 Anne McKinney. Director Constance Bernard Venod Thomas Dany Leipziger Larry Harrington. Business Development Officer Tel: (202) 336. Director Tel: (202) 647-2079 TDA – U. U.S. Washington. Executive Director Jose Fajgenbaum Division Chief. Economic Officer Tel: (202) 647-2326 or 736-7481 Sylvia Eiriz.C. Brazil 458-0120 458-5175 473-8452 473-0001 623-3821 623-8637 Inter-American Development Bank Int’l Monetary Fund (IMF) 12. Secretaty of Transportation for Latin America Tel: (202) 366-9521 or 366-7417 USTR Regina Vargo.S.8745 PTO – Patent & Trademark Office Robert Stoll. Director for Brazil and Southern Cone Affairs Tel: (202) 647-6541 David Edwards.

exporters. The U. Ground Support & Air Traffic Control The Pulp and Paper Industry in Brazil Financial Services in Brazil Due Date Dec. 2003 Sept.S.Industry Sector Analysis Report (ISA) FY 2003 Title Mining Equipment and Technology Forestry Equipment or Woodwork Construction Equipment Regulatory Aspects of Medical & Pharmaceutical Sector Agricultural Machinery Solid Wast Treatment Equipment Oil and Gas Equipment Nonwoven Textiles Opportunities in the Education Market E-Commerce Developments in Brazil Industrial and Analytical Instrumentation Precision Agriculture Equipment Seaports – Port Operations in Brazil Insurance Services Broadcast Equipment Material Handling Equipment Pharmaceuticals & Natural Supplements Due Date Oct. 2004 Author Regina Cunha Maria Luiza Leal Mauricio Vasconcelos Denise Barbosa Jefferson Oliveira Jussara Haddad Marina Konno Paulo Rodrigues Igly Serafim Teresa Wagner Genard Burity Lynn Wong Ebe Raso Patricia Marega Ruy ptista Roberto Muhlbach Patrick Levy UNITED STATES COMMERCIAL SERVICE IN BRAZIL GUIDE TO COMMERCIAL SERVICES The Brazilian market offers significant opportunities for U.S. 2004 Sept. 2003 Author Mauricio Vasconcelos Patricia Marega Marina Konno Bernhard Smid Igly Serafim Teresa Wagner Regina Cunha Denise Barbosa Jussara Haddad Lynn Wong Paulo Rodrigues Vania Resende Ruy Baptista Patrick Levy Ebe Raso Roberto Mulhbach Jefferson Oliveira Industry Sector Analysis Report (ISA) FY 2004 Title Electrical Power Generation in Brazil The Brazilian Entertainment Market Mining in Brazil: Gold and Copper Projects The Brazilian Cosmetics Market Vitamins and Nutritional Supplements Brazilian Travel & Tourism to the United States Airport Security Systems in Brazil The Franchising Sector in Brazil Brazilian Petrochemical Sector Environmental Consulting and Eng. 2004 Jan. Services The Brazilian Software Market Electronic Commerce in Brazil Voice over Internet Protocol (VOIP) The Consumer Goods Industry in Brazil Airports. 2003 Sept. 2003 March 2004 May 2004 July 2004 July 2004 July 2004 July 2004 July 2004 July 2004 July 2004 August 2004 August 2004 Sept. Commercial Service is in Brazil to assist your company in maximizing its export potential in this dynamic 140 . 2003 Sept. 2004 Sept. 2003 Sept. 2003 Sept. 2004 Sept. 2002 March 2003 March 2003 April 2003 May 2003 June 2003 July 2003 July 2003 July 2003 July 2003 July 2003 Aug.

This Guide outlines the market research. Contact information for the USEACs and other key information on exporting are available by dialing 1-800-USA-TRADE or by contacting their website (www.S. Export Assistance Center (USEAC) nearest you to familiarize yourself with the U.br CS Brazil Products and Services CS Brazil products and services can meet your company’s needs in exporting to Brazil by addressing basic market inquiries.S. A senior staff member will actively monitor and seek out information and intelligence in the U.org. CS Brazil is also positioned to consider any legitimate request by a U.focusbrazil.usatrade. Porto Alegre.and diverse country. Brasilia. Platinum Key Service: The PKS is intended for U. The first step is for you to contact the U. to organizing a highly sophisticated trade promotion event.br.S. negotiated on a fee or non-fee basis. exporters seeking opportunities in the Brazilian market. CS Brazil has offices in the cities of Belo Horizonte. These reports. 381 CHÁCARA SANTO ANTÔNIO SÃO PAULO . exporters and Brazilian importers can develop business supported by the very latest in “user-friendly” information technologies.gov). Commercial Service in Brazil (CS Brazil) offers a variety of products and services to facilitate U. Company's area of interest.paulo.box@mail. Mailing Address: U.S.S. The client will receive up-to-the-minute privileged market intelligence. as outlined in this guide. All other offices offer similar support through institutional partners. identifying a qualified local partner. São Paulo is also the site of CS Brazil’s Commercial Center.office.SP Electronic Address: Email: sao. trade promotion and facilities support and services available to U.S.focusbrazil. via e -mail or through confidential periodical telephone or videoconferences 141 .S. Specific requests for these products/services or any other requests for export assistance should be addressed to the USEAC office nearest your or CS Brazil at any of the addresses below: U. Also. involved in bidding on a major project.S.gov Website: www. firms active in a key industry sector.S.doc. Rio de Janeiro and São Paulo. at your convenience visit our web site: www. Commercial Center AMCONGEN São Paulo Unit 3502 APO AA 34030-3502 Tel: 55 / 11/ 5186-7300 Fax: 55 / 11/ 5186-7399 Address Information for Visitors: RUA THOMAS DELONEY. or seeking commercial intelligence to achieve their business goals. insights and major projects news or developments. trade contact. company for export assistance. Commercial Service’s export promotion programs and to a ccess important market reports.S.S.S. a facility where U.org. exports. companies to promote their products and to meet with prospective Brazilian buyers. The U. CS Brazil also offers high caliber facilities for U. trade leads.

Complementary Products: CS Brazil produces a considerable number of market research reports on Brazil.S. and light refreshments. strategic. Finding International Partners. firms can now access the perfect tool to know -.S.or double check -.. financial and competitive developments in the firm's sector or in any number of specific projects in Brazil. Range US$1.250 per company. Please order this service through your local USEAC.with the Embassy specialist.br. These include: Country Commercial Guide: A comprehensive report on the general business environment in Brazil with an emphasis on market access.org. Fee-Based Products: The following reports can be developed for a U. These are business confidential products tailored to the U. They are available at no cost to the U. which generally includes a 3-hour program including a detailed company presentation and question/answer session. Fee: Negotiated by Event. The requesting company provides input regarding the specific venue and audience. 142 .what their foreign competitors. and Trade Events described on the following pages: I. In short. ISAs contain market assessment and outlook supported by statistics.S. investment issues and general information on markets of opportunity.S. exporter from USEACs or from the CS Brazil Web Site: www. Offers individual or groups of companies a high visibility venue at the Commercial Center to present its products or services to a tailored audience of Brazilian clients. U. exporter upon request for a fee. International Market Insights: Reports on specific market opportunities and major projects and new developments. These products and services are designed as tools for use by your company in advancing into the market in the following categories: Market Research. one year.US$2. and trade contacts. will discuss political. giving background and guidance on how to take advantage of the opportunity. Company’s product/service the results of which are not made available to the public.S. exports in Brazil. colleagues.S. focusing on “best prospects”. a review of competitive factors and market shares. Fee includes official CS event space with presentation equipment. best sales prospects. Availability: 1 month of request. Industry Sector Analysis: Detailed reports analyzing market opportunities for best sectors for U. Fee: Varies depending on scope of work. market access information. Availability: delivery time on-going for six months.000 . audience development costs. or a specific timeframe. customers. Business Facilitation Services Single Company Promotion: Services can range from American companies sending their catalogues of their products to be displayed in a specific local trade exhibit to Promotional or Technical Presentation Event.focusbrazil. exporters regarding market opportunities ranging from the general business environment to company and product specific market information and analysis. private and government clients are doing and how it affects their competitive position. MARKET RESEARCH – CS Brazil can orient U.

Contact Lists: USCS will provide to the customer a list of 10-20 specific contacts relevant to the U. This report is confidential and is available only to the requesting U. FMR answers questions such as the overall marketability of a product or service.S.100. franchisees. U. International Partner Search: The IPS assists exporters of U. Availability: 60 days of request. product standards and registration. The service provides specific information for specific products or services. individual videoconference available with 1-week lead-time. from basic lists to pre-screened and qualified companies. Based on parameters provided by the client (product information. The report covers key marketing issues. market entry requirements. etc. and interested prospects. Company is responsible for any follow-up contact with Brazilian counterparts. market trends and size.S. Fee: To be determined by the actual cost of facilities and services required to implement.S. regulations. licensees. and Brazilian audiences focusing on a specific industry/service issue. Availability: Within 60 calendar days of request. Fee: US$5. Availability: 5-10 business days depending on request. comparable products and their prices. Personal visits to each qualified company are made by the trade specialist to ensure compatibility with your product or service.US$1. or strategic partners. we will require 20 sets of product literature. CS Brazil conducts a personalized pre-screened search to identify up to ten (10) qualified. If a Web page or electronic catalog is not available. Fee: US$150. Availability: 30 business days from date of receipt of materials. distribution channels. CS Brazil arranges the videoconference at the U.S. distributors. firms with customized.300 (with call originating in the United States). Availability and Fee: Dependent on the scope of the research. Group videoconferences generally consist of a 1-2 hour program with U. and moderates the program if requested. Please request this service through your local USEAC.S.S.S. confirms the Brazilian participant(s). A special report is written for you. Video Market Briefing: CS Brazil offers videoconference programming for groups or individual companies. 143 .). distributors. company requested product/service. Customized Market Research: A concise report generated upon request examining the competitiveness of a specific U.S. II. and strategic partners in Brazil. such as sales potential. individualized information on overseas markets.S. reputable. prices. exporter to identify potential business partners that meet its qualifications. goods and services in identifying interested and qualified potential representatives. Please order this service through your local USEAC. product or service in the Brazilian market. Fee: $500 per IPS per category of business partners. The preferred method for showing your products and company information to Brazilian firms is your Web page or electronic catalog/brochure.S. key competitors. Range: US$175 . companies have the flexibility to design their own question/set of questions or to choose from a Core Menu of standardized questions. arranges an interpreter. and qualified buyers. The U. CS Brazil also offers important tools for active follow up with interested partners to assist in turning a contact into a business success. Availability: Group videoconference available with 1-month lead-time. FINDING INTERNATIONAL PARTNERS – CS Brazil offers several options for the U. Includes contact information and a brief description of the company. and potential agents. Company. customary distribution and promotion practices.Customized Market Research Flexible Market Research: provides U. Commercial Center.

Pavilion within a large. CS Brazil can arrange an interpreter at an additional charge.350 . Fee: Negotiated by Event. Government official(s) involving prearranged meetings with potential business partners in one or several foreign markets to take advantage of specific overseas market opportunities for U. as a result. Company.S. Fee: U$ 500. Availability: 10 business days (fee is higher if a tighter deadline is required).S. Through the service. See current list of trade shows on the Web Site www. Availability: 6 weeks advance scheduling request. established trade exhibit. Availability: 6 weeks advance scheduling request.S. a potential exporter may participate as an exhibitor at a U. and a search for prospective clients. receive in-country business counseling and have specially arranged business appointments. The service also allows companies to obtain feedback regarding the market for their product and. Upon request. Fee: US$ 700. TRADE EVENTS – CS Brazil organizes a wide range of promotional activities to assist U. Availability: within 3-4 months of confirmed request. which have been personally visited by a trade specialist or commercial officer of the U. among other things. the International Company Profile enables U.S.S. targeted announcements to the trade public.br or request a current list from the Sao Paulo Commercial Center. III. Please order this service through your local USEAC. Fee: Varies with each show. CS schedules 4 appointments per day and meetings are generally held at the Brazilian company location. products and services in Brazil.500 per company. companies in proactively promoting their U.US$3. Any changes in reservation are the responsibility of the U. Trade Fairs: With this set of services. companies to evaluate potential business partners by providing a detailed report on overseas companies. Missions typically target specific industries in selected countries. Company's credit card. Range US$1. Such participation includes distinctive decor. Video Gold Key Matching Service: The Video Gold Key Matching Service allows clients to conduct interviews with prospective business partners prior to visiting a country.S. clients can request answers to detailed questions about overseas companies on a variety of issues and receive expert advice from commercial specialists about the relative strength of the firm in its market and its reliability.S. 144 . Fee: US$450 per day.S. but may represent a solution for client companies unable to visit a market at a particular time. Please order this service through your local USEAC. International Company Profile: In order to help U.S. Can also include plant tours and government meetings. to use their time in country more efficiently and effectively. freight handling and customs expediting services.Gold Key Matching Service Gold Key Matching Service: CS/Brazil develops for visiting U.S. beyond those in the standard questionnaire. detailed questions will be asked of the overseas companies. exporters a prescreened set of appointments with Brazilian companies meeting the U. CS Brazil will make initial hotel reservations and/or arrange an interpreter/driver upon receipt of the U. companies to enter into international business relationships with confidence. products. Mission participants meet with Commercial Service staff.focusbrazil. company specifications and with expressed interest in a potential business arrangement with the visiting firm.org.S. The Video Gold Key is not intended to be a substitute for a country visit. Commercial Service.S. Trade Missions: A group business trip (5 or more companies) organized/led by U.

and São Paulo. firms should consult the Trade Events section of the CS website: www./04 02/ ./04 06/ . Porto Alegre./04 06/ . CS BRAZIL FACILITIES CS Brazil has offices in Belo Horizonte. and indoor and outdoor areas for receptions. The SPCC offers meeting areas for individuals and groups. Full information on each site. meeting rooms. In the São Paulo office there are facilities for U. exporters and Brazilian importers to conduct business in a full support environment. Pavillon at the Gramado Tourism Festival ISA South America 2003 Techtextil South America 22nd Dental Show Rocky Mountain Symposia’s Go West Summit Security Week Repcom Brazil Telexpo 2004 Visit USA Road Show Hospitalar Fitma / Aquatech Brazil Medical Device Trade Mission Surf Beach Show 2004 ABF Franchise Expo Febratex 2004 Telexpo Wireless 2004 Start Date 11/13/03 11/18/03 11/ .S. The U.Office./04 Post Responsible SP RJ SP SP SP SP SP SP SP SP SP SP SP SP SP SP 145 ./04 01/ . and catered events.S. 13.gov Trade Event Schedule FY 2004 Event Name U. Commercial Centers around the world./04 03/ . The SPCC is a place designed for U. an auditorium for presentations to targeted audiences. Since trade events schedules are subject to change./04 06/ .gov.usatrade.Box@mail./04 06/ .S.doc. Commercial Center in São Paulo (SPCC) is one of four U. including a fee schedule./04 06/ . Brasilia. companies to conduct business and promote their products and services.S.IV./04 08/ ./04 03/ ./04 06/ . is available upon request by contacting Sao. Rio de Janeiro.S. including auditoriums. TRADE EVENTS SCHEDULE These events are supported by USG.Paulo./04 03/ ./04 04/ .

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