Brazil currently has several international agreements, from neighboring countries to countries on other continents. These international agreements help economically in the development of new businesses, bringing more competitiveness between the agreed parties and international prominence. This is the case of Mercosur, the South American economic bloc in which Brazil is a part and has its members and associates as major trading partners.
One of the main functions of Mercosur can be mentioned as the maintenance of international trade through imports and exports between member countries. With greater ease for transport across borders, increase in international trade routes, benefits in taxes and fees, currently several Brazilian companies already benefit from carrying out international trade with other members and associates, given the advantages of operations.
If you are interested in trading with a Mercosur member country, continue reading this article to learn more about the benefits of these operations and discover how competitive your product can be in the Brazilian and international markets.
What is Mercosur?
Created in 1991 by the Treaty of Asunción, Mercosur (Southern Common Market) is a South American economic bloc to which Brazil belongs as one of the founding countries of the bloc. This economic bloc aims at the integration between South American countries, promoting the economic, social and political development of its members and associates.
Mercosur participating countries can benefit from the free movement of goods, services, capital and people, in addition to having partial or total reduction of tariffs, customs barriers and taxes, such as the Import Tax and AFRMM, which brings great advantage and prominence to the importer, reducing the cost of the operation.
It is important to emphasize that such benefits from Mercosur are very important for the development of international trade, as they enable and open doors for businesses that could be unfeasible when negotiated with countries not participating in the bloc. In this way, competitiveness in the local and international markets of the member countries is increased, promoting the product and the brand, attracting new business and encouraging the maintenance of current benefits.
Which countries are part of Mercosur?
With the founding of Mercosur, the founding member countries that participated in its formation have some specific characteristics in common when compared to other countries that are associated with the bloc, such as the TEC (Common External Tariff) and the NCM (Mercosur Common Nomenclature) , necessary to control the tax classification of commercialized products based on their characteristics.
The following are member and foundation countries:
- Venezuela (Suspended)
Associated countries are:
- Bolivia (In process of joining)
How to import and export products in Mercosur?
Mercosur's main function is to facilitate international trade between member and associated countries. For any international negotiation between such countries, it will be necessary to consult the NCM codes specific to the product for its tax classification and comparison with the TEC, so that there is a full understanding of the taxation involved in the commercial operation and characteristics of the marketed product.
In addition to other bureaucratic details such as authorization on the Siscomex Radar, procedures for releasing import licenses with Consenting Bodies, issuing invoices and import or export declarations, it is essential to be aware of the internal and external bureaucratic procedures of the countries involved in the transaction, if I comply with the relevant legislation in both countries regarding the operation in question.
If you are a Brazilian exporter, you will need to provide the foreign importer with the necessary documentation for nationalization abroad. The same occurs with foreign suppliers who need to provide Brazilian importers with the necessary documentation for the complete release of the goods in Brazil.
With regard to shipping documents, it will be necessary to issue a certificate of origin to prove the origin of the product to enjoy the benefits of the agreements available by the block. Invoices for these operations will contain data on the goods, sales conditions and values in US dollars. Other process documents will be issued based on the characteristics of the product and criteria imposed by the government entity responsible for its inspection.