The International Chamber of Commerce (ICC) establishes guidelines and standards to facilitate international trade, including the purchase of commodities. In Brazil, the process of purchasing commodities through international practices follows well-established commercial procedures and specific regulations, such as Incoterms (International Commercial Terms), standard contracts, and customs and tax regulations.
The following are essential steps for purchasing commodities in Brazil based on the procedures of the International Chamber of Commerce:
1. Understanding ICC Incoterms
Incoterms are international trade terms established by the ICC that define the responsibilities of the buyer and seller in international commercial transactions. They determine aspects such as the timing of the transfer of risks, transportation costs and insurance. When purchasing commodities, it is necessary to know and apply the appropriate Incoterm.
Some common Incoterms used when purchasing commodities include:
FOB (Free On Board): The seller is responsible for delivering the goods on board the vessel at the port of shipment. The buyer assumes the risk and costs from the moment the goods are on board.
CIF (Cost, Insurance and Freight): The seller covers the costs of transportation and insurance to the port of destination, but the risk is transferred to the buyer when the goods are on board the ship.
EXW (Ex Works): The buyer assumes all costs and responsibilities from the place of origin of the goods.
2. Supplier selection and contract negotiation
Choosing a supplier is a crucial step in purchasing commodities that can be carried out through local and global markets, international fairs and business events, as well as online trading platforms and specialized companies.
After choosing the supplier, it is necessary to negotiate the purchase contract in accordance with ICC regulations. Contracts must be detailed, covering:
Quantity and quality of merchandise.
Delivery times.
Payment terms (cash, documentary credit, etc.).
Terms of transport and insurance.
Use of Incoterms.
3. Quality and specification verification
The purchase of commodities requires quality verification, which can be carried out by independent certification bodies or specialized laboratories. For example:
Phytosanitary certification for agricultural products.
Certificates of origin to ensure that the goods meet the requirements of the importing country.
This process is particularly important in contracts with strict specifications, such as the purchase of coffee, soybeans or iron ore.
4. Choosing an International Payment Method
The ICC also standardizes international payment methods, with documentary credit (Letter of Credit - L/C) being one of the safest and most common forms of payment in international commodity transactions. L/C involves the intermediation of banks that guarantee that payment will be made as soon as the necessary documents are presented, ensuring security for both parties.
Other payment methods include:
Payment in cash (Cash against documents - CAD).
The choice of payment method depends on the level of trust between buyer and seller and the complexity of the transaction.
5. Transport and logistics
Logistics is an essential component of commodity purchasing. Depending on the Incoterm used, either the buyer or the seller will be responsible for the transportation of the goods. The main steps include:
Choice of carrier: This can be a sea, air, rail or road carrier, depending on the nature of the goods and the location.
Insurance contracting: If the chosen Incoterm is CIF, the seller must contract transport insurance. Otherwise, the responsibility may fall on the buyer.
6. Compliance with customs obligations
Imports of commodities into Brazil must follow local customs and tax regulations. This includes:
Import Declaration (DI) or Single Export Declaration (DU-E).
Import Licensing (if applicable).
Payment of import taxes such as Tax on Industrialized Products (IPI), Import Tax (II), PIS/COFINS, in addition to customs duties.
It is essential to have a specialized company to ensure that all documents and requirements are met, avoiding delays or penalties.
7. Compliance with ICC rules
The ICC provides guidelines for the resolution of international commercial disputes and promotes the use of arbitration as an effective and expeditious mechanism for resolving disputes. In the event of disputes over the quality of goods, delivery times or other issues, ICC arbitration can be an efficient and impartial avenue.
8. Receiving goods and stock management
Once all logistical and customs clearance steps have been completed, the goods arrive at their final destination. The buyer must inspect the commodities to ensure they meet the contractual specifications. Should any discrepancies arise, the ICC provides guidelines for handling complaints and contract adjustments.
Conclusion
Purchasing commodities in Brazil under the International Chamber of Commerce (ICC) procedure requires detailed planning and compliance with international trade regulations. From choosing the appropriate Incoterms, through contract negotiation, to quality assurance and compliance with customs requirements, each step needs to be handled with precision. To ensure success, it is recommended that buyers and sellers are well-informed about local and international regulations, and that they have specialized legal and foreign trade advisors.
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