OPPORTUNITIES IN THE BRAZILIAN ALUMINUM MARKET

We are the seventh world economy, and we have a population of 200 million people.

 At last year the Brazilian aluminium market opened the doors to 22,000 new businesses for the first time. Most innovative companies was created by entrepreneurs who envisioned an opportunity to develop a new product or service, and pursue that vision to find a financial independence.

While these visionaries owners started with solid ideas to form the foundation of their new ventures, there no have between them, nothing skills necessary to change ideas into reality.

I often said to foreign companies can not underestimate the capacity of the Brazilian industry and the Brazilian engineering. Here we have genuinely brazilian companies that manufacture aircraft, other companies manufacture computers and many other companies manufacturing robots to export. The Brazilian technology produces space satellites and submarine platforms. In this scenery, to make doors and windows and spare parts is too much simpler. More than this. So, first of all, we must be aware that there is the country is growing.

It’s a big mistake, believe it or not. Nobody looks to Brazilian technology, they looks first to the United States, then to Japan and then Germany. But there are other things already happened and will happen over the next years. You need work focused specifically on approach the available market share.

These are the keys of success, at six steps. See below, the main considerations to be followed and closely followed.

          The first step and most important way, the urgency thing you need to do, is to know and walk on the Brazilian land, sighting opportunities gaps and talk with the people who lives here.

Second step is to know the keyword, and the keyword is respect. You have to respect differences between culture and business methods. You can not ignore the classical differences. But the most important differences are consumption habits of  aluminium products customers.

          Third step, to be aware of financial power and to know a concept of investments. No company already starts winning, not possible enters on the market already earning. The gain will comes by hard work. Additionally, funding for initial marketing projects would help to ensure that the firm could establish your market maintenance, and sustain their presence.

          Fourth step is to understand that possible some risks. Nothing is one hundred percent guaranteed. The profits are proportionate to the risks. The entering firm must have the courage to invest. Risk which is common to an entire class of the companies. If you do not want to take risk, it is better not to start.

        The fifth step is working with the right persons. Not enough simply to partnerships with right companies, we also need partnerships with persons. The persons are who will make the contacts and they will generate money. Additionally, the scarcity of talent in today's market makes it extremely difficult for great business owners to attract and retain those skills.

          To conclude, the sixth step is to become aware of the taxes on manufacture aluminum things produced in Brazil.

THE BRAZILIAN DUTIES (Example of State of São Paulo, Brazil)

ICMS ....... 18,00 %

IPI ............   0,00 %

PIS ...........  1,65 %

COFINS ...  7,60 %

CS.............. 1,20 %

IR............... 1,08 %

The accumulated taxes for the commercial process is about 29,53%. But among these, the companies can requests to Brazilian government two incentives to reduce tributes.

IMPORT BRAZILIAN DUTIES (If you prefer export/import)

  14,0   % ......... Imposto de Importação – Brazilian Import Duty

    8,8   % ……. ICMS for PIS/CONFIS  (ICMS = VAT)

  1,65   % ……. PIS - Social Integration Program

  7,60   % ……. COFINS Contribution to Social Security Financing

  0,215 % ……. Administrative Expenses Siscomex

The import accumulated Tax is 37,43%