Brazil has a complex certification system, which, in my opinion, reinforces its protection feature in relation to imported items.
The certifiers in Brazil are the following:
The certification process in Brazil is expensive and costly, going against the Marketplace’s model, where the more products offered, the higher are the sales.
This explains the fact that importers in the Formal Model bring a small fraction of a brand’s catalog to Brazil, because all products destined for commercialization need to be certified.
If we add the fact that each imported item practically doubles the F.O.B.’s value, we concluded that the Importer of the Formal Model practically has the same taxes as a local industry to market its products.
The Certification Process and Direct Import
Products imported by the final consumer, either a company or a person, as long as they are intended for their own consumption and not for resale, do not require certifications.
There are exceptions to this rule, such as mobile phones, for example, but the vast majority of products do not require certification in the Direct Import model.
The Brazilian laws understand that the person responsible for the imported goods is the one who performs the import process. When the importer intends it for resale, he is obliged to perform the entire certification process as a protection for himself and customers.
Medicines are Exempt from Import Fees in the Direct Import Model:
If someone who needs a particular drug, including cannabidiol derivatives, by delivering the medical request, with due prescription and report, the imported drug is exempt from taxes in the Direct Import Model.
It is possible to envisage the opportunity that arises in the face of this possibility in the sector of oncological medicines that do not have an equivalent in Brazil, or even those that do, will be able to arrive in the hands of consumers with more competitive prices.
The great advantage regarding the certification process of Direct Import in relation to Formal Import is very clear.
While in the Formal model it is advisable to reduce the number of items or variants to be imported, in the Direct model the increase in the number of items offered does not result in cost, on the contrary, it exponentially increases the possibilities of sale, in accordance with the rule of Marketplaces: The more products offered, the higher are the sales.
Through Direct Import, brands and manufacturers can make their entire product catalog available in the Brazilian market, practicing what we call a brand concept store, where the consumer can find every possible product line, with the certainty of purchasing original products.
The Law and it’s Interpretation
The lack of certifications in the Direct Import Model of a product before the Brazilian regulatory agencies do not exempt the seller from not obeying the Brazilian Consumer Defense Code.
Every consumer has rights, and the respect for these rights directly influences the decision of this customer to purchase a product or service.
If someone wants to purchase an imported product and runs the risk of having neither a guarantee, nor the possibility of returning or exchanging the product in the event of a defect, or even not being able to rely on technical assistance when the guarantee period expires, this consumer will choose not to purchase it, even if the product is a dream of consumption.
As the Maxim states: “Think globally and act locally”, respecting consumer rights is acting locally.
Basically, the consumer, in addition to the rights mentioned above, has the “right of withdrawal within 7 working days, after acquiring the product in a non-face-to-face manner” (Brazilian Consumer Code).
Brazilian Marketplaces require from all their sellers, of national or imported products (Cross-Border), to respect the Brazilian Consumer Code, under threat of severe fines, indemnity lawsuits and the banning of the seller.
Non-face-to-face purchases will always be a challenge for consumers.
When it comes to cross-border, imported products, mainly models or brands do not present in traditional retail, the certainty of respect for the laws of the Brazilian Consumer Code, the certainty of guarantee, technical assistance, and the possibility of talking in the local language to resolve doubts make the difference in the success of the sale, because without these elements the purchase becomes a lottery.
Unless the consumer has a previous experience with the product, he will not risk investing in the unknown.