Use of Agents and Distributors; Finding a Partner
Although some companies import directly from overseas manufacturers without local representation, in most cases the presence of a local agent or distributor is essential to penetrate the Brazilian market. As in other countries, the selection of an agent requires careful consideration. In Brazil, larger representatives have sales offices in several Brazilian cities to supply companies all over the country, whereas smaller representatives may either supply companies in a limited region or appoint "business opportunity finders" in major Brazilian regions. It is up to the international supplier and the local agent or distributor to negotiate the type of representation that will take place, whether it is an exclusive representation or not and whether or not any performance targets or term limitations will be incorporated.

The ability of an agent to cover the country depends in large part on the item being sold, for example, certain types of sophisticated machinery may have only a dozen or so potential buyers in Brazil, making marketing relatively simple. On the other hand, less expensive equipment with a wide potential market and the need for countrywide service facilities puts much greater organizational demands on a single agent. Geographic and product coverage restrictions can also be incorporated into a distributor or representative contract.

Exporters should consult with a local law firm when signing agent or distribution contracts with a Brazilian partner. Commercial distribution contracts are not regulated by specific legislation, only by general Brazilian commercial law, whereas there is specific legislation regulating the relationship between the foreign company and the Brazilian agent. Although the contract clauses are freely negotiated between the foreign company and the local agent, there are laws that govern this relationship. The indemnization payable to the agent in case the contract is broken is established by law and is usually very favorable to the agent.

Brazilian income tax is levied on a foreign exporter if the exporter is "present" in Brazil (Article 76 of Law 3470/58). This "presence" is determined basically by two interrelated factors -- the closing of sales contracts in Brazil and the existence of power of attorney granted to an agent or representative in Brazil. The taxable income is estimated at 20 percent of the total price of the product imported into Brazil. A Brazilian tax lawyer best determines the precise applicability of this law to any particular transaction or agent-principal relationship.

Once the agent-principal contract is signed, a Brazilian agent is protected by law from unilateral termination of the contract by the foreign principal without "just cause." The definition of just cause is agent's negligence; agent's breach of contract; acts by the agent damaging to the principal; and conviction of the agent for a criminal offense. Contract stipulations and conditions for termination of agency agreements in Brazil are contained in Articles 27-39 of Law No. 4886, of December 10, 1965.

Cultural Considerations
Brazilians prefer to do business with people they know and trust. If you can arrange an introduction or referral to your intended contact, you will be more openly and warmly received. Brazilians take their time at the beginning of a relationship to get to know their potential colleague or partner. Talk about your family, sports and your sincere interest in Brazil. Once rapport is established, then formal discussions will begin.

In São Paulo and Rio de Janeiro, schedules for meetings and conferences are likely to start near the appointed hour. In smaller business centers, schedules may be more loosely adhered to. Of course, you should always arrive on time, but be prepared to wait for your Brazilian counterpart. When deadlines are critical, it is advisable to inform all parties involved both verbally and in writing. Set checkpoints to gauge progress and to deal with problems and delays. This problem should be handled with tact since you should not appear to be "breathing down their necks."

Brazilian work hours are generally 8:30 or 9:00 a.m. to 5:30 or 6:00 p.m., although many Brazilians work later. Lunch is usually one or one a half hours at midday. Professional men and women dress conservatively and well for business, and more along European styling rather than American. For social occasions, dress is more casual, but still elegant and always well pressed.

Travel Considerations
While visitors for tourism may enter Brazil with the tourist visa, Brazilian law requires that travelers must have a temporary (business) visa if they plan to transact business. "Business" would include signing legal documents, engaging in financial or commercial transactions, and working or engaging in research.

Tourist visas generally are valid for a stay of 90 days. A temporary business visa is also valid for 90 days. Transit visas are valid for 10 days and require travelers to enter and exit through the same port.

Usual Holidays and Festivals

New Year's Day January 1
Good Friday
Easter Sunday
Tiradentes Day April 21
Labor Day May 1
Corpus Christi June 11
Independence Day September 7
Elections Day October 5
"Nossa Senhora Aparecida"
(Our Lady Appeared) October 12
All Souls Day November 2
Proclamation of the Republic November 15
Immaculate Conception December 8
Christmas Day December 25

In addition, various state holidays and other religious
and federal holidays are proclaimed throughout the year.
Some of these are:

San Sebastian Day
(Rio de Janeiro only) January 20

Anniversary of the Founding
of the City of Sao Paulo
(Sao Paulo only) January 25

"Nossa Senhora dos Navegantes"
(Porto Alegre) February 2

Some Useful Sources of Information

http://www.braziltradenet.gov.br/e/usrenglish.htm
BrazilTradeNet offers to Non-Brazilian companies a wide range of business opportunities focused on importing from or investing in Brazil. A Non-Brazilian company can post " Trade Opportunities" or " Investment Offers ", which will be made available to potential partners in Brazil, or it can consult the "Export Offers" or "Investment Opportunities", posted by Brazilian companies.

BRAZIL (US Brazil Information Network) : Service and information network
to facilitate business between the US and Brazil
http://www.usbrazil.com/

BrazilBiz2Biz: Brazilian companies. And a Business Point to announce
your interests in the Brazilian market http://www.brazilbiz.com.br/english/

Brazilian Trade Center: Helps companies from all around the world to
form trading relationships with Brazilian companies
http://www.nogalink.com/

De Paula Publishing - Brazil Exporters: Resoures for conducting business
with Brazil
http://www.brazilexporters.com/

Markets and Sectors
http://www.tradeport.org/ts/countries/brazil/sectors.html

Market Access
http://www.tradeport.org/ts/countries/brazil/market.html