What is a Trading Company?
Trading Companies are corporations that specialize in assisting companies of the most diverse segments in the import and export business, providing all the tax and fiscal planning of the documents involved in the operations. In addition, they also negotiate exchange and interest rates for contracting companies.
What is the advantage of hiring a trading company?
The main advantage of hiring a trading company is the reduction of costs and concerns that the import and export business involve. The company outsources the service, leaving the bureaucratic procedures, the procurement for opportunities as well as the budget, tax, documents, and financial planning of the operation in the hands of the outsourced trading company. This way, the contractor lowers costs and is free to allot its time to its core-activity.
Do Trading Companies sell imported goods?
Trading Companies do not sell goods, because they are not merchandizing business, they are service business. Trading companies may occasionally buy the material abroad and resell it to the customer, by pre-established contract. However, that does not mean that Trading Companies function as shops or retail spots: they specialize exclusively in providing services to help companies deal with the necessary procedures and planning involved in international trade.
What services does WM Trading provide?
We are a company that specialize in services for import, export, and distribution of goods. We help companies meet the bureaucratic and customs requirements to exercise its international trade functions. We carry out the tax planning of all the documents involved in logistics and finance, so that companies achieve positive results in their operations. We aim at lowering costs related to taxes, fees and logistics, as well as reducing the waiting time for the arrival of the merchandise.
How is the import process carried out?
To begin with, it is necessary to calculate the taxes levied on the imports, through the rating the goods, which reveals the status of the order: whether it is taxable or ex works, or under safeguard regime, or has customs benefits or exemptions contained in some international agreement, etc. . After rating the goods and taxes, it is necessary to proceed with their registration in the System for Registration and Track-down of Customs Agents’ Activities (Radar). To do so, it will be necessary to ask the seller the Proforma Invoice, a document containing the main information about the product. Once the cargo arrives in the country, it is essential to make the Import Declaration and pay the taxes. If everything is in compliance with the rules, it is mandatory to issue the invoice and collect the merchandise, which can be done in several ways, depending on the port or the mode of transportation chosen.
What does it take to start importing?
Your company would have to have signed in the System for Registration and Track-down of Customs Agents’ Activities (Radar). After registration, the Internal Federal Revenue Service authorizes your company to exercise international trade, as your trading operations will also be registered in the Foreign Trade Integrated System (Siscomex). It is also mandatory to be enrolled in the Register of Importers and Exporters (REI), issued by the Secretariat of Foreign Trade, but it is done automatically after the first import is registered in the Siscomex.
What is import by order?
Import by order or operation by order is an operation in which a company imports the goods to be subsequently sold to the company that originally made the order. Such purchase is agreed in a contract between the parties. It is essential that both can financially afford the acquisition of the imported goods, and have their CNPJs linked to the Foreign Trade Integrated System (Siscomex), before the operation.
What are operations by account and order?
Operation by account and order bind an importer and a purchasing company together to carry out the import. The Trading Company will be the importing company and the customer, the purchasing company. The Trading Company carries out the importation as a service provider, because it will make use of the resources of the purchasing company in the operation. To do this, both companies must be registered in the Foreign Trade Integrated System (Siscomex), also fulfilling other legal requirements. Once the permits have been obtained, the importing company will take responsibility for of all logistics, documents, and planning concerning taxes, currency exchange and finance of the operation.
What are door-to-door operations?
Door-to-door operations are logistics operations in which the goods are collected at the foreign supplier’s place, brought to the country, nationalized and then delivered to the importer at his door. The process includes all the expected steps: negotiation, acquisition, shipment, documentation, bureaucracy and fiscal process for nationalizing the freight, transporting it in foreign and national territory, and delivering it to the customer.
What is procurement?
Procurement is the service that establishes liaison between suppliers and companies, allowing them to obtain logistical supplies. The purchase is based on planning through market research, contract negotiation and assessment of suppliers, among other things, such as the purchase of goods or services. In other words, procurement is the process of allowing firms around the word to bid on contracts for goods and services.