Importing versus some in-country manufacturing of specialized manufacturing products

We are one of the worlds largest manufacturers of revenue collection equipment for subway systems and buses. We have recently been chosen by a consortium in Rio de Janeiro to supply Vending Machines, Smart Card Readers, Access Gates, etc. Manufacturing is performed in the US.

Considering Customs and Tariffs are relatively high (and passed on to our customer), it is our desire to attempt to minimze these costs to them. In many countries, there are exemptions based on performing some of the manufacturing in the host country.

Is this true in Brazil. Is there any formulas for me to analyze this? Any possible organizations we can interface with?

At this point we are trying to perform just a rough analysis, but will be seeking professional services soon.

posted 9 years ago by
John Madeiros


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