WHITE SUGAR – BROWN SUGAR – Arrange your company to import sugar from Brazil

Legal barriers – law, regulation, policy, measure or governmental practice that imposes restrictions on sugar imports. The countries that import the most sugar in the world impose some kind of restriction

Technical barriers – To become a sugar importer, you need to know the product’s specification at the very least. Harvest and off-season periods, supply and demand data, average market price. Purchase modalities, ICC rules, Incoterms, Etc. Without it you’ll look like a court jester trying to look like a king.

As soon as they receive your email requesting a quote the supplier will know if you are a buyer or a jester thinking you are a buyer.

A buyer negotiates based on technical specification, certifications, product proof, supply contracts structured with safe terms and known by international trade.

Financial barriers – The importer needs to keep in mind that he must be able to create a financial structure to make the purchase viable, either with his own resources or financed by banks. This means that cash or credit needs to be available before the negotiation and purchase even begins.

Your company should be able to prove funds [ RWA or BCL ] right at the beginning of the negotiation. This will demonstrate seriousness and professionalism. Without being able to prove purchasing power, your company will be perceived as adventurous, irresponsible, inconsequential…

95% of companies that request a quote from our firm are not financially ready to buy.

If you enter into a sugar buying trade without a defined financial structure, then you are an adventurer. He is presenting himself as a buyer, without having the slightest ability to buy.

Other financial barriers that can ruin your plans to import sugar.

Your company needs to be able to issue a financial instrument through one of the top 50 banks in the world. It means that even if your bank is the biggest in your country, even if your bank has an AA rating in international trading, if it is not ranked among the TOP 50, your financial instrument will be refused and the trade will be cancelled.

Note: The financial instrument can be ISSUED or CONFIRMED by a correspondent bank that is TOP 50. – DOWNLOAD THE OFFICIAL 2022 LIST

Initial costs – Every import operation has initial costs that start with planning the import. Before thinking about importing sugar, your company needs to make an IMPORT COSTS SPREADSHEET where costs that occur before, during and after importation will be entered.

1 – Costs with the purchasing, finance and operation team involved in the acquisition of the product

2 – Costs with import licenses, government registration fees, customs, etc.

3 – Estimate of the cost at the port of destination, such as: local taxes and fees, unloading, customs clearance, storage and distribution of the product.

4 – Product acquisition costs, such as costs with bank fees for issuing financial instruments, lawyers, cost of travel to accompany product shipment, etc.

The sum of all these costs may reveal to your company that importing is unfeasible and that you will incur losses instead of profits. This needs to be discovered before you have the beautiful idea of importing and not later when the product is already at the port of destination.