Challenges or Limitation

The limitation that we may face export baby milk powder to Brazil is the competitor. For example, the main competitor is that compete with us is Nestle, as we know, Nestle is an international company, and they also have a good reputation among all the people. So it will very tough for us to compete with those companies.
Since, the milk crisis has sparked global concerns about food products made with Chinese milk or milk powder. Brazil was indefinitely banned all Chinese food imports because of safety concerns. Brazil's National Agency for Sanitary Vigilance said it acted because of the contaminated milk crisis in China that has killed four children and sickened another 54,000 in the Asian nation. Since this milk crisis was happened, Brazilian will choose the good reputation milk powder rather than the new branded milk powder.
As Brazil enters the 2010s and a new president is set to take office in 2011, the new administration will face a myriad of policy challenges over the coming decade. The impressive economic performance under President Luiz Inácio Lula da Silva has significantly raised the bar for any future administration, leaving a delicate combination of policy objectives from continuing to improve living standards and addressing a widening fiscal shortfall to meeting the security and infrastructural challenges ahead of the FIFA World Cup in 2014 and the Rio de Janeiro Olympic Games in 2016. However, we must also aware the political risk in Brazil. Political risk could suffer as a result of political changes or instability in a country. Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign policy makers, or military control. Political risks are notoriously hard to quantify because there are limited sample sizes or case studies when discussing an individual nation.


Besides that, import licensing rules are very tough. The import of most of the products implies issuing a preliminary a license at the SECEX (Secretariat of Foreign trade), which is the only organization authorized to issue this license. However the list of the products subject to this preliminary license is not publicized. It is available only with registered and authorized users. These licenses are valid for 60 days starting from the date of dispatch of the goods, sometimes it starts from the date of applying for the license. This period is often insufficient. It is then necessary to apply for a new license. For textiles, rules are even stricter. The license is granted only if the payment is effective within 30 days from the date of B/L. Importers compulsorily have to prove that they effectively made the payment within 30 days.


The imported goods are always blocked in customs because of documentary problems. All the imports should be accompanied at least with 2 copies of the commercial invoice and the B/L. If they do not match the legal requirements of the country, Customs are entitled to levy heavy fines, which may go even up to 100% of the usual customs duties. It is therefore advisable to work through a very good broker in Brazilian customs, who is able to get the information on time about the appropriate customs rules. So it means not that easy export our milk powder to brazil.