Sellers, please note! This country has declared "national bankruptcy", and customers in this country: No need to pay back the money

This news has made many cross-border sellers in my country panic - what does this mean? Will this affect foreign trade transactions with Brazilian customers?

In 2008, Iceland was hit hard by the financial crisis and declared national bankruptcy. However, with the strong backing of the European Union, Iceland quickly recovered and is still one of the richest countries in the world.

The Brazilian customs implements the procedure of clearing customs first and picking up the goods later. The importer or freight forwarder still needs to provide the customs with the original bill of lading, original invoice, packing list and other documents during the customs clearance process. According to Order No. 1356, which came into effect on May 6, 2013, the importer (consignee) or freight forwarder needs to get the original bill of lading (MB/L) (at this time the exporter or seller has safely received the payment), go to the shipping company to exchange it for (D/O-DELIVERY ORDER) and go to the customs for customs clearance. After customs clearance, the goods can be picked up with the customs release certificate, and there is no need to show the original bill of lading. The customs only plays a role in tax supervision and does not interfere with the normal and legal delivery of property rights.

However, according to Decree No. 1759 issued by the Brazilian Customs on November 14, 2017, the original bill of lading was added as one of the documents submitted by the consignee when requesting to collect the goods in Article 54 of the original Decree No. 680, and it was further stipulated that the customs custody agency should archive the original bill of lading submitted by the consignee for 5 years . In this way, the risk is greatly reduced.

It is recommended that the shipper clearly stipulate in the booking agreement with the freight forwarder that "the goods must be released on the basis of the original bill of lading" and indicate such mandatory provisions in the booking letter . If the freight forwarder still releases the goods without the bill of lading after accepting the entrustment, the shipper can directly sue the agent to pursue its liability for compensation.

Of course, the safest way is to collect full payment before shipping.

As a member of the BRICS, Brazil once had a bright future. But the epidemic has dragged the entire Americas into a quagmire.

Latin American countries are in the middle and low end of the global industrial chain and value chain. The industrial and financial systems of regional countries are relatively fragile and extremely vulnerable to the impact of the world economic cycle and global market fluctuations. The COVID-19 pandemic has exposed the shortcomings of the Latin American economy.

According to the latest report released by the Economic Commission for Latin America and the Caribbean (Cepal), the Latin American economy is experiencing its worst performance in 120 years, with an overall decline of 7.7% . The income of people in the region has fallen to the level of 2010 under the impact of the epidemic, which can be called another "lost decade".

The report predicts that the six countries in Latin America with the most severe decline in PIB this year are Venezuela (-30%), Peru (-12.9%), Panama (-11%), Argentina (-10.5%), Mexico and Ecuador, both at -9% . Economic experts pointed out that the economies of Venezuela, Argentina, Mexico and Ecuador had already declined before the epidemic. In 2020, Venezuela's economy will decline for the seventh consecutive year, and Argentina will experience a decline for the third consecutive year.

Friends who are exporting to America, especially Latin America this year, must pay attention to the safety of payment!