Export DUE in Brazil: What is it and how to set it up?

Export Due Diligence (DUE) is an investigative process aimed at identifying and assessing the risks involved in exporting a commodity. DUE is important for exporters because it helps reduce the risks of financial loss, reputation damage, and legal issues.

Export Due Diligence is carried out by customs brokers. The team of experts will evaluate a series of factors, including:

• The destination country
• The type of commodity to be exported
• The import regime of the destination country
• Credit and market risks
• Political and security risks

Export Due Diligence is a complex and time-consuming process, but it is essential for exporters looking to mitigate the risks associated with exporting goods.

How to Set up an Export Due Diligence?

Here are some tips for setting up an Export Due Diligence:

1. Define the objectives of the Due Diligence. What do you hope to achieve with the Due Diligence? Do you want to reduce the risks of financial loss? Do you want to protect your reputation? Do you want to avoid legal problems?
2. Identify the risks involved in the export. What are the specific risks you face in exporting your commodity? Risks may include financial loss, reputation damage, legal issues, etc.
3. Gather information about the risks. You can collect information about the risks from various sources, including:
   • The government of the destination country
   • The Ministry of Foreign Affairs
   • The Brazilian Chamber of Commerce
   • Consulting firms Banks
   • Customs brokers
4. Analyze the collected information. After gathering information about the risks, you need to carefully analyze them to identify the most significant risks.
5. Take measures to mitigate the risks. After identifying the most significant risks, you need to take measures to mitigate them. Measures to mitigate risks may include:
   • Purchasing insurance
   • Using a specialized customs broker
   • Negotiating contracts with force majeure clauses
   • Conducting market research
   • Hiring an audit company

Export Due Diligence is a complex and time-consuming process, but it is essential for exporters looking to reduce the risks involved in exporting goods. By following the tips above, you and a Customs Broker can put together an effective and efficient Due Diligence.

If you are an exporter in need of a Customs Broker, talk to us. We have 19 years of experience in the field, clients all over Brazil, and can also assist you!