Mideast oil exports to Brazil top $2.75bn
Dubai, July 17, 2013
Brazil imported about $2.76 billion worth of petroleum products, gas and energy from the Middle East from January to April, accounting for almost 20 per cent of total oil imports to the country, a report said.
In light of the Arab-Brazilian Chamber of Commerce (ABCC) report, GrupoBraz Consulting in association with BrazArtis, an import-export company based in Rio de Janeiro, has announced a campaign aimed at expansion of commerce with specialized product and services providers in the oil & gas sector from the Middle East.
Jan Dabrowa, commercial director of BrazArtis – GrupoBraz Consulting, said: “Due to the growing demands in the oil & gas sector, the much needed resources and services have to be acquired abroad. With this in mind, the Middle East is one of the leading trading partners with Brazil, being a major supplier of oil and gas products and at the same time, consumer of Brazilian agricultural products.”
“While imports are on the rise in Brazil, it is important to note that imported products and services are controlled by strict fiscal and import legislation. On average, imported services are taxed at around 50 per cent with six taxes being levied.
“This includes taxes over services, revenue and income as well as social contribution, financial operations and remittance of capital. Although Brazil offers great business opportunities, they require an understanding and attentiveness to the ever-changing and complex tax and legal regulations,” he added.
As a whole, a notable increase has been noted in imports to Brazil of derivatives, in addition to steady imports of crude oil, naphtha, jet fuel, liquefied natural gas (LNG) and diesel oil, which continue to dominate the imports from the Middle East.
“Due to the current market dynamics and focus on expansion of local industries, adjustments have been implemented recently in the taxation of some products and services in Brazil,” said Dabrowa.
“This included adjustments of 193 machines and industrial equipments. These changes are meant to benefit various sectors including Oil & Gas, mining, telecommunications, agriculture as well as the service sector.”
In Q1 of 2013, Saudi Arabia was the larger supplier of oil to Brazil, where Algeria contributed to 867.75 million, Kuwait $508 million, the UAE $130 million, Iraq $104 million, Libya $78 million, Qatar $36 million and Bahrain $660,000, according to ABCC.
In addition to the growing imports of products to the country, foreign specialized labour force has experienced a significant increase. Over the past three years, more than 50,000 specialized foreigners were employed in the Oil & Gas industry in Brazil, which represented 25 per cent of all temporary and permanent work permits issued. – TradeArabia News Service