Archive for March, 2010

Exporter Country Profile – Brazil

March 19, 2010

Economic Overview

Brazil’s $1.3 trillion economy is bigger than those of India and Russia, and its per-capita income is nearly twice that of China. The Brazilian Economy is the largest in Latin America, and the 9th largest worldwide. Brazil has a large service sector that comprises 66% of the economy of Brazil, with the industrial sector making up 20% of the total economy.

The economy of Brazil is supported by diverse economics institutions like SACN, Mercosur and Cairns Group. Local economists and social scientists say the booming trade-oriented economy and innovative government programs are lifting millions from poverty and shaking what was once a certainty: that a person born poor in Brazil would surely die poor.

Rodriquez Consulting forecasts Brazil as a high growth potential market for the yachting industry, with the 12th annual São Paulo boat show having demonstrated a 12 per cent year-on-year increase. One of the key factors affecting the growth of the market was the reduction in state value-added sales tax from 25 per cent to 7 per cent in the states of Rio de Janeiro, São Paulo and Santa Caterina.

Boating in Brazil

In spite of thousands of kilometres of navigable coastline, and a general predisposition to outdoor and watersports activities, a severe lack of infrastructure and economic constraints have resulted in a relatively small boating market in the largest South American country. Brazil has great potential for boating activities considering the temperate climate and extensive waterways. However, currently boating activity is very concentrated along the Southern Coast and is still economically relatively insignificant. In comparison to other countries of a similar size, nautical activity is very small and the number of boats per capita very low.
Geographical Advantages

Extent of Brazilian Coastline: 8,500 km
Number of large dams: 129
Estimated total reservoir surface: 36,000 km2
Navigable rivers: 30,233 km
Number of Boats in Brazil
(source: http://www.sportnautica.com.br and http://www.acobar.com.br/index3.htm)

Estimated number of total registered boats in Brazil: 329,473
Number of sports and recreational boats (47,8 %): 157,779
Where are the boats?
Rio de Janeiro 9,4%
São Paulo 7,2%
Boat per capita: 1:1,600

The Boating Business in Brazil
(source: http://www.acobar.com.br/index3.htm)

Registered Boatyards: 116
Marinas, Yacht Clubs and Boat Garages: 654
Hotels and resorts located on the Coast, rivers, lakes and reservoirs: 856
Nautical stores, brokers and tourism dealers: 1,518
Boat repair and services shops: 1,242
Direct jobs offered by the industry: 100,000
Boating Associations
Brazil’s status as a major yacht builder got a boost late in 2008 when representatives from the country’s major players came together to form a national association, which goes by the moniker of Superyachts Brazil. The new organisation, similar to in nature to associations in other countries such as Superyacht Base in Australia, is intended not only to increase Brazil’s visibility in the world of major yacht builders, but to enhance Brazil’s status as a major charter destination.

The meeting, held in December 2008 at an Inace Marine-owned resort in Fortaleza, focused on common problems, international marketing efforts, the state of Brazilian marinas and other infrastructure issues, as well as legal barriers to building yachts and chartering them within the country. A few days after the meeting, the association scored its first success when it succeeded in convincing the federal government to relax its chartering regulations. Steve Buckley, an American charter broker specializing in the Brazilian arena and who set up the government meeting, was
optimistic. “They pretty much gave us the green light,” he said. “Chartering is now legal in Brazil. Their policy now isthat foreign-flagged boats can come down for a three-month cruising permit (extendable for three more months) and they won’t interfere with charters. No taxes, no nothing.”

By most standards, Brazil’s yacht-building industry is small, with only three manufacturers of major vessels, with each builder specialising in a different sector of the market. The best-known is Inace, based in Fortaleza, which makes fishing vessels and ships for the Brazilian Navy and has found a niche in the yachting industry constructing expedition vessels and trawlers. MCP Yachts, based in Santos, east of Sao Paulo, has been around since 1980 and makes classic motor yachts up to 130 feet. The third and newest yard, Sunboats, created by the scions of a major Brazilian conglomerate, is a sailboat builder that’s expanded into catamaran motor yachts up to around 100 feet. Sunboats has contracted Thierry Stump, one of Brazil’s leading naval architects, to build its burgeoning fleet of yachts.

Between Rio de Janiero and Sao Paulo is a beautiful coastline dominated by two major areas, speckled with hundreds of forested, beachfront islands, a placid weather pattern and dozens of protected anchorages. However, there are only a handful of full-service marinas in the area capable of handling yachts up to 120 feet, and Brazilians yacht owners are reluctant to charter their vessels locally.

Improving the infrastructure to accommodate more large yachts is another major task for the association There are currently plans in place to expand the capacity of marinas to handle megayachts, and both MCP and Inace are capable of haulout repairs to all but the largest yachts.

With the establishment of the association, the boating industry in Brazil looks to go from strength to strength. With an improved infrastructure and increased marketing efforts, it is hoped that the Brazilian Boating market will exist as a fantastic trade partner for exporters in the near future.

Import Duties and Sales Taxes

Products delivered to Brazil are subject to import duties. Brazil’s government sets product classifications that determine rates for specific imports. Where exceptions meet the best interests of the Brazilian economy, import duty rates may be negotiated.
Brazil imposes two major taxes on imports, namely the industrial products tax (IPI) and the tax on the distribution of goods and services (ICMS). Foreign exporters must also be aware of the federal Social Integration Program tax (PIS) levied on gross revenues from domestic sales of goods and services and the Contribution for the Financing of Social Security tax imposed on most gross revenues.
Like Brazilian import duties, ICMS and IPI taxes vary depending on product type and assessed importance to Brazil’s economy. ICMS is a state tax payable at all stages of sale – from manufacture to consumer. ICMS tax rates range from 7% to 25%, and average 18% in Rio de Janeiro.
Strictly speaking, IPI is a tax imposed on manufactured product imports. Thus international traders receive tax credits from IPI payments for raw material shipments, certain semi-processed imports and packaging materials. IPI tax rates are higher on non-essential and luxury items such as cigarettes, cosmetics and liquor.
In addition, Brazilian importers typically pay a minimum of 1.65% for PIS and 7.6% for Cofins taxes. Exempt from PIS and Cofins are products such as fruits, vegetables, eggs and pharmaceutical inputs.

Product Licensing

Importers must register with the Brazilian International Trade Secretariat (SECEX), and secure import licences before any products are shipped. Brazil’s automated import system SISCOMEX allows importers or customs brokers to enter information from a pro-forma invoice directly into the system. SISCOMEX indicates if an automatic import licence may be issued, or if additional information is required for products such as weapons, radioactive materials, medical equipment and food.
Boat Shows

Rio Boat Show

The Rio Boat Show, Latin America’s largest boating exhibition, takes place at the picturesque Marina da Gloria in Guanabara Bay from 8 – 14 April 2010, and will show off a wealth of sea-themed attractions. Exhibitor space at next year’s Rio Boat Show in Brazil is quickly filling up, with around 50 per cent of all available space now accounted for.

At a preview party held recently, event organiser GR MAR Eventos unveiled a new-look floorplan for the 2010 event, with an improved layout designed to help the flow of visitors.

Boatbuilders that have already confirmed their presence at Latin America’s largest boat show include Intermarine, Real Power Boats and Schaefer — all of which are preparing to launch new products.

During the preview meeting, show president Ernani Paciornik and Paulo Renha, president of Brazilian marine manufacturers association ACOBAR, both discussed the opportunities to be gained at this year’s show on account of Brazil’s recovering economy.

Sao Paolo Boat Show

The 12th annual São Paulo boat show, held last year, attracted 150 exhibitors and filled 30,000sq m of the Transamerica Expo indoor exhibition centre. The organisers claim it generated sales of RS185m (US $108m), a 12 per cent year-on-year increase.

Ernani Paciornik, the show’s president, commented: “The 2008 event suffered as a result of the international financial crisis. The Brazilian boating industry started to recover at the beginning of 2009 and we are definitely now seeing clear signs of increased business activity.”

The six-day show attracted 42,000 visitors, had 240 boats on display and a large variety of boating equipment exhibited by importers and retailers. The Brazilian company Intermarine was one of the highlights of the show, displaying amongst several other models the Intermarine 760 flagship.

Schaefer Yachts had higher than expected sales at the show. Schaefer’s president, Marcio Schaefer, commented: “We did good business at the show. Those consumers who did not buy last year are now coming back as market conditions are more stable.”

Boatbuilders with smaller boats in the 30,000 Reis range also reportedly did well at the show. Lenilson Bezerra, the ACOBAR marine industry association’s executive director, commented: “Everyone was positive as the growth trends will continue into 2010 and beyond.”
Conclusion

Brazil represents one of the world’s largest economies, and offers massive amounts of water space which are currently being severely underutilised. However, with the advent of the brand new Brazilian Boating Association, and the ever-improving boat shows on offer, the country looks to provide good opportunities for exporters in the near future. The newly relaxed rules on chartering within Brazilian waters also indicates a trend towards more purchases thereof. It is an exciting time for the Brazilian Boating Industry, and the country looks to be one well worth investigating for potential opportunities.

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Exporter Profile – TAG Yachts

March 19, 2010

TAG YACHTS is situated in the unique and picturesque village of St Francis Bay on the coast of the Eastern Cape, which boasts its own port, ideal for visiting sail yachts and boats.

TAG yachts was established in March 2007 by like-minded people with a passion for sailing and building high performance cruising catamarans. TAG Yachts was established as a forward thinking company, focused on developing the next generation of cruising catamaran. They have brought onboard top catamaran designers and put together a team of professionals with complimentary talents to take TAG Yachts into the future.

New technology and techniques have been incorporated into all their catamarans to aim towards a sporty look with emphasis on functionality and efficiency. TAG Yachts are currently building the TAG 60 catamaran which has been designed to be the ultimate world cruiser. For genuine world cruising ability, her size is neither too small nor too large. This catamaran can be sailed shorthanded, maintained without a full time crew and yet be large enough for seriously comfortable and realistic living while sailing. The first TAG 60 is nearing the finishing stages. The final paint will be sprayed shortly, systems and furniture installation is taking place. The anticipated launch is April 2010.

The TAG culture is about working hard but still having fun enjoying all that St Francis Bayhas to offer. They have a young, enthusiastic team led by experienced and skilled craftsmen. TAG Yachts are continuously striving towards uplifting their staff by developing their technical and life skills through various training programs and providing employment and career opportunities in the yachting industry to their local St Francis Bay community.

The plan is to grow TAG Yachts into a world class boatyard equal to the industries benchmarks in France and New Zealand, thereby growing the marine industry in the St Francis Bay area to become the boat building mecca of Africa. In order to support this, TAG Yachts will be establishing a boat building academy with an approved and recognised curriculum as well as opportunities for new boat and catamaran related businesses in the St Francis Bay area. Furthermore, TAG support sports development in terms of sailing and other water related sports in their community.

For more information, please visit www.tagyachts.com

South African Boatbuilders Make Another Strong Showing in Miami

March 16, 2010

Another year and another highly successful Miami International Boat Show for the South African Boat Building contingent. In spite of the adverse financial climate of the past 18 months, 4 of the nation’s top boatbuilding companies exhibited at this year’s Strictly Sail Miami Boat Show, which took place from February 11 – 15 at Sea Isle Marina, to much acclaim and accolade. The South African National Pavilion, spearheaded by the South African Boatbuilders Export Council (SABBEX), took home the ‘Best of Show’ award for In-Water Display, a prestigious award presented for stand graphics, level of activity, professional handling of enquiries and outstanding display of boats.

This year’s event marked South Africa’s 5th consecutive appearance at the show, a notable achievement and one that serves to emphasise the popularity of locally-built vessels with savvy international buyers. This year also marked the first appearance of up-and-coming boatbuilders, Cruiser Cats, who were there to showcase their new power catamarans, the Havana 38 and Tortuga 42.

The 5 day event served as an exposé of some of the best on offer from local boatbuilders, with beautiful power catamarans on display from Afri-Cat Marine and Cruiser Cats. Majestic sailing catamarans from Royal Cape Catamarans as well as Robertson & Caine were also on display, making the South African presence at the event both visible and impressive. The event marked the launch of a number of new vessels into the US market, notably the Majestic 530 from Royal Cape and the Havana 38 from Cruiser Cats. Also represented at the event were the Knysna Yacht Company, currently promoting their new Knysna 480, a stunning redesign of the ever popular 440 model.

A well attended press briefing and cocktail reception was held prior to the event, which attracted numerous media personnel, industry organisations, Florida business contacts as well as potential buyers and clients of the South African builders.

The boatbuilders represented at the show were able to attain some very strong leads which will hopefully convert themselves into sales following the show. Many other well-known South African brands who were not able to make the trip to Miami also received numerous enquiries, demonstrating the large impact that local vessels have made on the US market in the last 2-3 years.

Although the market has taken a definite knock in light of the recent recession, the show provided an excellent clientele and demonstrated a definite resurgence in optimism in the US Market. “The quality of the visitors at the recent Miami International Boat Show exceeded our expectations and as a group we are all very positive about the upswing in the US market. We know that growth will be slow, at a snail’s pace for some sectors, but are confident that the competitive, quality product offerings from the SA exhibitors will continue to make a strong impact with buyers as optimism returns state-side,” said Veda Raubenheimer, Chief Executive Officer of SABBEX, South Africa’s local export council.

The South African Boatbuilder’s Export Council would like to extend congratulations to all our exhibitors and look forward to many more strong showings on US soil.

Revisions To Boat Building Qualification

March 5, 2010

The revisions to the Boat Building qualification were submitted to the Standards Generating Body (SGB).  A working group committee was appointed to make amendments to the documents to bring them inline with SAQA requirements.  The final copy is available  below for comment before 12 March 2010 at 12h00. Please click on the links below to download the documents:

Level 2:

RationaleBoat Design & Construction PrinciplesBasic Laminating Techniques | Marine Joinery | Inflatable Boat Technology | Corrosion and Basic Metalwork

Level 3:

Rationale | Boat Design & Construction Techniques | Construction & Repair of Composite Marine Components | Inboard Engine Systems & Maintenance | Installation & Maintenance of a Range of Marine Systems| Manufacturing and Installation of Marine Joinery Components

Level 4:

Rationale | Understanding Boat Design | Installation of Marine Electrical Systems | Marine Faring & Painting Techniques | Understanding of Standards | Understanding of Structural Composites

17th IALA Conference

March 5, 2010

The International Association of Marine Aids to Navigation and Lighthouse Authorities (IALA), invites all Members of their Association and other Marine Authorities to meet together on the occasion of the 17th IALA Conference, taking place from 21st to 27th March 2010 in Cape Town.

The conference will bring together the world’s top leaders and decision makers in the field of marine aids to navigation under the theme “Aids to Navigation – A global Approach: All waters, all risks, all solutions”. The conference programme features ten technical sessions as well as occasions to meet important practitioners in less formal settings.

The Industrial Members Exhibition is steadily filling up and will showcase cutting edge marine aids to navigation technology, supporting the entire spectrum of products and services, including the reduction and management of risks associated with the industry.

To register online for the conference, please click here

Dr. Brian Gowan’s Latest Book Available Online

March 5, 2010

Dr Brian Gowans, a consulting engineer in the South African marine industry, has had his latest book “Managing Boat Building” published by World Press on the Internet at www.managingboatbuilding.com .  Dr Gowans has been working with Marcus Vandervliet, a strategy consultant of MV Consulting, in lecturing and consulting to a number of UK and USA boat builders on improving their management performance to overcome the present economic situation in the industry. The book covers the process from the enquiry through the contact to trials and hand over. The purpose of the book is as a handbook for boat building companies to improve their overall performance.  Hard copies of the book can be obtained from the author at yachttechnology@martech.co.za

Zimbabwe International Trade Fair

March 5, 2010

Zimbabwe International Trade Fair

The Southern African-German Chamber of Commerce and Industry and the German-African Business association (Afrika-Verein der Deutschen Wirtschaft) are pleased to announce that they will be hosting a joint Pavilion at the Zimbabwe International Trade Fair in Bulawayo from the 20th to the 24th of April 2010.

The SA-German Chamber and the German-African Business Association will take over all your preparations and the project management and will make sure that all parties at their Pavilion will have maximum exposure. We have the experience!
If you wish to find out more, or/and are interested in attending this promising trade show, please contact:

Matthias Boddenberg
Chief Executive
Southern – African German Chamber of Commerce and Industry
Tel: +27 (0)11 486-2775
Fax: +27 (0)11 486-3625
P.O. Box 87078, Houghton 2041
mboddenberg@germanchamber.co.za
www.germanchamber.co.za

The Southern African-German Chamber of Commerce and Industry and the German-African Business association (Afrika-Verein der Deutschen Wirtschaft) are pleased to announce that they will be hosting a joint Pavilion at the Zimbabwe International Trade Fair in Bulawayo from the 20th to the 24th of April 2010.

The SA-German Chamber and the German-African Business Association will take over all your preparations and the project management and will make sure that all parties at their Pavilion will have maximum exposure. We have the experience!
If you wish to find out more, or/and are interested in attending this promising trade show, please contact:

Matthias Boddenberg
Chief Executive
Southern – African German Chamber of Commerce and Industry
Tel: +27 (0)11 486-2775
Fax: +27 (0)11 486-3625
P.O. Box 87078, Houghton 2041
mboddenberg@germanchamber.co.za
www.germanchamber.co.za

Malta Business Forum

March 5, 2010

MALTA BUSINESS FORUM

Malta Enterprise, in collaboration with the Hon. Consuls of Malta in Durban and Cape Town, Trade and Investment Kwazulu Natal and WESGRO is pleased to invite you to a Business Forum – ‘Malta – Positioned for Trade and Investment’. The first event will take place on Monday 15 March 2010 at 10am at the Trade & Investment Kwazulu Natal offices, Kingsmead Office Park, Kingsmead Boulevard, Stalwart Simelane Street, Durban. The Cape Town event takes place on Thursday, 18 March 2010, at 10 am, at WESGRO offices, 12th Floor, Waldorf Arcade, St. George’s Mall, Cape Town.

A business delegation led by Mr. Alan Camilleri, Executive Chairman of Malta Enterprise, the Maltese Government agency responsible for trade, investment and enterprise development, will be visiting Durban and Cape Town from 14th to 20th March 2010.

Promising areas for trade, investment, joint ventures and technology commercialisation with Malta include financial services, real estate, healthcare, advanced engineering & design, financial services, construction, food manufacturing and processing, logistics, education and training, environment, renewable energy, creative industries, consultancy in aquaculture and logistics.

For further information kindly contact

Durban: Mrs. Gill Patzer

Email: gpatzer@netactive.co.za<mailto:gpatzer@netactive.co.za>

Cell:083 250 2755

Cape Town : Mr. James Bowling, Crusader Rock

Email : james@crusaderrock.com

Tel: 011 8839028

http://www.maltaenterprise.com