TL;DR
Learn what export companies and trading companies do, their requirements, how they differ from export consulting, and when to use each model.
- An export company buys from the manufacturer and exports in its own name.
- A trading company is an export company that meets specific requirements under Decreto-Lei 1.248/1972.
- AXIA is not a trading company: it provides consulting services and sells on behalf of the manufacturer.
Published: · Updated: · Author: AXIA Consult
An export company is an intermediary that purchases products from Brazilian manufacturers for export. Understanding export companies and trading companies helps manufacturers choose between indirect and direct exporting.
What is an export company?
It is a company that purchases goods in the domestic market specifically for export and sells them abroad in its own name. For the manufacturer, the transaction resembles a domestic sale, with tax treatment specific to sales made for export purposes.
Trading companies and their requirements
A trading company, as defined under Decreto-Lei nº 1.248/1972, is an export company that meets specific registration and incorporation requirements. Verify current requirements in the applicable legislation and with an accountant or tax attorney, as this article is not a substitute for legal or tax advice.
Indirect or direct exporting
Selling through a trading company reduces the operational workload, but the intermediary retains the end-customer relationship and a portion of the margin. With direct exporting, the manufacturer controls its brand, pricing, and customer relationships. Compare the options in direct or indirect exporting: which should you choose.
Where AXIA fits in
AXIA is neither an export company nor a trading company: it does not purchase goods. It provides consulting services and operates as an outsourced export department, selling on behalf of the manufacturer, which retains the customer relationship and the contract.
Frequently asked questions
What is an export company?
It is a company that purchases products in the domestic market specifically for export and sells them abroad in its own name.
What is the difference between an export company and a trading company?
Every trading company is an export company, but trading companies meet specific requirements under Decreto-Lei 1.248/1972. Confirm current requirements with legal and accounting advisors.
What are the requirements for an export company?
They depend on the company’s legal classification. Trading companies must meet registration and incorporation requirements established by law. Consult current legislation and a qualified professional.
Is AXIA an export trading company?
No. AXIA is a consulting firm that operates as an outsourced export department, selling on behalf of the manufacturer.
Is it better to export through a trading company or directly?
A trading company simplifies operations; direct exporting preserves margins and customer relationships. The decision depends on volume, market, and strategy.
Sources and references
Next step
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