Issuu on Google+

EXPERT-LOG | NEWSLETTER #01

POP IN

THE MAGIC OF TERRACOTTA Our CEO Rodrigo Pacheco and our Operations Manager in Brazil Waleska Kaudy, led a trip for the quarterly meeting with the General Managers of the seven Expert-Log’ offices in China. Several meetings were organized specifically focused on the development of strategic plans aimed to improve our service. After long working days and successful meetings, Rodrigo and Waleska led by a local guide, visited the ancient capital of China for a tour of several dynasties which included Xian: the city known for its spectacular “Terracotta Army”. Known as the “Terracotta Warriors and Horses”, “Warriors of Xian” or “Army of Emperor Qin”, a collection of more than eight thousand life-size figures of warriors and horses made out of terracotta were discovered in 1974 near the mausoleum of the first Emperor of China, Emperor Qin. The two-hour trip into the city took them thru the area known as the “The Road of Silk” in the East and the five hour tour in the magnificent Museum for visitors gave them great insight and stirred in them great admiration for China’s history and its exceptional organizational capacity based on studies based on the administration of its Empire. Our travellers’ were quoted as saying, visiting the city and the museum was really enlightening: “It Shows the fantastic strength and power of

“Do the difficult things while they are easy and do the great things while they are small. A journey of a thousand miles must begin with a single step.” (Lao Tzu) the Emperor, the manner in which he administered the government of China and how he used this model of administration to unite what is now considered one of the world’s greatest powers.” As inspiration for our plan, whether for our personal or professional life, a phrase engraved and marked in the culture of China and revered by our travellers: “Do the difficult things while they are easy and do the great things while they are small. A journey of a thousand miles must begin with a single step.” (Lao Tzu)

Note: The Terracotta Army Museum was established in 1979. In 1987, it was included in the World Heritage List of the United Nations Educational, Scientific and Cultural Organization (UNESCO).

1


EXPERT-LOG | NEWSLETTER #01

MANAGEMENT

WHAT IS THE RELATIONSHIP OF THE REAL EXCHANGE RATE WITH EXPORTS AND IMPORTS? Fonte: Luciano D’Agostini, Economist and PHD in Economic Development from UFPR

The sharp foreign exchange market intervention was caused because there is, by the Government, no explicit intention to leave the market Brazilian currency fluctuating between U.S.$ 2.00 to U.S.$ 2.20 for 2013.

Recently, the price of Brazilian currency has had adjustments against the currencies of major trading partners (Dollar and Euro). The Central Bank of Brazil, concerned about the sudden depreciation of the Real against the U.S. Dollar, the limit price at $2.43 per $1.00, in August, started the process of selling dollars in the forex market with structured operation repurchase in the future. The sharp foreign exchange market intervention was caused because there is, by the Government, no explicit intention to leave the market Brazilian currency fluctuating between U.S.$ 2.00 to U.S.$ 2.20 for 2013. Anyway, there is a natural realignment in floating exchange rate regime, to the extent that the exchange rate reflects the negative conditions of the Brazilian economy and slight improvement in the U.S. economy and European. This implies effective depreciation rate of the Brazilian Real, which is based on consumer price indices and the value of the market of currencies of major trading partners, in approximately 30% from the peaks reached in mid-2011. Knowing that relative price changes have important implications on foreign trade flows, we analysed the relationship between exchange rate and trade balance. One of the most effective ways to quantify the elasticity of trade flows to changes in the exchange rate is to econometrically estimate longterm relationships between: (i) exports, real effective exchange rate and global demand, and (ii) imports rate real effective exchange and domestic demand. In the Brazilian case, co-integration tests do not indicate the long - term relationship between the variables listed in (i) the post- real. In this sense, the evidence indicates that Brazilian exports are not very affected by the real exchange rate because there is a low estimate of elasticity of the price of demand for the products of highest weight in Brazilian exports, i.e. commodities. Overall, the evidence indicates that exports have a positive correlation to the conditions of global demand. At the margin, however, there are signs of export sensitivity to exchange rate. With regard to imports, the econometric analysis shows the existence of a long-term relationship between the variables listed in (ii). Elasticities suggest imports significantly dependent on the level of domestic demand, which depends on the Brazilian income, and real exchange rate. Resuming, the tests show that: (1) exports are sensitized by global demand, (2) the exchange rate affects the export of manufactured goods, and (3) the effects of changes in relative prices of the Brazilian currency on the trade balance (and product) derive, at first, changes in imports (demand for imported products).

2


EXPERT-LOG | NEWSLETTER #01

CUSTOMS

TAX ALERT! For Expert-Log, which has professionals whom have worked in the industry for over 15 years, this modification is seen as a great achievement.

On the 10th of October a new Law No. 12.865/2013 was published and among other changes, amends Article 7 of Law No. 865/04 modifying the form of the PIS and COFINS on Imports. For Expert-Log, which has professionals whom have worked in the industry for over 15 years, this modification is seen as a great achievement, receiving a positive reaction and effective in Imports as of 10.10.2013. What was anticipated for several years was achieved which is the right to recover taxes that were collected in an unconstitutional manner prior to this date, whereas the rate of ICMS tax should not be a part of the calculation basis of PINS and COFINS on imports.

For companies who wish to recover the taxes collected on higher value for more than five years, they should join the lawsuit and await the trial in the Supreme Court. Therefore, since the publication of the Law, the basis of the PIS/COFINS on imports becomes only the CUSTOMS VALUE, it changes the way in which previous collection was included VAT and contributions itself. Although celebrated by importers, this was only a first step, considering that most of the achievement will happen with the complete closure of the collection of PIS and COFINS on clearance. However, this subject is anticipated to take many long years of legal discussion...

3


EXPERT-LOG | NEWSLETTER #01

POP OUT

As featured in the last September issue, we mentioned the achievement of operations for Positivo Informática, who now benefits in our care and expertise in I.T cargo.

Expert-Log is part of a Holding company that controls and coordinates multinational business companies strategically located in Asia, Brazil and the U.S., including the chain of logistics cargo known as Global Log. As featured in the last September issue, we mentioned the achievement of operations for Positivo Informática, who now benefits in our care and expertise in I.T cargo. In keeping with the same concept, our Expert-Log branch in Buenos Aires has been attending the EXO SA, among other growing businesses directed towards laboratories and their specialized needs. In conjunction with Expert-Log, which focuses directly on the freight forwarding and customs administration, you can count on Expert Trading which distinguished in our excellence in service and

expertise in the areas of procurement, international logistics, customs clearance and assistance in procedures for foreign trade. Expert Trading is bringing new business to the Brazilian’ market helping companies improve and introduce new products to the market. New development is obtained by proving the efficiency of the services provided by Expert Trading such as with Prism Led, operating in the market of led lamps. G&W USA and G&W Brazil, providing innovative solutions to energy systems and Idnamic leaders in the field of technical services specializing in the expansion of wind farms. All new partners who count on the complete Expert Trading services for their needs.

EXPERT-LOG IS NOW AN ACP PARTNER - COMMERCIAL ASSOCIATION OF PARANÁ, AND REFERENCED BY THE ENTITY FOR COMPANIES THAT OPERATE IN THE INTERNATIONAL MARKET AND/OR FOR THOSE WHO WOULD LIKE TO JOIN GLOBALLY. LEARN MORE: HTTP://WWW.ACPR.COM.BR/SITE/CONCEX-RI/

4


EXPERT-LOG | NEWSLETTER #01

ON SITE

Particularly at this first edition, follow our routine for cargo consolidation flights: weekly charter flights direct from Miami International Airport|MIA to Manaus|MAO Massive Cargo Operations: two 747-400 aircraft entirely assigned with Expert-Log loads!

5


News Expert-Log | Nov 2013 | Inglês