THE foreign trade in services, through the various modalities of export of services, acquires more and more importance for entrepreneurs and companies that seek to expand their markets and, also, for the economy of Brazil as a whole, which is strengthened through the inflow of foreign exchange, the generation of employment and income and the acquisition and development of expertise and technology.
In this way, the export of services emerges as a possibility for companies that dominate their areas of activity and aim to conquer a share of the international market. And this challenge is not an impossible mission, it can happen in different ways, without necessarily having to move across borders.
Most service exports take place when a payment is made by a person from outside the national territory, without the need to move people or equipment. And you, do I already export services?
What are the modalities for exporting services?
The 4 service export modalities most commonly used by companies are:
Mode 1 – Cross-border Trade
At cross-border modality, the activity is consumed abroad without the service provider leaving Brazil. The final result of the work, therefore, is sent by e-mail, by post or made available on the Internet. Examples:
- Service purchased via the Internet by a Brazilian company from a company domiciled abroad;
- Stock brokerage services provided to a client domiciled or resident in Brazil performed by a brokerage company domiciled abroad;
- Design and development services for structures and content of electronic pages carried out abroad for clients residing or domiciled in Brazil;
- International cargo transport services provided by a company domiciled abroad to a company domiciled in Brazil.
Some examples are software sales, call center, digital consulting, online courses, among others.
Mode 2 - Consumption Abroad:
This type of service is provided by a resident and domiciled abroad and consumed in the territory of another country by a resident or domiciled in Brazil. Examples:
- On-site educational services provided abroad to residents of Brazil;
- Training abroad for employees of legal entities domiciled in Brazil;
- Brazilian company sends equipment for repair in the territory of another country;
- Specialized medical services provided abroad to residents of Brazil;
- Cargo and container handling services provided abroad to legal entities domiciled in Brazil;
- Accommodation services provided abroad to residents of Brazil.
Mode 3 – Commercial Presence Abroad
This modality occurs when a local company carries out an activity in another country from a unit there established. There is, in this case, a legal entity formed that complies with the laws of the country in which it is located.
The commercial presence abroad is verified in cases of branches abroad, such as travel agencies, bank agencies, multinational store chains, law firms, among others.
Mode 4 – Temporary movement of individuals
As the name implies, in this format the service provider needs to travel to the other country to carry out the work. The temporary movement of people usually occurs in training, consulting or for the elaboration of projects that require the physical presence of those who carry out the activity. Examples:
- Architect residing abroad travels to develop architectural project in Brazil;
- Contractors domiciled abroad send workers who have an employment relationship abroad to build a highway in Brazil;
- Lawyer residing abroad travels to provide legal advice in Brazil.
As we have seen in the course of the article, there are several modalities for exporting services and all of them are characterized by the intangibility of the activity and the payment being made outside the national territory.
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