For businesses, online certification has advantages
Executives attending a lecture on the new system developed by the Arab Chamber believe export processing times and costs will be reduced.
São Paulo – The online certification process developed by the Arab Brazilian Chamber of Commerce will bring advantages such as reduced costs and times to enterprises that export to the Middle East and North Africa. The topic was the subject of a lecture delivered by the Chamber’s Certification manager Leandro Salgueiro this Thursday (25th) in São Paulo.
“The project is intended to take place entirely online, eliminating all hard-copy procedures. At this time, the process can take as long as 15 days,” Salgueiro explained to an audience of business executives. “We are envisioning processing the documentation [online] in five days, a ten-day reduction,” he said. The new system should be up and running before the end of this year.
The certification issued by the Arab Chamber verifies 26 different items in documents submitted by businesses, and attests that the products being shipped were made in Brazil and are in accordance with the requirements of the Arab importing country
The current process requires that actual documents be submitted to the Arab Chamber, which certifies them, sends them to the buying country’s embassy, which validates the documents and returns them to the Arab Chamber, which collects a fee and returns the papers to the exporting company.
With the new procedure in place, the exporter will upload scans of the papers to an exclusive area in the Arab Chamber’s system, and then certification can take place.
“Five minutes after the exporter has uploaded [the documents], the certification process can begin,” the manager explained. The ensuing process of sending the documentation to an embassy, collecting fees and returning the documentation to the seller is also done electronically by the Arab Chamber.
“The whole procedure is geared towards safety, so that everything can be done transparently and cannot be tampered with later,” Salgueiro remarked. All of the online certification system data will be encrypted, and companies will be able to keep track of the whole process online.
CEO Michel Alaby noted that the Arab Chamber is the sole organization authorized by the Arab League to issue certificates of origins and certify export papers for products to be sold to Arab League countries.
“In the case of Brazil, [document] legalization takes longer because the embassies are in Brasília and we [the Arab Chamber] are in São Paulo, but our goal with the new process we are developing is to cut down processing times to two days [for the legalization process],” the executive said, showing that the time required could be even shorter than the initial five-day forecast.
The new process was well received by companies that already certify their export papers with the Arab Chamber. “Any procedure to eliminate distance-related issues and the need for actual paperwork will lead to a drastic improvement [in the exporting process]. There is no question that we will see an improvement in the processing of our exports,” said José Flosi, the general manager for Exports at neonatal equipment company Fanem.
“The [certification] process is paid for by the importer, so it will be interesting, we can pass it on to the importer and help cut product costs,” he said. Presently, roughly 20% of Fanem’s exports go to Arab countries.
Karen Navarro, the Import/Export assistant for ADM do Brasil, a maker and exporter of agricultural commodities, claims online certification “will greatly facilitate” the company’s exporting process, reducing the time to product shipping. “We will get the documents faster. We can ship to the final destination more swiftly and efficiently. As for the cost, I believe it would be about 40% lower,” she estimated.
Renan Annize, the Military Market International Sales Analyst for ammunition manufacturer Companhia Brasileira de Cartuchos (CBC), tells that his company sells to several Middle East countries, including Oman, Qatar, Bahrain, Kuwait and Saudi Arabia. CDC makes ammo for small and medium-caliber guns, such as revolvers, pistols, rifles and machine guns.
“This process will greatly cut document legalization costs and times. I see it as a great progress. In case this two-day target is reached, it will be a significant stride forward towards even closer ties between CBC and its customers,” he said. Approximately 30% of the company’s exports go to Arab countries.
*Translated by Gabriel Pomerancblum