Foreign companies doing business with Brazilian suppliers, buyers, distributors or exporters may face disputes involving payment, delivery, customs documents, shipment delays, product quality, contractual breach or responsibility for losses.

These disputes can arise in both directions.

A foreign buyer may pay a Brazilian supplier and never receive the goods. A foreign supplier may ship products to Brazil and remain unpaid. A shipment may be delayed, retained, rejected or disputed because documents do not match the commercial agreement. A Brazilian distributor may allege logistics or customs issues to avoid payment.

When the counterparty, documents, goods or legal effects are connected to Brazil, a local legal assessment may be necessary.

Why import and export disputes involving Brazil require legal analysis

International trade disputes often combine commercial, contractual, logistical, customs and procedural issues.

A dispute may involve:

• A contract governed by foreign law.
• A Brazilian company as buyer or seller.
• Goods located in Brazil.
• Documents issued in Brazil.
• Payment obligations connected to a Brazilian debtor.
• Customs procedures before Brazilian authorities.
• Jurisdiction or arbitration clauses.
• Evidence located in different countries.

The Brazilian Civil Code provides the legal framework for contractual obligations, breach, losses and damages. The Brazilian Code of Civil Procedure governs litigation, jurisdiction, evidence, enforcement and procedural measures in Brazil.

For foreign companies, the first step is to determine whether the dispute is mainly contractual, documentary, customs-related, logistical or a combination of all these elements.

Common import and export disputes with Brazilian companies

Disputes involving Brazilian companies frequently include:

A Brazilian supplier received advance payment but did not ship the goods.

A Brazilian exporter shipped goods that did not meet agreed specifications.

A Brazilian buyer received goods but did not pay the invoice.

A distributor refused to transfer amounts due after resale.

A shipment was delayed due to incomplete or inconsistent documents.

The parties disagree about who was responsible for freight, insurance, customs clearance or delivery.

The invoice, purchase order and contract contain conflicting terms.

The goods were retained, returned or rejected.

The Brazilian company alleges defects only after receiving the goods.

The parties dispute Incoterms, risk transfer or delivery obligations.

Each scenario requires review of documents and evidence before deciding whether negotiation, legal notice, arbitration or court action is appropriate.

Key documents in import and export disputes

The strength of a trade dispute depends heavily on documentation.

Relevant documents may include:

International sales contract.

Purchase order.

Commercial invoice.

Pro forma invoice.

Packing list.

Bill of lading or airway bill.

Proof of payment.

Proof of delivery.

Inspection reports.

Insurance documents.

Import or export declarations.

Emails and messages.

Certificates of origin or conformity.

Customs broker communications.

Photos, videos and technical reports.

In disputes connected to Brazilian customs or foreign trade procedures, official systems and records may also be relevant.

The Portal Siscomex is Brazil’s official foreign trade systems portal, and the Federal Revenue Service maintains official information on customs and foreign trade.

Payment disputes in international trade

Payment disputes are among the most common problems.

A Brazilian buyer may claim that goods were defective, delayed or improperly documented. A foreign supplier may argue that delivery occurred and payment is due. A Brazilian distributor may allege local market difficulties to postpone payment.

Before filing a claim, the creditor should assess:

• Whether the debt is documented.
• Whether the delivery or performance can be proved.
• Whether the contract contains a dispute resolution clause.
• Whether Brazilian courts have jurisdiction.
• Whether the debtor has assets in Brazil.
• Whether a legal notice or negotiation is appropriate.

In some cases, the claim may be handled as debt collection in Brazil. In others, broader litigation may be needed because the debtor disputes quality, delivery or liability.

Supplier disputes: when a Brazilian exporter does not deliver

Foreign buyers may face losses when a Brazilian exporter receives payment but fails to deliver goods.

In this situation, the buyer should preserve:

• Proof of payment.
• Contract or purchase order.
• Supplier’s written promises.
• Shipping deadlines.
• Evidence that shipment did not occur.
• Corporate data of the Brazilian company.
• Communications with freight forwarders or intermediaries.

A local legal review may assess whether a legal notice, settlement proposal, lawsuit or urgent measure is available.

If fraud is suspected, the strategy may also involve review of corporate information, related parties, bank details and public records.

Delivery, Incoterms and risk transfer

Many international trade disputes arise from unclear delivery terms.

When parties use Incoterms, they should understand which party is responsible for freight, insurance, customs clearance, delivery point and risk transfer.

Although Incoterms are commercial rules rather than Brazilian statutes, their interpretation may directly affect contractual responsibility.

A contract should clearly state:

• Incoterm used.
• Version of Incoterms.
• Delivery location.
• Risk transfer point.
• Responsibility for documents.
• Inspection procedure.
• Consequences of delay.

If these terms are absent or inconsistent across documents, disputes become harder to resolve.

Customs and regulatory issues

Some disputes involve customs, licensing or regulatory requirements.

Brazilian foreign trade operations may require interaction with the Portal Único, Siscomex, the Federal Revenue Service and other regulatory authorities.

The Federal Revenue Service provides official services related to importation and broader customs procedures. The Portal Siscomex centralizes systems and information related to foreign trade in Brazil.

Customs-related issues may include:

• Import declaration problems.
• Export declaration issues.
• Incorrect NCM.
• Incomplete documentation.
• Need for import license.
• Product inspection.
• Requirement from regulatory authorities.
• Retention or return of goods.
• Disagreement over who must bear extra costs.

A lawyer does not replace a customs broker, logistics operator or technical consultant. However, legal support may be necessary when the customs issue becomes a contractual dispute or causes financial loss.

Jurisdiction and dispute resolution

A trade dispute with a Brazilian company may be resolved through negotiation, Brazilian courts, foreign courts or arbitration, depending on the contract and the facts.

The Brazilian Code of Civil Procedure contains rules on international jurisdiction and foreign jurisdiction clauses. The Brazilian Arbitration Act governs arbitration agreements and recognition of foreign arbitral awards in Brazil.

Before taking action, the foreign company should review:

• Governing law.
• Forum clause.
• Arbitration clause.
• Place of performance.
• Location of debtor.
• Location of assets.
• Location of evidence.
• Cost and time of each option.

This review helps avoid filing a claim in the wrong forum or using a route that may not be enforceable in Brazil.

Pre-litigation strategy

Not every import or export dispute should start with a lawsuit.

Possible pre-litigation steps include:

• Formal legal notice.
• Document request.
• Debt acknowledgment.
• Settlement proposal.
• Contract termination notice.
• Evidence preservation.
• Supplier due diligence.
• Review of debtor assets.
• Negotiation with Brazilian counsel involved.

A legal notice may be useful when the foreign company needs to demonstrate default, set a deadline, structure negotiation or preserve evidence.

When litigation may be necessary

Litigation may be considered when:

• The Brazilian company refuses payment.
• Goods were not delivered.
• The counterparty does not respond.
• A settlement was breached.
• The debtor has assets in Brazil.
• The amount justifies court action.
• Evidence is sufficient.
• Urgent measures may be needed.
• Negotiation is no longer viable.

The legal route may vary depending on whether the dispute is a pure payment claim, a contract breach, a damages claim, an enforcement case or a dispute requiring technical evidence.

How Willian Nunes Advogados can assist

Willian Nunes Advogados assists foreign companies involved in import and export disputes with Brazilian companies.

The firm’s work may include contract review, document analysis, legal notices, negotiation, supplier or debtor verification, debt collection strategy, litigation assessment, coordination with customs or logistics professionals and representation in Brazil when a commercial dispute involves Brazilian parties.

The firm is based in Curitiba, Brazil, and assists companies dealing with contracts, suppliers, distributors, payments, international trade documents and disputes connected to Brazil.

Foreign companies may request a document-based legal assessment through the contact page of Willian Nunes Advogados.