The plot thickens - Curley
stumbles onto a gold mine!
A tale of three Materials &
Services strategies for entering Brazil ...
Larry imports foreign product into Brazil in the traditional
manner, Moe is going to buy Brazilian-made product, and Curley -
the smartest of the bunch - is going to import foreign product and shelter it
from Brazilian taxes within POPC in-bond storage! All three dashing executives plan to
warehouse the product for six (6) months, in preparation for future E&P
operations ...
Scrutinizing the details
|
Six
months in Brazilian storage (e.g., a tubular product):
|
|
|
Larry
(traditional
import)
|
|
Moe
(buy local)
|
|
Curley
(POPC in-bond)
|
| Money
out-of-pocket: |
|
$188,000 |
|
$182,000 |
|
$117,500 |
| Product value: |
|
$118,000 |
|
$114,000 |
|
$113,000 |
|
|
|
Your
objective is to spend as little as possible, while attaining your goal |
|
|
|
Why spend $188,000 when $117,500 does the same job?
Because
of Tradition. |
|
|
|
Six
months and 1 day in Brazilian storage (tubulars):
|
|
|
Larry
(traditional
import)
|
|
Moe
(buy local)
|
|
Curley
(nationalized)
|
| Money
out-of-pocket: |
|
$188,000 |
|
$182,000 |
|
$173,500 |
| Product value: |
|
$118,000 |
|
$114,000 |
|
$169,000 |
|
|
|
Your
objective is to retain maximum value, over time |
Select either:
Larry (import into Brazil using traditional
methods)
Moe (who will buy product "Made in Brazil"),
or Curley
(POPC tax-deferred method)
Additional calculations "hammer in the point" that businesses
entering the Brazilian market are best served through the port of Vitoria
using in-bond (tax-deferred) storage:
chemicals
(*.xls)
and pumps
(*.xls)
and tubulars
(*.xls)
and a graphic
This section features the answers to
questions often encountered by POPC support staff. These brief
explanations are intended to assist you with many common technical issues.
Select your topic of interest to begin.
