About the Product
The Brazilian Export Credit Agency (Agência Brasileira Gestora de Fundos Garantidores e Garantias S.A. – ABGF) and the Executive Secretariat of the Foreign Trade Chamber (Camex) offer Export Credit Insurance (SCE) aimed at Micro, Small, and Medium Enterprises (MSMEs).
Advantages:
- No requirement for counter-guarantees
- An additional guarantee modality, that may be useful for companies facing difficulties in obtaining other types of guarantees
- Does not affect the exporter’s credit limit
- No minimum export amount required
- No restriction on eligible products or services
Covered Operation Modalities
There are three types of export operations covered through SCE/MSMEs. Intermediation by a financial institution granting financing to the MSME is mandatory, in the PROEX modality (operated exclusively by Banco do Brasil), as well as ACC, and ACE
Pre-Shipment
Financing before the shipment of goods.
Post-Shipment
Financing after Goods Shipment
Pre+Post-Shipment
Combination of Both Modalities
Pre-Shipment
This insurance is required by the bank to grant financing that will be used in the production of the goods to be exported.
The financing is released prior to shipment, meaning the credit amount is received in advance to produce the goods. Upon receiving it, the exporter becomes responsible for repaying the financing to the bank within the agreed term and amount (the repayment period may vary from 30 to 180 days, counted from the date the bank releases the funds).
For Pre-Shipment operations (PROEX), the exporter has up to 180 days to complete the export, with payment due no later than 15 days after the shipment date.
Post-Shipment
In this modality, financing is structured as an Advance on Delivered Exchange Contracts (ACE), which means the exporter has already delivered the shipping documents and the export receivables to the bank. Based on this foreign exchange contract, the bank advances the funds to the exporter in advance.
From that moment, the importer becomes the debtor of the operation and must make payment to the bank within the agreed term, which may be up to 2 years from the shipment date of the goods.
Pre+Post-Shipment
In this modality, financing is also structured as an Advance on Delivered Exchange Contracts (ACE), which means the exporter has already delivered the shipping documents and the export receivables to the bank. Based on this contract, the bank advances the funds to the exporter in advance.
From that moment, the importer becomes the debtor of the operation and must make payment to the bank within the agreed term, which may be up to 2 years from the shipment date of the goods.
Compliance
In the case of MSME operations, due to their quantity and materiality, the procedures adopted are simplified to ensure the necessary agility in the analysis process. They comply with the provisions of the Compliance Procedures Manual approved by the Export Financing and Guarantee Committee (COFIG) for the Official Export Support System, which includes:
- Signing the Exporter Commitment Statement – DCE (“Commitment Term”), in accordance with CAMEX Resolution No. 88/2017;
- Verification of the company’s governance;
- Consultation of the National Registry of Ineligible and Suspended Companies – CEIS and the National Registry of Punished Companies – CNEP, for both the exporting company and its shareholders, members, and directors, in accordance with Law No. 12,846/2013 (art. 19, IV) and Normative Instruction CGU No. 2/2015 (art. 6);
- Consultation of the Environmental, Social, and Governance (ESG) monitoring database, in the name of the exporter;
- Verification of Environmental Fines and IBAMA Embargoes, both for the exporting company and its shareholders/members, pursuant to arts. 22 and 72 of Law No. 9,605/98 (Environmental Crimes Law), which provides, among other penalties and restrictive sanctions, the prohibition to contract with the Public Administration, obtain subsidies, or participate in official financing lines;
- Consultation of the Ministry of Labor and Employment (MTE) Employers Registry for companies that have subjected workers to conditions analogous to slavery (“Dirty List”), both for the exporting company and its shareholders/members;
- Consultation of the Informative Registry of Unsettled Federal Public Sector Credits – CADIN, for the exporting company at federal, state, and municipal levels;
- Consultation of Federal Tax Debts and the Union’s Active Debt Registry (“CND Federal Taxes”) of the exporting company; and
- Procedural consultations before the following courts: the Federal Regional Court (TRF) of the company’s location, Federal Public Prosecutor’s Office (MPF), Superior Court of Justice (STJ), Federal Supreme Court (STF), and the State Court where the company is headquartered (TJ), to identify lawsuits and/or convictions of the exporting company and its members regarding:
i) Acts of corruption (art. 5 of Law No. 12,846/13);
ii) The crime of influence peddling and active corruption against the National Public Administration (arts. 332 and 333 of the Brazilian Penal Code);
iii) Crimes committed by individuals against the Foreign Public Administration (arts. 337-B and 337-C of the Brazilian Penal Code);
iv) Money laundering or concealment of assets, rights, and values (art. 6 of Law No. 13,260/16); and
v) Acts of terrorism financing (Law No. 9,613/98).
To carry out the analyses, the exporter must provide ABGF with the following documents:
- Articles of Incorporation and/or Bylaws (as applicable), registered with the Commercial Registry at the company’s headquarters;
- Documentation proving the election of the Board of Directors (registered with the Commercial Registry of at the headquarters; acceptable documents include Minutes of the Board Meeting, Minutes of the General Shareholders’ Meeting, Minutes of Partners’ Meeting, or Articles of Incorporation, as applicable);
- Minutes of the General Shareholders’ Meeting electing the Board of Directors (if applicable), registered with the Commercial Registry of the company’s headquarters;
- Power of attorney with specific authority to sign the Exporter Commitment Statement (required only when the signature is not that of a director with powers granted in the Articles of Incorporation and/or Bylaws);
- Personal identification documents of at the company’s responsible parties (CPF);
- Simplified certificate from the Commercial Registry of the company’s headquarters, issued within the last 30 (thirty) days.
Based on the analysis of all the above-mentioned documents and information, ABGF’s compliance area issues an opinion with possible recommendations before the operation is submitted for approval.