Brazil FAQs - FedEx Small Business Center · PDF fileBrazil FAQs. 2 RETURNS & REJECTIONS...

Brazil FAQs

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RETURNS & REJECTIONSEXPORTER RESPONSIBILITIESCLEARANCE

Memphis

Sao Paulo

BRAZIL

Buenos AiresSantiago

2

LICENSES & PERMITS

GATEWAYWHY BRAZIL

OVERVIEW

With Brazil’s GDP approaching $2.5 trillion, the expectation of double-digit growth, and the country’s role as host of the 2014 FIFA World Cup as well as the 2016 Olympic Summer Games, companies cannot afford to ignore Brazil’s business opportunities.

Many exporters have tried to enter the Brazilian marketplace and failed because they didn’t understand Brazil’s clearance process and other aspects that are unique to conducting trade in this country.

At FedEx, we’re using our expertise, network, and relationships to help our customers expand into Brazil and succeed. In this document, we answer the questions that exporters to Brazil ask most frequently.

For more specific help with your company’s expansion into Brazil, contact your FedEx representative.

Why should I expand my business to Brazil?With the world’s sixth largest economy and 201 million consumers, Brazil is an enticing opportunity for companies looking to expand internationally.

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The airport is convenient to three major highways: Santos Dumont, Bandeirantes, and Anhanguera.

VCP has become one of the main connection points in Latin America with an air cargo import/export terminal that covers 81,000 square meters.

Campinas is one of Brazil’s leading centers for technology and home to several major universities. Many high-tech and multinational companies are located in and around Campinas, including several Fortune 500 companies — Caterpillar, 3M, Rhodia, Motorola, HP, Flextronics, Foxconn, Pirelli, GEVISA, Ford, Eaton, Delphi, Dell, Bosch, Tetra Pak, Valeo, General Motors, Volkswagen, Honda, IBM, Kodak, Embraer, Johnson & Johnson, LG, and Toyota.

Where is the FedEx gateway in Brazil?

AEROPORTO DE CONGONHAS/SP

Itatiba

Valinhos

Louveira

Vinhedo

Itupeva São Paulo

Indaiatuba

Monte Mor

Santa Barbara d’Oeste

Nova Odessa

Sumaré

Hortolândia

Jaguariúna

Cosmópolis

Americana

Artur Nogueira

Holambra Santo Antonio de Posse

Pedreira

Paulinia

CAMPINAS

AEROPORTO DE GUARULHOS

RODOVIA DOM PEDRO

RODO

VIA

AN

HA

NG

ÜERA

RODOVIA DOS BAN

DEIRANTES

RODOVIA SANTOS DUMONT

SP 101

RO

DO

VIA

AD

EMA

R D

E B

AR

RO

S

ROD

OV

IA G

ENERA

L MILTO

N TAVA

RES - SP332

ROD

OVIA

AN

HA

NG

ÜERA

AEROPORTO INTERNATIONALDE VIRACOPOS

Viracopos International Airport (VCP) is the gateway for FedEx in Brazil. It is located 14km (8 miles) from downtown Campinas, Brazil, and 90km (58 miles) from the city of São Paulo.

GATEWAYWHY BRAZIL

RETURNS & REJECTIONSEXPORTER RESPONSIBILITIESCLEARANCE LICENSES & PERMITSOVERVIEW

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There are two types of customs clearance regimes under Brazil Customs regulations:

1. Express clearance 2. Formal clearance

Here’s how they compare:

Item Express FormalProduct — Description Documents & samples only, no commercial

value, not intended for resaleAny product intended for resale

Product for Resale No Yes

Declared Value for Customs Limit Maximum $3,000 USD No limit, any value

Duties & Taxes 60% import tax; 18% VAT (CIF if transportation charged to a Brazilian account)

Import tax based on product classified under Harmonized System; 18% VAT (CIF if transportation charged to a Brazilian account)

Clearance Facility FedEx warehouse Government warehouse

Clearance Performed by FedEx team members Recipient’s customs broker

Clearance Time

Customs Anvisa (consumer health) MAPA (agriculture)

98% on same day of flight arrival 1 to 5 business days 1 to 2 business days

1 to 5 business days 1 to 5 business days 1 to 5 business days

What are the clearance regimes in Brazil?

EXPRESS CLEARANCE FORMAL CLEARANCEEXPRESS VS. FORMAL

Two clearance regimes

Which applies

How goods move


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The Express clearance regime applies to the following shipments and conditions only:

• Documents with NO commercial value

• Samples with NO resale purpose

• Documents and samples with declared value for Customs of less than $3,000 USD

• Personal shipments

The Formal clearance regime applies to the following shipments and conditions:

• Documents with commercial value

• Any type of product and quantity for resale purpose

• Products of any declared value for Customs

How do I know which regime applies to my shipment?Two clearance regimes

Which applies

How goods move



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Upon inbound flight arrival, containers and products are sent to the following warehouses at VCP:

FedEx warehouse – Express clearance

• Shipments containing documents and samples with NO resale purpose, and with maximum declared value for Customs of less than $3,000 USD for each one.

Government warehouse – Formal clearance

• FedEx International Express Freight®, airport-to-airport (023 air waybill)

• Express shipments containing any product with NO declared value for Customs limit. They must be marked as BSO on the air waybill and labeled accordingly to reflect VCPRT on URSA Code.

• Shipments with Cost, Insurance and Freight (CIF) of more than $3,000 USD must be designated either BSO from origin or Commercial Shipment for Resale.

How does the regime determine how my shipments move into Brazil?

Two clearance regimes

Which applies

How goods move

Caged GIG GRU

VCP-SAOA VCP-VCPA VCP-NNP – VCP-RIO

Cleared VCPConverted Formula

Private WHS

Inspection Inspection

FedEx Facility Express Clearance

DVC < $ 3K

Gov Facility Formal Clearance

DVC - any $



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Duties & Taxes

Customs duties & taxes are charged based on declared value for Customs if transportation charge is billed to a non-Brazilian account and based on CIF if transportation charges are to be billed to a Brazilian account,regardless of the type of product(s). Values and calculation:

60% import tax applied over the declared value for Customs

18% VAT (state tax) applied over the declared value for Customs, plus import tax

Example: Shipment with declared value for Customs = $1,000 USD Import tax 60% = $600 USD VAT 18% = $288 USD Total duties & taxes: $888 USD

Customs Clearance Facility

FedEx team members perform the customs clearance at the FedEx warehouse. It is a bonded facility certified by Brazil Customs.

Customs and other government agencies’ selection process is based on the following factors:

• Declared value for Customs

• Description of product(s)

• Quantity of product(s)

• Weight of entire shipment

How does the Express customs clearance regime work? How it works

Clearance times

Required paperwork

Why shipments are held

Delivery Duty Paid



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How it works

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Customs Clearance Anvisa Agency Clearance MAPA Agency ClearanceClearance Times

Same-day clearance for 98% of inbound

Usually requires at least 5 business days Usually requires at least 2 business days

Typical Delay Causes

1% convert to Formal clearance; 1% held for more info

Product & shipment registration; notarized documentation from recipient

Additional paperwork required from recipient

What are the clearance times for Express clearance?



Clearance times

Required paperwork


Delivery Duty Paid

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Required paperwork

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Customs Clearance Anvisa Agency Clearance Agriculture Agency Clearance• FedEx Extended Tracking Number (ETN)

air waybill

• Commercial Invoice

• FedEx ETN air waybill


• Guia de Recolhimento da União (GRU) provided only by recipient

• Special form to be submitted by recipient

• FedEx ETN air waybill



What paperwork is required for Express clearance?



How it works

Clearance times


Delivery Duty Paid

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Shipments can be held for four reasons:

• Missing recipient’s tax ID

• Customs selection for additional required paperwork/information

- Can also be converted to be cleared under Formal clearance regime

• Anvisa waiting for paperwork and product registration in its website by recipient

• Agriculture paperwork required by recipient

• Checks: Completed checks can only be sent to certain authorized organizations in Brazil. If they are not sent to an authorized organization, they will be returned to the origin.

Why are shipments held during Express customs clearance?

Cage Reason

Anvisa AGRI Customs Tax ID



How it works

Clearance times

Required paperwork


Delivery Duty Paid

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Yes. In Brazil DDP only applies to Express clearance. Duties & taxes can be billed to the shipper’s account number because Express clearance does not require a customs broker. If the shipper doesn’t have a FedEx account number, duties & taxes will be due for payment upon delivery.

If the shipper can arrange it, can FedEx support Delivery Duty Paid (DDP) shipments in Brazil with Express clearance?



How it works

Clearance times

Required paperwork


Delivery Duty Paid

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Formal Clearance

All shipments requiring Formal clearance must be prepared as BSO (Broker Select Option).

Customs Duties & Taxes

Duties & taxes are based on Cost, Insurance and Freight (CIF) charges of products classified by the Harmonized System (HS) Codes. Duties & taxes calculations are based on declared value for Customs if transportation charges are billed to a non-Brazilian account holder. If transportation charges are billed to a Brazilian account holder, charges are included in CIF.

FedEx can pay duties & taxes ahead of time to assist with clearance. Those fees will either be billed to the recipient’s FedEx account or collected upon delivery.

Customs Clearance Facility

All activities for Formal clearance are performed at the Brazil government warehouse. FedEx does not control shipments stored at this facility after “docking” them upon flight arrival.

How does the Formal clearance regime work? Formal clearance regime

Required paperwork

Is BSO required?

Preparing a BSO shipment

Customs clearance is performed by the customs broker (BSO) engaged by recipient:

• Recipient may engage their own broker

• FedEx LTDA, customs broker company in Brazil, can perform this activity once engaged by recipient. Additional cost is assessed to recipient.

Clearance Window

Customs’ and other government agencies’ clearance times vary from one to five business days.

Selection Process

Customs’ and other government agencies’ selection process is based on a random electronic system, after registering import declaration. Shipment inspection is indicated by color:

• Green — cleared

• Orange — only documents are inspected

• Red — documents and freight are physically inspected

Delay at storage

Delivery Duty Paid



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The following paperwork is required for Formal clearance with BSO:

Customs Clearance Anvisa Agency Clearance MAPA Agency Clearance• FedEx 023 air waybill

• FedEx ETN air waybill in International Air Transport Association (IATA) format


• Packing list

• FedEx 023 air waybill

• FedEx ETN air waybill in IATA format


• Packing list

• Guia de Recolhimento da União (GRU) provided only by recipient


• FedEx 023 air waybill

• FedEx ETN air waybill in IATA format



What paperwork is required for BSO clearance?



Formal clearance regime

Required paperwork

Is BSO required?


Delay at storage

Delivery Duty Paid

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All shipments entering Brazil through the Formal clearance regime require the Broker Select Option (BSO). This includes any products intended for resale.

They can be FedEx International Priority® BSO, FedEx International Economy®

BSO, FedEx International Priority® Freight BSO, or FedEx International Economy® Freight BSO. Regardless of the type of transportation service used by the shipper/recipient, customs clearance will be performed by a customs broker engaged by the recipient and will be performed at a government warehouse upon arrival in Brazil.

Can a U.S. shipper proactively engage FedEx LTDA to act as the customs broker, or must that request come from the recipient in Brazil?

A customs broker is required only for Formal clearance shipments. For those shipments, the recipient must authorize FedEx LTDA to act as the customs broker. The shipper will want to make sure the recipient has designated FedEx as the broker with the recipient’s RADAR registration.

When using FedEx as a customs broker, the recipient is also responsible for all duties & taxes. These charges cannot be reverted to the shipper’s FedEx Express account number.

How do I know if my shipment requires Broker Select Option?




Required paperwork

Is BSO required?


Delay at storage

Delivery Duty Paid

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Packaging a BSO shipment for entry into Brazil

To avoid having split/partial shipments on the way to Brazil:

• Load shipments with a large amount of pieces onto a skid/pallet.*

• Load small packages onto a skid/pallet and make it a single shrinkwrapped volume.*

Issuing the air waybill

The FedEx Extended Tracking Number (ETN) air waybill 12-digit number is used for BSO, as well as for any other FedEx Express® service.

• Make sure the BSO field is properly marked, so the Visa Manifest Report will reflect it as well as an URSA Code label.

FedEx Brazil will convert regular ETN air waybill 12-digit numbers into IATA format using the same information originally provided by the shipper prior to flight arrival in Brazil.

How do I prepare a BSO shipment for entry into Brazil?Additional information required by Brazil Customs

The only additional items of information required by Brazil Customs are the following:

• Chargeable weight, whenever applied

• Rate per kilo/pound, including fuel surcharge

• Total freight charge, including fuel surcharge

Are partial/split shipments allowed into Brazil?

Incomplete shipments are NOT allowed to be moved to Brazil. According to Brazil Customs regulations, split/partial shipments CANNOT be cleared until the balance of the shipment arrives in Brazil. It is important for shippers to ensure that the total number of pieces listed for the shipment match the number of pieces being shipped and that they are all shipped on the same date.

* Note that the quantity of pieces mentioned on the air waybill must be the total number of skids/pallets used, and not loose pieces.




Required paperwork

Is BSO required?


Delay at storage

Delivery Duty Paid

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Formal clearance is performed at the airport administration warehouse; therefore, the recipient must pay a fee based on the following:

• 1.5% of Cost, Insurance and Freight (CIF) for the first five-day period.

• Additional time may possibly incur additional fees.

Are storage fees assessed if clearance takes a long time, if the customer’s broker is delayed, or if payment of duties & taxes is not readily available?




Required paperwork

Is BSO required?


Delay at storage

Delivery Duty Paid

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DDP applies only to Express clearance.

If the shipper can arrange it, can FedEx support Delivery Duty Paid (DDP) shipments in Brazil with the Formal clearance process?




Required paperwork

Is BSO required?


Delay at storage

Delivery Duty Paid

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Brazilian companies engaged in foreign trade are required to register with the Federal Revenue of Brazil, which grants a license, known as RADAR.

Brazil does not allow imports for unlicensed importers.

With a RADAR license, an importer can access Brazil’s SISCOMEX system. This is Brazil Customs’ facilitation system for managing and analyzing trade data.

The system helps verify import/export information, spot problem shipments, and manage trade risks.

For information about RADAR and SISCOMEX, go to radariscomex.com.br.

Is RADAR import registration required only for registered businesses in Brazil, or is it also required of individuals who are importing into Brazil to fulfill online or catalog purchases?

RADAR import registration is required for any recipient company or individual using Formal clearance.

What is a RADAR license and how does it affect my shipments to Brazil?

WHAT’S NEEDED DUTIES & TAXESCLASSIFICATIONRADAR


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Based on the Harmonized System (HS) classification, there are several restrictions that importers must be made aware of, especially if import permits are required.

U.S. exporters should provide full descriptions and properly classify goods on the Commercial Invoice to educate their Brazilian importers regarding possible importation requirements.

Some commodities are regulated by government agencies, such as those related to healthcare (pharmaceuticals, cosmetics, medical devices), food, electronics, and machine & automotive parts.

Understanding the requirements for the government agencies is critical; i.e., Anvisa (consumer health), MAPA (agriculture), etc.

How do I know if shipments require import permits?Import permits

Anvisa

MAPA



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Anvisa is the health regulatory body in Brazil and is similar to the Food and Drug Administration (FDA) in the U.S.

Products for human consumption (medications, cosmetics, etc.) require additional licenses for export to Brazil. These licenses must be issued by Anvisa anvisa.gov.br.

Special attention should be given when requesting permission for these products. Granting import licenses can take as long as six months.

What is Agência Nacional de Vigilância Sanitária (Anvisa)?Import permits

Anvisa

MAPA



http://portal.anvisa.gov.br/wps/portal/anvisa/home

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Agricultural products are divided into two categories— chemical and biological.

• Registration for chemicals can be completed in 8 months.

• The registration of biological products takes 24 months.

These licenses must be issued by Ministério da Agricultura agricultura.gov.br.

For instructions provided by Brazil’s Director of Department of Inspection of Animal Origin Products (DIPOA), go to: http://www.fsis.usda.gov.

Note: The U.S. Department of Agriculture’s Foreign Agricultural Service has offices in Brazil that can assist U.S. exporters of agricultural products. Please go to usdabrazil.org.br for more information about their programs.

What is the Ministry of Agriculture, Livestock and Food Supply (MAPA)?

Import permits

Anvisa

MAPA



http://agricultura.gov.br

http://www.fsis.usda.gov/wps/portal/fsis/home

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Brazil uses a system called MERCOSUR Common Nomenclature (NCM) to classify import duty and taxation on products imported into the country. You can see the structure of the NCM code in the illustration below.

How does Brazil Customs classify import products?

00 00. 00. 0. 0.

Sub-item (8th digit of MCN)

Sub-position (1st six-digit of HS)

Item (7th digit of MCN)

Position (1st four-digit of HS)

Chapter (1st two-digit of HS)



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Once goods arrive in Brazil and are cleared through customs, all duties & taxes must be paid to the Brazilian government before the goods can be removed from the airport or port for final delivery.

HS code classification plays a vital role in the amount of duties & taxes calculated. For this reason, it is important that the U.S. export shipper properly identify and document HS codes on the Commercial Invoice. This will avoid duty and tax issues, which could impact the release from customs and ultimately the final delivery of goods.

How are duties & taxes calculated and paid?



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You must include on a FedEx International Air Waybill the following data:

• Sender (Name, address, phone number)

• Recipient (Name, address, phone number) — end customer

• Customs Registration or Tax ID Number for Importer of Record (IOR)

• Commodity Description & HS Code

• Customs Value

• Sender Account Number for Transportation Charges

• Sender Account Number for Duties & Taxes

Important: To ensure DDP (Delivery Duty Paid), the IAWB duty and tax section must indicate that the sender should be billed. If the “sender” box is not checked, then the recipient bears the responsibility for payment, and clearance delays should be expected until payment is received.

What is a FedEx® International Air Waybill (IAWB)?

COMMERCIAL INVOICE PACKING LIST CERTIFICATE OF ORIGIN EEI BEST PRACTICESIAWB


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A Commercial Invoice is required for all non-document shipments. A specific format is not required, although the following basic information must be included:

• Shipper (Name, address, phone number)

• Consignee (Name, address, phone number) — end customer

• Importer of Record (IOR) (Name, address, telephone number)

• Tax ID Number

• Place and Date of Shipment

• Detailed Description of Goods

• HS Code for Each Item Shipped

• Freight on Board (FOB) Value of Each Item

• Country of Origin and Destination

• Quantity and Weight

• Currency Used

• Freight and Insurance Charges (as applicable)

Important: For samples, the declared value for Customs should be that of market value, deducting profit. An amount of $0 USD cannot be accepted and will cause clearance delays.

What is a Commercial Invoice?

Commercial InvoiceSELLER/SHIPPER (Name, Full Address, Country)

Tax Identification Number (EIN)

Invoice Date and Number Customer Order Number

Tracking ID/Air Waybill No.

CONSIGNEE (Name, Full Address, Country) Buyer (if Other than Consignee)

Port of Lading Terms and Conditions of Delivery and Payment (incoterms)

Final Destination Exporting Carrier

Other Transportation Information Currency of Sale

Marks and Numbers Total Number of Packages Total Gross Weight (kg) Cubic Meters

Complete And Accurate Commodity DescriptionAnd Country of Manufacture

Quantity/Unit of Measure Unit Price Amount

Packing CostsFreight CostsOther Transportation Costs

HandlingInsurance CostsAssistsAdditional FeesDuties and TaxesTotal Invoice Value

These commodities, technology, or software were exported fromthe United States in accordance with the Export AdministrationRegulations. Diversion contrary to United States law is prohibited.

I declare all the information contained in this invoice to be trueand correct.

Signature and Status ofAuthorized Person

Date Place

Page ____ of _____



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For all non-document shipments, Brazil requires a packing list detailing the shipment’s contents. It is mandatory for multiple-piece shipments to include the shipment paperwork.

The following information should be included:

• Place and Date of Shipment

• Purchase Order Number

• Description of Goods

• Quantity and Type of Packaging

• Weight

• Marks and Numbers on the Packages (if any)

What is a packing list?



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The Certificate of Origin verifies the country in which the product was manufactured. The product being exported and its destination country determine if a Certificate of Origin is required.

Is a Certificate of Origin required for ALL shipments to Brazil or only for certain commodities?

A Certificate of Origin is required only for commodities subject to import licensing, permitting, or quota restrictions according to their classification. Other shipments should not require a Certificate of Origin.

What is a Certificate of Origin?



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When a U.S. export shipment includes any one commodity with a total value of more than $2,500 USD, the exporter must file an Electronic Export Information (EEI). FedEx can file the EEI on behalf of exporters. There are two options for filing an EEI through FedEx:

• FedEx Export AgentFile® — Contact FedEx International Customer Service at 1.800.GoFedEx 1.800.463.3339 (and say “international services”) to request the FedEx Export AgentFile form be faxed or emailed to your location. Complete the form and fax it to 1.866.879.9037 (toll free) or email it to [email protected].

• Use FedEx Ship Manager® at fedex.com.

Note: For more information or for help completing the forms, call FedEx International Customer Service at 1.800.GoFedEx 1.800.463.3339 (and say “international services”)

What is Electronic Export Information (EEI) for a U.S.-specific shipper?



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To help make the export/import process go more smoothly, keep these tips in mind:

• Ensure consignee is pre-registered in the RADAR system and obtains importer number

• Include importer number on Commercial Invoice

• Provide valid HS code and full description of goods

• Indicate Broker Select Option

- If declared value for Customs exceeds $3,000 USD

- If goods being transported will be used for commercial purposes upon import

- If alcohol is being transported

What are some best practices for exporting to Brazil?



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Our brokerage group will contact the recipient and offer RADAR registration service before Brazil Customs does. This is the easiest way to process returns.

If the recipient does not want to proceed with the RADAR registration process, we can file a Return to Sender request. This process takes longer, and requires authorization from Brazil Customs.

When a consignee does not have a RADAR license number, what is the process for return, or is there a temporary way to get a RADAR license number?

RETURNS & REJECTIONS


Brazil FAQs - FedEx Small Business Center · PDF fileBrazil FAQs. 2 RETURNS & REJECTIONS...

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