Livetech da Bahia Ind. e Com. SA Commercial Policy
WDC NETWORKS, a company established under Company Name : Livetech da Bahia Ind. e Com. SA is located in Ilhéus, State of Bahia, and adopts the fiscal regulation of SEFAZ-BA. The main supply conditions of this proposal is presented below:
The products are billed on valid currency Reais (R$), and products prices are calculated in dollar, that is, the amounts are adjusted by excahge rate variation of commercial dolar, between the date of the proposal and the effective billing date.
2. Dispatch location:
The merchandises and products are always shipped from our facility in the municipality of Ilheus, BA. Therefore, freights and delivery lead time are calculated from this origin.
3.1. All Federal, Municipal and State taxes are always included in our proposals, and in accordance with the legislation in force.
3.2. ICMS: there are several ICMS tax rates depending on destination and customer type:
3.2.1. : INTERSTATE SALES FOR TAXPAYER CUSTOMERS: tax rate of 4% for most of products or 12% when the product is classified as with national similar product ( CAMEX list).
3.2.2. : SALES WITHIN THE STATE OF BAHIA are always with tax rate of 18% for any type of taxpayer
3.3. IPI: varies according to product NCM, may be 5, 10 , 15 or up to 20%
3.4. PIS/COFINS: given thar WDC is a company ruled by actual profit, the tax rate is 9.25%
3.5. TS: Up till now, State of Bahia does have TS agreements (tax substitution) with any other State, therefore, our expressed prices and values do not include this addition. TS is responsibility of the reseller.
3.6. DIFAL: Difference of ICMS tax rate (between 4% and 18%) in case of interstate sales to “non taxpayer” customers, that is, State Registry = Exempt, WDC must collect in advance 14% of difference to the destination State on merchandise. This new legislation, by Constitutional Amendment No. 87 ICMS 93, of September 17, 2015, established the need to collect the tax difference of ICMS on Interstate operations for non-taxpayers, that is, customers that do not have State Registry, collected in advance by the seller, when issuing Tax Invoice.
4. Possibility of Direct billing the reseller representative
4.1 WDC Networks has no service team for end customers, and always respects the channel. However, there are cases when the channel (reseller, integrator, etc.) requests to WDC to bill and deliver directly to the end user.
4.2. In such cases, we have as policy to commission the channel for difference of values, discounting all taxes incurred on gross price difference.
4.3. Since January 2016 we must collect 18% as ICMS on sales to non-taxpayer end users (exempt of IE) and individual.
4.4. Since January 2, 2017 all sales to users exempt of State Registry are required to collect a deposit of 14% at purchase time/billing, to cover corresponding DIFAL fees.
5. Methods of Payment:
Our company offers a wide range of payament options, and each customer must choose his/her best option to define prices, the price change according to payment method, due to financial costs.
– In cash (payment in advance): this product billing modality is validated only after WDC recives the payment.
– Credit Card: up to 6 installments for values over R$ 3,000.00.
– Installments : In this case, WDC issues bank payment slips with defined due date and it is possible to pay 84 days after the tax invoice issue date.
– In case of installment, the requests must pass the credit analysis department, responsible for approval. We cannot bill as installments in sales for companies registered as MEI (individual micro companies).
6. Penalty for payments past due:
Em casos de atrasos de pagamentos pelos clientes será cobrada uma multa de 2% e mais 0,16% por dia de atraso sobre os valores dos boletos bancários.
7. Formal confirmation of customer’s purchase:
All requests must be formalized with signature of the responsible for the customer and submitted to WDC, and only upon formalization, the request is accepted and processed. This procedure is in accordance with norms ISO9001 and ensure respect and security to our customer.
8. Authorization of partial deliveries:
- The customer must inform if accepts partial billing of the request, according to product availability.
- If yes, WDC must deliver according to the inventory availability.
- If not, that is, the customer does accept partial deliveries and the lead time may be longer, due to the availability of all items.
9. Customer registration data:
Due to the legislation on issuing Electronic Tax Invoices, when registering a request, WDC requires the customer registration data to be confirmed on following instruments:
– RECEITA FEDERAL (FEDERAL REVENUE to confirm Corporate Taxpayer Registry CNPJ and address)
– SINTEGRA (to check if State Registry is still active)
– SUFRAMA (in cases of tax exemptions for customers in North Region)
– Also, we must have in data base: Responsible for receiveing NF-e (Electronic Tax Invoice sent by system), Responsible for accounts payable (to receive payment slips), Responsible for purchase (receive automatic order confirmation)
10. Customer marketing category:
In order to classify our customers according to main activity and business type, we defined basically the following categories:
A) REGIONAL DISTRIBUTORS
- Companies which main activity is to purchase, stock and serve local resellers and stores in regions they operate.
- Registered as ICMS taxpayer, tha is, have State Registry.
- Regional distributor must have support structure and technical training, RMA, maintain stocks.
- Usually, they do not sell to end user.
- They have high monthly sales volume.
- Companies which main activity is to purchase, and service end users and customers.
- Reseller does not require RMA structure or maintain stocks.
- Usually, they do not add engineering services to their sales
- Can purchase products directly from WDC or Regional Distributors.
C) SYSTEM INTEGRATORS
- Companies which main activity is to service end user project, adding various products and services in the solution.
- Usually, they provide projectos and not small sales. Add engineering services to for sales.
- System Integrators have technical team: designers, installers, maintenance technicians.
D) INTERNET PROVIDERS
- Companies which main activity is to offer broadband internet services in their regions.
- This class of customers operates upon authorization from Anatel via SCM license (multimedia service)
- They purchase products for infrastructure construction and to offer services, and usually do not sell products.
E) END CUSTOMERS FOR DIRECT BILLING
- WDC Networks does not sell directly to end users, but many times is requested to make estimations and deliver products directly to the end customer, for agility purpose of transportation, credit, etc.
- Usually, this customer is a medium or big company that purchase products directly for the system integrator, to develop projects.
11. Freight and insurance:
WDC has a special freight policy based on value of each SHIPMENT (not total order amount):
- For SHIPMENTS over R$ 5,000.00 (five thousand reais), the road freigh is free (CIF), except for States in North Region ( AM, RR, RO, AC, PA). In case of free freight, the carrier is selected at our dispatch / logistics in Ilhéus-BA, always using criteria that combine lower cost/shorter delivery lead time for each region.
- For SHIPMENTS up to R$ 5,000.00 (five thousand reais), the freight cost paid by the customer, and can choose the preferred carrier.
- Carrier selection: Cases when the customer wants to choose the carrier, for reason of faster delivery, must pay by it, even for orders over R$ 5,000.00. In this situation, it is necessary to calculate the freight, and due to this, dispatch of merchandise may be delayed.
- Freight calculation: Freight, when the customer pays, must be estimated with the carrier, based on destination, value, weight, volume, etc. and can take time to receive these data. Our team of “Sales Support” in Ilhéus-BA.
12. Products delivery lead time:
WDC NETWORKS, as policy, maintain inventory of most products for delivery, to be capable to make faster delivery to customers.
- When there is no inventory ready for delivery, then we ask for a longer lead time that varies from 30 to 90 days, according to the product and country of origin, because factories manufacture on demand.
- The buyers must be informed, when confirming orders, about the inventory status and lead time agreed between the parties.
13. Carrier elivery lead time:
After billed, the chosen carrier schedules to collect the merchandise at the WDC warehouse dispatch area in Ilhéus-BA. Each carrier has a delivery lead time pattern, depending on region of destination. This lead time for road freights may vary from 5 to 25 days. In periods near the year end, the lead times may be longer. Important information: For the North region of Brazil, usually, lead times are longer than 20 days from collection, and in the Southeast, usually up to 7 business days from collection.
14. Tracking dispathed cargo:
It is possible to check cargo tracking on main carriers website (or post office) by Invoice Number (NF). Our logistics procedure pattern is as follows:
– After collecting the merchandise, in average, carriers take 24hours to send to our team, the cargo tracking number.
– As soon we receive the dispatch tracking number, usually the day after dispatch, our team registers the number in our ERP, and the system automatically sends a notice with this number to the registered e-mail for the customer, with dispatch data, and can be tracked by the customer.
– The customers may check carriers directly, or contact our logistics team in Ilhéus-BA, to obtain more details.
15. Warranty Policy:
Every product has its warranty term according to the policy of each manufacturer. Usually, the pattern of the majority of products is 1 year from sales date. Our warranty pattern is the “store counter”. Therefore, the products must be sent with freight paid by the customer, and we send repaired/exchanged products with paid freight. Products replacement under warranty are assured right of the customer, but we notice that in some cases, due to import lead time which varies for each manufacturer, the replacement may be delayed.