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Using Translation to Cut Costs in the Energy Sector
How to apply localization principles to the oil industry and save your client money
Everyone knows that translation is an important service that offers direct economic benefits.
It is also no news to those of you who work with software localization that the more the
translation is adapted to the characteristics and peculiarities of a certain geographic region,
the more benefits it will bring to whoever buys it. Nevertheless, I believe that no other
market has a more direct relationship in terms of cost reduction as does the translation (or
"localization," if you prefer) of parts and equipment for oil companies in Brazil.
I currently work as Director of the Energy division at Eagle Global Logistics, a company that
specializes in providing end-to-end logistics services to the oil industry. Among the activities
associated with this market, which range from the shipping of small parts to the
transportation of already mounted oil platforms, we offer translation and customs
classification services to some of our clients. This activity is crucial for reducing the tax
burden of our customers. This is because, depending on the final use of the part being
imported, it may or may not be exempt from the Imposto de Importação (II), the Brazilian
importation tax, and the Imposto sobre Produtos Industrializados (IPI), the Brazilian tax on
REPETRO is a Brazilian normative instruction that regulates the special customs regime for
importing and exporting goods destined for oil and gas research and exploration activities.
To benefit from the special REPETRO concessions, imported goods must be correctly
translated and classified so that when they are evaluated by customs inspectors, they
become exempt from the above mentioned taxes. However, the work of translation and
classification is much more complex than you would imagine.