São Paulo- The use of the Sharia in trade contracts between Brazilian and Arab companies may grant to trade relations specific regulations that are different from those of Brazil. Sharia is the name granted to Islamic Law, the set of rules based on the Koran and on the traditions of prophet Mohammed. The way companies can deal with these legal differences was the theme of the talk “Islamic Law and International Law”, promoted on Wednesday (26), at the Arab Brazilian Chamber of Commerce, in São Paulo, with lawyers Rabih and Salem Nasser.
Rabih and Salem are partners in a law firm that operates in the areas of international trade and investment, business consultancy, international law and arbitration. Both are professors at the Getúlio Vargas Law School in São Paulo (FGV).
“In case of disagreement between companies, including articles that do not comply with specifications, it is preferable for the contract to define what legislation will be applied,” said Rabih. According to the lawyer, it is important for companies to consider what regulations of the other country, like sanitary or fund transfers, for example, may affect trade with the other parties. “In the Arab nations, it is necessary for the product to get there within its shelf life, risking no customs clearance,” he exemplifies.
Rabih also explained that the clauses must be included in a commercial contract, including those that include the goods traded, delivery times and payment method, price calculation formula, consequences of default and conditions for cancellation of the contract, among others. “There are countries which require certain certifications and this has to be taken into consideration in the cost of what is being sold,” he said.
Regarding this matter, Michel Alaby, CEO at the Arab Brazilian Chamber, pointed out the organisation’s work. “It is important for the documents to be certified by the Chamber, as this grants the process greater safety.”
Salem recalled that the Sharia is not something “unique”. “There are four large Sunni legal schools and one Shia. Thus, Sharia varies according to the school adopted by each country.” According to him, there are common terms between Brazilian law and Sharia, “like the question of good faith, the question of respect to contacts and observance of what was hired.”
“There is double concern when the Sharia may be applied to a contract by a Brazilian company. It is necessary to take care with what the general principles of Sharia are, among them how it is implemented by a legal system, which will normally have its own specificities. That is, parts of the Sharia may be incorporated into the contract by both parties, included as clauses,” explained the lawyer.
Participants
With a full audience, the theme also attracted the interest of participants, who sought greater details about how they could deal with topics in their companies.
“Our intention is to learn more about trade relations with the Arab countries, to have greater contact,” said Charles Amaral, export analyst at Inbra Indústrias Químicas, a company that produces and exports soy oil for use in plastification. “We export several countries. In the Arab world, we sell mainly to the Emirates,” he explained.
“We must at least have the basic knowledge to know what we are dealing with,” said Eduardo Ariboni, a partner at ARB Assessoria Empresarial, a company that operates with production companies in Eygpt, Syria and Iraq.
To Geovana Quadros, the Export coordinator at Cadiveu, a company that produces hair cosmetics, and which has been exporting to the Arab world for three years, there are important rules in the Sharia that end up influencing the business.
“When I discuss promotion of the image of a product, I have to respect the models I use in promotion. For example, I cannot shrug my shoulders, the chest area. Whether you like it or not, this is influential at the time of export,” he said.
*Translated by Mark Ament
