7.TRADE ACCOUNTS RECEIVABLE

7.1.Breakdown of balances


	December 31,	December 31,
	2020	2019
Domestic customers
Third parties	970,796	1,027,035
Related parties (Note 11) (1)	47,685	23,760

Foreign customers
Third parties	1,938,614	2,027,018

(-) Expected credit losses	(41,889)	(41,996)
	2,915,206	3,035,817

The balance refers to transactions with Ibema, an entity that is not consolidated by the Company.

The Company performs factoring transactions for certain customers’ receivables where, substantially all risks and rewards related to these receivables are transferred to the counterpart, so that these receivables are derecognized from accounts receivable in the balance sheet. This transaction refers to an additional cash generation opportunity and may be discontinued at any time without significant impact on the Company's operation and is therefore classified as a financial asset measured at amortized cost. The impact of these factoring transactions on the accounts receivable in the balance sheet for the year ended December 31, 2020, is R$5,388,370 (R$3,544,625 as of December 31, 2019).

7.2.Breakdown of trade accounts receivable by maturity


	December 31,	December 31,
	2020	2019
Current	2,603,229	2,552,459
Overdue
Up to 30 days	209,210	180,909
From 31 to 60 days	51,420	148,388
From 61 to 90 days	2,062	20,448
From 91 to 120 days	6,665	20,680
From 121 to 180 days	8,618	17,899
More than 180 days	34,002	95,034
	2,915,206	3,035,817

7.3.Rollforward of the expected credit losses


	December 31,	December 31,
	2020	2019

Beginning balance	(41,996)	(37,179)
Business combination		(5,947)
Addition	(9,350)	(18,650)
Reversal	3,328	6,364
Write-off	7,737	13,383
Exchange rate variation	(1,608)	33
Ending balance	(41,889)	(41,996)

The Company maintains guarantees for overdue securities in its commercial operations, through credit insurance policies, letters of credit and other guarantees. These guarantees avoid the need to recognize expected credit losses, in accordance with the Company's credit policy.

7.4.Main customers

The Company has no customer responsible for more than 10% of net sales of pulp segment for the year ended December 31, 2020. As of December 31, 2019, only 1 (one) customer was responsible for 10% of net sales of pulp segment.