How other countries tax imports from stores like Shein – 04/14/2023 – Market

With the justification of protecting the national industry and increasing revenue, the government of Luiz Inácio Lula da Silva intends to adopt measures that may make international purchases online, from sites like Shein and Shopee, more expensive.

Without citing specific websites, the government alleges that this sector has committed fraud, such as companies using the names of individuals or dividing purchases into smaller packages, in order to avoid paying the 60% tax on imported products.

The current Brazilian model is similar to that of 85 other countries, according to a list released by the Global Express Association, with lower or higher values ​​depending on each nation.

Others, like Argentina, charge for each and every product, regardless of the amount or whether it is a transaction between individuals or involving companies.

In Brazil, the collection of taxes for imported products must be implemented through a provisional measure and there is still no date or detailed description of how the change will be made.

Merchandise is expected to become more expensive, as the trend is for websites to pass on tax costs to consumers.

global purchasing movement

Like Brazil, other countries, including the United States, South Africa and India, also see Chinese websites as threats to their local laws and regulations.

The movement of purchases in these marketplaces, evaluates Alberto Serrentino, specialist retail consultant and founder of Varese Retail, is still recent – ​​which makes it impossible to know precisely the steps that other countries will take in relation to import taxes.

“During the pandemic, Brazil saw an explosion in sales on these marketplaces. Last year, they added up to the equivalent of R$ 50 billion [segundo dados da NielsenIQ Ebit] in cross-border shopping [transfronteiriças]”, he details.

“At the same time, in Brazil, the tax burden on retail is very heavy. So this actually creates unfair and unbalanced competition, since this limit of US$ 50, which was not established for use by companies, but yes to exempt personal shipments.”

Serrentino welcomes the change announced by the Brazilian government.

“We leveled the competition. Brazilian companies will have to be able to offer products at prices compatible with what consumers will have in terms of alternatives. Imports via platforms are also positive and should not be stifled, but rather regulated, maintaining their space of growth that, in my view, is something irreversible.

How fees work in other countries

In Latin America, rules similar to those in Brazil are applied in countries such as Paraguay, Colombia, Chile and Peru —although specifications in the law may vary, as well as the amounts subject to payment of taxes.

In Peru, for example, the “Pequeña Valoración Aduanera”, which refers to the exemption of taxes and customs duties for imports of low value, has an exemption limit equivalent to US$ 200, per shipment and per recipient, as long as the import be carried out by an individual and for personal use.

Companies are not eligible for the benefit and must pay tax rates ranging from 0% to 20% on the customs value of the imported goods.

Argentina is one of the neighboring countries that does not have tax exemption, even for imports of small value.

According to government information, products imported for final consumers are taxed by the “Tax for an Inclusive and Solidarity Argentina” (PAIS), which is 30% of the value of the imported goods and is used to finance social and economic policies.

As for imported products intended for companies, Argentina applies the “Customs Import Rights” regime. Rates vary and can reach up to 35%, depending on the type of imported goods.

Out of 85 countries, Chile is the nation with the lowest duty-free import regime – under US$30, according to the Global Express Association.

The rule applies to both final consumers and companies. When going over $30, import duties and value-added taxes (VAT) apply to the total amount, including the cost of shipping and insurance.

The highest import value with exemption is from the United States, which establishes that, in order not to charge fees, goods cannot exceed the value of US$ 800 (for final consumers) and US$ 2,500 (commercial imports ).

What is it and what is it for import tax exemption

The minimum duty-free import value, also known as the customs exemption limit, is the maximum value of goods that can be imported without the need to pay taxes or customs fees. This value varies according to the country of destination and the type of goods, and is established by the customs authorities.

In general, exemption is granted for low value goods, with the aim of facilitating trade and reducing bureaucracy for end consumers.

In countries that establish a maximum value, as is the case in Brazil, if the importer buys something more expensive, he is obliged to pay the corresponding taxes and fees.

“What is discussed today is the need to collect taxes from those who owe them, instead of increasing the tax burden. It is a necessary measure, after all, there are people who owe a tax that is not being collected due to a fraudulent situation”, says Tathiane Piscitelli, coordinator of the Tax Law Nucleus of the professional master’s degree at FGV (Fundação Getúlio Vargas).

“We have entire containers that arrive with the names of individuals sending goods that are not, that do not originate from a shipment yet individuals, but we are looking for commercial transactions.”

“These people need to be taxed, including as a matter of isonomy, a matter of isonomy with the internal market. Tax revenue is fundamental for the functioning of the State. Without taxation, we cannot carry out public policies, we have no education or health. at the end of the day, a tax diversion is harmful to everyone”, he adds.