Purchases up to US$50: TCU wants to know about combating fraud – 09/22/2023 – Market

The TCU (Federal Audit Court) requested information from the government of Luiz Inácio Lula da Silva (PT) on the measures adopted to combat fraud in international purchases made through e-commerce platforms and to avoid loss of revenue due to lack of collection of import tax.

The request also encompasses the actions taken by the federal government against possible damage to national commerce, mainly Brazilian retail.

The Federal Revenue Service, the Ministry of Finance, the Mdic (Ministry of Development, Industry, Commerce and Services), the Mdic Foreign Trade Secretariat and the Civil House were contacted.

According to a document obtained by Sheetthe request for information was made after the TCU initiated a process to investigate complaints about “possible irregularities occurring in the Special Secretariat of the Federal Revenue, which imply loss of federal tax collection and, consequently, damage to the Union’s treasury”.

The complainant, whose identity is kept confidential, refers to the entry of goods and products of low value acquired through large international marketplaces without due payment of import tax.

Today, remittances of up to US$50 are exempt in the case of companies certified by the Federal Revenue Service’s Conform Remittance program. But first, the government itself accused irregularities, such as loopholes used by foreign companies that send sliced ​​purchases to Brazil in the names of individuals.

The special secretary of Revenue, Robinson Barreirinhas, said that the Tax Authorities identified a “citizen” who sent more than 16 million remittances to Brazil.

The process is reported by minister Jhonatan de Jesus, from TCU, and is being processed confidentially. The piece is signed by AudFiscal, the audit unit of the court of accounts specializing in Fiscal and Tax Policy.

The record contains data provided by the complainant about the rise in international purchases in recent years in Brazil with the consolidation of ecommerce.

“In rapid growth, official figures from the Central Bank indicate that small value imports – up to US$ 50 (the so-called minimis) – totaled US$ 13.14 billion in 2022 in Brazil, more than double what was observed a year earlier ( 2021), when this category of remittances was in the order of US$5.67 billion”, says the text.

“The growth stands out even more when you see that in 2013 this type of operation was ‘only’ US$83 million.”

Of the total volume of purchases in 2022, it appears that “approximately US$7.8 billion were no longer collected by the Union solely as taxes on imports, adding that this fact also has the potential to negatively impact the results of several other socioeconomic indices , such as, for example, the total loss of up to R$99 billion”.

The report also mentions a technical study prepared by Fiemg (Federation of Industries of the State of Minas Gerais), pointing out that the sectors of clothing, electronics and light materials for construction (electrical, for example) stand out among those imported without due taxation.

According to the TCU document, the complaint requires the investigation of anti-competitive practices (unfair competition) and violations of the economic order, in addition to the imposition of sanctions on Shein, Shopee and AliExpress on charges of “flagrant fraud” of the Brazilian legal system.

“The complaint points out -, taking advantage of inspection carried out by sampling and legal/normative permission for shipments made by individuals, emarketplaces, especially Asian ones (Shein, Shopee and Aliexpress), have been using this loophole and distorting the interpretation of exemption standards, causing harm to competition and the economy”, says the document.

The whistleblower also points out that international e-commerce platforms are able to sell products at much lower prices than competing Brazilian companies, which would also harm the creation and maintenance of jobs in the country

Companies of Asian origin say they comply with local laws and regulations in Brazil and recently received authorization from the government to participate in Remessa Compliance.

The preliminary analysis carried out by AudFiscal considers that, before the compliance program, goods imported by post sent by a legal entity were not entitled to exemption, regardless of the value of the import.

The document, issued on August 23, provides information about the implementation of the Revenue program, which provides for import tax exemption for international purchases of up to US$50 and faster customs clearance.

Another important issue, according to the text, is related to the Brazilian government’s ability to monitor products that arrive in Brazil and, consequently, to collect the tax due.

“Due to the large volume of imports, in the vast majority of cases, especially those of low-value goods, this taxation ends up not being charged, given the deficit of auditors and budgetary resources”, he states.

When contacted, the Federal Revenue Service said it would not comment. Privately, an interlocutor from the economic team told Sheet that the response to the TCU’s request for information is being prepared and must contain a report of the measures that are underway, such as the implementation of the compliance program.

The TCU’s action was not received with concern by the Revenue. There is an understanding that the body previously warned about the increase in imports and non-compliance and that, for the first time, effective measures are being taken to ensure that the legislation is complied with. The strategy is to improve the collection of information to outline a more efficient public policy.

At public events, Barreirinhas said that, before Remessa Compliance, only 2% to 3% of international purchases were duly declared to the competent bodies and that the government’s goal is to achieve 100% regularization by the end of the year. Today, this percentage is between 30% and 40%.

The Mdic said that “the issue is the responsibility of the Federal Revenue Service”, but that he is evaluating the TCU’s request for information and “will respond to the court within the appropriate period.”

The Civil House stated that the TCU requested positions from the ministries, within the limits of the competences of each body, within 30 days. He also said that the department “analyzes the request, the deadline for responding to which began on September 19”.

When contacted, the Ministry of Finance said it would not comment.