Retail complains about new import rules – 7/1/2023 – Market

The new import rules that exempt shipments of up to US$ 50 from taxes are very harmful for Brazilian retailers and could lead to the closure of stores, said the president of the IDV (Institute for the Development of Retail), Jorge Gonçalves Filho, this Saturday. (1st)

In a meeting with the Minister of Finance, Fernando Haddad, representatives of the sector asked for a new rate for remittances, saying they were seeking “equality of competition” in Brazil. They claim they were surprised by the publication of the ordinance with the new rules and ask for a measure for retailers in the “very short term”.

The ordinance defines that there will be no charge of import tax for purchases of up to US$ 50 for individuals, even if the shipment was sent by a legal entity. To be entitled to the exemption, the e-commerce company, national or foreign, must be part of the Conforming Remittance Program, of the Federal Revenue Service.

To be benefited, the company also needs to collect state taxes on imports. The seller who joins the program is obliged to inform the consumer of the origin of the products and the total value of the goods (including federal and state taxes).

In addition, the Consefaz (National Committee of Secretaries of Finance, Finance, Revenue, Taxation or Economy of the States and the Federal District) reached an agreement at the beginning of the month to define a 17% rate on remittance import operations.

The measure displeased the Brazilian retail sector, which requested a meeting with the Minister of Finance to address the issue urgently.

The president of the IDV stated that the exemption for foreign retailers harms the competitiveness of the sector in the country.

“We want equality, that our retailers have the same conditions as companies abroad. We are in agreement with the entry of new players in the market, but we need, in the very short term, a rate that gives equality of competition”, he said Goncalves Filho.

He defends the incidence of a new rate for international shipments from foreign retailers, something that was not ruled out by Haddad. According to the minister, the ordinance was an “initial step” and changes may occur.

Sérgio Zimerman, director of the IDV and president of Petz, stated that the new measures for international shipments are “an invitation for Brazilian companies to withdraw from the country”.

“Without an equalization, we will be invited to leave Brazil and sell from the outside to the inside, since we would only have the 17% ICMS. Here, we have ICMS, PIS, Cofins, Income Tax… activities in the country”, said Zimerman.

They consider, however, that the government has taken a step in the right direction by defining the incidence of ICMS on parcels.

The representatives affirm that Haddad’s reception of the sector’s considerations was positive and that there was a commitment to institute a federal rate for remittances. Haddad, however, did not speak to the press after the meeting.

Representatives of Lojas Renner and Grupo Soma also attended the meeting.

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Understand the new rules

WHAT HAS CHANGED?

As of August 1st, the import tax will no longer be charged for purchases of up to US$50 sent by companies participating in Remessa Segundo, a new Federal Revenue program. The measure applies to purchases transported by the post office or courier companies.

HOW WAS IT BEFORE?

The exemption for purchases of up to US$ 50 was only valid for shipments in which the recipient and sender were individuals. According to experts consulted by the Sheetthe rule was previously circumvented by some foreign companies, which sent products through individuals to benefit from the exemption.

WHAT IS THE COMPLIANT SHIPMENT PROGRAM?

The program aims to provide greater agility to foreign trade and promote compliance with customs legislation. To be certified by the program, companies must provide a series of information, such as the country of origin and the shipment or tracking identification code.

WHAT IS THE IMPACT OF THE MEASUREMENT?

According to specialists, the impact will be for companies that used natural persons to send the product with tax exemption. “Companies that were using a scheme to use individuals are going to have to change their actions”, says Silvio Laban, a professor at Insper.