Shein will manufacture 85% of products in Brazil, says Haddad – 04/20/2023 – Market

The Minister of Finance, Fernando Haddad, announced, this Thursday (20), a term of commitment signed with Shein for the nationalization of products offered by the Asian giant in up to four years.

“The products will be made in Brazil. It is very important for us that they see the country not only as a consumer market, but as a production economy”, stated Haddad.

According to the minister, Shein also committed to adhere to the Federal Revenue’s compliance plan. On the other hand, he said, the retailer demanded that the rule apply to everyone.

“We, obviously, do not want anything different. We want equal conditions for everyone. According to them, if the rule applies to everyone, they will absorb the costs of this compliance, not pass it on to the consumer”, said Fernando Haddad.

The agreement was made this morning, in a meeting at the Ministry of Finance office in São Paulo, on Avenida Paulista. The president of Fiesp, Josué Gomes da Silva, was the intermediary.

This afternoon, Haddad will meet with the IDV (Institute for Retail Development). On the agenda will be the tax exemption for goods up to US$ 50 (R$ 252).

The commitment to Shein responds to President Luiz Inácio Lula da Silva’s request to solve the problem of tax evasion in electronic commerce in an administrative manner.

Haddad said he will follow “the example of developed countries”.

“They call it a digital tax abroad, a digital tax. When consumers buy, they will be exempt from any type of tax. The tribute will have been made by the company, without passing on any additional cost to the consumer”, he said.