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Brazil Eliminates Federal Import Tax

  • 1 day ago
  • 1 min read

President Luiz Inacio Lula da Silva signed an executive order that scraps federal taxes on foreign purchases, reversing course on an unpopular tax on goods that are bought on ecommerce platforms.


The order makes immediate changes to Programa Remessa Conforme (PRC) by eliminating  the federal taxes ​on foreign purchases worth up to $50. There are no longer duties on parcels below USD $50, and on purchases from $50 to $3,000, the duty is 60 percent, with a deductible amount of USD $30. The move is seen as a political one leading up to the October presidential election.

 

PRC is Brazil’s voluntary ecommerce compliance program that streamlines the customs process by allowing taxes to be collected at the time of purchase rather than upon the item's arrival. Online retailers and marketplaces must meet certain strict requirements to become certified and, in return, receive faster customs clearance and differentiated taxation.

 
 
 

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