Brazil Imposes Import Tax on Ecommerce Goods

Brazil President Luiz Inácio Lula da Silva signed into law in early July legislation to impose a 20 percent import tax on goods valued at US $50 or less bought from international ecommerce companies. Shipments priced from $50.01 to $3,000 would continue to be subject to the 60 percent duty. All state duties would be leveled at 17 percent, members reported on our call. The new law will take effect on August 1.

Provisional Measure MP 1.236/2024 establishes requirements and conditions for the application of the new regulations. The key changes to be applied from August 1st:

1. The cost of transportation and insurance must be added to the value of the goods that are part of the shipment, except when they are already included, for the purposes of the maximum value and the tax rate limits. Which means, consider CIF value for limit and taxation rules.

2. The change in the taxation applies only to those markeplaces/ecommerce businesses that have joined BR's compliance program Remessa Conforme (PRC). The taxation will be applied as follows:

• 2.1) NON-PRC

• All shipments are taxed regardless the CIF amount from US$0.01 up to US$3,000.00: 60% Duty + 17% VAT (ICMS).

• 2.2) PRC

• 20% Import Duty tax and 17% VAT (ICMS) for any cross-border shipments up to US$50.00.

• 60% Import Duty tax and 17% VAT (ICMS) for any cross-border shipments from US$50.01 to US$3,000.00.

• The import duty items from US$50.01 to US$3,000.00 will have a US$20.00 reductor on the duty tax payment.

Thus, there remains a benefit for marketplaces and online retailers to get certified in Remessa Conforme because otherwise the tax starts at 60 percent from the first dollar for non-certified vs. 20 percent for those certified in PRC.