Government goes back and will keep $50 exemption; How is AliExpress?

2023-04-18 19:00:00

After harsh criticism, the Brazilian government decided to withdraw from its intention to end the tax exemption on imported purchases of up to US$ 50 made between individuals. The previous announcement stated that one way to curb smuggling and unfair competition was to end the exemption, but this was not well accepted by the people in general, and the president Lula (PT) asked the economic team to find another solution.

Government won’t take $50 exemption on AliExpress purchases

After President Lula’s withdrawal, the Minister of Finance, fernando haddadpointed out that the exemption is only for individuals and that the government will seek measures to prevent companies from using loopholes to receive the benefit irregularly.

Companies that practice unfair competition will be subject to inspection. All companies in the United States, European Union and China that are regularly used by Brazilians on sites such as Shein, AliExpress e Shopee.

Last week, the government alleged that the exemption rule for individuals in purchases of up to US$ 50 was being used irregularly by international retailers, who “disguised themselves” as individuals to send parcels in fractions to Brazilian customers and avoid paying the tax . This announcement caused a great public reaction, and President Lula was concerned regarding the negative repercussions on social networks of the measure and pressed for a retreat.

How does the marketplace work here in Brazil? What is contraband that the government talks regarding

Amazon’s marketplace, for example, in Brazil works similarly to AliExpress, you make a purchase at Amazon’s online store, which can be sold and delivered either by Amazon itself or by a partner store. The invoice is issued by the seller, either Amazon or that partner store.

Said contraband is different, you buy it on AliExpress and there is no invoice, even because they are in China, but there is a purchase identifier that goes along with the package, this order, regardless of the purchase, comes as an individual, usually with values ​​below $50 to fit the law and pass without taxation.

How is AliExpress, Shein and Shopee?

Government goes back and will not take exemption from $50; How is AliExpress?

Unlike what was announced last week, purchases on AliExpress, Shein e Shopeeas well as other international purchases valued at up to $50 and made between individuals, will remain tax-free.

However, the government will seek measures to prevent companies from using loopholes to receive this benefit irregularly, which may include strengthening inspections to curb smuggling and other irregularities. In addition, the government guaranteed that it will fight online sales companies that evade import taxes.

Summary

Summarizing the newest episode of the soap opera imports, nothing has changed. The government had talked regarding taxing any and all purchases, it went back and kept what is in the law. What will happen in the next few days is a meeting of this commission that was created to understand and study ways to curb smuggling and irregular imports.

The information is from G1;

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