AliExpress assists in promoting Brazil's compliance program and helps merchants obtain small tax exemption policies

According to Brazilian media reports, at the request of the Brazilian government, AliExpress is assisting in promoting the upcoming Brazilian Tax Compliance Program (Remessa Conforme). According to local Brazilian policies, only e-commerce platforms that support the program can enjoy Brazil's duty-free cross-border packages below US$50 and more convenient customs clearance services.

AliExpress said it would "work with Brazilian authorities to promote the development of Brazil's digital economy." Industry insiders analyzed that AliExpress's move was to help merchants obtain the duty-free policy for cross-border packages below US$50 as soon as possible .

(Brazilian media reports on AliExpress’ attitude)

For AliExpress merchants, the platform's positive response to the Brazilian tax compliance program is undoubtedly a reassurance, which means that after obtaining the Brazilian tax compliance program certification in the future, AliExpress's small cross-border packages from Brazil below US$50 that meet the requirements will be explicitly exempted from the 60% tariff, and the Brazilian customs will give priority to platform orders participating in the program, and the customs clearance speed will be faster.

Currently, Brazil's customs duties require consumers to pay after the goods arrive based on the analysis and notification of the tax department, resulting in longer delivery time. The new plan shows that the Brazilian government will work with cross-border e-commerce platforms to promote the improvement of this shopping experience, and it is expected that Brazilian consumers will be more relaxed when shopping online across borders.

However, it should be noted that Brazil will still impose a unified 17% goods and services circulation tax (ICMS) on cross-border consumption on cross-border e-commerce platforms in order to "provide competitiveness and equal tax treatment for Brazilian domestic companies."

That is to say, after the implementation of the compliance plan, cross-border parcels worth $50 or more will be subject to a 60% tariff, plus a 17% ICMS tax, which translates to a total tax rate of about 92%. However, cross-border parcels worth less than $50 are exempt from tariffs and only need to pay a 17% ICMS tax, which translates to a total tax rate of about 20%.

Industry insiders analyzed that as Brazil's tax compliance plan progresses, the Brazilian government and major cross-border e-commerce platforms are expected to put the DDP model (Delivery Duty Paid) on the agenda , allowing consumers to pay taxes when placing an order. This will make the customs clearance process smoother.

It is reported that AliExpress' Latin American market has grown rapidly in the past year. This year, it will further expand the scale of new customers in Brazil and increase investment in overseas warehouses in Brazil, which can achieve delivery in as fast as 5 days. Cross-border merchants with high customer orders and medium and heavy items can follow the platform layout direction to prepare overseas warehouses in a rhythmic manner.

(The platform recommends stocking categories for Brazilian overseas warehouses)

AliExpress

Brazil

Small tax exemption