Wish and SHEIN accused of unfair competition

According to foreign media reports , some Brazilian retail entrepreneurs jointly submitted a complaint to the Minister of Economy and the President against cross-border e-commerce platforms, demanding the implementation of new tax rules on these e-commerce companies. It is understood that these platforms include Wish, SHEIN and Mercado Livre.

According to foreign media reports , some Brazilian retail entrepreneurs jointly submitted a complaint to the Minister of Economy and the President against cross-border e-commerce platforms, demanding the implementation of new tax rules on these e-commerce companies. It is understood that these platforms include Wish, SHEIN and Mercado Livre.

According to these entrepreneurs, the imported products sold on these cross-border e-commerce platforms have created unfair competition for local physical companies, and these companies are demanding "tax equality" because in actual operations, these foreign goods entering the Brazilian market through e-commerce platforms do not need to pay taxes.

Brazilian law states that individuals do not have to pay tax when purchasing foreign products if the value of the goods is less than US$50.

Local Brazilian companies said that some sellers on e-commerce platforms would falsely report the value of goods in order to avoid taxes, such as issuing fake invoices and re-labeling products, marking goods worth more than $50 as less than $50 to evade taxes. These companies claim that only 2% of the transactions that arrive at Brazilian customs are regular.

In the document, these local companies proposed that they hope to amend the existing tax rules to require that products sold on these e-commerce platforms should pay taxes before purchase, rather than paying taxes through the Federal Tax Bureau after purchase.

It is understood that the document, which is supported by the Brazilian Toy Manufacturers Association ( Abrinq), the Brazilian Textile and Clothing Industry Association (Abit), the Brazilian Electrical and Electronics Industry Association (Abinee), the National Electronics Manufacturers Association (Eletros) and the National Forum against Piracy and Illegal Practices ( FNCP), can be submitted to the Attorney General's Office.

Mercado Livre defended itself against accusations in the documents that it was not responsible for the origin of the products it sold and allowed individuals to sell without issuing invoices. However, Mercado Livre's legal director said that the company would require sellers to open a CNPJ (personal tax registration number).

Wish and SHEIN did not respond to requests for comment. Last week , SHEIN opened its first physical pop-up store in Brazil in Rio de Janeiro.

SHEIN

Wish

Brazil