New Brazil Customs Regulations for E-commerce

Brazil has long been a challenging market for cross-border sales, with ever-changing regulations that often resulted in considerable inefficiencies. Prior to August 2023, any product purchased from international sellers could face a range of hurdles, including sudden customs holds, a 60% import tax regardless of the item’s value, or a painstaking verification process lasting up to 30 days. However, a transformative shift is on the horizon with Brazil’s latest compliance program for cross-border e-commerce.

In this article, we’ll explore the changes introduced by this new compliance program and its potential benefits for online retailers and brands.

Traditional Import Process

Under the traditional customs procedure in Brazil, incoming packages undergo a verification process upon arrival at customs. The majority of these products are routed to the International Treatment Center in Curitiba, which handles approximately 500,000 packages daily. Given that packages often spend 10 to 20 days in transit to Brazil and an additional 30 days for the clearance process, the entire procedure can extend up to 2 months from the moment of purchase to final delivery.

Brazil’s Enhanced Customs Regulations

Brazil’s new compliance program, named ‘Remessa Conforme,’ was introduced by the Ministry of Finance on August 1st, 2023. This program exempts taxes on purchases of up to USD 50 made on international e-commerce sites or through local marketplaces that permit cross-border sales. In return, customers will pay a standard state tax of 17%, known as ICMS (similar to VAT).

This initiative aims to streamline the process of importing and delivering international orders. Under these new regulations, customers must declare their products and pay the associated taxes before the products arrive in Brazil. This approach ensures a ‘green light’ in customs and expedites the entire process, significantly reducing the time products spend in customs.

Without Remessa Conforme	With Remessa Conforme
A flat 60% import tax	Products under $50 are exempt from import taxes. The only applicable tax is the ICMS tax.
Consumer handles import declaration and tax payment after the product arrives	Declaration and tax payment before product arrival
Compliant products can take up to 30 days to be released by customs	Compliant products are promptly released

How Will This Affect My Business?

For sellers looking to expand their presence in Brazil, the new compliance program offer several advantages:

• Enhanced Consumer Confidence: With clear and transparent rules, consumers will feel more secure when making online purchases, as they won’t have to worry about unexpected import taxes or endlessly delayed deliveries.

• Reduced Cancellations: By expediting the customs process, this new program will significantly reduce order cancellations. A major reason for customer cancellations has been the prolonged delivery times, but under these new regulations, products will no longer languish in customs for months.

• Decreased Counterfeit Products: These rules will also help curb the importation of counterfeit products, promoting the sale of genuine, authentic items.

• Greater customer satisfaction: All of this undoubtedly translates to greater customer satisfaction and allows consumers to leave positive reviews on their shopping experience.

How can I register for the program?

To access all the benefits offered by the program, there’s no need to register directly. When you sell on approved marketplaces or at approved cross-border stores, like nocnoc, your products will automatically be exempt from the tax and will also benefit from an expedited customs clearance process.

For companies looking to sell on their own e-commerce sites, the process is a bit more tedious. They must register on the government platform and establish a contract with either a shipping carrier or Correios.

Simplify Cross-Border Sales in Brazil with nocnoc

Expanding your e-commerce presence in Brazil can be a daunting task filled with complexities. However, when you choose nocnoc as your partner, those complexities vanish.

nocnoc provides a seamless solution for brands and retailers eager to tap into Brazilian marketplaces. Gain immediate access to over 15 platforms, including Mercado Livre, Magalu, Carrefour, and Americanas, all without the headache of managing separate accounts on each one. Instead, sellers can sell their products within nocnoc’s megastores, which enjoy a strong reputation.

Say goodbye to import-related issues, order cancellations, or returns. We ensure that your products are fully compliant with Brazil’s latest regulations and handle all the necessary steps to ensure timely deliveries.

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Sign up with nocnoc today to create a free account in our Seller Center, and start selling on Brazil’s largest marketplaces, risk-free.