Brazil’s review of imported products is very strict. It is extremely difficult to clear customs for electrically charged products and products with cartoon patterns, which can be regarded as the “devil customs”. Although the demand in the Brazilian market is huge, customs issues have deterred many cross-border e-commerce sellers. In order to capture this treasure market with high unit prices and large profits, sellers must pay more attention to customs clearance. There are many goods that cannot be imported without a license. For example, medicines, food, and LED products are the most common products that require an import license. In addition, Brazil also has relevant regulations that prohibit the import of second-hand goods, unless they are products with special attributes such as antiques and works of art. For certain types of goods, such as toys, testing and inspection by a regulatory laboratory is required when importing for resale.
Brazilian Logistics and Tariffs
Brazil’s logistics costs are high, timeliness is poor, and customs clearance is slow and complicated. This is a “worry” for sellers.
(1) Brazilian Logistics
As the saying goes, “time is money.” In domestic e-commerce, if the goods are usually not delivered within 3 days, customers will start to press for orders. However, if we are doing Brazilian cross-border e-commerce business, we will find that this sentence is not always applicable. Brazilian consumers have to wait an average of 45 days to receive products purchased online from China. Although the waiting time is a bit long, Brazil’s international orders have grown by an average of 16% per year. Although Brazilians are willing to wait, if we really plan to do the Brazilian market, when setting up the store logistics time limit, we must ensure delivery within the promised number of days. If any temporary situation arises, be sure to inform the buyer in advance and provide a solution to avoid complaints.
(2)Brazilian tariffs
Many sellers in the Brazilian market often ignore its complex legal system, accidentally causing taxes to be more than double the cost of the product. Therefore, the price of goods exported to Brazil is at least twice that of similar products on international websites such as Amazon.
As a member of the Southern Common Market, Brazil can trade freely within the common market, and its external tariff is 23%. In 2010, Brazil’s average tariff was 11.45%, and import taxes were 10% to 35%, so Sellers must clearly explain customs fees to buyers. The value of the goods cannot be declared low, otherwise it will be revalued. For orders over $3,000, Brazilian Customs will charge a 60% import tax.
From now on. Judging from data and market feedback, Brazil is listed as one of the most difficult countries in the world to clear customs. In addition to small air parcels, other packages are often checked, especially FedEx and DHL packages, which must be checked and the recipient’s identity must be provided. VAT registration number. Therefore, the author recommends sending EMS (postal service). After all, private companies also charge customs clearance fees, which are 4 to 5 times higher than those of the State Post Office. Goods delivered by the postal service only charge 60% of the import tariff. < /p>
There are three types of Brazilian cross-border e-commerce import tariffs:
1 Zero tariff – books, newspapers and magazines
2 Tax rate 60% – one use. Goods delivered by the postal service.
3 Tax rate 85%~88% – Goods delivered using private courier companies
Brazilian law stipulates that products worth less than $50 are shipped internationally. No import tax is levied.
Brazilian Customs stipulates that the quantity of all items sent to local private individuals in Brazil cannot exceed 3 pieces, otherwise the customs will refuse customs clearance and return the goods directly to the place of shipment (before returning the goods). There will be no notice). All freight costs incurred are borne by the consignor. Brazilian customs conducts random inspections of imported customs declaration goods, that is, according to green (all inspection-free automatic customs declaration), yellow (only inspection of customs declaration documents, automatic inspection after verification). Customs clearance), red (customs declaration documents and goods must be inspected before customs clearance). The customs will provide inspection results within 5 working days. The recipient should be present during the inspection. If sampling is required, the goods will be inspected. , the cost is borne by the recipient.
In addition to import duties, Brazilian consumers also need to pay customs clearance fees. Brazilian Post now charges an additional fee of approximately 15 reais for all international packages processed by customs. The postage fee is about RMB 24.5.
For the same product, if the quantity exceeds 3 pieces, it can only be sent to the company, not to individuals, and must be imported through formal customs clearance. For formal customs clearance, the recipient must be registered with the local customs and needs to hire a customs clearance agency to assist with customs clearance procedures.
The recipient can also use his own customs clearance agent in Brazil. VCP and GRU ports can handle formal customs clearance procedures. If the recipient is not in these two port cities, you can also apply to transfer the goods to the nearest customs supervision center (additional fees will be incurred) because Brazil DHL is located locally. There is no authority to transfer goods in a bonded manner, so it needs to be handed over to a third-party agent. The resulting warehouse rent, transfer fees and other related costs must be paid directly to the agent by the seller. Brazil does not accept fee-free abandonment. If customs clearance at the destination fails and the sender chooses to abandon the shipment, he or she needs to pay an abandonment fee of at least 50 euros per ticket. Otherwise, Brazilian Customs will arrange a return on collect.
It is worth noting that in some urban suburbs and some remote unspecified areas that do not accept customs duties, the tax must be paid by the sender. If there is no VAT number (recipient value-added tax number) on the waybill and invoice, the customs will return it directly to the place of origin without any notification.
(3) Other taxes and fees
Since we are doing cross-border e-commerce, it is natural that there are taxes and various fees that need to be paid when express delivery enters Brazil.
It should be noted that the taxes required for Brazilian postal international express and international air express (such as TNT, UPS, DHLFedEx) will be different.
There are 5 types of taxes and fees that need to be paid for express delivery into Brazil:
DII, import tariff, is divided into 0%, 60%, 85% and 88%< /p>
2)ICMS, Commodity Circulation Service Tax, similar to VAT, usually 18%
3FECP, Brazilian Poverty Alleviation Fund, usually 1%.
4TAXAADMINISTRATIVA, operating fee for international airlines. Operating fees are generally fixed. For example, if the value of goods is less than 500 US dollars, TNT is 17 US dollars, UPS is almost 17.5 US dollars, and DHL is the most expensive, 20 to 30 US dollars. A small portion of these costs is paid to the Brazilian Federal Airport Infrastructure Corporation.
GTARIFA DE ARMAZENAGEM, the airport storage fee is generally the product weight multiplied by 0.7 US dollars.
In addition to the above five taxes and fees, there is also the possibility of paying detention fees. If the payment is not paid within the time limit, a penalty of 2% of the FOB price plus a penalty interest of 1% of the FOB price will be charged.
For example, suppose a Chinese seller receives an order from Brazil, the product price is US$45, and the product is sent by postal express, how much tax does he need to pay?
< p>Since it is Brazil Post, the default international airline operating fees, airport storage fees, Brazilian Poverty Alleviation Fund, and detention fees are 0. Since the product price is less than 50 US dollars, there is no need to pay other fees. You only need to pay the corresponding logistics provider operating fee and freight.
A few additional points:
In Brazil , goods worth less than $50 are tax-free, but only from person to person. If it is from a company to a company or an individual to a company, it is not tax-free.
If the value of the goods is less than US$500, it can be delivered to the customer through the Brazilian postal system, which is more convenient.
If the value of the goods is between US$500 and US$3,000, it needs to be delivered through Regime de Trbutaco Simplificada. (RTS) Declaracio de Remessa Expressa (DRE) postal express application for simplified tax regime.
If the value of the goods is higher than 3,000 US dollars, then you need to hire a company with import rights to operate it, which is not included in this category.
If you send medicines to Brazilian individuals for personal use, they are also tax-free.