Brazil Eliminates Federal Import Tax on Small Overseas Parcels, Diverging from U.S. and EU Policies
Brazil has eliminated its federal import tax on small overseas parcels, a move that contrasts sharply with recent efforts by the U.S. and the European Union to close similar tax loopholes. This decision, which effectively ends a 20% charge on orders up to US$50, was reversed by Brazilian President Luiz Inacio Lula da Silva, who had previously opposed the tax. The levy, known as 'taxa das blusinhas' or de minimis, primarily affected cheap clothing, phone cases, and household goods bought by lower-income consumers. The U.S. ended its US$800 de minimis exemption for goods from mainland China and Hong Kong in May last year, and then suspended it for all origins in August, leading to significant user losses for platforms like Shein and Temu in the U.S. and EU.
