Brazil Expands Exemption on International Packages

Sending a gift to Brazil? Or maybe you’re in Brazil and need to make an international purchase. Either way, it’s likely your package will get taxed by customs officials when the goods arrive in Brazil. In a previous article, we explained that goods with import values up to US$3,000 are subject to a flat tax rate of 60%.

We also discussed an exemption on goods with import values that don’t exceed US$50. But that exemption only applied to packages sent and received by individuals. Now, the exemption applies to shipments from companies too. That means that purchases from stores in the United States, for example, won’t be taxed in Brazil if the import value isn’t more than US$50.

It sounds great, but like all things Brazil, there’s a catch. The US$50 limit still includes the price of the product plus shipping and insurance. Considering most courier services charge more than US$50 just to send documents to Brazil, it’s hard to imagine many purchases that would stay below that limit.

Nevertheless, for consumers, this means greater access to international goods. And retailers, particularly smaller businesses, can now easily reach Brazilian customers and compete more effectively with larger sellers. Perhaps the government would also consider increasing the limit or even removing shipping and insurance from the calculation.

Either way, the change is a significant step forward to encourage international trade. It’s also a recognition of the importance of e-commerce businesses. Only time will tell what other changes Brazil’s willing to make.