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Conformal Shipping: what is it and what is its impact on e-commerce?

By Tiago Moraes 4 minutes reading
Conformal Shipping: what is it and what is its impact on e-commerce?
Shipping Program As opinions in e-commerce are divided: it is good for some and bad for others. Purely illustrative photo: @drazenzigic
Shipping Program As opinions in e-commerce are divided: it is good for some and bad for others. Photo for illustration purposes only: @drazenzigic

Remessa Conform is a Federal Revenue program, which is the agency of the Federal Government of Brazil for customs control, designed to implement new import tax rules for purchases made by Brazilian consumers in international e-commerces.

In effect since August 2023, Remessa Conforme is a voluntary program. That is, it is not mandatory for companies. However, the largest international marketplaces today, such as Aliexpress, Amazon, Mercado Livre, Shein, Shopee and, now also, Temu, have requested entry into the program and have already been accepted by the Brazilian Federal Revenue Service.

In Brazil, Magalu has also adopted the system. The company's goal is to increase the availability of imported products on its marketplace , aiming to provide products verified against counterfeiting.

Next, we will present the objectives and rules of the program; and we'll show you how it's impacting ecommerce. Still in this article, we will list statistics about Remessa Compliance. Keep reading and stay informed!

COMPLIANT SHIPPING: OBJECTIVES AND RULES

Remessa Compliance has the following rules for companies certified in the program:

  • Tax exemption for consumers when purchasing products from international e-commerce sites worth up to US$50,00;
  • Collection of 17% ICMS on online purchases abroad, with advance payment;
  • Charge of 60% import tax for purchases over US$50,00;
  • Duty to inform consumers about fees before orders arrive in Brazil. Generally, this has been done at the time of check out.

Among the main objectives of Remessa Compliance is the federal government's attempt to strengthen Brazilian e-commerce companies. In this sense, the program aims to equalize taxes and, thus, make consumers buy more in the domestic market. It is therefore expected that national virtual stores will increase their sales.

Video: get tips for implementing an online store and, with it, selling throughout Brazil (use the controls in the player on Youtube to activate and translate the subtitles into your language)!

Furthermore, the government's goals are to increase revenue, reduce smuggling, simplify import taxes and speed up customs treatment. With a more agile process, the tendency is for logistics operators' costs to decrease and the shipping experience to be better for consumers.

IMPACTS OF THE PROGRAM ON E-COMMERCE

An article on the Veja Negócios website revealed in March 2024 that purchases fell by 23% on Asian e-commerce sites. With import taxes, many Brazilian consumers have opted to shop on domestic e-commerce sites, as intended by the federal government.

Meanwhile, a survey commissioned by Alibaba from the consulting firm Plano CDE , conducted with 2.535 consumers from socioeconomic classes A, B, C, D, and E of all genders who had made purchases in the previous 12 months, revealed that among these consumers:

  • 66% gave up importing products;
  • 45% did not make the purchase in another store, whether national or international;
  • 75% oppose increasing taxes on international e-commerce platforms;
  • 87% say it is more correct to reduce taxes on national products instead of increasing taxes on imported products;
  • 62% say that imports enable consumption, especially for people with lower incomes;
  • 58% say that imports give access to differentiated products, that is, products that do not exist on the domestic market.

CONCLUSION

As can be seen, Remessa Conforme has provoked diverse reactions from the public and companies. On YouTube, a large number of influencers have repudiated the program; there is also dissatisfaction among international marketplaces , but some national marketplaces are taking advantage of the new scenario.

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