Cross-Border Compliance in the Brazilian Marketplaces

Cross-Border Compliance in the Brazilian Marketplaces

Before reporting on my experience with marketplaces, it is important to address the compliance of marketplaces in relation to cross-border.

In all the sales transactions that take place on Brazilian marketplaces, payments are processed in Brazil, that is, under the laws that govern the country.

There is an important detail about co-responsibility in relation to these same transactions: the marketplace is co-responsible, even if it contractually transfers this responsibility to the seller.

As a seller, if you really read the contract that most marketplaces send to sellers, your attorney would certainly not advise you to sign it, once no matter what happens, the marketplace always transfers responsibility to the seller.

Many local marketplaces accept sellers who offer products without the inclusion of customs taxes, and as the Post Office Correios (as already mentioned) does not have the ability to tax all orders that transit through it, they end up doing unfair competition.

Retail entrepreneurs and some industry sectors decided to pressure the Brazilian government for measures against websites and platforms that allow direct import of products from China by individuals. Luciano Hang, owner of Havan, and Alexandre Ostrowiecki, CEO of Multilaser, are among the leaders of the movement.

Also, according to the report, names such as Shopee, AliExpress, Wish, Shein and even Mercado Livre were mentioned. The proposal is that the consumer pays import taxes at the time of purchase and not only when the product arrives at the Federal Revenue, as is currently the case.

FREE MARKET: INVESTMENT OF BRL 17 BI PRESSES COMPETITORS:

The industry is also not satisfied with the market situation. Several institutions have been complaining for years about what they call unfair competition from imported products. The complaints became even more intense after the growth of e-commerce.

According to the newspaper, the president of the Brazilian Association of Toy Manufacturers (Abrinq), Synésio da Costa, articulated support from other entities, such as the Brazilian Association of the Textile and Apparel Industry (Abit), the Brazilian Association of the Electrical and Electronics Industry (Abide), National Association of Electronics Manufacturers (Eletros) and National Forum against Piracy and Illegality (FNCP).

BRAZILIANS UNITE TO COUNTER ATTACK FOREIGN MARKETPLACES:

Another fact reported is the importation for commercial purposes, in which the subsequent sale of products takes place in marketplaces with local operations. The report states that Shoppe and Mercado Livre, specifically, are accused of allowing sales by individuals without issuing an invoice. The companies would not be responsible for the origin of the products sold.

According to the press, some of the e-commerce companies took a stand. In a statement, Shoppe says it has not been notified by any government agency and claims to comply with local laws. Mercado Livre questioned the complaint and said it shares the concern with combating tax evasion and piracy. AliExpress has declared that it respects the local laws of the countries in which it operates.